Paying off the loan does not end the process
When a bank finances your car or home in Dubai, it registers a claim against the asset, recorded on the vehicle file at the RTA or on the property’s title deed held by the Dubai Land Department. Paying the last instalment clears your debt, but that claim stays in place until the bank formally releases it. While it remains, you cannot freely sell, gift or transfer the asset, and your registration card or title deed still names the lender.
Releasing a car mortgage with the RTA
For vehicles the release is now almost entirely electronic, because banks and finance companies are linked directly to the RTA system and no paper certificate is issued. Once your balance is fully paid, the request goes through your bank, and the RTA lets you know by text message and email when the lien has been lifted.
- Ask your bank for a settlement figure and pay the balance in full
- Ask the bank to release the vehicle, using its mobile app, website or a branch visit
- Wait for the RTA’s confirmation by SMS and email
- Check the vehicle status online to make sure it is no longer listed as mortgaged
Practical points for vehicle owners
You normally only need your Emirates ID, the Mulkiya and proof that the loan is closed, plus the company’s trade licence for a corporate-owned car. The RTA side of the release does not usually carry a charge, although your bank may apply its own processing fee, so ask before you start. The release reference has a short validity, so act on it promptly, and if nothing happens within a few working days, follow up with the bank, since that is where most delays occur. Your bank can also issue a no-liability confirmation for your files.
Releasing a property mortgage with the DLD
For property, the aim is a fresh title deed without the mortgage annotation. The process starts with your bank and ends at the Land Department, where the release is lodged online by the bank or at a Real Estate Registration Trustee Centre.
- Ask the bank for a liability letter showing the exact balance and any settlement charges
- Pay off the full amount before that letter expires
- Collect the written release letter and your original title deed, and never rely on a verbal confirmation
- Have the release lodged online by the bank, or submit it in person with the letter and your Emirates ID
- Receive the updated title deed in your name, clear of the bank’s claim
Fees and the Trustee Centre route
Government fees apply for removing the mortgage and issuing the new title deed, with extra charges when a release is combined with a sale, and these are generally not financed by the bank, so plan to pay them upfront. Banks may also charge an early settlement fee, which is capped under Central Bank rules, so confirm the figure in writing before you settle. A release linked to another procedure, such as a sale or a usufruct, provisional or portfolio mortgage, must be lodged face to face at a Trustee Centre rather than online. Check the current fees and requirements with the Land Department before you begin.
Selling or refinancing before the release
You can still sell a financed car or property, but the release has to happen as part of the deal, because neither the RTA nor the Land Department will transfer ownership while a lien remains. The order of steps protects both sides, and in a property sale the seller usually covers the release fee.
- Car: either finish the release before you list it, or let the buyer settle your loan directly with the bank
- Property: the buyer’s funds settle your loan, the bank issues its release letter, and the release and transfer are completed together at a Trustee Centre
- Property buyers are protected by having the unit blocked in their name before the payoff
- Refinancing: your old lender’s claim is removed and the new lender’s claim registered in one coordinated handover
Completing a release from abroad
If you live outside the UAE, you can give a trusted representative a power of attorney so they can manage the bank, RTA or Trustee Centre steps, collect your new title deed and handle any sale that follows. The document must clearly cover mortgage release and the specific asset, rather than offering vague general authority. A POA signed overseas must normally be notarized and then attested before UAE authorities accept it, and property matters usually require an Arabic or bilingual version.
How we can help
We can draft a power of attorney for your vehicle or property mortgage release and guide you through notarization and attestation. Someone you trust can then complete the process in Dubai on your behalf.