How to Sell Your Car in Dubai When You’re Abroad: A Step-by-Step Guide
We often encounter a common question from numerous individuals: “Is it possible to sell my car in Dubai even if I am located outside the UAE?” Our consistent response is always a resounding “Yes, absolutely!”
There are two available options for transferring or selling your vehicle in Dubai to someone. The first option entails personally attending the formalities at the Road and Transport Authority once you find a buyer. However, this option necessitates your return to the UAE if you are currently abroad. The second option involves issuing a Power of Attorney to a trusted individual based in the UAE. This enables the person to act on your behalf and handle all the necessary transactions associated with the sale of your vehicle in Dubai.
Let us first talk about things that you need to do to transfer or sell a vehicle in the UAE.
- Mortgage Clearance. As a vehicle owner, it is your responsibility to repay any outstanding funds (such as a mortgage or loan) that you obtained from the bank to purchase the car. Once the loan has been fully repaid, your bank will notify the Road and Transportation Authority (RTA) to update their records and remove the loan from the RTA system. As a result of this update, you will receive an SMS notification from the RTA regarding the updated records. This process typically takes around 24-48 hours to complete.
- RTA Vehicle Examination. For a smooth transfer of ownership, your car must successfully pass the RTA inspection. Once inspected, the RTA issues a report indicating whether it has passed or failed. In the event of a failure, the report will outline the necessary fixes. To avoid any unexpected issues, it is highly recommended to have your vehicle tested at one of RTA’s accredited testing centers prior to selling it.
- Vehicle Insurance. Once the technical inspection is successfully cleared and all fines are settled, the buyer can proceed to secure insurance for the vehicle. If the current insurance policy has a validity of 7 months or more, it can be transferred to another person, provided that the new owner meets the criteria set by the insurance company. However, it’s important to note that not all insurance companies allow policy transfers from sellers to buyers. Alternatively, if there are at least 7 months remaining before the policy expires, you can choose to cancel your insurance and request a refund.
- Vehicle Transfer. The final step in the process is transferring ownership of the vehicle. As the owner, or your authorized agent with a valid power of attorney, you must be present during the transfer. Please bring a valid identification document (such as a UAE driving license or UAE ID) and a valid test certificate. Additionally, the buyer must meet the following requirements:
- Valid car insurance
- Passport with UAE residence visa + 1 copy
- Emirates ID + 1 copy
- UAE driving license + 1 copy
Once the documents have been verified, the RTA representative will request the parties to sign the sales contract. The buyer will then proceed to make payment for the purchase price, as well as the RTA transfer fee. Subsequently, the RTA representative will issue a new vehicle owner card and provide a new license plate. In the event that the seller is overseas and unable to be physically present, their appointed representative, with a Power of Attorney (POA), may act on their behalf to sign the necessary documents at the RTA.
If you are currently outside the UAE for any reason or simply lack the time to personally handle the formalities of selling a car at RTA, obtaining a Power of Attorney is the optimal solution for completing a vehicle transfer or export while abroad.
There are two methods to authorize a Power of Attorney for a car sale from abroad.
To ensure the validity of your POA, you have two options. The first is to have it notarized in your current country of residence and then get it attested by the Ministry of Foreign Affairs and the UAE Embassy or Consulate in the country where you sign the document. Although this process can be arduous and expensive, it is necessary to fulfill the legal requirements.
An alternative, efficient option for notarizing a Power of Attorney in Dubai is through online notarization or e-notary. As part of the government’s digitization strategy, the Dubai Government has introduced the Smart Electronic Notarization Service or Electronic Notary in 2021. This innovative service enables individuals to notarize specific documents, such as Powers of Attorney, from anywhere without the need to physically visit public notaries in the UAE. Embracing this convenient approach ensures a seamless and hassle-free notarization experience.
When applying for a Power of Attorney (POA) for a car sale in Dubai, certain requirements typically need to be fulfilled.
- The Passport or Emirates ID copy, mobile number, and email address of the principal (a person giving the POA or vehicle owner)
- The Passport or Emirates ID copy, mobile number, and email address of the attorney (a person receiving the POA)
- Vehicle License (Mulkiya) Copy (if a POA is given for a specific vehicle)
At PRO Consultancy POA, we are here to assist you in obtaining a Power of Attorney for various situations, such as car sales, exports, and other transactions. Our comprehensive services include drafting a customized POA tailored to your specific needs, as well as providing assistance with electronic or online notarization. With our expertise and support, you can trust us to handle your Power of Attorney requirements efficiently and effectively.Throughout the process, we ensure your involvement by sending you a draft Power of Attorney in a Word format. This allows you to thoroughly review and understand the powers and permissions you are granting to your designated person in the UAE. Once you have approved the Power of Attorney, we will guide you through the online or electronic notarization process.
Upon completing the e-notarization process, your Power of Attorney will be electronically generated and legally valid for use in the UAE. Consequently, your appointed representative in the UAE can sell your vehicle without requiring your physical presence.
Please note that the information provided on this page is intended for general informational purposes only. It should not be interpreted as legal advice or relied upon as a basis for making any specific decisions. The content does not establish a lawyer-client relationship or substitute for professional legal advice or services for any particular matter. We encourage users of this website to consult with their own lawyer or legal counsel to obtain advice tailored to their specific legal needs.