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In this article, we will cover the laws pertaining to the sale of a car in the UAE. Let’s get started.
“What do the laws say about selling a car in the UAE?” This is the most commonly asked question, when it comes to selling a car. The rules mentioned below will help you to get some clarity.
Note- The buyer must have originals as well as photocopies of all the documents.
Keep in Mind: In case a buyer has a visa from a different emirate and the emirate in which he/she wants to register the car is different, then the buyer must own/rent a property in his home emirate and he/she needs to submit a proof of residence.
These laws answer the question who can sell my car for me?
A. While the seller should be personally present at the Roads and Transport Authority in order to transfer a vehicle, there are a few of options that allow a third-party to sell a car on the seller’s behalf. The seller can grant an individual the power of attorney so that car can be sold on the seller’s behalf.
Keep in Mind: The process of granting power of attorney is a formal one. It needs to be organized legitimately through the court. The power of attorney isn’t restricted to only selling the car on the seller’s behalf; rather it can be used for all of his/her affairs. It is recommended that one be very careful when opting for this option.
B. A car owner can visit an authorized car showroom that writes sales agreements on the owner’s behalf. The car owner must be physically present with his/her original Emirates ID at the time of writing the sales agreement.
Note- Make sure the car is free of any outstanding finance or fines before any sale arrangements are made.
Keep in Mind: Ensure that the car showroom is trustworthy as they will be able to lawfully sell your vehicle on your behalf. It is recommended to add a clause that permits them to advertise your car on your behalf, but the choice of proceeding with the sale is yours.
In case the seller’s car insurance plan has more than 7 months left till its renewal, the policy can be transferred to the new car owner given that he/she fulfills the eligibility criteria set by the insurance company. Not all insurance providers offer the facility to transfer car insurance, ensure that your current insurance provider offers this facility.
If a policy has 7 months or more remaining, the policyholder can also choose to cancel the insurance plan and get a refund for the remaining period. In order to avail this option, the policyholder must submit a photocopy of the new registration card from the new car owner.
It isn’t possible to transfer a loan. The loan must be cleared in full.
Summing It Up!!!
Selling your car is not child’s play. If you want to sell your car without any complications, make sure you abide by all laws so that you don’t have to face any inconveniences later. Selling a car takes time, don’t rush and have patience. Having time on your hands will enable you to take better decisions.
Don’t forget that it is mandatory to buy car insurance in UAE. If you are the new owner of the car, you must buy adequate insurance coverage for your car.