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We are excited to share the latest edition of the Law Update, beautifully and appropriately titled “Sustainable Horizons: The Saudi Arabian Vision.” Giving special honor to the Kingdom’s 2030 vision, this update focuses on a collection of both informative and inspiring articles.
For those in construction, you can learn about how the tendering environment impacts risk-pricing for contractors, the updates on the legal framework of the construction industry and how contractors can protect themselves against financial difficulties.
There is good news too from the kingdom’s banking sector, from which the practice of “Open Banking” is being pushed for! But what is open banking? We’re answering that too.
Also . . . Are there any women trail blazers in Saudi Arabia you can name? We’ll help you with that. We cover how the Middle East has been making strides in empowering women in the entrepreneurial space,most notably in STEM fields.Read the full edition
Mohammed Kawasmi - Partner - Real Estate / Family Business
Article (7) of Law No. 14 of 2008 Concerning Mortgages in the Emirate of Dubai provides that a mortgage is not valid unless it is registered with the Land Department and any agreement to the contrary is void. Article (8) of Law No. 14 requires the mortgagor and mortgagee (and the guarantor in rem, if any) to sign a mortgage application containing the following information:
a) All information related to the property;
b) Value of the property;
c) Value of the debt;
d) Mortgage term; and
e) Personal details of the mortgagor, mortgagee and guarantor in rem (if any), including domicile and place of residence.
Law No. 14 refers to two documents: the mortgage application and the Land Department’s standard form of Mortgage Contract. In practice, the parties to the mortgage need to sign only the Land Department’s standard form of Mortgage Contract in order to register the mortgage and there is no separate application form.
The parties can attach their special terms and conditions to the Land Department’s standard Mortgage Contract, which then become incorporated into the Mortgage Contract.
Due to the large number of mortgage registrations in Dubai, the Dubai Land Department recently decided to ease the process of registration by allowing the mortgagor to sign the Mortgage Contract at the premises of the mortgagee (the lending financial institution) and there is no longer any need for the mortgagor to attend at the Land Department. The parties are requested to sign three original counterparts of the Mortgage Contract which are each stamped by the Land Department.
The Land Department has amended its Mortgage Contract to ensure that all information required by Article (8) of Law No. 14 is captured in the document.
The above changes are a welcome improvement in the process of mortgage registration at the Dubai Land Department.
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