Enforcement of a mortgage - .PDF file.
The judgment discussed in this briefing highlights how a mortgage can be enforced by the Execution Court in the event a debtor defaults on paying the mortgage instalments. The mortgage deed, in this case, was silent on the issue of obtaining attachments over mortgaged property.
A Home Finance provider (the creditor- mortgagee) sought an order against a debtor (mortgagor) for an attachment to be levied on property and for the sale of land by public auction in order to collect a debt amounting to AED 1,637,807.22 from the proceeds of the sale. The Home Finance provider had given the debtor a mortgage in the amount of AED 1.6 million to construct a villa on the plot pursuant to a mortgage contract attested by the Land Department.
The debtor defaulted on paying the mortgage installments and as a result, the Home Finance provider filed an application with the Execution judge of the Dubai courts to enforce the mortgage deed…
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