Understanding Liability Letters in Dubai Property Sales
- CLC Conveyancing
- Dec 10, 2025
- 2 min read
When selling a mortgaged property in Dubai, one of the most important documents you’ll need is the liability letter. It’s a key step in the transfer process, yet it’s one of the least understood. Here’s what you need to know and how CLC Conveyancing ensures this stage runs smoothly.
What Is a Liability Letter?
A liability letter is an official document issued by your bank confirming the exact amount required to fully settle your mortgage on the property. This amount includes your outstanding loan balance, plus any administrative or early settlement fees.
It’s essentially your bank’s way of saying: - “Once this amount is paid, we will release the property documents for Dubai Land Department (DLD) to release the mortgage charge.”
Why It’s Needed in a Property Sale
If your property has an existing mortgage, the Dubai Land Department (DLD) cannot complete the transfer until the bank confirms the loan is cleared. The buyer (or their bank) uses the liability letter amount to prepare a manager’s cheque payable to your bank. Once cleared, your bank issues a release letter, and the sale can proceed to the transfer stages.
When and How to Request It
The liability letter is usually valid for 7-15 calendar days, depending on your bank, so timing is crucial. You should request it from your bank only after your sale agreement is signed and both parties are ready to move forwards
Coordinate with all parties prior to request to ensure when issued we are ready to move ahead.
Track validity dates to avoid expired letters.
Ensure the liability letter contains all the correct information.
Common Delays and How to Avoid Them
Incorrect information on the letter - ensure when collecting all information is correct.
Expired liability letters - common if all parties are not ready.
Bank holidays - slowing issuance of the letter or losing working days when letter is issued on the letter validity period.
Not in Dubai to collect when issued - it is important to ensure you will be present in Dubai or assign a legal Power of Attorney to represent you.
CLC monitors each step closely, from issuing the request to confirming the release, to ensure your sale stays on track.
Key Takeaway
The liability letter is more than just a number; it’s the link between your mortgage settlement and your successful transfer. With CLC managing the process, you can rest assured your documents, deadlines, and bank clearances are handled with precision and care.
Selling a mortgaged property in Dubai? CLC Conveyancing will guide you through your liability letter, NOC, and transfer stages — ensuring a smooth and timely completion. Contact us to see how we help
