Can a Real Estate Agent Act As A POA?
What is the power of attorney in real estate?
Simply put, a power of attorney (POA) in real estate is used when someone wants another person to act on their behalf in matters related to property transactions. It is a written and legal authorization that enables the grantee to decide in the absence of a granter.
Particularly for overseas property owners of Dubai, a Power of Attorney can be a very useful legal instrument, provided it is issued to the right person and used in the right manner.
Who can issue a Power of Attorney and who can act as a POA?
Anyone can give POA to someone else provided they are of the required legal age and mentally sound. We suggest you contact an attorney who specializes in POA drafting in UAE to assure that your POA will be considered valid/legal by third parties. Similarly, anyone can be chosen as Power of Attorney provided, they will not act as a real estate broker in that transaction if it is their profession.
In other words, a real estate agent can act as a POA for purchasing or selling a property on behalf of the principal but then he/she will not be allowed to act as a broker in the same transaction. This is an important regulator of DLD to protect property investors in Dubai against negligent activities and fraud. Nonetheless, a real estate agent acting as a Power of Attorney understands the rules and regulations of real estate transactions in Dubai the best. So, if you are thinking to appoint a POA for your Dubai property matters, we suggest you choose a reliable broker.
How can a Power of Attorney for real estate be useful?
A POA can be quite handy when it comes to saving time and money. He/she can save you the hassle of traveling around the world when it’s not convenient. The amount of money spent on hotels, flights, and even time off work is mainly why oversees owning properties in Dubai issue POA to a trusted person. If you are a seller without a POA, then you might have to be available 2-3 times in Dubai during the property transfer.
Furthermore, the advantages of appointing a POA don’t stop there. The property transaction processes in Dubai are quite complicated to understand, that’s where a POA can be quite helpful to you.
What is the validity of a Power of Attorney for real estate transactions?
As per the regulations of the Dubai Land Department, a POA for selling a property is valid for two years from the day it was stamped. While a POA for purchasing a property is valid for a maximum of 5 years from the day it was stamped.
After the expiry of the POA, the granter can revalidate it at the Dubai courts with an updated stamp.
How can a POA be legalized?
To be considered valid, a POA must be legalized. If the granter is in Dubai or UAE, the endorsement can be done by either the public or by private notaries in Dubai or UAE. If not, then the principal would have to take the electronic notarization service introduced by the Dubai Courts recently.
For more information regarding the Power of Attorney for Dubai Properties, feel free to contact us! We would love to hear from you!