Power of Attorney (POA) for UAE Real Estate Transactions: Everything You must know

The real estate market in the UAE holds a prestigious position as one of the largest growing sectors in the country. This thriving industry is characterized by frequent transactions, and the government is committed to ensuring hassle-free and smooth processes for all involved. One significant development aimed at facilitating these processes is the Power of Attorney for real estate transactions. This legal tool empowers individuals to carry out real estate transactions with ease and efficiency. In this article, we will provide a comprehensive overview of the Power of Attorney for real estate transactions in the UAE and explore how it benefits people in the country.

What is the Power of Attorney in the UAE?

A Power of Attorney is a legal document that grants an individual or organization the authority to represent another person or entity in various matters. The appointed party, known as the attorney-in-fact or agent, has the legal power to act on behalf of the person who granted them the authority.

In the context of real estate transactions in the UAE, the Power of Attorney plays a crucial role, particularly in processes like property ownership transfers in Abu Dhabi and other real estate transactions. It proves to be a valuable tool for individuals who may be unable to attend these proceedings for various reasons.

Types of Real Estate Power of Attorney in the UAE

There are several types of Power of Attorney for real estate transactions in the UAE, each serving specific purposes. The main types include:

1. General Power of Attorney: A General Power of Attorney grants broad authority to the appointed agent. It allows the agent to perform various tasks on behalf of the grantor, including executing legal duties, signing contracts, collecting rental income, paying bills, representing the grantor in legal matters, and even buying or selling real estate on their behalf (if the grantor and attorney-in-fact are immediate family members).
2. Special Power of Attorney: A Special Power of Attorney provides limited authority for specific tasks or transactions. It is often used for one-time issues, such as signing a contract on behalf of the grantor, and can be issued for a specific duration. The authority granted under a Special Power of Attorney is terminated once the designated task is completed.
3. Property Power of Attorney: This type of Power of Attorney is specifically tailored for property-related processes. It is instrumental in signing documents such as sales purchase agreements, buying or selling property, or obtaining a Non-Objection Certificate (NOC). The appointed attorney-in-fact can also represent the grantor in legal proceedings related to property.

How to Obtain a Power of Attorney in the UAE?

To obtain a Power of Attorney (POA) in the UAE, you have two options:

• Visiting a notary public office in person or
• Utilizing online services provided by specialized POA firms such as Notary Public Dubai.

The process involves creating a legally notarized POA that empowers you to appoint an agent who can manage your financial and property matters in case of mental incapacity or if you leave the country for an extended period. It’s crucial that the appointed agent is over 21 years old and mentally competent. Opting for online POA services simplifies the process into three steps: ordering, approving, and e-notarization. When using an online POA service, you can place an order through their website. The firm will gather the necessary information from you and email you the draft of your POA in English for your review and approval. Once you approve the document, the firm will guide you through the entire notarization process and provide you with the notarized POA via email.

Here are some key considerations to be considered when obtaining a POA:

• The POA document must be issued in both English and Arabic, with the Arabic version considered the primary instrument in case of discrepancies.
• The document must be notarized by a public notary, with specific fees depending on the type of document and the applicant.
• If a POA is issued in another country, it must be legalized at the UAE embassy and the UAE Ministry of Foreign Affairs.
• A Power of Attorney must be issued for a specific purpose and a specified property.
• In the UAE, the validity period of a general POA can be specified within the document itself. Typically, it is valid until a specific date mentioned in the POA or until it is revoked by the grantor, while Special POAs can be issued for a specific period and limited to the transaction specified in it.
• The POA becomes invalid if the grantor passes away.

You should know: Power Of Attorney For Property Management

Why a Real Estate Power of Attorney is Essential?

A Real Estate Power of Attorney (POA) proves crucial for several reasons:

• Firstly, by entrusting someone with a POA, your physical presence in Dubai, often required for real estate transactions, becomes unnecessary.
• Without a POA, even a straightforward property sale or gift process can be time-consuming, taking up to a month. Having an agent with a POA can expedite the process significantly, as they can handle all necessary tasks and represent you, regardless of your location.
• Moreover, real estate transactions involve intricate official requirements and procedures. If you’re unfamiliar with these complexities, appointing someone you trust, who is well-versed in Dubai’s rules and regulations, ensures a smooth and legally compliant transaction.

The Power of Attorney for real estate transactions in the UAE is a powerful tool that simplifies and streamlines property dealings in the country. Whether you are a local or a foreigner looking to buy or sell property in the UAE, the POA offers convenience, efficiency, and protection. However, it is crucial to exercise caution, choose trustworthy representatives, and stay informed about the specific regulations in different emirates to ensure a smooth and successful real estate transaction experience. 

Notary Public Dubai, accredited by the court, offers a reliable online POA service for real estate transactions. Contact us for more information.