The property market holds a prestigious value in the UAE. As one of the largest growing sectors in the country, the property market observes frequent transactions. The government takes a keen interest to ensure hassle-free and smooth processes for all. One of the many developments to prompt feasibility for everyone is the power of attorney for real estate transactions. The initiative enables individuals to carry out real estate processes with ease.
We will do a comprehensive overview of the power of attorney for real estate transactions in the UAE and see how it helps the people in the country.
What is the Power of Attorney in the UAE?
A power of attorney (POA) is a legal document in which an individual or organisation gives another person or company the right to represent them. The nominated party then has the right and power to authorise proceedings on behalf of the nominator.
The power of attorney usually comes into play for proceedings like transferring property ownership in Abu Dhabi, or for any other real estate transaction in the UAE. The initiative serves great for people unable to attend real estate proceedings for any reason.
Types of Power of Attorney in Real Estate Transactions UAE
There are several different types of Power of Attorney for real estate transactions in the UAE. This depends on the purpose an individual is applying. For property dealings, there are usually three main types of POA: General, Special and Property Power of Attorney.
GENERAL POWER OF ATTORNEY
This POA provides a broader range of powers to the assigned attorney. With a General Power of Attorney, the assigned personnel can authorise the following tasks on the nominator’s behalf.
- Execute legal duties
- Sign legal documents and contracts such as RERA forms in Dubai or any other form in other Emirates
- Collect rental income or related payments
- Pay utility bills
- Represent the nominator for legal affairs
- Sign and authorise leases with tenants and or landlords
- Represent the nominator before the government, financial institutions and third parties
- Indulge in buying and selling of real estate on the nominator’s behalf (if the nominator and nominee are immediate family members)
SPECIAL POWER OF ATTORNEY
A Special Power of Attorney gives limited power to the nominee. It is usually provided for one-time issues such as signing a contract on a person’s behalf. Additionally, this type of POA can be issued for a specific time and an explicit transaction.
The special POA is a considerably low-risked authority preferable in situations when there’s any doubt. The power is revoked once the specific task is completed.
PROPERTY POWER OF ATTORNEY
The aforementioned types of powers of attorney are also commonly used for other processes such as buying and selling of vehicles among others. However, a Property Power of Attorney is specified for property-related processes.
This becomes handful for signing documents such as a sales purchase agreement in the UAE, buying or selling a property or obtaining a Non-objection Certificate (NOC). Moreover, the nominated attorney can also represent their client in legal proceedings.
Who Can be Authorised for a Power of Attorney for Real Estate Transactions
Family members, relatives, friends or attorneys can all be nominated for a Power of Attorney to sell property in Dubai or any other Emirate. For a General Power of Attorney, the nominee should be an immediate family member. However, for nominating people other than family members, the nominator should apply for a Special Power of Attorney.
As huge sums of money and assets are at stake, the government continues to introduce initiatives to ensure buyer and seller protection. For instance, the Dubai Land Department has made it compulsory for the nominee, a friend or relative, to be based in the UAE.
That said, people with no relatives in the UAE can hire an attorney to represent them. It is important to note that some Emirates might have different regulations for issuing a POA. For latest updates, check the government websites.
How to Obtain a Power of Attorney in the UAE
The power of attorney process in the UAE is rather straightforward. People can easily hire the services of many typing centres or law firms to prepare the power of attorney. The charges may vary depending on the service hired and the type of POA prepared.
In addition to preparing the power of attorney for real estate transactions, there are some key considerations to take into account.
- The POA document must be issued in English and Arabic. In case of any discrepancies between the two, the Arabic version is considered the main instrument.
- The document must be notarized by the public notary. The charges usually range from AED 550 to AED 3,000 depending on the type of document and who applies for the issuance.
- It is possible to sell and buy property as a foreigner in Dubai and other Emirates. However, for a POA issued in another country, it needs to be legalised at the UAE embassy. Moreover, it should be legalised by the UAE Ministry of Foreign Affairs.
- A power of attorney must be issued for a specific purpose and a specified property.
- Usually, the general POA is valid for 2 years while the special POA can be issued for a specific period.
- The POA becomes invalid if the nominator passes away.
- The prices are usually higher for businesses and non-residents.
Advantages of Power of Attorney for Real Estate Transactions
The power of attorney is a powerful and helpful tool to help individuals and businesses with real estate processes in the country. Let’s take a look at some of the major advantages of a POA for the real estate market.
- It proves to be a practical way of handling specific tasks without physically being in the country.
- A POA helps save a substantial amount of money, time and effort.
- For a real estate process where concerned parties are unable to make it, a POA paves way to nominate people to represent them.
- It’s a great tool for people wanting to sell a property in Dubai from abroad or any other Emirates.
- Hired attorneys can look after the entire sale and purchase process without a person physically being in the UAE.
- Real estate attorneys come with sound knowledge of the property market. They can professionally handle all the legal and financial proceedings.
Risks Associated with Issuing a Power of Attorney for Real Estate Transactions
The government makes it easy for locals and foreigners to buy and sell properties in the UAE. Additionally, there is strict adherence to the law against any foul play. However, there are certain risks with granting someone the power of attorney that one should consider.
Whether you want to sell a property or looking for a property for sale in the UAE, it is essential to nominate a trusted party. As the POA gives the nominated people the authority to deal on your behalf, choose the party wisely.
Additionally, for specific tasks, a special power of attorney can be a viable and less risky option. For hiring a real estate attorney or agent, do your research and only hire an authorised service provider.
This is everything about Power of Attorney for real estate transactions in the UAE. The property market in the UAE is a booming industry. With many parties involved, foreign and local, the POA makes a great tool for real estate processes.
Consider the additional costs of selling a property in Dubai and in other Emirates to better plan your finances. Moreover, go through the buying property in the UAE FAQs and get answers to all related queries.
Furthermore, dubizzle is a trusted and authorised platform for property buying and selling. With features like dubizzle Verified Properties among many more, the platform continues to enhance user experience with added protection for buyers and sellers.
Stay tuned to dubizzle’s property blog for information about real estate tools and more.
