In the United Arab Emirates, the real estate market is highly regarded. The real estate industry sees regular transactions as one of the fastest expanding industries in the nation. The government is committed to making sure that all procedures are simple and straightforward. The power of attorney for real estate transactions is only one of the many developments that encourage feasibility for everyone. The program makes it simple for people to complete real estate transactions.
We’ll examine the power of attorney for real estate transactions in the UAE in detail to figure out how it benefits everyone who lives there.
IN THE UAE, WHAT DOES THE POWER OF ATTORNEY MEAN?
In a power of attorney (POA), an individual or organization grants another person or business the authority to act on their behalf. The nominated party then has the right and authority to initiate legal action on the nominator’s behalf.
For actions like transferring property ownership in Abu Dhabi or for any other real estate transaction in the UAE, the power of attorney is typically necessary. The program is quite helpful for those who, for whatever reason, are unable to attend real estate processes.
POWER OF ATTORNEY TYPES USED IN UAE REAL ESTATE TRANSACTIONS
In the UAE, there are multiple types of Power of Attorney for real estate transactions. This depends on the application’s intended use. There are typically three major forms of POA for real estate transactions: general, special, and property power of attorney.
GENERAL POWER OF ATTORNEY
This POA gives the designated attorney more authority. The following tasks can be authorized on the nominator’s behalf by the appointed persons using a General Power of Attorney.
- Carry out legal responsibilities
- Sign legal documents and contracts in Dubai, such as RERA forms, or any other form in the other Emirates.
- Collect income from rentals or payments.
- Pay your utility bills.
- Represent the nominator in legal matters.
- Sign and authorize lease agreements with tenants and/or landlords.
- Act as the nominator’s representative in front of the government, financial institutions, and other parties.
- Engage in real estate transactions on behalf of the nominee (where the candidate and nominator are direct family members).
SPECIAL POWER OF ATTORNEY
A Special Power of Attorney only grants the candidate certain authority. It is typically offered for one-time situations like signing a contract on someone else’s behalf. This kind of POA might also be given for a certain period of time or a single transaction.
When there is any confusion, the special POA is a far lower-risk option that is preferred. Once the particular work is finished, the authority is taken away.
PROPERTY POWER OF ATTORNEY
The aforementioned kinds of powers of attorney are frequently utilized for a variety of different transactions, including buying and selling of cars. A Property Power of Attorney is required for actions involving real estate, though.
This becomes difficult when signing legal paperwork for the sale and purchase of property in the United Arab Emirates, buying or selling real estate, or getting a Non-objection Certificate (NOC). Additionally, the designated lawyer has the ability to represent their client in court.
WHO IS ELIGIBLE TO BE AUTHORIZED TO SIGN A POWER OF ATTORNEY FOR REAL ESTATE TRANSACTIONS?
Anyone can be named as a Power of Attorney nominee to sell real estate in Dubai or any other Emirate, including family members, friends, and attorneys. A member of the immediate family should be the nominee for a General Power of Attorney. However, the nominator should submit an application for a Special Power of Attorney if they wish to nominate anybody other than family members.
The government keeps introducing programs to enhance consumer and seller protection since there are significant financial and material stakes. For instance, the Dubai Land Department has mandated that the candidate, who might be a friend or relative, must reside in the United Arab Emirates.
However, those who have no family in the UAE can engage a lawyer to represent them. It is significant to keep in mind that other Emirates can have different rules for granting a POA. Visit the government websites for the most recent information.
HOW TO GET A POWER OF ATTORNEY IN THE UAE
In the UAE, obtaining a power of attorney is a rather simple process. To draft a power of attorney, people are able to utilize the services of several typing services or law firms. Depending on the provider used and the type of POA created, the costs may change.
There are a few important things to keep in mind in addition to drafting the power of attorney for real estate transactions.
- The POA paperwork must be printed in both Arabic and English. The Arabic version is considered as the primary instrument in the event that there are any conflicts between the two.
- The public notary must notarize the document. Depending on the kind of document and the person applying, the fees often vary from AED 550 to AED 3,000.
- In Dubai and other Emirates, it is possible for foreigners to sell and buy real estate. A POA obtained in another nation must, however, first be legalized at the UAE embassy. Additionally, the UAE Ministry of Foreign Affairs ought to legalize it.
- For a specific use and for a specific property, a power of attorney must be obtained.
- The regular POA typically has a 2-year validity duration, however the special POA may be given for a shorter time frame.
- If the nominee dies away, the POA is void.
- Prices for enterprises and non-residents are often higher.
POWER OF ATTORNEY BENEFITS FOR REAL ESTATE TRANSACTIONS
The power of attorney is a strong and practical instrument that may assist people and companies with the nation’s real estate processes. Let’s look at some of a POA’s key benefits for the real estate industry.
- It demonstrates to be a useful method of managing particular responsibilities without being present in the nation.
- A POA facilitates significant cost, time, and effort savings.
- A POA provides the way for the designation of individuals to represent concerned parties throughout a real estate procedure when they are unable to attend.
- It’s an excellent tool for anyone looking to sell a home in Dubai or another Emirates from overseas.
- The full selling and buy procedure may be handled by hired attorneys without the need for a person to travel to the UAE.
- Attorneys that specialize in real estate have solid understanding of the housing industry. They have the expertise to manage all legal and financial actions.
THE RISKS INVOLVED IN ISSUEING A POWER OF ATTORNEY FOR REAL ESTATE TRANSACTIONS
The UAE government makes it simple for residents and visitors to buy and sell real estate there. A strong commitment to the law prohibiting any wrongdoing is also present. Giving someone the power of attorney does come with some hazards, though, that one should take into account.
It’s crucial to choose a reliable party whether you want to sell your property or are looking for one in the UAE. Choose the party carefully since the POA provides the individuals you choose the power to act on your behalf.
A customized power of attorney might also be a practical and safer choice for certain duties. Do your homework before choosing a real estate lawyer or agent, and only work with licensed professionals.
This finishes our post on power of attorney in UAE real estate transactions. In the United Arab Emirates, the real estate sector is thriving. The POA is an excellent instrument for real estate transactions as there are several stakeholders, both domestic and international.