Power of Attorney: Frequently Asked Questions (FAQs)
March 18, 2019
entrusting powers for the management of a company to carrying out just about
anything for and on behalf of the main owner, a Power of Attorney (POA) is an
instrument of delegation of powers for the legal authorisation of any person to
represent you. In this write up, we have put together major questions with
answers on the totality of what a Power of Attorney is and what it constitutes-so
here we go.
can a Power of Attorney do?
Power of Attorney can handle various matters depending on the
requirements. For example, in real estate management, a Power of Attorney
is used when one or both parties are unavailable and someone else is required to
represent the other to finalise the property transaction. A Power of Attorney
is one practical way of ensuring that documents are signed without the presence
of the concerned party in person.
What are the advantages
of issuing a Power of Attorney?
a POA to a trusted representative means you can focus on other things while the
bearer carries out the function for which the POA was issued. It saves time,
money, energy and lots more. You will not need to travel every time an action
needs to be taken in respect to the purpose of the POA.
tourists purchase properties in the UAE and the process of sale takes a while
before a Title Deed is received. This is one reason why many buyers prefer to
give a Power of Attorney so that all the formalities can be carried out on
their behalf. However, it should be noted that there are limitations when
dealing with a property under a Power of Attorney.
What is required to issue a Power of Attorney
and can I issue it to anyone?
A Power of Attorney
can be issued by anyone that has reached the age of majority, that is, the
legal age. In most countries the age varies between 16 to 18 and 21 years old.
The laws of the country will have to be consulted to know the prescribed legal
age. In the UAE, the legal age of majority is 21 in most emirates. Likewise,
anyone can be appointed as an Attorney provided, he/she is of the legal age and
is mentally capable to execute the purpose of the Power of Attorney.
What risks should I be mindful of when issuing a
Power of Attorney?
appointing any person to act under an issued Power of Attorney, you must ensure
that such person is trustworthy and able to fulfill the duties just as you will
instructed as your Attorney via a Power of Attorney is practically the same as you
legally, bearing in mind that, decisions taken under the application of the
Power of Attorney becomes legally binding. The major thing to look out
for is that the person is equipped with the trust, knowledge, skill and
experience required to get the job done.
said that, there are different types of Power of Attorney and understanding
what each entails is a ladder to giving the right Power of Attorney to the
the different types of Power of Attorney in the UAE?
The major forms of Power of Attorney
are ‘General’ and ‘Special’. A general Power of Attorney enables the holder to
act in a broad capacity, whereas a special Power of Attorney grants powers for
specific purposes. An example of a Special Power of Attorney will be for the
operation of the company’s bank; meanwhile the managerial power of the company
is not delegated in the POA. The risk involved in a special power of Attorney
is lower to that of a General Power of Attorney.
extent am I protected after giving a POA?
Simply put, the type of
Power of Attorney you give determines the level of protection you can have. A
Power of Attorney given can only be used for what it has been authorized to do.
In this light, whatever you don’t want done, don’t include in the Power of
A Power of Attorney in
the UAE is to be executed before a Notary Public, or a practicing lawyer, which means that you
cannot deny the fact that the power(s) contained in the documents was never
What is the Validity of a Power of Attorney, does it have a
termination period like a contract?
a Special Power of Attorney will only be useful for the purpose for which it
was given. As soon as the transaction is complete, it automatically lapses. For
a general Power of Attorney, the termination will come after it has been
revoked or expires according to its provisions. The duration of a Power of
Attorney can also be determined by the laws of the country.
Is it possible for me to re-issue a Power of
Attorney that has expired for the same purpose?
Generally, yes. A Power of Attorney that has
expired and originally issued in the UAE can be re-issued for about AED 300. A
copy or original of the previous POA will be required.
revoke a Power of Attorney?
the answer is Yes. You can revoke a Power of Attorney anytime. A revocation
letter needs to be written and signed after notifying the bearer of the Power
of Attorney of his intention.
In Dubai emirate, what is the process of issuing
a Power of Attorney?
long as the person issuing the Power of Attorney is of the right mental capacity
and legal age, there is nothing much to it, except that it should be notarized
by the Notary Public if it’s for use in the UAE.
if the Power of Attorney is for use elsewhere, then the POA must be attested at
the Ministry of Foreign Affairs and at the embassy of the country where the
bearer is resident. The time frame for notarising a Power of Attorney depends
on the amount of people waiting at the time you approach the Notary public but
majorly, it shouldn’t be more than one (1) hour.
the issuer of the POA is in another country and the bearer is in the UAE, the
same process will be followed, that is, the POA is legalized by appending the
signature before the Notary Public and attesting it at the UAE embassy in the
country where the issuer is domiciled. Once the Power of Attorney is legalised
overseas, it would also need to be attested at the UAE Ministry of Foreign
Affairs. The applicable fee is AED 150 for a personal / individual Power of
Attorney and AED 2000 for corporate bodies.
a Power of Attorney a substitute for a Will?
A Power of Attorney is not a substitute for registering a Will for the
protection of Assets in the UAE. One major mistake people make is that, they
issue a Power of Attorney to someone they can entrust their properties to
during their lifetime and assume it can take the place of a Will. This is a
wrong move, as the Power of Attorney terminates where the drafted Will starts
off. A power of Attorney automatically terminates upon the death of the giver
while a Will can only be brought to life and be executed upon the death of the
testator (owner of assets).For
further enquiries or if you need help with drafting a Power Of Attorney and/or
a Will, do reach out
to us and we will be happy to assist you