Power of Attorney (PoA) – A comprehensive explanation

The Power of Attorney (PoA) is an important document in the property sector, especially in Dubai. It allows a person to make legal decisions or take actions on behalf of another. In the context of the property market, it is crucial to understand how a PoA works and what legal aspects need to be considered.

What is a Power of Attorney (PoA)?

A Power of Att orney is a legal document that grants an authorised person (the attorney-in-fact) the right to act on behalf of the principal. This document is often used in situations where the principal is unable to make personal decisions or be physically present.

Uses of the Power of Attorney

• Property purchases and sales: Buyers or sellers can use a PoA to appoint an agent to carry out the transaction on their own behalf.
• Leases: For leases, a PoA can be used to obtain the landlord’s signature.
• Financial transactions: Powers of Attorney are used to delegate banking and other financial decisions.

Types of Power of Attorney

There are two main types of powers of attorney used in the property context:

• General Power of Attorney: this type of PoA allows the attorney to make virtually any decision on behalf of the principal.
• Specific Power of Attorney: This is limited to specific tasks or transactions, such as the purchase of a property.

Why is a Power of Attorney important?

Using a Power of Attorney in the property sector in Dubai offers several advantages:

• Time saving: transactions can be processed more efficiently, which is particularly beneficial in a fast-paced market.
• Flexibility: The principal can choose a trusted third party to make the decisions without having to be present.
• Legal security: A well-drafted PoA protects the interests of the principal by setting out clear guidelines for the authorised representative.

Creating a Power of Attorney in Dubai

To create a legally valid Power of Attorney in Dubai, there are a few steps to follow:

1. Determine the scope of the Power of Attorney.
2. Choose a trustworthy person as the authorised representative.
3. Create the document and have it notarised.
4. Register the PoA with the Dubai Land Department (DLD) if it is used for property matters.

Conclusion

A Power of Attorney is an indispensable tool in the property sector in Dubai. It allows property owners to delegate important decisions through an authorised representative, which is especially handy in case of absence or lack of time.

Illustrative example on the topic: Power of Attorney

Imagine Anna is an expatriate buyer who wants to purchase a condominium in Dubai Marina. However, due to her busy schedule, she is unable to attend the negotiations and signing of the contract. In order to finalise the purchase, she grants her friend Omar a power of attorney. Omar takes over the negotiations and signs all the necessary documents in Anna’s name. Thanks to the PoA, Anna can be sure that the transaction will be carried out in her best interests while she concentrates on her professional commitments.

If you would like to learn more about the Dubai property market or have any questions about drafting a lease, please visit our other articles.