In the dynamic real estate market of Dubai, Power of Attorney (POA) has become an essential tool for facilitating property transactions, especially for clients who are abroad or unable to attend in person. While POA arrangements streamline the transaction process, ensuring the validity and clarity of the POA is crucial to protect all parties involved. Failing to properly verify a POA can lead to significant legal complications and delays.
This article underscores the importance of verifying the validity and scope of the POA and offers comprehensive guidelines for clients, agents, and conveyancers to navigate these transactions responsibly and professionally.
Verifying the Validity of the POA
To ensure the legality and enforceability of a POA issued in Dubai, it is essential to verify its authenticity via the Dubai Courts portal. This ensures that the document remains valid and active under Dubai law. The Dubai Courts provide an online service for verifying the validity of POAs issued by the Dubai Notary Public or Dubai Courts. You can access this service via the following link: Dubai Courts Notary Documents.
Key Steps for Verifying POAs
- Confirm the expiration date (if applicable) to ensure the POA is still valid.
- Ensure proper notarization and attestation procedures were followed if the POA was issued outside Dubai.
Understanding POA Validity in Dubai Real Estate Transactions
- Unlimited Validity within Dubai: POAs issued by the Dubai Notary Public do not expire for real estate transactions. However, clients retain the right to revoke these POAs at any time. Hence, it is important to check its validity from the Dubai Court’s portal to know if it is valid or canceled.
- Validity Outside Dubai Jurisdiction: For POAs issued outside Dubai, the Dubai Land Department (DLD) specifies the following validity periods:
- For Selling Properties: POAs are valid for two years.
- For Buying Properties: POAs are valid for five years.
Ensure Specificity and Clarity in the POA
When appointing a POA holder, especially in the case of overseas clients or those unable to attend the transaction in person, it is crucial that the POA explicitly defines the scope of authority granted. Avoid vague or overly broad language that may lead to confusion, disputes, or mismanagement.
Recommendations for Drafting a POA
- Clearly specify the scope of actions the POA holder is authorized to take (e.g., signing contracts, making payments, etc.).
- Include any limitations or exclusions to prevent the POA holder from exceeding their authority.
- Identify the beneficiary and the recipient of any proceeds (e.g., sales or lease cheques) to avoid disputes about the disbursement of funds.
Coordinate with Relevant Authorities
For a POA to be valid and accepted by all parties in a real estate transaction, it must be reviewed and approved by the relevant authorities involved. These entities include:
- Dubai Land Department (DLD) Trustee Offices: Verify that the POA meets the DLD’s specific requirements for real estate transactions.
- Developer Offices: Confirm the developer’s acceptance of the POA, particularly for obligations related to new developments or off-plan projects.
- Banks: Ensure that the bank accepts the POA for financial transactions, such as mortgage settlements or cheque collections.
By coordinating with these entities, potential conflicts, delays, and legal complications can be avoided, ensuring that the transaction proceeds smoothly.
Considerations for the Seller’s POA
When preparing a POA for a seller, it is essential to address the following questions clearly:
If the POA grants the authority for the cheque to be issued to anyone other than the seller, the document must explicitly state the name of the beneficiary to avoid ambiguity and ensure that the rightful party receives the payment.
Professional Responsibility of Agents and Conveyancers
Real estate agents and conveyancers play a critical role in safeguarding the interests of their clients. It is their professional responsibility to:
- Perform due diligence on the POA’s validity and scope.
- Ensure compliance with all regulatory requirements.
- Act with transparency and integrity throughout the transaction.
Agents must avoid any conflicts of interest, such as serving as both the POA holder and the agent in the same transaction. They should also ensure that all actions are taken in the best interest of their clients.
Fam Conveyancing’s Role in POA Transactions
At Fam Conveyancing, we understand the complexities involved in real estate transactions and the importance of ensuring that all legal documentation is in order. We offer comprehensive services where we can act as a POA holder for both sellers and buyers. Our professional team will execute transactions on behalf of our clients, ensuring that all requirements are met and that the transaction proceeds smoothly and legally.
The careful preparation, verification, and execution of a POA are critical to the success and legality of real estate transactions in Dubai. By ensuring specificity in the POA’s content, verifying its validity, and coordinating with relevant authorities, all parties can protect their interests and achieve a seamless transaction.
Fam Conveyancing remains committed to guiding our clients through every step of their property transactions. Our team is here to ensure legal compliance, clarity, and peace of mind.
For professional assistance or inquiries, contact us at:
By adhering to these practices, we can collectively uphold the integrity of Dubai’s real estate market and provide exemplary service to our clients.