UAE: While buying/selling an old vehicle in the UAE, it is important to get vehicle ownership transferred. If a vehicle is found with improper name by the police, you will end up paying a fine of AED 3,000. This rule applies even when you are giving your car to a friend or family member when you’re leaving the country.
Before transferring the ownership, the following things must be acknowledged:
- The buyer should be a resident of the UAE.
- No fines can be outstanding.
- The car loans/mortgages, if any, must be paid off or duly transferred to the new owner.
- The insurance policy should also be terminated or transferred to the buyer. In case it is expired, the buyer must purchase an insurance plan immediately.
The Road and Transport Authority (RTA), Dubai has an application which is available on both iOS and Android platforms. Users can sign in, check the status of their vehicle, check their fines or pay them, know about the insurance company that ensures your vehicle and the car loan/mortgage status all on the app.
The new owners can retain the old number plates. But if the previous owner decides to keep the plates then the new ones will be issued using the current code (A letter followed by one to five digits).
What documents are required?
The new owner must carry the following documents:
- UAE Driving Licence (Original and a Copy)
- Insurance Certificate (Original)
- Passport With Valid Residence Visa (Original and a Copy)
- Emirates ID (Original)
All of the documents must be valid. Expired ones will be rejected straight away.
The new owner will also need to pay a sum of AED 400 as the transfer fee for light vehicles. Also, a sum of AED 20 as the knowledge/innovation fee is also applied.
However, the current owner must carry the following documents:
- Vehicle Registration Card/Mulkiya (Original)
- Emirates ID (Original)
- Passport with residence visa (Original and a Copy)
- Confirmation of the final loan payment or the transfer of the loan from the bank or finance company, in case of a car loan.
How to transfer vehicle ownership?
Vehicle ownership transfer to any party can be done either at the Dubai Traffic Police HQ or an RTA licensing centre in the presence of both parties (current owner and new owner).
Once you’ve reached either of the offices, contact the typing centre to get a vehicle permit application form. It must be filled by the new owner. Then this form along with all the documents must be submitted at the registration desk. After checking the outstanding fines, if any, must be paid off by the seller. It is mandatory to do that before vehicle ownership can be transferred. After clearing all the dues, the new owner must pay the transfer fees. The new Registration Card (Mulkiya) will be printed with the name of the new owner.
A copy of the same must be sent by the previous owner to the insurance company and the finance company to confirm that the vehicle has been sold. Also, the previous owner must keep a copy with him/herself.
