Inside the Dubai Land Department's Property Auctions
Type
E-journal
Date
6 Jun 2012
Jurisdiction
Dubai
Taxonomy
Lending & Security, Mortgages, Financial Institutions, General Real Property Law
Copyright
LexisNexis
Relevant company
Hadef & Partners
Legal reference
Dubai Law No. 14/2008
Analysis
Ashraf Sayed of Hadef & Partners examines the Dubai Mortgage Law, Dubai Law No 14/2008 ("Mortgage Law"), which sets out the rules for default, foreclosure and repossession of financed property in an effort to help speed up the foreclosure process and provide creditors an opportunity to recoup their losses
Foreclosure became a tested course of action in January 2010 with the handing down of a landmark verdict in favour of Barclays Bank plc in the first real estate foreclosure case since the introduction of the Mortgage Law.
Under the Mortgage Law, upon default of a loan, the creditor must give the borrower 30 days' notice through the notary public before commencing execution proceedings. Courts then review the case and may issue a debt judgment which requires the property to be turned over to the Dubai Land Department ("DLD") for auction. During this period, creditors have the right to administer mortgaged property and collect its yields and revenue until it is sold at public auction.