One of the most common questions we hear is simple: who owns the property while the financing is still running? In the structure we arrange, the answer is clear. The property is registered in your name from the start of the transaction, and the bank's right is limited to a registered mortgage that secures the financing until it is fully repaid.
How ownership works during the financing
At transfer, the title deed is issued in the client's name by the Dubai Land Department, or by the land authority of the emirate where the property is located. At the same time, a mortgage is registered in favour of the bank as collateral. The mortgage appears on the property record and stays there until all obligations under the financing agreement are met.
- You can live in the property or lease it, subject to the financing agreement and building rules.
- The bank cannot take the property as long as you meet your obligations.
- If you decide to sell before the end of the term, the outstanding balance is settled from the sale proceeds and the mortgage is released at transfer.
Releasing the mortgage
After the last instalment, or after an early settlement, the bank issues a clearance (no-liability) letter and a release letter addressed to the land department. The mortgage is then removed from the record, and the title deed is free of any charge. Early settlement fees, where they apply, are limited by Central Bank rules and stated in your offer.
A note on Islamic structures
Under some Islamic financing structures, such as certain Ijara products, the bank may hold the title until the end of the term and transfer it to you at settlement. We always tell you which structure each offer uses, so you know exactly how ownership is recorded before you sign.
Who is it for
- Buyers of residential or commercial property who want the title in their own name from the first day.
- Investors who want to lease the property and build equity while repaying.
- Clients who want to understand their rights and the bank's rights clearly before committing.
How it works with Lugain Global
- Review: we check the property, its location and its eligibility for financing, including freehold status for expatriate buyers.
- Offer comparison: we compare banks' offers and explain how ownership and the mortgage are recorded in each one.
- Documentation: we prepare the file and coordinate valuation, approval and the transfer appointment.
- Transfer and registration: we follow up until the title deed is issued in your name and the mortgage is registered.
- After settlement: we can guide you through the clearance and mortgage release steps when the financing ends.
Important to know
Registration, valuation and bank fees apply and vary by emirate and bank. Each bank sets its own conditions and may apply stricter criteria than those described here. Lugain Global is a financing broker, not a lender, and approval is always at the bank's discretion.