UAE Car Fines Explained: Ownership Matters

Who Pays Traffic Fines in the UAE if Car Ownership Isn’t Transferred?

In the United Arab Emirates, many people buy and sell used cars among friends or family. However, if the official transfer of ownership is omitted, it can have serious legal and financial consequences. The following real-life example sheds light on what happens when the seller is still listed on the registration document, but the car is already in someone else’s use – and new fines accumulate.

What happened?

A vehicle owner sold his car to a friend for about 10,000 dirhams, but the official transfer was never completed. Subsequently, he received notifications of several traffic fines not incurred by him but by the new user. The seller requested that the new owner settle these fines, but the person refused. Due to the poor condition of the vehicle, the seller could only sell it further for 1,500 dirhams – to at least partially cover the accumulated penalties. The surprise came afterward: an additional 12,000 dirhams in fines were still tied to the vehicle under his name.

Who is responsible for the fines?

According to current regulations in the UAE, every vehicle's ownership must be officially transferred at the competent authority to make the new owner responsible for the vehicle's use. According to Article 22 (1) of the Federal Decree No. 14 of 2024:

“The transfer of vehicle ownership must be registered with the Transport Authority in the manner it approves. The officially recorded owner of the vehicle is responsible for obligations arising from the use of the vehicle until the ownership of the vehicle is transferred to the new owner.”

This means that the seller, as the recorded owner, remains legally responsible for the fines imposed on the vehicle until the change of ownership is officially executed.

Is there a legal way to hold the buyer accountable?

Yes. Even if the official transfer did not occur but it is clear that the vehicle was handed over and a sales agreement existed between the two parties, the buyer can be held accountable for damages caused during use. According to Article 246 (1) of the United Arab Emirates Civil Code (5/1985):

“The contract must be performed in accordance with its contents and in compliance with the requirements of good faith.”

And according to Article 282:

“Anyone who causes harm to another must compensate them.”

Based on this, the seller can file a claim in court for the recovery of financial losses, provided they can prove that the vehicle was no longer in their use, and the fines did not result from their conduct.

What can we learn from this case?

Transferring ownership is not just a matter of verbal agreement. Official transfer is essential to settle responsibility.

Always document every sale in writing. This reduces the chance of future disputes.

Transfer of the car does not equal transfer of ownership. The original owner remains accountable for actions of the new user if the transfer is not executed.

What can be done if the mistake has already happened?

The first step should be to immediately report the sale to the competent authority and request the transfer.

If fines have already accumulated, a claim can be filed against the actual user of the vehicle for compensation.

The vendor is obliged to pay the fines to the state, but can legally demand this amount as compensation from the buyer.

Conclusion

The UAE legal framework is clear: the vehicle is the seller's responsibility until the official ownership change happens. Therefore, it is crucial to initiate the transfer immediately after the sale and preferably conclude a written sales contract. Failing to do so can burden the seller with consequences for years – potentially in the form of fines worth tens of thousands of dirhams.

(The article is sourced based on the Civil Code.)