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Precautions before buying a car on mortgage in the UAE

I am going to purchase a used car in the UAE. I have found a nice car, but the owner says he has purchased it using a bank loan.

How can I check whether he has fully paid his loan before buying such a car?

HPL Yamalova & Plewka DMCC
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7 May 2020, 06:49

Hello.

The car registration card will reflect whether the car is mortgaged or not.

If the seller bought the car with a car loan and not a personal loan, he will need a clearance from the bank to sell it.

You can also request the owner obtains a clearance letter from the bank, to maintain in your records.

For more options on moving forward, you can contact my firm.

8 May 2020, 18:07

The seller told me that he can provide me a NOC letter from his bank. Is that okay?

20 May 2020, 05:09

It is alright, as long as the document he provides from the bank states that he has settled the entire loan for the car.

Dr Amira Al Bastaki Advocates and Legal Consultants
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10 May 2020, 09:58

You can request a bank certificate stating that he has paid the car loan.

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