Real Estate Mortgages in the DIFC

Analysis

The Dubai International Financial Centre (“DIFC”) has its own legal system and courts distinct from those of the United Arab Emirates (“UAE”).

DIFC property laws and regulations apply to all real property located within the jurisdiction of the DIFC. Dubai real property laws are not applicable within the DIFC and the Dubai Lands Department has no authority within the DIFC even though the DIFC is geographically located within the Emirate of Dubai. Therefore, the procedures adopted by the Dubai Lands Department and the Real Estate Regulatory Authority do not apply to properties located within the jurisdiction of DIFC.

The DIFC has also established the office of the Registrar of Real Property (the “Registrar”) which is responsible for approval and registration of all types of transactions relating to real property located within the DIFC in accordance with the DIFC property laws and regulations. The Registrar maintains a register of all properties and any property in the DIFC must be registered with the Registrar in accordance with all applicable DIFC property laws and regulations. 

1. Mortgages in the DIFC