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.
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.
Read More: How to give Authority in Transferring Property Ownership using UAE Power Of Attorney
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.
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.
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:
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.
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.
People outside of the UAE might choose to notarize the Power of Attorney in the nation they are in.
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.