Pros and cons of Property management Power of Attorney

Pros and cons of Property management Power of Attorney

Using a property management power of attorney to facilitate the administration and sale/purchase of properties in Dubai has become standard due to the volume of investments made by expats in the Emirate of Dubai. This agreement is essential for managing and disposing of the interests of several foreign investors. A power of attorney should be worded appropriately to guarantee the precise nature of powers to be given by the principal to the attorney or agent, according to the Dubai Land Department and RERA. The appropriate authorities can reject the special power of the attorney at the time of ply if it contains any dubious wording. To draft and complete your property management power of attorney in Dubai, you must carefully examine the following factors:

Drafting of Property management Power of Attorney 

As per the title deed, a power of attorney should include information on the property. The special powers you intend to provide your attorney/agent should be included in the property power of attorney. These rights include the ability to manage and lease the property. You must expressly state in the power of attorney that you have the right to sell your property via your attorney or agent. The legal translators accredited by the UAE Ministry of Justice must translate the document into Arabic after the English version is finished and authorized by you. After this procedure, you must print three original copies of a power of attorney and sign them before a notary public Dubai.

Validity of Power of Attorney

For any transactions to be performed by the attorney/agent concerning the property covered by a power of attorney, the Dubai Land Department will accept a power of attorney that is less than two years old as of the day this article was written. For your attorney or agent to effectively perform the rights provided in a power of attorney, you should always ensure that you renew a power of attorney issued if it has expired.

Issue of power of attorney in Abroad

The UAE Ministry of Justice must translate a power of attorney into Arabic and stamp it before it may be used by your attorney or agent if granted outside of the UAE. You must also complete the legalization procedures in your home country and the UAE.

Authority to give the property

A power of attorney must include explicit wording stating that the attorney or agent will have the authority to transfer the property as a gift if you want to give it to a blood relative or your spouse in line with the approved practice recognized by the land department (Hiba). These exact terms are necessary for the land department to accept a power of attorney for the suggestion of giving the property as a gift.

Finance from a lease or sale has been received.

Additionally, it’s crucial to remember that your lawyer or agent won’t be able to assume responsibility for any errors resulting from the lease or sale of the property in their name. As a consequence of the usage of a power of attorney, the Dubai Land Department ensures that no fraudulent transaction occurs. For this reason, any payments made for Dubai real estate using a power of attorney must only be paid in the principal’s name.

Different kinds of powers of attorney

The document may be divided into the following categories based on the authority granted to the attorney by the executant or principal:

(a) General power of attorney,

(b) A special power of attorney.

A special power of attorney is signed to give an agent the authority to carry out a particular task. In contrast, a general power of attorney often enables an agent to act on behalf of his principal in more than one topic. Once the task is finished, a power of attorney expires.

The following sorts of transactions may often be handled for the executant by the attorney under a broad power of attorney:

  1. Purchasing, maintaining, or selling the property; 
  2. Conducting banking operations; 
  3. Taking out a mortgage loan on the property; 
  4. Purchasing property insurance; 
  5. Resolving claims; 
  6. Entering into contracts about the property; and
  7. Depositing taxes on the property.

Revocation of a Power of Attorney:

Contrary to popular belief, a power of attorney may be quickly reversed after granting it. You may cancel a power of attorney if you’re the principal or executors. Additionally, after presenting a power of attorney is achieved, you and the agent may mutually agree to withdraw it. Meanwhile, a power of attorney is immediately removed in the case of the principal’s death, insolvency, or insanity.

Property management Power of Attorney: Pros and Cons

The advantages listed below are extensive and underline the significance of having a property management power of attorney:

1). Useful

Making an everlasting POA might help manage your assets and estate. It may be beneficial if you have a brief sickness and cannot manage all of your estate’s affairs.

2) Safe

Your agent or attorney must report the management and use of your money and other assets following the law.

3) Flexibility

It’s crucial to choose representatives for your power of attorney that you can rely entirely upon. It is because designating a POA gives you total flexibility.

4) Practical

It would be best if you took preventative precautions to safeguard your safety, the safety of your family, and the safety of your possessions. The designation of an agent or attorney guarantees that, if anything were to happen to you in the future, you would have a POA designating a trustworthy individual to carry out your intentions as and when necessary.

Risks and Drawbacks

Executing a power of attorney involves the following risks and drawbacks:

  1. Despite its advantages, a power of attorney may be detrimental if mishandled or given to the wrong person. 
  2. When you provide someone power of attorney to purchase real estate on your behalf, you are essentially informing everybody who reads the paperwork that you are granting the agent complete authority to sign on your behalf and to accept or reject proposals.
  3. Any transactions handled by the agent run the danger of fraud if it turns out that they are dishonest. Even though it is convenient, few people utilize it since it may be abused even if you intend to keep an eye on every transaction performed in your name; giving someone that much authority might be highly dangerous.

How may Notary Public Dubai assist you with POA drafting services?

In conclusion, it is essential for you to carefully consider the POA’s intended use and choose the kind of document that is most appropriate for you. It is necessary to draft the Power of Attorney in a manner that is acceptable to government organizations and other parties. Any drafting mistake might have unfavorable outcomes, require more time and money to prepare and notarize the document, and have other adverse effects. 

Contact Notary Public Dubai without delay if you want any POA drafting services.

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