Taking Security Over Property

As a general matter, the provisions of the Civil Code, the Real Estate Registration and its implementing regulations, govern mortgages in the State of Qatar. The Civil Code provides that mortgages can be taken by virtue of a contract (mortgage instrument) in which a debtor or a real guarantor grants a creditor a real right in a specified immovable property owned by it for the satisfaction of a debt.

Mortgages over real estate have to be notarised at the Ministry of Justice and registered at the land registry to
be considered perfected. However, it is not possible to register a second mortgage over the same property with the land registry.

There are no stamp duties or other levies on execution of security documents. Where a document is to be notarised at the Ministry of Justice, a nominal notarisation fee is payable. If documents are notarised, they will need to be translated into Arabic, which may give rise to further fees.

As for guarantees by a Qatari company, there is no restriction on the ability of a Qatari company to guarantee the debt of a borrower whether such borrower is incorporated in Qatar or elsewhere. The articles of association of a company may stipulate that guarantees above a certain amount may be given only after board and/or shareholder approval.

Contact the author:

Mahmoud Abuwasel