POWER OF ATTORNEY IN DUBAI: BENEFITS, VALIDITY, RISKS, PROCEDURE
A Power of Attorney is a legal instrument that gives another person the authority to act in your place. Power of attorney may be useful for elderly individuals and those who wish to choose a trustworthy person to act on their behalf in case they are unable to. Although it could need the assistance of a lawyer, establishing a POA is a discreet and reasonably priced approach to name a replacement decision-maker. If you don’t make a POA in advance, a friend or relative may need to go to court to appoint a guardian. This procedure may be drawn out, costly, and highly public. It is essential to understand these two types of POA:
- General Power of Attorney
A General power of attorney is a legal instrument that enables one person (the principal) to act on behalf of another (referred to as an agent)). The principal gives the agent this power because the principal cannot decide for themselves. The agent would be able to make choices on law, medicine, finances, and business except for real estate since this POA is not specified in nature. The PoA’s actions are final, and the principal must approve them.
- Special Power of Attorney:
A special power of attorney (PoA) is a legal instrument that enables one person to act on behalf of another (known as an agent) (the principal). The principal gives the agent this power because the principal cannot decide for themselves. This PoA only applies to real estate. The PoA’s actions are final, and the principal must approve them.
Validity of POA in Dubai
A power of attorney may be renewed for further terms after its initial two-year term expires. A POA is only valid for two years when it relates to the sale of real estate, but it is valid for five years when it relates to the acquisition of real estate. As mentioned earlier, the POA may expire after the transaction is complete. The POA may be extended by the Notary Public Dubai for a charge. A formal request for revocation must be presented to the same agency that issued the original POA, together with the original document and any additional copies, to revoke a POA.
Benefits of POA
A straightforward approach to having someone’s business handled without their physical presence is via a power of attorney. If you name a person or company that has expertise and experience in a relevant industry, a POA could also be a helpful tool. If you’re unsure of how to sell or buy a property, you may wish to transfer authority to a professional or lawyer to act on your behalf.
An estate planning instrument that is often used is a power of attorney. For example, when someone becomes incapacitated, it might become a crucial legal tool to maintain order. Additionally, it guarantees that the person appointing POA chooses who will make choices in the case of their incapacitation and how their affairs are handled.
Thus, a Power of Attorney would benefit you if you have the following circumstances.
- You are unable to participate in the required formalities to complete a transaction;
- You want to reduce the time and travel costs involved in closing a contract;
- In case of your absence or incapacitation, you wish to provide family members with authority to make decisions on your behalf;
- To handle specific duties, you would instead choose an expert.
Risk in giving Powers of Attorney
A certain amount of risk is involved in the appointment of legal agent. To choose someone as your legal representative, you must have great faith in them. You give that individual the authority to carry out your instructions as if you were physically there. They can decide on matters that have legal consequences for you.
Therefore, making sure you are happy with the criteria outlined in the POA form is crucial. You must also be sure that the individual you provide a power of attorney with is reliable and competent. To operate on your behalf, he or she must possess the necessary experience and knowledge. Take the whole procedure seriously for your benefit. Before signing a POA, you must do due diligence.
The Process in the UAE for signing a Power of attorney
In the United Arab Emirates, the procedure for the issue of a POA follows a simple process. However, to prevent any problems, getting legal counsel is always a good idea. The best option is to have a law firm draft your POA. Our skilled lawyers at Notary Public Dubai may assist you with the drafting of the POA.
The UAE Public Notary first examines and approves the document. A POA applicant’s country of origin receives certification from the UAE Embassy. In Dubai, there are a few things to keep in mind about POA:
- A POA may be obtained in hours if the Principal is physically present in Dubai.
- If the Principal is not in Dubai, it takes around two weeks, if not less. The nation where the document is legalized will choose how to proceed.
- The UAE Ministry of Foreign Affairs approves a POA that has undergone legalization in a foreign nation.
- For both personal POAs and corporate POAs, a fixed price is charged.
- Arabic must be the language of all papers.
How may Notary Public Dubai assist you?
An essential legal instrument called a power of attorney might be used to handle your transactions on your behalf. A power of attorney applies to many different things in Dubai. Real estate deals, commercial dealings, personal issues, etc., are all included in this. Both a defined period and an all-encompassing POA might be approved. In case it’s required, the grantor may also withdraw the authority. To learn more about the many forms of power of attorney, you must contact expert lawyer at Notary Public Dubai.
