How to Transfer Car Ownership in the Dubai, UAE

Transferring car ownership in Dubai, United Arab Emirates (UAE), is a structured process governed by the Roads and Transport Authority (RTA). Whether you’re a resident selling your vehicle, a buyer acquiring a used car, or a diplomat with specific requirements, understanding the detailed steps and necessary documentation is crucial for a seamless transfer. This comprehensive guide provides an in-depth look into the procedures, requirements, and considerations for various user types involved in the car ownership transfer process in Dubai.

Understanding Vehicle Ownership Transfer in Dubai

Vehicle ownership transfer in Dubai involves legally changing the registered owner of a vehicle from the seller to the buyer. This process ensures that the new owner assumes all responsibilities associated with the vehicle, including registration, insurance, and adherence to traffic regulations.

Prerequisites for Vehicle Ownership Transfer

Before initiating the transfer process, both the seller and the buyer must fulfill certain prerequisites:

1. Settlement of Outstanding Dues: All pending traffic fines and loans (mortgages) related to the vehicle must be cleared.
2. Valid Insurance: The vehicle must have valid insurance. The buyer can either transfer the existing insurance or procure a new policy.
3. Technical Vehicle Inspection: A comprehensive vehicle inspection at an RTA-approved center is mandatory to ensure the vehicle meets safety and emission standards.

Required Documentation

The documentation varies slightly depending on whether the transaction is between individuals, involves a company, or pertains to diplomatic entities.

For Individual Buyers and Sellers

• Seller’s Documents:
  • Original Emirates ID
  • Vehicle registration card (Mulkiya)
  • Passport with a valid residence visa (copy)
• Buyer’s Documents:
  • Original Emirates ID
  • UAE driving license (copy)
  • Passport with a valid residence visa (copy)
  • Insurance certificate (original)

For Company Transactions

• Seller’s Documents:
  • Trade license copy
  • Official letter from the company authorizing the sale
  • Vehicle registration card (Mulkiya)
• Buyer’s Documents:
  • Trade license copy
  • Official letter from the company authorizing the purchase
  • Insurance certificate (original)

For Diplomatic Entities

• Required Documents:
  • Official memorandum from the foreign mission accredited to the UAE
  • Copy of the vehicle’s customs clearance certificate (if applicable)
  • Purchase contract from the agency or dealer showroom
  • Copy of the ID card issued by the Ministry of Foreign Affairs (MoFA)
  • Driver’s license copy
  • For vehicles registered under a diplomat’s name: Copy of the Consular Identity Card

The MoFA provides a dedicated service for vehicle ownership transfer for diplomatic missions, which can be accessed through their official website. citeturn0search0

Steps to Transfer Vehicle Ownership

The RTA offers multiple channels to facilitate the ownership transfer process:

1. Online Transfer via RTA Website or Dubai Drive App

The RTA provides a convenient online platform for ownership transfer through its website and the Dubai Drive app. This service requires both parties to have a UAE Pass for authentication.

Procedure:

1. Log In: Both buyer and seller log in using their UAE Pass credentials.
2. Initiate Transfer Request: The seller initiates the transfer request by providing vehicle details and the buyer’s information.
3. Sign Sales Agreement: Both parties electronically sign the sales agreement.
4. Submit Required Documents: Upload scanned copies of the necessary documents, including Emirates IDs, insurance certificate, and technical inspection report.
5. Payment of Fees: The buyer pays the applicable transfer fees online.
6. Plate Surrender: The seller must submit the vehicle’s license plates to an RTA Customer

2. In-Person Transfer at RTA Customer Happiness Centers

For those who prefer an in-person transaction or need assistance, the RTA Customer Happiness Centers facilitate vehicle ownership transfers.

Procedure:

1. Visit an RTA Center
   • Both buyer and seller must be present at an RTA Customer Happiness Center or a designated vehicle testing center.
2. Complete Vehicle Inspection
   • If not already done, the vehicle undergoes a mandatory inspection at the center to ensure roadworthiness.
3. Submit Documents
   • The seller provides the original Mulkiya (vehicle registration card), Emirates ID, and clearance of any outstanding fines.
   • The buyer presents their Emirates ID, valid insurance certificate, and UAE driving license.
4. Sign Transfer Agreement
   • Both parties sign a sales agreement, which is generated and processed by RTA staff.
5. Pay Applicable Fees
   • The buyer pays the transfer fee and any other applicable charges.
6. Receive New Vehicle Registration Card
   • Once approved, the RTA issues a new Mulkiya in the buyer’s name. The seller must surrender the old license plates if they are not transferring them to a new vehicle.

Fees and Costs for Vehicle Ownership Transfer

The costs of transferring a vehicle vary depending on the vehicle type and method of transfer. Below are the standard fees as of the latest RTA guidelines:

Note: Additional fees may apply if the vehicle has outstanding fines, mortgage clearance requirements, or number plate changes.

Considerations for Different Types of Buyers and Sellers

The ownership transfer process can vary slightly depending on the circumstances of the buyer and seller. Below are some specific scenarios to consider:

1. Individual to Individual Sale

• Ideal for residents looking to sell their personal vehicle.
• Both parties must be present at the time of transfer.
• Ensure that any remaining vehicle loan is settled before initiating the sale.

2. Dealer to Individual Sale

• When buying from a used car dealership, the dealer typically handles the transfer process.
• Some dealers offer RTA-approved services, saving the buyer the hassle of handling paperwork.
• Buyers should always verify that the vehicle history is clean (no pending loans, unpaid fines, or legal disputes).

3. Selling a Financed Vehicle

• If a vehicle is still under a bank loan (mortgage), the seller must first obtain a clearance letter from the bank.
• Some banks require final payment before issuing the clearance, which can take up to a week.
• The RTA will not approve a transfer until all financial obligations are settled.

4. Expatriates Leaving the UAE

• Expats selling their car before leaving must ensure the transfer is completed before their residence visa is canceled.
• If the seller leaves without transferring ownership, they may be held liable for any future fines or legal issues related to the vehicle.

5. First-Time Buyers in the UAE

• New residents must obtain valid car insurance before registering the vehicle.
• A UAE driving license is required; international licenses are not accepted for registration.

Key Points to Remember

• Technical Inspection: Required for all used cars before transfer.
• Insurance: Must be valid and under the new owner’s name.
• Clearing Loans: Any active loans must be settled before selling.
• Number Plates: The seller must surrender or transfer their number plates.
• Timely Transfer: Ensure the transfer is completed before the seller leaves the country to avoid complications.

Conclusion

Transferring car ownership in Dubai is a structured process designed to ensure security and compliance with RTA regulations. By following the outlined steps, preparing necessary documents, and understanding the costs involved, both buyers and sellers can avoid unnecessary delays and legal issues. Whether you’re an expat selling before relocating, a first-time car buyer, or a company handling fleet transfers, ensuring all prerequisites are met will result in a smooth and efficient transaction.