In the UAE, the real estate sector is highly regarded. The property industry is one of the fastest expanding industries in the country, with regular transactions. The government is concerned with ensuring that processes are simple and easy for everyone. The power of attorney for real estate transactions is one of several advancements that have prompted feasibility for everyone. Individuals can use the initiative to easily complete real estate transactions.
We shall examine the power of attorney for real estate transactions in the UAE and how it benefits the citizens of the nation.
IN THE UAE, WHAT IS THE POWER OF THE ATTORNEY?
A power of attorney (POA) is a legal document that grants another person or firm the authority to represent an individual or organization. The nominated party then has the authority and ability to act on behalf of the nominator.
The power of attorney is typically used in processes such as transferring property ownership in Abu Dhabi or any other real estate transaction in the UAE. People who are unable to attend real estate procedures for whatever reason would benefit greatly from this program.
TYPES OF ATTORNEY POWER IN REAL ESTATE TRANSACTIONS IN THE UAE
In the UAE, there are numerous forms of Powers of Attorney for real estate transactions. This is determined by the individual’s application. For property transactions, there are three categories of POA: general, special, and property power of attorney.
GENERAL POWER OF ATTORNEY
This POA gives the designated attorney more authority. With a General Power of Attorney, the appointed individuals can authorize the following tasks on the nominator’s behalf.
- Perform legal responsibilities
- Sign legal papers and contracts such as RERA forms in Dubai or any other form in other Emirates.
- Collect rental income or associated payments
- Pay your utility bills
- Legally represent the nominator.
- Sign and authorize leases with renters and/or landlords.
- Represent the nominator before the government, financial institutions, and third parties.
- Buy and sell real estate on behalf of the nominee (if the candidate and nominator are direct family members).
SPECIAL POWER OF ATTORNEY
A Special Power of Attorney grants the candidate only limited authority. It is often used for one-time situations such as signing a contract on someone else’s behalf. Furthermore, this sort of POA can be provided for a certain time and transaction.
The special POA is a much lower-risk authority that is desirable in instances when there is any ambiguity. Once the designated task is performed, the authority is revoked.
PROPERTY POWER OF ATTORNEY
The aforementioned sorts of powers of attorney are also widely utilized for other operations such as automobile purchasing and selling. For property-related proceedings, however, a Property Power of Attorney is required.
This presents a problem when signing paperwork in the UAE, such as a sales purchase agreement, purchasing or selling a property, or getting a Non-objection Certificate (NOC). Furthermore, the selected attorney can represent their client in court.
WHO IS ELIGIBLE FOR A POWER OF ATTORNEY FOR REAL ESTATE TRANSACTIONS?
A Power of Attorney to sell property in Dubai or any other Emirate can be granted to family members, relatives, friends, or attorneys. The nominee for a General Power of Attorney should be an immediate family member. However, in order to nominate persons other than family members, the nominator must first get a Special Power of Attorney.
Because large quantities of money and assets are at stake, the government continues to implement steps to safeguard both buyers and sellers. For example, the Dubai Land Department has made it mandatory for the candidate, who must be a friend or relative, to reside in the UAE.
People who have no family in the UAE, however, can engage an attorney to represent them. It is crucial to remember that various Emirates may have different rules for obtaining a POA. Check the government websites for the most recent information.
HOW TO GET A POWER OF ATTORNEY IN THE UAE
The procedure of obtaining a power of attorney in the UAE is rather simple. To prepare the power of attorney, people can easily employ the services of several typing centers or legal companies. The fees may differ based on the service requested and the kind of POA created.
In addition to establishing a power of attorney for real estate transactions, there are several important factors to consider.
- The POA must be issued in both English and Arabic. In the event of a disagreement between the two, the Arabic version is regarded the primary instrument.
- The public notary must notarize the document. The fees normally range between AED 550 to AED 3,000, depending on the type of document and who applies for it.
- As a foreigner, you can sell and purchase property in Dubai and the other Emirates. A POA obtained in another nation, on the other hand, must be legalized at the UAE embassy. Furthermore, the UAE Ministry of Foreign Affairs should legalize it.
- A power of attorney must be granted for a specific purpose and property.
- The regular POA is usually valid for two years, however the special POA might be awarded for a set term.
- If the nominator dies, the POA becomes void.
- Prices for enterprises and non-residents are often higher.
THE BENEFITS OF POWER OF ATTORNEY IN REAL ESTATE TRANSACTIONS
The power of attorney is a strong and useful instrument for assisting people and corporations with real estate transactions around the country. Let’s look at some of the primary benefits of a POA in the real estate market.
- It demonstrates to be a practical method of carrying out specified jobs without physically being in the nation.
- A POA can help you save a lot of money, time, and effort.
- When interested parties are unable to attend a real estate transaction, a POA allows them to choose someone to represent them.
- It’s an excellent tool for anyone looking to sell a home in Dubai or any other Emirates from outside.
- Without a person physically present in the UAE, hired attorneys can handle the full selling and buy procedure.
- Real estate attorneys are well-versed in the property sector. They are capable of handling any legal and financial actions properly.
THE RISKS OF ISSUING A POWER OF ATTORNEY FOR REAL ESTATE TRANSACTIONS
The UAE government makes it simple for both locals and foreigners to purchase and sell property in the country. Furthermore, the law is strictly enforced against any form of wrongdoing. However, there are significant hazards to providing someone power of attorney that should be considered.
Whether you want to sell a home or are looking for a property for sale in the UAE, you must choose a reliable party. Choose the party wisely because the POA provides the selected persons the ability to negotiate on your behalf.
A special power of attorney might also be a valid and less hazardous choice for particular activities. Do your homework before selecting a real estate attorney or agent, and only work with authorized service providers.
This is the complete guide on Power of Attorney for Real Estate Transactions in the UAE. The housing market in the UAE is thriving. With so many parties involved, both foreign and domestic, the POA is an excellent instrument for real estate transactions.
