Car Sale Fraud UAE: What Are the Legal Consequences and How to Avoid It?

Posted by Awatif Mohammad Shoqi Advocates & Legal Consultancy on August 4th, 2023

Car sale fraud is a common issue faced by many in the UAE. It occurs when a seller intentionally misrepresents the ownership, the condition, history or value of the car to deceive the buyer. This type of fraud can have serious legal consequences, and it is important to know how to avoid it and what actions can be taken if you become a victim of a car sale fraud.

This article aims to discuss the legal consequences of car sale fraud in the UAE and how one can avoid falling victim to car sale fraud.

Legal consequences of car sale fraud in the UAE:

Car sale fraud is considered a criminal offense in the UAE and is punishable by law. The UAE Penal Code (Federal Decree Law no. 31/2021) under article 451 provides for imprisonment and fines for anyone found guilty of fraud. The specific legal consequences of car sale fraud depend on the nature and severity of the offense.

Further the law also provides that any attempt to commit the crime shall be punishable by a jail sentence for a period not exceeding 2 years or fine not exceeding AED 20,000. If the crime is committed by an individual who was previously convicted for the same offence, then the criminal shall be sentenced to jail for a period of 1 year or more, and the court may also order surveillance measures for a period not exceeding 2 years.

In the UAE in addition to criminal charges, car sale fraud can also result in civil liability. The victim may be entitled to compensation for any damages suffered as a result of the fraud, including financial losses and emotional distress.

How to avoid car sale fraud in the UAE:

• Do your research: Before buying a car do some research on the make and model of the car and its market value. Once you find the car that you are interested in buying, conduct research on the car’s history including the ownership, accidents and maintenance records. This will help you determine whether the price being offered is reasonable and whether the car has any known issues.
• Inspect the car: Always inspect the car thoroughly in person before making the purchase. Look for any signs of damage, wear and tear, or any other defects that may not be immediately visible, but it may affect the car’s value or safety. Take the car for a test drive to assess and ensure that it is in a good working condition.
• Verify the documents: Check the car’s documents, including the registration certificate, insurance certificate and service history. Make sure that the documents are genuine and that they match the details of the car.
• Use a trusted dealer: It is recommended to buy a car from a reputable and licensed car dealerships or private sellers who have a proven track record of selling quality vehicles. Avoid buying a car from an individual seller unless you know them personally or have received a recommendation from a trusted source.
• Beware of red flags: Be wary of any seller who refuses to let you inspect the car or insists on cash-only transactions. Another red flag is when a seller tries to rush the sale or is evasive when you ask questions about the car.
• Seek legal advice: In addition to the above precautions, buyers can also seek legal advice from experienced attorneys specializing in car sale fraud cases. A legal professional can review the purchase agreements, advise on potential risks and liabilities, and assist with any legal action that may need to be taken in case of fraud or misrepresentation.

What to do if you become a victim of car sale fraud in the UAE?

If you become a victim of car sale fraud in the UAE, it is important to act immediately. Here are the steps you should take:

Report the fraud: Report the fraud to the police as soon as possible. Provide them with any evidence you may have, including the car’s documents and any communications you had with the seller.

Pursue legal action: Consider pursuing legal action against the seller to recover any losses you have suffered as a result of the fraud. A qualified lawyer can help you file a claim before the UAE court and represent you throughout the legal process.

In conclusion, car sale fraud is a serious issue in the UAE and can have serious legal and financial consequences as provided by the UAE laws.  Buyers should take all the necessary precautions to avoid falling victim to this illegal activity, by taking the necessary precautions you can minimize the risk of becoming a victim of car sale fraud.

Full Article: https://www.alrowaad.ae/legal-blog/what-are-the-legal-consequences-for-car-sale-fraud/