Encumbrance
An encumbrance is a right or restriction recorded against a property that affects a sale — for example a mortgage registered in a bank’s favour.
Definition
A registered mortgage stays on the property until it is released through DLD’s Mortgage release application. When a mortgaged property is sold, DLD’s page for registering the sale of a mortgaged property requires a liability letter from the bank (or the developer) and three manager’s cheques: one to the bank or developer for the debt, one to the seller for any remainder, and one to the Department for the fees. DLD’s Property Status Enquiry lets you check a property’s status on the DLD website or the Dubai REST app by entering property data such as the area and land number.
What it shows — and what it does not
Knowing that an encumbrance exists tells you a third party’s position has to be dealt with before or at registration. It does not tell you the amount owed or the conditions — those come from the bank’s or developer’s own letter.
Example
Illustrative example: a seller still owes the bank on the apartment. The bank issues a liability letter, a manager’s cheque in the bank’s name pays the debt at registration, and the mortgage is released from the record.
Next step
See the whole sequence in Mortgage discharge when selling a Dubai property.
Source: Registering the Sale of a Mortgaged Property — Dubai Land Department · supports: the liability letter and the three manager’s cheques · checked 10 October 2026
Source: Mortgage release application — Dubai Land Department · supports: release of a registered mortgage · checked 10 October 2026
Source: Property Status Enquiry — Dubai Land Department · supports: checking a property’s status online · checked 10 October 2026
Related terms
Governance
- October 9, 2026
Maintenance: Updated for material UAE authority/trustee process changes and recurring user confusion. Method: Editorial Policy