In Dubai, the legal power to establish a mortgage on a property is primarily held by the property owner and the mortgage lender. Here’s a detailed breakdown of the process:

1. Property Owner’s Role:

• The property owner (often the buyer) has the legal authority to establish a mortgage on their property. To do this, they must have full ownership of the property or, in the case of an off-plan property, they must have paid a minimum of 50% of the property's value, as required by the Dubai Land Department (DLD).
  
  

• The owner must also ensure that the property is free of any existing encumbrances or other legal restrictions that could prevent the mortgage from being registered.
  
  

2. Mortgage Lender’s Role:

• The mortgage lender (usually a bank or financial institution) also holds the power to establish a mortgage on a property. The lender assesses the property and the buyer’s financial status before agreeing to provide a loan.
  
  

• Once the mortgage is approved, the lender and the property owner sign a mortgage agreement, which is then registered with the Dubai Land Department.
  
  

3. Dubai Land Department (DLD):

• The DLD plays a crucial role in the mortgage process. It is responsible for registering the mortgage agreement between the property owner and the lender. The DLD ensures that the mortgage is legally binding and that all necessary documentation is in place.
  
  

4. Required Documentation:

• Title Deed: The property must have a valid title deed issued by the DLD.
  
  

• Mortgage Agreement: A formal mortgage agreement signed by both the lender and the property owner.
  
  

• No Objection Certificate (NOC): If the property is within a development, a NOC from the developer may be required.
  
  

• Owner’s Identification: Proof of identity, such as a passport and Emirates ID, for the property owner.
  
  

5. Legal and Regulatory Framework:

• The process is governed by UAE laws, particularly Law No. (14) of 2008 concerning mortgages in Dubai. This law outlines the rights and obligations of both the lender and the borrower.
  
  

Supporting Data:

• According to recent reports from the Dubai Land Department, the number of mortgage transactions in Dubai has been increasing, indicating a robust real estate market where mortgages play a significant role.