In brief:

• Commercial mortgages are governed by the UAE Commercial Code and are the type of security registered over business premises' in the UAE in relation to the tangible and intangible assets of a business necessary for commercial activity.

• Commercial mortgages can only be mortgaged to banks and financing institutions.

• Commercial mortgages are a registrable form of security and as such must be notarised and registered to be perfected.

• Parties' contractual and legal obligations under a commercial mortgage are continuous.

• A commercial mortgage is not a quick and easy security to enter into and both parties should be aware of their ongoing obligations to ensure the mortgage is fully perfected and enforceable according to the terms of the financing documentation.

• Both parties to the mortgage should cooperate, bearing practical considerations in mind, to ensure that the commercial mortgage is an effective security.

Commercial mortgages