Legal Risks of Buying Property in Dubai Through Power of Attorney

19 January
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This is one of the things that most buyers do not get to know until it is too late; although purchasing property in Dubai by the Power of Attorney (POA) can save time, it may also silently lead to severe legal consequences when done improperly.

The real estate market in Dubai is robust, well-regulated, and appealing to both local and international investors. However, when the deal is done by someone representing you, the possibility of making a mistake becomes higher. This is the situation that people usually think of as “standard practice” and therefore do not pay attention to the minor details, and this is precisely where issues arise.

A Power of Attorney empowers someone else to act legally in your place. In real estate dealings, it can imply signing sale contracts, changing ownership, or even picking up money.

It appears to be simple. However, under UAE law, the authority is the most important factor.

In case the POA document is not clear, outdated, or somehow incorrectly notarized, the whole deal can still be questioned in the future. UAE Federal Law No. 5 of 1985 (the Civil Transactions Law) stipulates that an agent can only perform duties assigned to him/her in an explicit manner. Any act beyond that can be declared void.

The Risk of Overstepping Authority

Most buyers think that a general POA is sufficient. It often isn’t.

Among the most typical conflicts is the situation where the agent does more than what the POA permits.

For example:

Selling the property at a different price than approved
Signing clauses the buyer never agreed to
Transferring ownership without fulfilling conditions

In case the authority is not very clear, you may find yourself in a courtroom battle just to demonstrate that you disapproved the transaction right from the beginning. For this reason, it is a common practice among the skilled lawyers in the UAE to examine the power of attorney wording thoroughly before taking any steps towards the property transfer.

Fake or Misused POAs: A Growing Concern

Dubai has implemented strict documentation protocols, but there are still cases of misuse - particularly involving buyers located abroad.

Here’s where things can go wrong:

Forged POA documents submitted during transfer
Revoked POAs still being used without buyer knowledge
POAs issued abroad but not properly legalized for UAE use

The Dubai Land Department (DLD) has a rigorous process, still if there is a mistake it will take a couple of months or even years to fix the problem. An experienced legal consultant in Dubai could confirm the enforceability of the power of attorney before the commencement of the transaction.

Not All POAs Are Accepted by Authorities

There is one more aspect that buyers do not always pay attention: not all the Powers of Attorney are accepted to transfer the property.

To be valid in Dubai, a POA must usually be:

Notarized in the UAE or properly attested if issued abroad
Clearly specific to the property and transaction
Still active at the time of transfer

Dubai Land Department rules state that unclear or expired Power of Attorneys are grounds for rejection. Numerous buyers find out about this only on the day of transfer - when their payment is already processing.

It is here that quality legal services in Dubai are not as costly as a protection.

Liability Doesn’t Disappear with Delegation

When you authorize someone else to act as your agent, it doesn’t remove your responsibility as a buyer.

If your agent:

Fails to pay registration fees
Misses DLD deadlines
Signs unfavorable terms

You’re still legally tied to those outcomes. Courts in Dubai generally treat the agent’s actions as the principal’s actions, as long as authority exists on paper.

This is why property investors often rely on legal consultants in Dubai to oversee transactions rather than leaving everything to a friend, broker, or relative holding POA.

Disputes with Sellers and Developers

When a POA is involved, disputes become more complicated.

Imagine this scenario:

The seller claims the deal is valid
You claim the agent acted without consent
The developer freezes the property

The evidence at that time is more significant than the intent. Courts put a lot of weight on emails, signed instructions, and POA language. Getting a well-known law firm in Dubai involved right from the start could save you from these kinds of problems rather than just reacting once the harm is done.

Registration Errors and Ownership Delays

Even small administrative mistakes can snowball.

Common POA-related errors include:

Incorrect buyer name during title deed issuance
Missing authorization for mortgage registration
Wrong property details listed in POA

Dubai’s property system is not only efficient but also quite harsh. If a title deed is issued incorrectly, the only way to fix it is to go through formal legal procedures. Usually, at this point, Dubai advocates and legal consultants are called in, but it is always easier to prevent than to correct.

Why Property-Specific Legal Review Matters

POAs are not treated in a similar manner by all legal professionals. The transactions related to property need the knowledge of DLD, RERA, and civil law.

The qualified Dubai property lawyer will normally:

Draft or review POA with transaction-specific language
Coordinate directly with DLD and trustees
Ensure compliance with Federal and Dubai-level laws

This layered approach is particularly significant to foreign customers who are unable to physically be there through the process.

Court Involvement Is Rare - But Costly

Dubai courts generally support clear contracts and valid authority. If a POA is legally sound, disputes often favor the seller or developer.

But if there’s ambiguity, cases can drag on. Filing claims, freezing assets, and challenging transfers involve court fees and time. Many buyers only seek help from Dubai advocates once things escalate - when earlier legal review could have avoided court entirely.

Why Buyers Are More Cautious Now

Recent enforcement trends show stricter checks on authority documents, especially in high-value transactions. Regulatory bodies are pushing for transparency, which is good news - but it also means errors are less likely to be overlooked.

This change has led to a higher demand for legal services in the UAE that can actually comprehend both property law and transactional risk instead of just providing paperwork handling.

A Practical Way to Protect Yourself

If you’re considering buying property through POA, slow down before signing anything.

Make sure:

The POA is specific, current, and properly attested
The agent understands their limits
A legal professional reviews every step

It’s not only in times of disputes that firms such as Alqada Claims Recovery Services come in. Their consultancy and legal support assist the buyers to detect the risks beforehand, particularly in cases where authority delegation and cross-border documentation are involved.

In conclusion

Using a Power of Attorney to buy real estate in Dubai isn’t at all a risk by default - but neglecting it is. One overlooked clause or expired document can complicate a smooth transaction unbearably and create a legal mess.

A brief examination done by experts who handle UAE property and authority-related disputes would be a great assistance if you desire clarity before making a commitment.

Alqada Claims Recovery Services provides buyers with top-notch practical legal guidance and consultation that boosts their confidence in taking steps- well in advance of any issues occurring.