Mubaya Services - Ulitmate Guide

In this write-up, we will delve into the intricacies of Mubaya, outline its benefits, the essential documentation required, the step-by-step process involved in obtaining this pivotal agreement, and much more.

Understanding the Mubaya Service

If you're searching for pre-owned vehicles for sale in Dubai and considering purchasing a used car, it can certainly be a complex and stressful experience. Moreover, you may be vulnerable to scams if you're buying a vehicle still under financing. To mitigate such risks, the seller's agreement, also known as Mubaya, safeguards both buyers and sellers.

Simply put, Mubaya refers to a car sales agreement that facilitates the smooth transfer of vehicle ownership between the seller and the buyer. This ensures a hassle-free and efficient transaction for both parties. It also reduces the time and effort involved in the transfer process, making it a preferred choice for car buyers and sellers alike in the UAE.

The agreement ensures that the vehicle’s details are accurately recorded, reducing the chances of discrepancies and potential disputes. It is to be noted that the service is available for both individuals and companies.

Mubaya features a validity period of 14 days, allowing the vehicle seller to grant the buyer power of attorney for the vehicle during this time. This period can be extended for an additional 14 days or more if necessary.

Features of Mubaya Agreement

Listed below are the striking features of the Mubaya agreement –

• The Mubaya service ensures the rights of both the seller and the buyer are protected.
• It prevents the unauthorised transfer of vehicle ownership or licence plates, as the transaction requires the presence of both parties and verification of their Emirates IDs through a card reader. 
• Once the electronic selling agreement is signed, the seller loses the right to use the vehicle.
• It maintains a record of the vehicle or licence plate's ownership transfer history, enabling easy access to information on past transactions. 
• Furthermore, Mubaya allows access to records and statistics related to transactions carried out in showrooms, which was not possible earlier with paper agreements.
• In case the selling agreement expires before the buyer completes the transaction, it is automatically cancelled. 
• From the day the electronic agreement is signed, traffic fines from Dubai or other emirates are registered under the buyer's name.

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Application Process for Mubaya Agreement

Mubaya services are available at authorised vehicle registration centres in the UAE, such as the Roads and Transport Authority (RTA) offices and other approved centres.

You can apply for a Mubaya agreement via RTA by following the given steps -

• You would be required to visit one of the showrooms authorised by the Roads and Transport Authority (RTA).
• Take the required documents with you to expedite the process (the list is given in the next section).
• Complete the transaction by paying the required fees.
• Upon payment, an online agreement shall be issued to you.
• You can print the agreement from the RTA website.

Documents Required for Mubaya Service

You can keep the following documents ready while applying for Mubaya service via RTA -

For Individuals

• Original Emirates ID of both buyer and seller
• For GCC visitors, an original passport is required.
• Applicants are required to carry their passports and valid visas.
• For registered vehicles, vehicle ownership certificates would be required.
• A vehicle transfer certificate, export certificate, and custom certificate may also be needed.

For Companies

• The endorsement of signatures or a notarised power of attorney in favour of the dealership authorises the sale of the vehicle.
• In the case of registration, electronic insurance for the vehicle should be obtained in the company's name.

Fees to Avail of Mubaya Service

The fee for the Mubaya agreement is AED 20, which is to be paid by the dealerships to RTA through a credit card or e-wallet account.

Pros and Cons of Mubaya Service

Let's take a look at the advantages and disadvantages of the Mubaya service for a better understanding - 

Some of the prominent advantages of Mubaya service are listed below -

• Mubaya simplifies the process of transferring vehicle ownership, reducing frequent trips to Roads and Transport Authority (RTA) or other vehicle registration centres.
• It saves both sellers and buyers a significant amount of time.
• The Mubaya service ensures that the ownership transfer is completed in accordance with the UAE laws and regulations, mitigating the risk of disputes.
• Another remarkable advantage is that it reduces the chances of discrepancies, as the Mubaya agreement includes all the accurate details about the vehicle and parties involved.
• As the services adhere to UAE laws, the usage of this service ensures secure and safe transfers.
• Both buyers and sellers can trust that the vehicle's history and ownership have been verified - the Mubaya agreement provides reassurance throughout the transaction process.

Given below are the disadvantages of Mubaya's service -

• As mentioned before, the Mubaya agreement comes with a 14-day validity period, which may not be sufficient for some buyers or sellers. However, note that this period can be extended as well.
• To get the Mubaya agreement, you would be required to pay an additional fee. This could be a consideration for budget-conscious buyers and sellers of the vehicle.
• You can avail of the service only through the authorised vehicle centre, which may not be available in all locations.

Terms and Conditions for Mubaya Service

Given below are the terms and conditions to be followed while applying for the Mubaya agreement in UAE – 

• To avoid penalties and fines, the customer must complete the licensing transaction within 14 days.
• Before obtaining this service, the customer must clear all traffic fines, including those from Dubai and other emirates.
• In case the vehicle is mortgaged, the customer must first apply online to release the mortgage before availing of this service.
• The vehicle owner or their legal representative must be present during the process.

Related Links - 

Second Hand Car Insurance: Types, Benefits and How to Buy

Car for sale in UAE: Used cars for sale in Dubai, UAE

How to Protect Yourself When Buying a Used Car

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