In July 2025 by way of Circular No. 29/R/2025, the Dubai Land Department ("DLD") introduced fundamental changes to the use of powers of attorney in real estate transactions. The new provisions describe in detail which requirements a power of attorney has to fulfill in order to be legally acknowledged. A distinction is made between powers of attorney issued within the United Arab Emirates ("UAE") and those issued outside the UAE.
1. Validity
Under the new regulations, powers of attorney executed by a notary in the UAE and entered in the electronic register of the concerned authority are generally valid indefinitely, unless they are expressly limited in terms of time.
However, the DLD or the Registration Trustee Office dealing with the transfer of ownership may at any time request that older powers of attorney be reviewed or updated to ensure that they continue to reflect the grantor's intent.
Powers of attorney drawn up outside the UAE, on the other hand, are now only valid for a maximum of two years for real estate transactions. After this period, they automatically lose their validity.
2. Authentication
Powers of attorney created within the UAE must be executed before a notary in the UAE and registered electronically in the designated systems of the respective Emirate.
The authenticity of the documents must be verified by the competent authority, usually the relevant Registration Trustee Office, via the online portals expressly designated for this purpose. A QR code appearing on the power of attorney alone may no longer be used for authentication.
Powers of attorney issued outside the UAE are still subject to a complex legalisation process. First, the power of attorney must be notarised in the country of issuance. This is followed by further authentication through the competent authorities of that country and obtaining the stamp of the UAE embassy or consulate general in the country of issuance, and finally confirmation by the UAE Ministry of Foreign Affairs in the UAE. Only after this process has been completed, the power of attorney is recognised as legally valid in the UAE. In a final step, if the original document is not already written in Arabic, it must be translated into Arabic by an accredited translation office.
3. Wording
The new regulations require that every power of attorney is worded precisely and for a specific purpose. General wording will not be accepted.
If a power of attorney is to be used for the joint purchase of real estate, the authorised representative may only purchase as a co-purchaser if this is expressly stated in the power of attorney. Therefore, the use of any of the phrases "joint purchase," "purchase in partnership", "co-purchase" or "purchase also for oneself" with explicit indication of the ownership share is essential.
In case of a sale, phrases such as "sale of real estate", "sale of assets" or "sale of immovable property" are recognised.
4. Acceptance and Receipt of Payments
Another fundamental change affects the handling of payments in connection with real estate transactions. Now, all proceeds from the sale must be paid exclusively to the owner(s) named in the title deed. Regardless of whether the owner acts personally or through an authorised representative, the cheque for the purchase price may only be made out to the owner.
In practice, however, after a brief literal application of the wording of the law, this is largely being handled less strictly again. As was the case in the past, cheques may once again be made out to the name of the authorised representative and handed over to him if this has been expressly stipulated in both the purchase agreement and the power of attorney.
5. Conclusion
As a result, it is important not only to closely follow legal developments, but also to keep an eye on practical handling.
New Rules on Powers of Attorney for Real Estate Transactions in the Emirate of DubaiNew Rules on Powers of Attorney for Real Estate Transactions in the Emirate of DubaiReal estate buyers and sellers are therefore well advised to have the necessary documents for a transaction checked in good time to ensure that they (continue to) meet the legal requirements.