By Staff Reporter
Question: I sold my car to a friend for Dh10,000, but we did not complete the ownership transfer. Subsequently, I began receiving messages about traffic fines incurred on the vehicle. I asked my friend to pay the fines, but he refused. Due to the car’s poor condition, I ended up selling it for just Dh1,500 to cover some of the fines. However, I have recently discovered that there are still outstanding fines totalling Dh12,000 registered against the car. My friend continues to refuse any responsibility for these penalties. From a legal standpoint, what options are available to me in this situation? Please guide.
Answer: In the UAE, until the concerned authority formally transfers the vehicle’s ownership in the name of a new owner, a registered (current) owner remains legally liable for all obligations against the vehicle, including but not limited to traffic violations. This is in accordance with Article 22 (1) of the Federal Decree-Law No. (14) of 2024 On Traffic Regulation,
“Any transfer of ownership of a vehicle shall be registered with the Licensing Authority through the means approved by it. The owner of the vehicle in whose name the Vehicle Licence is registered shall remain liable for the obligations arising from the use of the vehicle until the Vehicle Licence is registered in the name of the new owner in accordance with the procedures followed by the Licensing Authority in this regard.”
Furthermore, from the perspective of traffic enforcement and administrative liability, the fines incurred during your friend’s use of the vehicle are associated with the vehicle, which makes you liable to pay as the registered owner.
In addition, it is assumed that you and your friend entered into a contract for the sale of the vehicle. In light of this contractual relationship and given that your friend took possession of the vehicle and used the vehicle after entering into a sale contract, he may be held liable to you for the traffic fines incurred during that period. This liability arises notwithstanding the absence of formal ownership transfer, as the existence of a binding contract may give rise to enforceable legal obligations between the parties to a contract under UAE civil law.
In the UAE, if a contract is entered into between all parties named in a contract, it is a legal obligation of each party to perform their respective obligations in accordance with the provisions of the contract. This is by Article 246 (1) of the Federal Law No. (5) of 1985 On the Civil Transactions Law of the United Arab Emirates, which states, “1. The contract shall be implemented, according to the provisions contained therein and, in a manner, consistent with the requirements of good faith.”
Anyone who causes harm to another is liable to compensate for that harm. This is in accordance with Article 282 of the UAE Civil Code, “Any harm done to another shall render the actor, even though not a discerning person, liable to make good the harm.”
You may consider filing a claim against your friend for the financial losses you incurred as a direct result of his failure to meet his obligations under the sale contract, particularly relating to his use of the vehicle and the resulting fines.
By the aforesaid provision of the law, you remain liable for the outstanding traffic fines to be paid to the concerned authority as the vehicle continues to be registered in your name.
About the Author
Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: [email protected] or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.
Source: Khaleej Times
