Whether you are buying, selling, or scrapping a vehicle in Dubai, one thing that you must not forget is transferring car ownership. The Dubai Roads and Transport Authority (RTA) states that all transactions surrounding vehicles must transfer ownership; this includes documenting the change in ownership from one party to another in a legally binding manner.
Failure to adhere to proper ownership transfer can lead to legal issues, inability to transfer unpaid fines, or potentially not being able to renew insurance or registration.
At MyScrapCars.com, we help customers all across Dubai sell scrap cars for cash, and along the process, we, as part of our hassle-free process at MyScrapCars.com, can help you with the RTA ownership transfer.
In this blog, we will outline what is required, your options, and how to ensure the process runs smoothly, whether you are selling a working vehicle or a scrap car.
Why Transfer of Ownership Important?
Transferring ownership of a car is not just a formality. It's a legal requirement. Once you sell a car to someone else, whether that be a private buyer, dealer, or scrap yard, you have to ensure the RTA records reflect the new owner's details. Failure to do so can lead to:
- Liability for traffic fines, impound fees, or accidents caused by the new driver
- Difficulties renewing the insurance or registration
- Legal penalties for driving a vehicle in someone else's name.
- Delays in processing future purchases or sales of a vehicle.
Whether you're getting rid of a damaged vehicle or selling an elite luxurious vehicle, it is recommended that you follow the correct process of transferring ownership through official RTA-approved methods.
Documents Needed for Car Ownership Transfer in Dubai:
To transfer car ownership in Dubai legally, there are a series of documents required from each party (the seller and buyer) presented to the RTA or Vehicle Registration centre. Generally, these documents acknowledge the identity of the parties involved, the status of the vehicle, and the intention of sale or purchase.
Typical documents needed are:
Seller:
- Emirates ID (original)
- Vehicle’s Mulkiya (original - vehicle registration card)
- Valid insurance on the vehicle (insurance must be active at the time of transfer)
- Vehicle passing certificate if required.
- Any outstanding traffic fines must be cleared.
Buyer:
- Emirates ID (original)
- UAE driving license
- Valid insurance on the vehicle (in the new owner’s name)
If the vehicle is older than three years, the RTA will require a copy of the vehicle test completion (to provide inspection results).
Step-By-Step Process of Transfer of Ownership
Once all documents are completed, the actual transfer of ownership is simple and can be completed in one day. The typical process is as follows in Dubai:
- 1. Go to an RTA-approved center – Buyer and Seller should be at a registered service center like Tasjeel, Shamil, or Wasel. Most of these centers offer car testing and insurance services on-site as well.
- 2. Vehicle inspection (if applicable) – If the vehicle is over three years old, an RTA vehicle inspection test will usually need to be conducted. This is to check that the vehicle is roadworthy.
- 3. Clear all fines – The seller must pay off any traffic fines or Salik dues before the transfer of ownership. This can be done online or in person at the RTA Service Centre.
- 4. Submit documents and initiate the transfer – The buyer and seller will submit documents to the RTA representative, who checks all the information and officially renames the ownership.
- 5. Pay transfer fees - Fees to change car ownership are typically between AED 350 – 400, depending on vehicle type and utilized services.
- 6. Receive new Mulkiya –A New registration in the buyer's name will be issued, officially transferring ownership.
At MyScrapCars.com, we help both sellers and buyers collect the appropriate documents and make sure everything gets submitted according to the RTA’s evidence of ownership transfer requirements.
Selling Scrap or Damaged Cars? The Rules Are A Bit Different
If you are selling your scrap in Dubai, the ownership transfer works a slightly different route. Instead of a new owner registering under their name, the vehicle is officially deregistered.
This is what happens when you scrap a car:
- You provide your Emirates ID and vehicle registration card, and you clear any outstanding fines.
- Your car is towed to an authorized scrapyard, and a scrap certificate is issued.
- The RTA system then deletes the registration.
- You no longer have any legal or financial responsibility for the vehicle.
We recognize that scrapping a car can be a long and complicated process—I can assure you that at MyScrapCars.com we will handle everything on your behalf, including: free car towing, completing the RTA deregistration steps, and instant cash for your scrap car. There are no surprises or hidden fees.
Can You Transfer Ownership If the Seller Is Not Present?
While it is preferable for both parties to be there, the seller can transfer detection as long as the seller provides a power of attorney authorising somebody else to be there to complete the purchase on their behalf.
This power of attorney would be beneficial if the seller were overseas or unable to be present. This must be a legal document, and preferably be witnessed or stamped by Dubai Courts or a local Notary.
What If You Still Have a Loan with the Bank Or a Car Finance in Place?
If your vehicle has an outstanding loan or it is currently being financed by the bank, you will not be able to legally complete the ownership transfer process until cleared of the loan is cleared completely. Therefore, you will want to:
- Payment of the balance
- Request a letter of clearance from the bank
- Provide this clearance letter to RTA for the release of the managed security interest on the car
It is important that you follow these steps to ensure that the buyer gets full interest in ownership. MyScrapCars.com also purchases financed cars or managed mortgages, and works with lenders to end the process on your behalf.
Conclusion
Transferring ownership is an important step in Dubai while buying, selling, or scrapping a car. It ensures you are following the law, and you will no longer be liable for the future of the vehicle; it also allows the new owner to fully take control of their new vehicle. So, whether you're selling a used car or scrapping an old one, just remember to always do the RTA transfer process correctly!
At MyScrapCars.com, we want to make this process as easy as possible for our customers. We do everything for you, from free car removal to RTA deregistration. You can sell your car in Dubai knowing that it is already done, with confidence and certainty.
FAQs - Car Ownership Transfer in Dubai
Q1: Can I transfer ownership without a valid Mulkiya?
No. You require a valid registration card. If either the registration card is lost or they do not have the registration card in person, you will need to request a duplicate registration card before transferring ownership.
Q2: Can I transfer ownership online?
The ownership transfer must be done in person at an RTA service centre. Some steps can be started online.
Q3: What if I am scrapping a car that does not run?
Not a problem. MyScrapCars.com will come to you for free and tow it away (and accept ownership on RTA) for you.
Q4: Do I need insurance to transfer ownership?
Yes. Insurance is required at the time of transfer, and at that time must be in the buyer's name.
Q5: How quickly can I complete the ownership transfer?
If everything is correct and you bring all the documents to an RTA centre, completing the ownership transfer can take less than an hour.
