Welcome back to the POA’s desk.
In the last episode we covered bilingual drafting. In this episode we cover the most common reasons POAs get rejected — and how to avoid them.
A rejected POA is more than an inconvenience. It means a missed transaction, a rescheduled appointment, additional fees, and sometimes a lost opportunity if a counterparty walks away. The rejection rate for properly drafted POAs is low. The rejection rate for cheap or generic POAs is high. Knowing the most common rejection reasons helps you avoid the worst of them.
Reason one. Wrong POA type. The document is drafted for property management but the principal needs to sell. Or drafted as a general POA but the authority needs a specific sale POA. The document doesn’t match the action. This is the most common reason for rejection at the Dubai Land Department.
Reason two. Property not specified clearly. The POA references “my apartment” or “my property in Dubai” without the title deed number, the unit number, or the building name. The DLD cannot confirm which property the POA refers to. The document is rejected on the basis that the authorisation is too vague.
Reason three. Principal’s name does not match the title deed. The title deed shows “Mohammed Ahmed Al Mansoori.” The POA shows “Mohammad Ahmad Almansouri.” Spelling variations matter. The DLD’s system cannot confirm the identity match. The POA is rejected.
Reason four. Powers too generic. The POA says “to handle my property matters” without specifying signing authority, sale authorisation, NOC handling, or trustee attendance. The receiving authority looks for specific powers and finds vague language. The POA is rejected.
Reason five. Translation errors. The English version says one thing. The Arabic version says something subtly different. A specific power is omitted in the Arabic. A term is translated inaccurately. The Arabic is the binding version, so the document is read as the Arabic says, which may not authorise the action being attempted.
Reason six. Expired or no validity period. The POA has a stated expiry date that has passed. Or the POA has no expiry date and the receiving authority deems it expired after a certain time. Some authorities apply a default validity if none is stated. The document needs to be re-issued.
Reason seven. Incomplete attestation chain for overseas POAs. The POA was notarised in the home country but not legalised through the foreign affairs ministry. Or legalised but not embassy-attested. Or attested but not registered at the UAE MOFA. Any missing step makes the document invalid.
Reason eight. Self-dealing. The POA names a party who has a conflict of interest. The buyer is named as the seller’s attorney. A real estate agent involved in the transaction is named. The conflict is identified at the notary or by the receiving authority, and the POA is rejected.
Reason nine. Notary not authorised. The POA was notarised by a notary who is not licensed to handle that specific type of document. Or notarised in a free zone notary that the receiving authority does not recognise. The form may look right but the source is not accepted.
Reason ten. Corporate authorisation chain incomplete. The Corporate POA was signed by someone who is not the authorised signatory on the trade licence. Or the trade licence was expired at the time of signing. Or the supporting board resolution is missing. Companies issuing POAs must have their internal authorisation in order.
The pattern in all of these is the same. The document fails because something in the underlying detail does not match what the receiving authority expects. The fix is always the same too. Start with the receiving authority’s requirements and work backwards.
At POAS we verify against rejection criteria before drafting. We confirm the POA type matches the action. We verify property details against the title deed. We check name spellings against identification documents. We confirm the receiving authority and its specific requirements. We check for conflicts of interest. We verify the corporate authorisation chain for company POAs.
The fixed fee includes this verification. So if a POA we draft is rejected for a reason within our control, we redraft and re-notarise at no additional cost. That accountability changes the incentive — we have to get it right the first time.
In Episode 15 we cover POA cancellation and revocation. How to end a POA that is no longer needed, and how to revoke one that has been misused.
I’m Patrick. Thanks for joining me at the POA’s desk.