Legal Essentials: What You Need to Know to Sell Your Car in UAE

There is proper documentation that facilitates the selling process of your car in the UAE. It is vital to grasp each of these on the legalities so that there will not be any issues encountered and that the sale is enforceable and well documented. Stuck on what you need to do to sell your car in the UAE? Here is a detailed guide with the information you need.

1. Gather Required Documents to Sell Your Car

Of course, you cannot simply go out there and sell your car and due to this, several documents are required. These include:

1. Car Registration Card (Mulkiya): This document timely confirms your right to own the above-mentioned vehicle. It should be scientifically tested, and the findings must be recent.
2. Emirates ID: It is a valid ID and/or residency permit for you in the United Arab Emirates.
3. Passport and Residency Visa: If you are an expatriate or company representative, you should have photocopies of your passport and residency visa.
4. Loan Clearance Certificate: If you are leasing or making instalment payments on your car, you should obtain an acknowledgement letter from the financial institution indicating that the balance in the financing has been paid in full.
5. Service and Maintenance Records: It goes a long way to help improve the value of the car as well as the overall transaction process if the car being sold has a complete service history, though it is not a requirement.

2. Settle All Outstanding Fines

Another important aspect to know is that no car title can be transferred without having cleared the traffic fines. These are parking fines, traffic offences such as free Titans, speeding tickets and Salik fees, if any. For this, one might go online and check the Dubai police or RTA (Roads and Transport Authority) websites to check and pay one’s fines.

3. Vehicle Inspection

A compulsory test for each car in the United Arab Emirates is passing the vehicle inspection to check its readiness for the road and conformity to the norms of safety and emissions. This inspection can be done in any of the RTA-approved testing centres. The shortcoming is that the result of the inspection has only a 30-day validity, so calculate the timing of your sale.

4. Cancel Your Insurance

After that, it is essential to inform the insurance agency about cancelling your earlier car insurance bought in the best interest of the earlier buyer of the car. This is because changing the ownership of the asset requires that the insurance provider be informed so that they can issue consent and documentation. Finally, there should be a highlight that prevents the buyer from registering their car immediately since they will have to secure an insurance policy on their own.

5. Transfer of Ownership

One of the most important stages of the car-selling process is the transfer of ownership. This must be done at an RTA office. Both the buyer and the seller must be present, and the following steps should be followed:

Seller’s Responsibilities:

– The user should carry along some important documents, including the car registration card, the Emirates ID, copies of your passport and visa, as well as the vehicle inspection report.
– Make certain that all fines have been brightly and there are no claims lodged against the vehicle.
– In some states, it is recommended that an essential document of the sale known as the Bill of Sale is produced, and the buyer should receive a signed one.

Buyer’s Responsibilities:

– Please bring your Emirates ID and documentation that allocates the usage of insurance for the car. They specifically include:

• Action the necessary formalities for the physical transfer of ownership

• Pay the required fees for the change of ownership.

At the office of the register of the transfer agent, the officials will transfer ownership of the car and a new registration card will be issued to the new owner. The seller will retain the original transfer documents, while the buyer is to retain a copy of the transfer documents for their records.

6. Understand the Financial Aspects to Sell your Car

Payment Method: Ensure that all the modes of payment selected are safe. International wire transfer is the most secure form of money transfer, whereas physical cash transactions require extra caution.

Outstanding Loans: If the car being donated has a remaining loan balance, this amount will have to be paid off first before you can transfer ownership. This normally includes arranging with the bank to clear the loan and equally arranging with the buyer.

Provide an accurate account of the car and its past use. When certain aspects of the car are embellished, they can cause legal issues. Scammers are alive and well today, and they may try to deceive you into completing transactions with them. Confirm if they are the rightful owners of the car, and if you got the payment, confirm the payment before you release the car and documents to them. If the sale terms are still not paid in cash, ensure that you draw up a written agreement with the two parties initially. 


This can also be evidence of the contract and afford the parties some measure of protection in the event of a dispute. For more information, you can always contact the courteous staff at CarSwitch.

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