Power Of Attorney Benefits in Real Estate Transactions
Power of Attorney (POA) is a legal document that allows an individual (the principal) to authorize another person (the agent or attorney-in-fact) to act on their behalf in certain legal matters. In the context of real estate transactions in Dubai, a POA can be a powerful tool that can help streamline the process and ensure that the transaction is completed smoothly. In this blog, we will explore the power of attorney in real estate transactions in Dubai.
- Streamlines the process
A POA can streamline the process of buying or selling a property in Dubai. With a POA, the agent can sign contracts, pay fees, and complete other legal procedures on behalf of the principal. This can save time and effort for the principal, especially if they are not in the country or unable to attend to the transaction in person.
- Ensures continuity
A POA can ensure continuity in case the principal is incapacitated or unavailable to handle the transaction. For example, if the principal is out of the country or unable to attend to the transaction due to illness, the agent can act on their behalf and complete the transaction. This can prevent delays or disruptions in the transaction.
- Facilitates remote transactions
A POA can facilitate remote transactions, where the principal is located outside Dubai or unable to attend to the transaction in person. With a POA, the agent can represent the principal and complete the transaction without the need for the principal to be physically present.
- Provides flexibility
A POA can provide flexibility in terms of the scope and duration of the authority granted to the agent. For example, the principal can limit the scope of the POA to a specific transaction or grant broader authority to the agent. Additionally, the principal can specify the duration of the POA, which can range from a specific period to a revocable or irrevocable POA.
- Requires caution and diligence
While a POA can be a powerful tool in real estate transactions in Dubai, it requires caution and diligence on the part of both the principal and the agent. The principal should ensure that they fully understand the scope and duration of the authority granted to the agent and that they choose a trustworthy and competent agent. The agent should act in the best interest of the principal and comply with all legal and ethical obligations.
In conclusion, a Power of Attorney can be a powerful tool in real estate transactions in Dubai. It can streamline the process, ensure continuity, facilitate remote transactions, provide flexibility, and require caution and diligence. If you are considering a POA in a real estate transaction in Dubai, it is advisable to consult with a qualified legal professional to ensure that the POA is properly drafted and executed.
Different types of Power of Attorney are utilized for property purchase:
- General Power of Attorney: This type of POA in the UAE authorizes an individual to act on behalf of the principal for real estate purchases. This POA gives broad powers to the attorney, enabling them to perform all duties that are not restricted until the mentioned date in the POA.
- Special Power of Attorney: This POA grants specific powers to the attorney and can only be used for special situations. This type of POA is mainly used for limited transactions that can be completed quickly.
Requirements for POA Transactions to be Valid:
For a POA transaction to be valid, it should be prepared in Arabic or English, with a legal translation into Arabic, and notarized by a Notary Public in the UAE. If the POA is entered in another country, it should be authenticated in the UAE embassy and attested in the Ministry of Foreign Affairs.
Validity of POA for Selling and Buying Properties by Dubai Land Department:
The validity of the POA issued by Dubai Notary Public is unlimited, whether for buying or selling properties, unless cancelled by the principal/client. You can check the validity of all POAs issued by Dubai Notary Public/Dubai Courts on the Dubai Courts website.
The validity of the POA issued outside Dubai jurisdiction for selling is two years, while the validity of the POA issued outside Dubai jurisdiction for buying is five years.
