Welcome back to The Conveyance Desk.

In Episode 12, we covered seller-side mortgages and the process of releasing a bank charge. Today, we look at the buyer's side of the transaction—when the purchase is being financed by a mortgage.

While mortgage-backed purchases are common, they involve more documentation, coordination, and timing than cash transactions. Most delays occur because multiple parties must work together within strict deadlines.

Pre-Approval Comes First

Before searching for a property, buyers usually obtain mortgage pre-approval. The bank reviews income, liabilities, and affordability before confirming an indicative borrowing limit.

Pre-approvals are typically valid for 60–90 days. An expired pre-approval weakens a buyer's position and may require a fresh assessment.

Property Approval and Valuation

Once a property is selected and the sale agreement is signed, the bank conducts a separate review of the property itself.

This includes reviewing the title, location, developer, and any potential legal issues. The bank will also arrange an independent valuation to determine how much it is prepared to lend.

If the valuation is lower than the agreed purchase price, the buyer must contribute additional cash to cover the difference. This is one of the most common surprises in mortgage transactions.

The Final Mortgage Offer

Following approval and valuation, the bank issues a final mortgage offer outlining the loan amount, repayment terms, interest rate, and conditions.

These offers have expiry dates, often between 30 and 60 days. If the transfer is delayed beyond validity, the offer may need to be reissued and reassessed.

What Happens on Transfer Day?

On transfer day, the buyer's bank attends the trustee office or sends an authorised representative.

The bank releases the mortgage funds, registers its charge against the property, and coordinates the drawdown process. The transfer of ownership and registration of the mortgage take place simultaneously.

The buyer becomes the registered owner, while the bank becomes the registered chargeholder.

Down Payment and Fees

The buyer contributes the required down payment, while the bank provides the mortgage funds.

In addition to the purchase price, buyers should budget for:

• DLD transfer fees
• Trustee office fees
• Mortgage registration fees
• Agency fees, where applicable

Missing a fee calculation can cause delays on transfer day.

Common Mortgage Delays

The most common issues include:

• Expired mortgage offers
• Delays in bank approvals
• Missing bank documentation
• Bank representative non-attendance
• Incomplete drawdown requirements

Most of these problems can be avoided through early coordination and confirmation before the transfer appointment.

Key Takeaway

A buyer-side mortgage transaction involves far more than securing finance. It requires successful coordination between the buyer, seller, bank, trustee office, and Dubai Land Department.

With proper planning, the process is straightforward. Without it, avoidable delays can quickly derail the transfer timeline.

In the next episode, we'll discuss Power of Attorney for property transfers, including when a POA is required, what makes it valid, and the common reasons POAs are rejected.