Power of Attorney in Dubai: Benefits, Procedure, Validity, Risks

Power of attorney (POA) is a legal document that grants an individual the authority to act on behalf of another person in various matters. In Dubai, a POA is an essential legal instrument widely used for multiple purposes, such as property transactions, business operations, and legal proceedings. This article will discuss the benefits, procedure, validity, and risks associated with a POA in Dubai.

What is Power of Attorney (POA)?

POA stands for Power of Attorney. It is a legal instrument that authorizes an individual (the agent) to act on behalf of another person (the principal) in various matters, such as property transactions, business operations, and legal proceedings. In Dubai, a POA is a widely used legal document governed by specific laws and regulations. The POA grants the agent specific powers as defined by the principal, which can be broad or limited for a specific period or until revoked by the principal. The agent acts as the principal’s representative and is legally obligated to act in the principal’s best interests. The POA in Dubai must be drafted, notarized, and registered following the legal requirements to be valid and enforceable.

Benefits of a Power of Attorney in Dubai:

There are several benefits of a Power of Attorney (POA), including:

1. Legal Authority: A Power of Attorney (POA) is a legal document that grants someone else the legal authority to act on your behalf in various matters. This can be especially useful if you are unable to attend to important matters due to illness, travel, or other reasons. By granting a POA, you can ensure that someone you trust is legally authorized to act on your behalf.
2. Flexibility: A POA can be customized to suit your specific needs. You can grant a POA for a specific purpose, such as buying or selling property, or for a general purpose, such as managing your finances. You can also specify the duration of the POA, whether it is temporary or permanent.
3. Convenience: Granting a POA can save you time and hassle. For example, if you cannot be physically present in Dubai to complete a transaction, you can grant a POA to someone you trust to handle the transaction on your behalf. It can save you the time and expense of travelling to Dubai yourself.
4. Protection: A POA can help protect your interests in Dubai. By granting a POA to someone you trust, you can ensure that your affairs are handled following your wishes, even if you cannot be present. It can help protect you from fraud or other types of misconduct.
5. Continuity: If you are planning to leave Dubai or become incapacitated, a POA can ensure continuity in managing your affairs. By granting a POA, you can ensure that someone you trust can manage your affairs in your absence or incapacity.
6. Peace of Mind: Finally, granting a POA can provide peace of mind. Knowing that someone you trust is legally authorized to act on your behalf can help alleviate stress and worry, allowing you to focus on other important matters.

Procedure for creating a power of attorney in Dubai:

The procedure for creating a Power of Attorney in Dubai is straightforward and involves the following steps:

1. Choose an agent: Select a trustworthy individual you want to act as your agent. The agent should be someone who is competent and reliable.
2. Determine the scope of authority: Decide on the specific matters for which you want to grant your agent authority. The scope of authority should be clear and specific to avoid any misunderstandings.
3. Draft the POA: The POA should be drafted under the legal requirements in Dubai. The document should include your name, the agent’s name, the scope of authority, and the duration of the POA.
4. Notarize the POA: The POA must be notarized by a notary public in Dubai. It ensures that the document is legally binding and enforceable.
5. Register the POA: The POA must be registered with the relevant authority in Dubai, depending on the purpose of the POA. For example, if the POA is for property transactions, it must be registered with the Dubai Land Department.

Validity of Power of Attorney in Dubai:

The validity of a Power of Attorney in Dubai is subject to the specific transaction or activity it was issued for and must comply with UAE laws. Generally, a POA has a fixed time duration and remains valid until the task it was issued for is completed. However, it is essential to note that the Dubai POA has a two-year validity period and must be renewed thereafter. If the POA is revoked, written notification must be sent to the office initially issuing the document.

The validity of a POA depends on the reason for its issuance. For example, in the case of real estate transactions, the POA can be used for a specified period for activities such as property purchase or sale. After the transaction is completed, the POA is no longer valid. Adherence to the general rules and local laws is crucial when determining the legitimacy of an attorney’s power.

In Dubai, a POA for real estate matters is valid for two years for sales and five years for property purchases. The POA can be renovated at the Notary Public Dubai for a fee. The POA can be revoked at any time by providing written notice to the agent. The revocation request must be submitted with the original document and any copies to the office where the POA was initially signed or issued.

Risks of Power of Attorney in Dubai:

1. Abuse of authority: There is a risk that the agent may abuse the authority granted under the POA and act against the principal’s best interests, such as misusing funds or transferring property without authorization.
2. Unauthorized transactions: If the agent exceeds the scope of authority granted under the POA, it may lead to unauthorized transactions that could be detrimental to the principal’s interests.
3. Fraud: There is a risk of fraud or misrepresentation if the POA is not drafted correctly or notarized. It is essential to ensure that the POA is legally valid and enforceable.
4. Revocation: If the principal fails to revoke the POA when it is no longer needed, it may result in the agent continuing to act on their behalf, even if the principal is no longer willing or able to delegate such authority.
5. Incompetence: If the principal becomes incapacitated, the agent may be unable to act in their best interests or may misuse the authority granted under the POA.

It is recommended that you seek the advice of a legal professional at Notary Public Dubai when creating a Power of Attorney in Dubai. A legal professional can ensure that the POA is adequately drafted, notarized, and registered following the legal requirements. They can also advise you on the risks associated with a POA and help you mitigate them.