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Buying or selling a used car has its work cut out for several kinds of paperwork in the picture. You will have to transfer vehicle ownership to the new owner by completing the vehicle registration transfer as well as the Car insurance transfer of the vehicle. However, the most important part of the car ownership transfer remains to be the vehicle registration transfer itself. If you are planning to buy a used car or sell your second-hand car and don’t know the process to transfer vehicle ownership, then here’s a useful guide that can help you transfer your car registration seamlessly.
There are few steps involved in the process of vehicle ownership transfer in Dubai and UAE. Most of these steps include the clearance of any prevailing fines and dues against the vehicle, along with obtaining required certificates and documents. Each of these steps is extremely important, so make sure you note them carefully. Following are the steps you need to follow when initiating a vehicle ownership transfer in UAE:
1. Clear All Your Salik or Traffic Fines
Did you know that any pending fines can hinder your vehicle registration transfer procedure? There shouldn’t be any fines associated with your car plate number. This is why you must clear all the unpaid dues before even planning to sell your car. So, if you haven’t done it yet, get them cleared at any police station nearby. You can easily clear your fines online as well.
2. Bank Clearance Documents
If the previous owner took a car loan, then it should be cleared by them before they initiate a vehicle registration transfer. After the loan has been cleared, a final payment certificate proof must be generated for the vehicle ownership transfer. If the new owner has agreed to have the loan transferred to them instead, the current owner must obtain a release letter or, a no-objection certificate (NOC) from the bank to transfer the loan to the buyer. So, no matter if you are a buyer or a seller, check if you require NOC from the bank.
3. Have the Car Tested
You will need to get a pass report once your car is tested at the registration centre. It is not a time-consuming process and it costs only 150 Dirhams in Dubai. Also, remove and hand over the number plate of your car at the registration counter if a new number for the car is wanted. Make sure that you choose one of the approved test centres for the damage test of the car.
To avoid yourself running from one registration center to another, ensure that you have all the required documents with you when you set out to transfer vehicle ownership.
Once the vehicle registration transfer is done, the buyer will get the new number plate and new registration card for the car. The cost of vehicle ownership transfer is AED 350, and the new number plate between is AED 35 to AED 500, depending on the size and type of the plate. Small car number plates can be obtained for AED 35, long for AED 50, Dubai branded car plates for AED 200 and luxury car plates for AED 500. You will receive the following documents after a successful car ownership transfer in UAE:
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If you and the new buyer/old owner of the car belong to different Emirates, the procedure of car ownership transfer may vary. As you already know, there are two traffic systems that are followed in our country- the Federal system and the independent system. The Federal system is followed by all the emirates in the UAE, whereas in Dubai, the independent system is followed.
The process of vehicle ownership transfer from one emirate to another is basically the same but with a few additional steps involved:
So, the next time you plan to sell your car or buy a second-hand vehicle in the UAE, make sure that you take care of the above-mentioned pointers for a safe deal. Strategic planning can never go amiss; in fact, it only helps in making the process seamless and hassle-free.