How Do Car Seller’s Agreements Work in the UAE?

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How Do Car Seller’s Agreements Work in the UAE?
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If you are thinking of buying a used car for sale in Dubai, you have to be prepared as it can be a challenging process. Moreover, you may face scams if you are buying a car that’s currently under financing. So, the experts at have compiled this guide to help you learn everything you need to know about seller’s agreements, which can protect both sellers and buyers. It will also help you navigate the process of transfers in the UAE.

What is a seller’s agreement?

A seller’s agreement, also called mobayya, is a critical document in some situations that can protect both the buyers and the sellers against fraud. A seller’s agreement is important if the buyer wants a car that is financed and has a pending loan, but the seller is unable to clear it. In such cases, since the seller doesn’t have the money to pay off the loan, the buyer can clear the loan and and protect himself or herself with a mobayya. With this legally binding document the seller authorises the buyer to transfer the vehicle to their name after the loan has been cleared, which usually takes two to three days.

How can I use a seller’s agreement?

You can use the seller’s agreement to your advantage with the following steps:

  1. The buyer and seller must visit the RTA for car inspection and ensure that the car passes the inspection test.  Moreover, there must be no pending fines.
  2. The buyer and seller must then sign a seller’s agreement at the bank with a provider who issues the documents. Providers charge a fee of about AED 500. 
  3. The buyer and seller can sign the agreement after reading the terms and conditions thoroughly.
  4. At this point in time, the buyer can make a bank deposit to pay off the outstanding loan. Ensure that the deposit goes directly to settle loan and not in the seller’s private bank account. If the money is transferred to the seller’s account, the seller may take out the money and there is not much the buyer can do.
  5. The car as well as the associated documents will belong to the buyer’s after the deposit has been made. The seller must keep a copy of the seller’s agreement. It is vital that the seller has a copy of it because the seller may be held accountable if the car has an accident before it is transferred to the buyer’s name.
  6. The loans are usually cleared by the bank in 2 to 3 days. They also notify the RTA electronically.
  7. The buyer may now visit the RTA and transfer the car under their name. They must have the original documents and copies of their driver’s license, Emirates ID, passport, car insurance and UAE residency.

Without a seller’s agreement, the transfer can be highly problematic for both the buyer and the seller. For example, the seller may flee with the money without paying off the outstanding loan. On the flipside, the buyer may crash the vehicle before it is transferred to their name. 

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