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Limited power of attorney

Limited Power of Attorney for Property: Points to Remember

An important legal document in UAE, a limited power of attorney (POA) for real estate and property transfers legal rights to an agent or attorney in accessing and managing the property of the principal when he/she is incapable of carrying out such tasks. Being a limited type of POA, an agent can only perform certain transactions that are mentioned in the document.

When the POA starts and ends

A limited power of attorney for real estate in UAE takes effect during the date that is specified within the legal document. As for its end or expiry, it is when the power of attorney is revoked in writing. It may also be during the time that is specified within the POA document. Additionally, the document is going to end in some circumstances automatically and that includes the following:

  • Divorce – if the spouse has been named by the power of attorney for property as the agent or attorney and the married couple has undergone divorce proceedings, the authority of the spouse named as the agent will be terminated immediately. In order to make the revocation final, there should be documentation regarding the POA for property revocation. There’s also a need to make a brand new limited power of attorney for property.
  • Revocation – a power of attorney for property and real estate can be revoked at any time just as long as the principal or the person whose powers are assigned to a different person or entity is of sound mind and capable of making a decision. If the principal is not of sound mind, a POA is terminated automatically, which means there won’t be anything for you to worry about regarding the legal document’s revocation. In order to revoke a POA, a legal document has to be created and signed in the presence of a public notary in UAE. The agent is then given a copy as well as the institutions and/or individuals which the agent has been dealing with.
  • No agent is available – a limited POA can end automatically if the agent resigns, dies or become incapable of representing you for a specific reason.
  • When the principal dies or becomes incapacitated – the limited POA for real estate can end automatically if the principal dies or becomes incapacitated. If the agent does not know regarding the death or incapacity of the principal and the person/entity continues to act on the behalf of the principal, then the actions of the agent is still considered valid.
Read more: Power of Attorney Rights and Limitations

The authority of an agent of a limited POA for property

A limited POA for real estate can be given to an agent in order to allow him/her to act in your behalf regarding matters related to real estate and property. This can include:

  • Partitioning, mortgaging, selling, and/or leasing property and real estate;
  • Leasing or purchasing real estate;
  • Arranging for the necessary maintenance repairs;
  • Paying taxes and mortgage with the assets of the principal;
  • Paying off legal claims or liens on the principal’s property;
  • Refinancing the mortgage in order to get a much better interest rate;
  • Buying property insurance;
  • Remodeling, removing or building structures on the property of the principal;
  • Granting easements with the property;
  • Defending or bringing lawsuits over property and real estate
Find more: General Power of Attorney (POA) for Real Estate in UAE: Essential Information to Know

An agent can only perform the tasks that are listed or mentioned in a limited power of attorney for property. An agent has the legal obligation in taking the actions that would prove to be for the principal’s best interests. The agent also has to represent the principal carefully and honestly.

If you need help with the drafting of a limited POA for property, then seek the help of experts. Never make a POA if you are not fully aware of the implications of the legal document. A power of attorney in UAE can transfer authority, even when the document is the limited type. Although a power of attorney can be revoked any time so long as the principal is of sound mind and is mentally competent, it’s never a good idea to transfer authority in carrying out a crucial task that relates to your property especially when you haven’t fully understood what authority you have given. Seek an expert’s guidance!

you may want: Steps For Making Power Of Attorney Outside The UAE For Use Inside The UAE

Witnesses for the limited POA for property

In the United Arab Emirates, a power of attorney has to be signed in front of witnesses. The witnesses (no less than two) are to come with you when you appear in front of a public notary in Dubai. The notary public will notarize the signing and provide an acknowledgement certificate and notarial seal.

You should know: Risks Associated in Signing a (POA) Power of Attorney

Limited POA Drafting in UAE

A crucial document such as a power of attorney has to be created carefully. We know you’d want to know more regarding the subject. Call HHS Lawyer’s team of specialists on legal drafting in Dubai today!

M. Al Khairy, LL.B. is a Senior Partner of HHS Lawyers in UAE. Practicing law for almost a decade, he has in-depth knowledge on UAE legislation with particular expertise on legal drafting, contract drafting, labor disputes, family law, and regulatory compliance for business organizations. Al Khairy also provides counsel on legal rights and obligations in the UAE to clients, including individuals and businesses subject to investigation or prosecution under Criminal Law by major regulators. Read more