The mortgage release fee is the charge paid to the Dubai Land Department to remove a registered mortgage from a property once the loan is settled. Releasing the mortgage clears the encumbrance so the property can be sold or refinanced free of the charge.
Where you’ll see it
You’ll see the mortgage release fee when a loan is paid off on sale, on full early settlement, or when refinancing. It is paid at the DLD to register the discharge, separate from the bank’s own settlement figure.
Why it matters
The property’s record shows the mortgage until it is formally released. In a mortgaged resale, the release must be registered before the transfer can complete free and clear, so the fee is a necessary completion cost to plan for.
What it is not
The release fee is not the loan settlement amount paid to the bank, and it is not the mortgage registration fee charged when the mortgage was first recorded. It pays specifically for discharging the registered charge.
Example
After a seller’s loan is settled, the bank issues a release; the mortgage release fee is paid at the DLD, the charge is removed from the record, and the property transfers to the buyer free of the mortgage.
Connected documents and parties
Settlement letter, mortgage release, completion statement; borrower, bank, DLD.
Going deeper: for clearing a mortgage as part of a transfer, see a conveyancing specialist.
Related Terms
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Last reviewed: June 2026