People dealing with legal matters often find that a Power of Attorney (PoA) serves as an important game-changing tool. Many misconceptions exist about Power of Attorney functions and conditions in Dubai because this legal system operates in the midst of multicultural and legal complexities. Local residents and expats need to recognize the true nature of a Power of Attorney in Dubai while learning how to protect themselves against these myths.

1. “Power of Attorney is only for the elderly or incapacitated”

This is one of the most common misconceptions surrounding Power of Attorney. People often believe that it’s a legal tool reserved for those who are unable to manage their own affairs due to age or health reasons. While it’s true that a PoA can be used in cases where a person is incapacitated, it’s far more versatile.

In fact, a PoA becomes handy at various occasions when, for example, an individual is traveling to another country and requires some other individual to deal with the individual's business affairs. Most businessmen hand over PoA to those whom they have trusted with such matters like handling contracts, legal documents, or whatever other task is in question.

2. "I can give a Power of Attorney to anyone, regardless of their relationship to me”

It is very tempting to believe that power of attorney can be granted to whomever one wishes, but in practice, the law calls for the person whom you appoint to be someone you absolutely trust, as this person has significant powers over financial and legal affairs.

In Dubai, the person you grant a PoA to must be legally competent and capable of carrying out the duties specified in the document. While there are no specific restrictions on family members, it’s best to appoint someone who can handle the responsibility, whether it’s a business partner, a lawyer, or a close friend.

3. “Power of Attorney means someone can make all decisions for me, forever”

Many believe that a PoA gives the designated individual total control over their life or business decisions indefinitely. This isn't entirely true. The scope and duration of a PoA are determined by what is outlined in the document itself.

There are two main types of PoAs in Dubai: General and Special. A General Power of Attorney grants broad authority, while a Special Power of Attorney is more limited, granting authority over specific tasks like selling property or managing financial assets.

Additionally, PoAs are not permanent and can be revoked at any time, as long as the person granting the power is legally competent. This means that you’re never locked into a situation where someone holds total control over your affairs indefinitely.

4. “The Power of Attorney doesn’t need to be registered with the authorities”

A significant number of people mistakenly believe that once a PoA is signed, it is valid and doesn't need to be registered with any government authority. However, in Dubai, for a PoA to be legally recognized, it must be attested or notarized by the relevant authorities.

For example, if you're granting someone PoA for real estate transactions, the document must be registered with the Dubai Land Department. Similarly, for PoA related to financial matters or corporate dealings, proper registration is required to ensure that the document holds weight in a court of law.

5. “Power of Attorney is always valid across all countries”

Here’s a common misunderstanding: people often believe that a PoA valid in Dubai will automatically be accepted in other countries. Unfortunately, that’s not always the case.

If you plan to use your PoA abroad, it may require additional steps, such as being legalized or authenticated through the embassy of the country in question. Each jurisdiction has its own rules regarding the validity of foreign PoA documents, so it’s always advisable to check with the authorities in the country where the PoA will be used.

6. “I don’t need a lawyer to create a Power of Attorney”

Many people think that a PoA is a simple document that doesn’t need legal expertise, but this can be risky. While it’s possible to draft a PoA on your own, it’s always better to seek professional help to ensure that all legal requirements are met.

A lawyer can help you avoid potential pitfalls, like unclear language or unintentional overreach of authority. They’ll also ensure that the PoA complies with Dubai’s legal framework, such as the Civil Transactions Law No. 5 of 1985 and the UAE Personal Status Law, which lay out the legal provisions surrounding the use of Power of Attorney.

7. “Power of Attorney automatically expires after a set period”

Another misconception is that a PoA has a specific expiration date. In reality, PoAs do not expire unless they are explicitly set to do so in the agreement. A PoA can last indefinitely if no expiration date is mentioned, or it can be time-bound based on the purpose it serves.

For example, a PoA given for a specific property transaction might expire once the transaction is complete. However, a PoA for business matters might continue until the person revokes it or passes away. The key is to define the terms clearly when drafting the document.

8. “Powers of Attorney on the Internet are Sufficient”

It’s tempting to grab a PoA form from the internet, but that’s not always the best option. Every situation is different, and a generic online PoA might be too vague to be legally valid in the UAE. You need something tailored to your needs, especially if it’s for something important like managing finances or property.

Without clear details, your PoA could cause big problems down the road. And once it’s done, you can’t just undo it. So, to be safe, always get a legal team to draft your PoA to ensure it’s airtight.

Closing Thoughts: Get the Facts, Not the Myths

Power of Attorney serves as a transformational tool for easing business operations alongside personal matters. Understanding all relevant facts about Power of Attorney helps prevent legal problems from developing in the future. The dual legal systems of Dubai demand specialized legal expertise to create effective special power of attorney documents that carry binding force.

Contact professionals who understand Power of Attorney matters in Dubai whenever you need guidance or assistance in handling or making sense of these matters. Affected individuals can reach dependable decisions regarding their PoA when they receive proper direction from experienced professionals.

Peace of mind should not suffer because of these misconceptions. We provide professional assistance for Power of Attorney issues at Alqada Claim Recovery Services where you can obtain support by contacting our team. We’re here to help!