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Vehicle Ownership Change Process

Vehicle Ownership Change Process

May 18, 2023

For most of us, a vehicle is more than just a mode of transportation; it is something we take great pride in owning. Whether it is a sleek sports car or a reliable family minivan, it represents a significant investment of time and money. However, as life circumstances change, so does ownership of the vehicle. Maybe you buy a new vehicle, maybe you intend to sell the old one, maybe someone gifts their car to you, etc.

From selling a vehicle to transferring its ownership, you should understand the process involved to ensure a smooth and legal transition. In this article, we will explore the details of transferring ownership of your vehicle. So, let's get started!

The Process of Vehicle Ownership Transfer
If you are planning to sell your vehicle, you should follow the steps below for a hassle-free ownership transfer -

1️⃣When selling a vehicle, you have the option to sell it to either a dealership or an individual buyer.

2️⃣Once a buyer is ready to make a payment for the vehicle, the transfer formalities must be completed at the RTA (Roads and Transport Authority).

3️⃣When transferring ownership, both you and the new owner must agree to the terms and conditions of the sale. The new owner must accept the vehicle in the condition specified in the agreement, while you must give your consent to transfer the ownership.

4️⃣The new owner must have the vehicle inspected by the RTA and it must pass the fitness test. Only then can the transfer of ownership be completed. This ensures that the vehicle is roadworthy and meets safety standards.

5️⃣The new owner must also arrange for insurance coverage for the vehicle for at least 13 months from the date of transfer.

6️⃣For the RTA to complete the transfer of ownership from you to the new owner, the new owner must provide three documents -

●A Fitness Certificate
●Proof of payment for the vehicle
●An insurance copy for at least three months.

Documents Required During The Vehicle Ownership Change Process

1️⃣For Individuals:

1️) The seller’s original Emirates ID or a decree issued by the General Directorate of Residency and Foreigners Affairs, along with the passport.

2️) The buyer’s valid original Emirates ID if they are a citizen of UAE or a GCC citizen.

3️) Electronic redemption of the vehicle if it is under a mortgage.

4️) To transfer, register, or export the vehicle, a “Technical Inspection Certificate” is required.

5️) Inform the RTA and follow the necessary steps if you wish to keep the plate numbers.

6️) And, if one or both plates are lost, a "Plate Lost Certificate" from the police is required.

2️⃣For Companies:

1) A formal letter written in Arabic regarding the transfer of ownership process.

2️) A copy of the trade licence.

3️) An endorsement of signature and an authorisation letter certified by the court.

4️) LLC companies need to provide a Memorandum of Association.

5️) If the vehicle is under a mortgage, you should arrange for electronic redemption before transferring ownership to the buyer.

6️) A “Vehicle Technical Inspection Certificate” if the buyer wants to register, transfer, or export the vehicle.

7) If the vehicle is registered under the Dubai Technology and Media Free Zone and Jebel Ali Free Zone (JAFZA), a NOC from the respective authorities is mandatory.

8) If you wish to keep the plate numbers, inform the RTA.

9) If one or both plates are lost, you should provide a “Plate Lost Certificate” from the police.

Service Fees for Ownership Transfer

Here is a table outlining the service fees for the ownership transfer of a vehicle -

Type of Vehicle Fee in AED
Light Vehicle (Private or Public) 350
Private vehicles between 3 and 12 tonnes 400
Public vehicles between 3 and 12 tonnes 750
Private vehicles between 12 tonnes 800
Motorcycle 200

Terms and Conditions Of Vehicle Ownership Change

1️⃣If you lose your vehicle plate(s), you should follow the Licensing Agency procedures at RTA and apply for a “Lost Plate(s) Report”.

2️⃣You or your legal representative has to be present in person during the transfer. If you are not available, a “Selling Agreement” has to be provided from an accredited showroom.

3️⃣All traffic fines have to be paid before receiving the service.

4️⃣The transfer transaction has to be completed within 14 days from the date of ownership transfer. If you don’t, it will be cancelled.

5️⃣The vehicle’s sale is based on the model and type registered in its official documents. It is governed by the Federal Traffic Law number 21 of 1995 and its Executive Regulations and amendments.

6️⃣The selling transaction becomes void if there are any changes, deletions, or amendments made to the selling agreement form after the parties have approved and signed it.

7️⃣Once you submit the vehicle plates, the vehicle ownership is transferred to the new owner.

To conclude,
Changing vehicle ownership in the UAE can be a simple process, provided you understand the necessary steps and requirements. From obtaining the necessary paperwork, submitting the required documents, and paying the required fees, the process can be completed within a few days without any hassles.

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