Ask the law in UAE: Help! the car I bought is stolen. What should I do?
Question: A month ago, I bought a car from one of the showrooms, paid the full value of the car and it was registered in my name. However, it has now become clear to me that the car was stolen and banned, and the mileage counter was also returned by the owner of the showroom. I went to the showroom owner to return the car because of these issues, but he refused to take it. He also refused to refund the money I had paid. What actioin can I take?
Answer: You may file a criminal case against the car showroom owner based on the fact that the car was stolen and that the owner of the showroom committed fraud when he sold you a stolen car and changed the kilo-meterage in the car.
Moreover, you have to file a civil case against him to take the car back and recover your money based on the idea that the sale shall be considered concluded, on the basis that the thing sold is free from hidden defects other than those customarily tolerated and that the seller must warrant the thing sold from any right to third persons.
Article 534 & 543 of the Civil Transactions Law state that tThe sale shall be considered concluded on the basis that the thing sold is free from defects other than those customarily tolerated. The law gives the purchaser the right to return the sold thing to the seller and recover his money within six months of taking delivery of the thing sold, unless the seller binds himself for a longer period and it has been proved that hiding the defect was by fraud imputed to the seller as per Article 555 of the Civil Transactions Law. The lawsuit in warrant of the defect is not receivable due to prescription occurring after the lapse of six months as of taking delivery of the thing sold, unless the vendor binds himself for a longer period. The vendor shall not adhere to this duration if it has been proved that hiding the defect was by fraud imputed to him.
Also, Articles 540 and 544 assure that if, after sale, it is revealed that the right of a third party encumbers the thing sold, the purchaser shall be at option either to wait until this lien is removed or rescind the sale and take action against the vendor for the price and if an old defect appears in the thing sold, the purchaser shall be at option either to restitute it, or accept it at the nominated price, but he may not retain it and claim the amount of the decrease in price due to the defect.