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Transfer of property through Power of Attorney: Is it Legal?

Transfer of property through Power of Attorney: Dubai is famous for being a hub of business for people from all over the world. One of the most common investments people make in UAE is through buying, selling and renting the property. Many investors who invest in properties, are based outside Dubai therefore they commonly use power of attorney to sell property and deal in other property transactions on their behalf.

What is Power of Attorney?

Power of attorney, often called POA is a legal document which signifies that a person, often called a Grantor or Principal gives their right to perform transactions and decisions to the Grantee or Agent on their behalf. A great number of overseas investors use this document to manage their properties in Dubai.

Power of Attorney for Property

There are different kinds of power of attorney depending upon the capacity of rights the principal wants to transfer to the agent for dealing in buying and selling of property. Giving someone an authority to deal for the matters of your asset as valuable as a property needs a good amount of trust you have in your nominee. Usually the nominees for power of attorney are blood kin, spouse or a very close friend or relative and even though there are times when the principal becomes a victim of misuse of power of attorney. There are types of power of attorney for property where the principal can create limitations and define a certain capacity of authority for the agent so as to prevent themselves from fraudulent events. 

Types of Power of Attorney for Property in UAE

The types of power of attorney for property in UAE are:

  • Special Power of Attorney for Property
  • General Power of Attorney for Property
  • Springing Power of Attorney for Property
  • Durable Power of Attorney for Property

A general power of attorney is vague when it comes to the limitation and capacitation of authority therefore it needs constant verification and authentication from the principal if it is used for any kind of property transaction. Springing and Durable Power of Attorney fall under the category of Special Power of Attorney with different levels of capacitation and effect accordingly. 

Is transferring a property ownership through power of attorney legal?

The answer to this question is YES – through a special power of attorney for property. A general power of attorney for property has restrictions for the agent to perform decisions particularly for selling or transferring the title of ownership of property to someone else. An agent can sell a property on behalf of principal if he has the power of attorney to sell property. Similarly, the agent can transfer the property if he is given a power of attorney to transfer property.

Here are few things that you must assure when assigning someone power of attorney for property in UAE:

  • Drafting of the Power of Attorney

The first thing that Dubai Land Department (DLD) and Real Estate Regulatory Agency ensure is the drafting of Power of Attorney for property. The principal must prepare a clear document of Power of Attorney that must include:

  • Complete details of the property
  • Capacitation of authority for the agent to manage or lease the property
  • Once the draft is completely written, it must be sent to authorized legal translators for Arabic translation and then forwarded to Ministry of Justice UAE for certification
  • In the end, there should be 3 copies of notarized document of Power of Attorney

In case the principal wishes to allow the agent for transferring the property, it must be specifies in the draft tittle or deed for power of attorney.

  • Validity of Power of Attorney

The Dubai Land Department only accepts the power of attorney that is less than two years since the last transaction the agent makes under the authority granted. It is therefore recommended to renew the document as soon as it expires so the agent can continue performing the transactions on principal’s behalf.

  • Receipt of Finance from Sale of Property

In the case of power of attorney to sell property, the Dubai Land Department ensures that there shall be no misuse of the authority therefore the payment that are made through the power of attorney to sell property or power of attorney to transfer property, should be made in the name of principal only

Looking for legal assistance for your property matters in Dubai?

Notary Public Dubai specializes in dealing all kinds of legal matters throughout the UAE. Experts mission is to provide legit assistance to clients for dealing with legal matters. Notary experts prepare and notarize legal documents including power of attorney to sell property, power of attorney for transfer of property and general power of attorney for property in Dubai. If you are looking for a trustworthy partner to facilitate the power of attorney for your property, book a free consultation session with reputable legal consultant today!

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