The real estate market in the UAE holds a prestigious value. It is one of the largest growing sectors in the country. The government is keenly inquisitive to ensure well-organized and streamlined processes for all. Power of attorney for real estate transactions is one of several advancements that have made it more feasible for everyone. A property POA encourages individuals to carry out real estate transactions with ease.
A power of attorney for land sale is a legal document in which an individual or organization authorizes another person or company to represent them in real estate matters. The nominated party then has the right and power to assign proceedings on behalf of the principal.
A power of attorney is used for proceedings like transferring property ownership in Abu Dhabi or any other real estate transaction in the UAE. The idea is particularly beneficial to persons who are unable to attend real estate proceedings for any reason. There are three types of POA for real estate transactions in the UAE. These are General, Special and Property Power of Attorney. They provide a broader range of powers to the assigned attorney.
General Power Of Attorney
With a General Power of Attorney, the appointed attorney can authorize the subsequent tasks on behalf of the nominator.
- Fulfill your legal obligations.
- Sign contracts and legal paperwork, including RERA forms in Dubai or any other form in the Emirates.
- Gather rent or other associated payments.
- Pay your utility bills.
- Act as the nominee’s legal representative.
- Authorize and sign leases with landlords or renters.
- Act as the nominee’s representative before the authorities, financial institutions, and other parties.
- Purchase and sell real estate on behalf of the nominee (where the candidate and the nominator are related by blood).
Special Power Of Attorney
A Special Power of Attorney grants the candidates some restricted authority. Typically, it is offered for one-time requirements like signing a contract on another person’s behalf. A POA of this kind may also be granted for a specific timeframe and a single transaction. Upon completion of the designated task, the authority is removed.
Property Power Of Attorney
Property Power Of Attorney is specified for property-related processes. It is useful for signing contracts, including those for the purchase or sale of real estate in the United Arab Emirates or when acquiring a Non-Objection Certificate (NOC). Furthermore, the assigned attorney has the ability to represent the attorney in court.
Family members, relatives, acquaintances, or attorneys may be nominated for a Power of Attorney to sell property in Dubai or any other Emirate. For a general power of attorney, the principal ought to nominate a member of their immediate family. However, the nominee must file for a Special Power of Attorney if they wish to nominate anybody who is not a member of their family.
Benefits of Power of Attorney for Property Transactions
For gifting real estate property
A POA Dubai can be utilized for gifting a property. The property POA should precisely mention the property details and the intent of the principal to gift the property to the beneficiary. If the POA does not mention these citations in its content, then it is unlikely that the Dubai Land Department would permit the Agent to implement the requirements of the principal. The same requirements would apply if a receiver gives the POA to receive gifted property.
For selling real estate property
A property POA should specifically mention the property details (community, building, plot number, unit number, etc.) and the intent of the principal to authorize the agent to sell the property. The Dubai Land Department requires a specific clause in the POA if the agent shall receive the sale proceeds under his/her name while selling the property. This is crucial information since some property owners might not be allowed to receive a management check in their name and might not even possess bank accounts in the United Arab Emirates.
For real estate agent or broker
In accordance with the most recent Dubai Land Department laws, a POA may designate a real estate broker to act on their behalf in the purchase or sale of real estate. However, in a single transaction, a real estate agent cannot serve as both a broker and an agent. These policies and preventive measures have been set to prevent conflicts of interest between the POA and real estate brokers or agents, as well as to give investors the appropriate protection.