Documents Needed to Sell a Car in Dubai UAE

Selling a car in Dubai involves a series of steps and documentation to ensure a smooth and legal transaction. This comprehensive guide addresses common questions and provides detailed information to assist you through the process.

What Preliminary Steps Should I Take Before Selling My Car?

Before initiating the sale, it’s essential to prepare your vehicle and handle any outstanding obligations:

• Settle Outstanding Loans: If your car was financed through a bank loan, ensure the loan is fully paid off. The Roads and Transport Authority (RTA) requires confirmation from the bank that the loan has been cleared before processing the sale.
• Clear Pending Fines: Any traffic fines or impoundment notices associated with the vehicle must be resolved prior to the sale. You can check and pay fines through the RTA’s online portal or mobile app.
• Vehicle Inspection: For vehicles over three years old, a passing vehicle inspection test certificate is mandatory. The inspection ensures the car is roadworthy, and the certificate is valid for 30 days.

What Documents Are Required from the Seller?

As the seller, you’ll need to provide the following original documents:

• Emirates ID: Serves as proof of identity and residency in the UAE.
• Vehicle Registration Card (Mulkiya): Confirms your ownership of the vehicle.
• Vehicle Clearance Certificate: Indicates there are no pending fines or issues with the vehicle. This can be obtained online through the RTA’s ‘Dubai Drive’ app or the Ministry of Interior’s website, depending on the emirate where the vehicle is registered.
• Loan Clearance Certificate: If applicable, this document from your bank confirms that any outstanding car loan has been settled.

What Documents Are Required from the Buyer?

The buyer must present the following original documents:

• Emirates ID: Proof of identity and residency.
• UAE Driving License: Valid driving license issued in the UAE.
• Proof of Insurance: A valid insurance policy for the vehicle being purchased.
• Passport with Residence Visa: Required if it’s the buyer’s first vehicle registration in the UAE.

How Is the Ownership Transfer Processed at the RTA?

Both parties must visit an RTA office or an authorized service center to complete the ownership transfer. The process includes:

1. Submission of Documents: Both buyer and seller present the required documents for verification.
2. Payment of Fees: The buyer typically pays the transfer fees, which range between AED 350 and AED 500, depending on the vehicle’s type and age.
3. Issuance of New Registration Card (Mulkiya): Once the transfer is processed, the buyer receives a new Mulkiya in their name.

What Should Be Done About Vehicle Insurance?

Regarding insurance:

• Transfer of Insurance: If the existing policy has seven months or more remaining, and the insurance company permits, the policy can be transferred to the new owner, provided they meet the insurer’s criteria.
• Cancellation and Refund: Alternatively, the seller can cancel the existing policy and may be eligible for a refund of the unused premium.

Can Someone Else Sell My Car on My Behalf?

Yes, you can authorize another person to sell your car:

• Power of Attorney: Granting power of attorney allows someone to act on your behalf. This requires legal documentation processed through the courts.
• Authorized Dealerships: You can consign your car to a reputable showroom authorized to sell vehicles on behalf of owners. Ensure the dealership is trustworthy and that you understand the terms of the consignment agreement.

What Additional Considerations Should Be Taken into Account?

• Salik Tag: Remove your Salik (toll) tag before handing over the vehicle, as it’s registered to you personally.
• Service Records: Providing the buyer with the vehicle’s service history can enhance trust and potentially increase the car’s value.
• Bill of Sale: While not mandatory, drafting a bill of sale that outlines the transaction details can offer legal protection to both parties.

Conclusion

Selling a car in Dubai requires careful preparation and adherence to legal procedures to ensure a seamless transfer of ownership. By gathering the necessary documents, settling any outstanding obligations, and following the outlined steps, both sellers and buyers can navigate the process efficiently. Whether you’re handling the sale personally or through an authorized representative, understanding these requirements is crucial for a successful transaction.