Plan ownership transfer to the buyer !
Depending on your car ownership type you should plan it’s transfer to the new buyer.
If you own the car without bank mortgage, the transfer would be straight forward and simple.
However, if it’s mortgaged to bank it may be a little complex and time consuming.
An advance planning is always advisable, to keep the process smooth. This eliminates any last minute surprises.
Selling the car without a bank mortgage
First and foremost ensure, that your payment is secured, before transferring the ownership.
Although in principal, the governing rules of transferring ownership, in 7 emirates of UAE are similar. However it is better, to keep yourself aware of any latest updates or changes.
If the buyer and seller happen to be expatriates, with visa issued by different emirates, the process will be different.
This may additionally involve:
- Cancelling the current registration card (Mulkiya)
- Preparation of export documents and export plate, for physically transferring the vehicle to the buyer’s emirate.
- This also requires, an inspection of the vehicle.
- And finally, a fresh registration in the importing emirates.
In a simple transfer process, you are required to sign the transfer (Tanasal) form as a seller, in favor of the buyer.
The documents required to formalize transfer include:
- Original Registration Card (Mulkiya)
- Proof of Identity (Passport or ID card)
- Driving License
- Bank Mortgage Release Letter.
Selling the car with a bank mortgage
With a mortgaged vehicle, there are a few more steps in the process.
Firstly, you must find out, what is the current outstanding amount on your vehicle.
Depending on the selling price of your vehicle, you may decide to either settle your car loan directly with the bank. Or even think of transferring the loan to the new buyer.
This is subject to bank approval, and of course, a prior understanding with the buyer.
After settling the outstanding amount with the bank, you will be entitled for a Bank release letter. It forms a part of the document at the time of transfer.
Caution: It is advisable at this stage, to ensure a new registration card (Mulkiya) is issued in the new buyer’s name. Keep a copy of the same for your records.
This protects you just in case the new buyer gets in an accident. Also in the event of, he being ticketed, or gets involved in any other criminal activity. Proof of ownership transfer, can bail you out under such situations.