When selling your car, it is important to arrange for the proper transfer of ownership of the vehicle to the name of the buyer.

Following legal procedures and regulations in vehicle ownership transfer ensures that the vehicle and all liabilities are transferred to the new owner. 

What is the process in transfer of car ownership? What are the documents required? How do you transfer registration and how do you check the status? In this article, we will give you a quick guide on how to transfer car ownership, whether you are in Bahrain or Saudi Arabia. 

Wherever you are, the transfer must stress the legal responsibilities of the new owner, otherwise non-compliance will result in fines and penalties, and in the worst-case scenario, lead to disciplinary action.

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It is also mandatory if you are leaving the country and a friend or relative will be using the car. Regarding fines and legalities surrounding the process, knowing the requirements to transfer car ownership is imperative. Let’s take a look at the requirements:

HOW TO TRANSFER CAR OWNERSHIP IN BAHRAIN?

The first step of the process is to make sure that the Ownership Transfer Form has been signed by the two parties, the previous owner and the new owner.  Other requirements to be provided include the following: 

• Vehicle’s insurance certificate valid for one year from date of registration 
• Original and valid Identity Card of the owner, and a copy of valid Commercial Registration (for institutions and companies) attached with letter stating the approval of transferring the ownership
• Copy of ownership certificate 
• Copy of inspection certificate
• Disclaimer certificate (the end of the installments) from the owner if the vehicle is registered in installments 

It is also important to take note of the following exceptions: 

Transfer of ownership shall be rejected if –

• the annual registration of the vehicle is over or there are traffic violations on the vehicle 
• there is judicial detention issued by the courts of the Kingdom of Bahrain in the Ministry of Justice and Islamic Affairs
• the vehicle is registered under more than one person and there is no authorization from the other owners to transfer ownership
• installments on the vehicle are unpaid or pending and there is no disclaimer certificate to transfer the ownership
• the vehicle is not available in the Kingdom of Bahrain
• the transaction procedures are questionable
• the present of the current and prospective vehicles owners to the Vehicles Licensing Department

Payment Method:  Cash

Service Fee:  BHD 10

For more details, please refer here.

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HOW TO TRANSFER CAR OWNERSHIP IN SAUDI ARABIA?

Just like in Bahrain, transferring car ownership in Saudi Arabia is also simple and hassle-free, for as long as you comply with all the requirements: 

First step of the process is to get the Insurance by visiting the car transfer office near you. 

If you’re buying a used car in Saudi Arabia, you can transfer its ownership to your name online. On the other hand, the procedure to transfer car ownership of a seven-seater car in KSA is manual. 

Always remember that a fine of SR 100 to SR 300 is imposed if you are caught driving without legal car ownership transfer documents.

What are the requirements for car ownership transfer?

• Original Iqama (buyer)
• Driving license (buyer)
• Original iqama (seller)
• Original Istimara or vehicle registration
• Valid Fahas  
• A third party or comprehensive insurance

(Note:  The buyers and sellers must have access to the phone numbers registered with Absher)

Apply for Insurance

Get car insurance online or through car transfer agents or offices. If through online, just compare the quotes of third-party or comprehensive insurances then choose which one suits your needs.  You can also register your wife as an additional driver if needed. 

Absher introduces a new feature in the Vehicle Ownership Transfer service 

A new special service in “private transport transfer” has been introduced by “Absher” platform, in response to the Covid-19 pandemic. The new feature allows individuals to complete transferring ownership of vehicle electronically, after vehicle inspection by the buyer and after reaching an agreement on the price between buyer and seller.

Through the new service, seller can log in his account in the “Absher” platform to select the vehicle to be sold, determine the agreed sale price and enter buyer data (ID and date of birth). seller can also enter his bank account number to which the sale price is to be transferred; and the account indicated must exist under his name at a local bank.

Buyer is given one hour to log in to his Absher account to accept or reject the sale request. If buyer exceeds the time limit without any action, the sale will be automatically canceled. In case the buyer accepts the application, buyer must enter his bank account number and this will be used later to refund vehicle price, if the sale is not completed for any reason.

If you have completed the abovementioned requirements, then all you need to do is wait for further notice. 

Other pertinent matters will be checked by the authorities such as outstanding fines, which the previous owner must settle for the transfer to proceed. As soon as the clearance has been obtained, the new owner must pay the required transfer fee. 

Once all these requirements have been completed, the authorities will verify all the information and issue a new registration card under the new owner’s name. 

This quick guide on car ownership transfer will be very useful in case you are planning to sell your car now or in the near future, whether you are in Bahrain or Saudi Arabia. By following these procedures, rest assured that your ownership transfer process will be smooth and worry-free.

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Akomakoo (Staff)

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