Document background
The Letter of Mortgage is a crucial document in UAE property financing transactions, used to formally establish and record a mortgage over real property. This document is required whenever a property owner seeks to secure financing using their property as collateral, whether for personal or commercial purposes. The Letter of Mortgage must comply with UAE Federal Law No. 14 of 2008 and relevant emirate-specific regulations, particularly in Dubai and Abu Dhabi. It includes essential details such as property specifications, mortgage amount, payment terms, and parties' obligations. The document serves as the primary evidence of the mortgage arrangement and must be registered with the relevant Land Department. For Islamic finance transactions, the Letter of Mortgage may need to be structured to ensure Sharia compliance. The document's format and content are heavily regulated to ensure consistency and legal enforceability within the UAE legal framework.
