What should be done when someone is being fined on the car he does not own anymore.
The process of selling your car to your friend or some acquaintance is assumed as being easy, but what happens when they forget to transfer the ownership? It is possible to become legally liable in thousands of dirhams of unpaid traffic fines. The following is an example of a real life case and an analysis of the UAE laws that will be applicable.
The Situation:
One resident had sold a car to a friend at the price of Dh10,000, and official transfer of the ownership was not made. In the future, the seller started getting notifications about traffic fine as connected to that car. The seller then faced the buyer, resorted to no help and was forced to sell the car again to the tune of Dh1500 as a way of breaking even. However, Dh12,000 fines are still present along with the original buyer who does not want to pay that.
legal responsibility? so who is it?
The Legal Answer: You Are, Unless Ownership Is Transferred
Article 22(1) of Federal Decree-Law No. (14) of 2024 on Traffic Regulation requirements illustrated that the registered owner of a vehicle will take total responsibility of all liabilities and penalties until the ownership of the car is transferred to another party.
The person in whose name the Vehicle Licence has been registered shall continue to be liable to obligations arising out of the use of the vehicle till time the Vehicle Licence gets registered in the name of the new owner.
This is that you will be obliged, until the official transfer is endorsed by the Licensing Authority (the RTA or the police), to pay any traffic fines that may be attached to the vehicle, despite your having passed its use to some other driver.
Can You Take Legal Action Against the Buyer?
Yes. Although the sale of the vehicle was never contracted, provided that there exists a verbal or written agreement of the sale, the sale could be concluded as a binding contract under the UAE civil law.
Law 246 of 1985 of the UAE Civil Transactions law:
The contract will be performed… in the manner, which is consistent with the demands of acting with good faith.
Moreover, Article 282 of the same law says:
Injury against an other person will make the wrong-doer or wrong-causing party… liable to compensate the corresponding wrong.
In the event that the buyer assumed possession of the vehicle and inflicted some financial damage (in the particular instance, by paying fines), the buyer can be held liable to compensate those damages civilly. UAE courts enable you to make a civil claim to retrieve the losses you encountered as a result of its misuse because of the inability to transfer the ownership.
Key Takeaways:
- Registered owner = liable to traffic fines until car transferred in the name of a new owner.
- In the event that you sold a car and you have not performed the transfer you will be still liable to the penalties.
- You can make a civil claim, just in case the buyer undertook in good faith to buy the vehicle and use it.
- The process of transferring the ownership should always follow the sale by going to the appropriate authority (RTA, police traffic dept., etc.).
What You Should Do Now:
- Pay the fines to the traffic authority lest it leads to increased fines or travelling restriction.
- Gather as much evidence of sale as possible as far as messages, payment evidence, witness.
- Seek legal services or present a civil lawsuit against the buyer as a form of compensation.
- When it comes to future sales never just give away a car without an official change of ownership of title.
