POAS Podcast – Episode 07

Welcome back to the POA’s desk.

The single most common reason POAs get rejected is using the wrong type. People hear “power of attorney” and assume it’s one document. It isn’t. There are several distinct types, each with its own purpose, wording, and accepting authority. In this episode we cover the main types and how to choose the right one for your situation.

Start with the principle. A POA in the UAE is type-specific. The document must match the action it authorises. A POA drafted for property management cannot be used to sell property. A POA drafted to operate a bank account cannot be used at the Dubai Land Department. Each authority — DLD, banks, courts, ministries — has its own requirements, and the document must be drafted to meet those specific requirements.

The four main types we handle at POAS are Property Sale, Property Management, Corporate, and Bank Account.

A Property Sale POA authorises the attorney to sell a specific property on behalf of the principal. It includes powers to sign the sale and purchase agreement, attend the trustee appointment, receive the proceeds in the principal’s name, sign the title deed transfer, and handle related documents like the developer NOC. The property must usually be specified in the document, including the title deed number and unit details. A vague Property Sale POA that does not name a specific property will be rejected.

A Property Management POA authorises the attorney to manage a property on the principal’s behalf. This includes signing tenancy contracts, registering Ejari, collecting rent, paying service charges, dealing with the developer or owners’ association, and arranging maintenance. It does not authorise sale. A landlord living overseas who wants someone in Dubai to handle their rental property needs a Property Management POA, not a Sale POA.

A Corporate POA authorises actions on behalf of a company. This is broader than the others, because companies have wider needs. The POA might authorise signing contracts, opening or operating bank accounts, dealing with government authorities, hiring or terminating staff, or specific transactions like company restructuring. Corporate POAs require board authorisation and usually need to be registered with the company’s free zone or mainland authority.

A Bank Account POA authorises the attorney to operate a specific bank account on behalf of the principal. It typically includes powers to deposit funds, withdraw funds, write cheques, manage transfers, and receive correspondence. Banks in the UAE have specific requirements for the wording of these POAs, and most banks have their own preferred templates. A generic Bank Account POA may not be accepted by a specific bank.

There are also less common types. Court POAs for litigation. Visa and immigration POAs for residency matters. Inheritance POAs for handling estates. Vehicle POAs for selling or registering cars. Each has its own format and accepting authority.

The mistake we see most often is people requesting a “general POA” thinking it covers everything. General POAs do exist, but they are usually rejected for specific transactions because they lack the specificity that authorities require. A general POA might say “to handle all property matters” but the DLD will look for specific powers like “to sign the sale and purchase agreement for property X” and reject the document if those specific powers are missing.

The right approach is to start with the action you need authorised. What does the attorney need to do. Once that is clear, the right POA type follows. Working backwards from the action ensures the document is fit for purpose.

At POAS we confirm the right POA type before drafting. If you tell us you need a “general” POA but you actually need a Property Sale POA, we tell you. If you ask for one type but your situation requires another, we explain the difference. Getting the type right is the most important decision in the process.

In Episode 8 we go deeper on the Property Sale POA specifically. What it includes, what it must specify, and the common rejection reasons.

I’m Patrick. Thanks for joining me at the POA’s desk.