Foreign-based property investors in Dubai must abide by new rules when granting people the power of attorney (PoA) rights to sell their properties.
Industry sources said that from this week, these property sellers will need to have UAE-based bank accounts in order to process the checks. Only checks made out to the property owner or seller will be accepted; no POA names will be allowed for real estate sales in Dubai.
In order to guarantee that the payments are made as soon as a buyer is found for their property, UAE real estate investors frequently give power of attorney rights to a third party, usually family members.
“Based on a PoA from Dubai courts, banks would issue cheques in the name of the individual holding the PoA,” said Yash Trivedi, founder and CEO of YOUAE Mortgages, an advisory firm.
“This practice will no longer be permissible from this week. All payments must be made in the name of the seller as stated in the property’s title deed.”
Overseas buyers keep getting into UAE property
Authorities in the UAE are, whenever feasible, incorporating further levels of openness into the way that transactions and associated payments are processed. In order to close the purchase, the seller’s identity is crucial in this situation. Put simply, proxies are not permitted.
Both domestic and foreign investors are still drawn to the Dubai real estate market. Sales to non-resident investors have increased so far this year compared to 2024 levels.
According to a property market source, “Whenever a PoA was assigned earlier, it was not as smooth a process. You had to get the PoA documents verified by the MoFA, and there would be more details to go through if the address or some other detail has changed.
“What the Dubai Land Department is saying through the new initiative is for the overseas-based property seller to assign a PoA status directly to the courts in Dubai. This can even be done through Zoom.”
Make payments to title deed holder
According to Trivedi, “This change applies specifically to clients who wish to sell their properties and want the payment to be made through the PoA.
“A PoA can still act on behalf of the seller – attested by the local courts during both the buying and selling processes.
“The only stipulation is that payments must be made in accordance with the name on the title deed.”