Given the number of investments made by the expats in the Emirate of Dubai, the use of property power of attorney has become a norm to allow the management and or sale/purchase of the properties in Dubai. A number of overseas investors rely on this document as the key document in order for their investments to be managed and disposed. The Dubai Land Department and RERA emphasizes the fact that the power of attorney should be carefully drafted to ensure the exact nature of the powers to be granted by the principal to the attorney/agent. If any vague language is used in this special power of attorney, the power of attorney may be rejected by the relevant authority at the time of use. Hence, you need to carefully consider the following points in order for you to prepare and finalize your property power of attorney in Dubai:
Drafting
The property details should be listed in the power of attorney as per the title deed. The property power of attorney should be prepared to list the specific powers that you want to provide to your attorney/agent. These powers may include power to manage and lease the property from time to time. If you wish to sell your property through your attorney/agent, you will need to list this power in specific terms in the power of attorney. Once the drafting in English language is completed and approved by you, the Arabic translation needs to be carried out by the legal translators certified by the UAE Ministry of Justice. Once this process is completed, you need to have 3 originals of the power of attorney printed and sign in the presence of the Notary Public.
Validity of the power of attorney
On the date of writing of this post the Dubai Land Department accepts a power of attorney that is less than two years for any transactions to be completed by the attorney/agent in respect of the property covered in the power of attorney. Therefore, you should always ensure that if the power of attorney have expired you should renew the power of attorney issued in order for your attorney/agent to successfully exercise the powers granted in the power of attorney.
Power of attorney issued abroad
If the power of attorney is issued in another country outside the UAE, it is mandatory that you complete the process of the legalization in the home country as well as in the UAE and have the power of attorney translated into Arabic and stamped by the UAE Ministry of Justice before it is presented for use by your attorney/agent.
Power to manage/lease property
On the date of writing of this post, it is also a mandatory requirement that your attorney/agent is a UAE resident and has a UAE Visa stamped on his passport. Without meeting this requirement, the attorney/agent may find it difficult to any ejari or tenancy contract to the development authorities.
Power to gift the property
If you intent to transfer your property to your blood relative or your spouse in accordance with the acceptable practice by the land department, you need to provide specific language in the power of attorney to state that the attorney/agent will have the power to transfer the property as a gift (hiba). In the absence of these specific words, the land department is unlikely to accept the power of attorney for the proposal of granting the property as a gift.
Receipt of finance from lease/sale
It is also important to note that your attorney/agent will not be able to accept any faults resorting from the lease or sale of the property in his/her own name. The Dubai Land Department ensures that there is no fraudulent transaction taking place as a result of the use of the power of attorney. Hence, any payments to be made through the use of the power of attorney for property in Dubai are required to be made in the name of the principal only.
