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Inherited car still under loan: How to sell it?

Dear Questioner,

My mother-in-law died in 2021. She had a car, which we thought was paid off. We haven't touched the car since then.

Now, in 2023, we are planning to sell the car. However, when we tried to transfer the title to the new owner's name, we discovered that the car is still under a loan with the bank.

What do we need to do? What will happen? Do we need to get a clearance from the bank, or will the bank take the car back?

Please advise!

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Abdul Wahied Mohammad Sharief

Dar Al Haqooq Legal Consultancy

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17 Sep 2023, 15:27

Dear Client,

Thanks for your question! I hope you are doing well. I will definitely assist you in this matter.

If your late mother-in-law's car has an outstanding loan, first contact the bank to determine the remaining balance and settle it.

Pay off the loan, including any fees, to obtain a clearance letter or NOC (No Objection Certificate) from the bank.

With the NOC, you can proceed with the car's sale and ownership transfer, ensuring legal compliance.

Failing to clear the loan may lead to difficulties in selling or transferring the car's ownership.

For any further legal assistance, you can WhatsApp us. We have an extensive team of knowledgeable and experienced lawyers to provide the legal assistance you need.

We will definitely be happy to help you.

Thanks & Regards,

ABDUL WAHIED

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