A grantor or Principal may designate and authorize a grantee to carry out a specific range of tasks on their behalf by issuing a Power of Attorney (POA) as a legal instrument. The Grantee has the authority to speak for the Grantor in legal and business matters. The Grantor may permit a dependable agent to act on their behalf during a real estate transaction.
A Power of Attorney may be given for a specific cause, such as to list a particular property, but it may also be given for various other factors. However, this is often done just inside the close family. Except as otherwise provided in the POA, the POA shall take effect upon legalization. A Power of Attorney may expire upon the Grantor’s death when the Grantor becomes mentally incompetent or, if necessary, at any time. This Article discusses the importance of the Power of Attorney for Gift Transfer in Dubai.
What is a Gift Transfer?
Hiba or Gift transfer commonly referred to as property gifting is when a name is added to or removed from a title document, causing a later transfer of ownership into the name of another person or entity. The UAE allows for property gifting for several purposes, although asset protection and inheritance are the most frequent.
Sharia law, which governs non-Muslims in particular, can be unclear when resolving these sorts of disputes. As a result, giving property eliminates the legal uncertainty that comes with this legal system in a reasonably priced way.
Property Gifting in Dubai – Required Documents
- First and foremost, you are only permitted to gift a property if you are first-degree relatives, wife and husband, parent and child, or parent and grandparent.
- You will need to present a Proof of Kinship, a government-issued document that verifies the parental and marital link between the Grantor and Grantee.
- Examples of such documents include marriage or birth certificates to demonstrate the relationship.
- Suppose the papers were created outside of the UAE In that case, they must be stamped by the UAE Ministry of Foreign Affairs, legally translated into Arabic, and verified by the UAE Embassy in the nation of origin.
Read More: How to give Authority in Transferring Property Ownership using UAE Power Of Attorney
Why is Power of Attorney for a Gift Transfer in Dubai required?
Most people are surprised why they even require a Power of Attorney because they may transfer property between husband and wife or parents and children. It’s common knowledge that the procedure may be finished in a single day. While it may appear simple and quick, the gift transfer procedure is not.
The process required for Property Gifting typically includes:
- acquiring a value certificate from Dubai Land Department,
- getting a no objection letter from the developer,
- paying fees, and then
- Eventually, transferred the property and got a new title deed. A month and a half may be needed to complete this process.
Reason to have Power Of Attorney for Gift transfer in Dubai
Also to be considered is the fact that, at the least, both parties to the gift transfer transaction—the donor and the recipient (or done)—will need to be physically present during two steps: getting a developer’s No Objection Certificate and transferring the title before Dubai Land Department. As a result, if you, the Grantor or Grantee, cannot remain in the UAE throughout the gift transfer procedure, you may need to select someone to conduct the transaction on your behalf using a Power of Attorney instrument.
What steps are involved in creating a Power of Attorney?
A power of attorney:
- must be written, and then
- It must be notarized to complete the procedure.
The POA must expressly state that the Grantor intends to give the property away or transfer it as a gift (Hiba). It is improbable that the Dubai Land Department would permit the Grantee to carry out the Principal’s whims if the POA fails to reference these realities in its substance. If the Grantor is receiving the Gift, the same rules will apply. The POA’s language should be written precisely.
When creating a Power of Attorney, the following information must be included:
- What/which act(s) does the Principal want to delegate?
- Who should the Principal select as his or her attorney?
- How long will the Power of Attorney be in effect?
In Dubai, a power of attorney can be granted with an indefinite period or a set duration. Suppose you want to revoke the Power of Attorney in perpetuity or before the predetermined period. In that case, you can go to a notary public and make the appropriate request.
Which language should the Power of Attorney be written in?
A power of attorney should be written in Arabic or Arabic and English. However, the Arabic document shall take precedence over the English one in the event of any ambiguity.
Notarization of POA if not in the UAE?
People outside of the UAE might choose to notarize the Power of Attorney in the nation they are in.
- In this case, the local Ministry of Foreign Affairs and the UAE Embassy in that nation will certify the notarized Power of Attorney.
- The original Power of Attorney will be couriered to the UAE when it has been certified by the UAE Embassy and translated into Arabic by the Ministry of Foreign Affairs and International Cooperation (MOFAIC).
- The Ministry of Justice will certify the Arabic translation. A power of attorney can be utilized for its intended purpose once it has been translated into Arabic and confirmed by the appropriate authorities inside the United Arab Emirates.
How may Notary Public Dubai assist you in notarising the Power of Attorney?
A POA must be notarized by the Notary Public Dubai, a division of the Dubai Courts in Dubai. Choosing a POA has further advantages. A POA would be very helpful if you want to avoid the hassle and stress of going to offices in person to learn about the procedure for Gift transfer in Dubai. To create a Power Of Attorney, you must be at least 21 years old and located in Dubai or another city inside the United Arab Emirates. You may have a POA created by a lawyer. A Notary Public will then evaluate it after that.
They will certify the document in writing after receiving payment of any necessary attestation fees. We advise speaking with a trustworthy Notary Public if you’re interested in learning how to notarize a Power Of Attorney in the United Arab Emirates. To know more about the Power of Attorney for Gift Transfer in Dubai, please don’t hesitate to contact us.
Hassan Humaid Al Suwaidi is a UAE Citizen and the founder of the firm HHS Lawyers. He has a vast experience of 20 years of dealing with high-value and complex notary requirements. Hassan has been involved in some of the largest legal settlements in the UAE and is commended for his ability to attain the most favourable outcomes for his clients.
