Dubai's New Standards For Powers Of Attorney In Property Deals

Introduction

On 16 July 2025, the Dubai Land Department ("DLD") issued Circular No. 29/R/2025 (the "Circular"), introducing comprehensive reforms to the procedures governing the acceptance and verification of powers of attorney ("POA") in real estate dispositions within the Emirate of Dubai. The Circular is designed to enhance procedural transparency, safeguard the rights of all parties to property transactions, and uphold the integrity of the real estate registration system.

This article provides an overview of the Circular's principal provisions, details the mandatory verification process for POAs in real estate transactions, and examines the legal and practical implications for legal professionals, real estate agents, and investors operating in Dubai's property market.

Scope of Application

This Circular governs the acceptance and verification of POAs submitted to the DLD or any Real Estate Registration Centre for real estate dispositions in Dubai, including sale, purchase, gift, mortgage, usufruct, and musataha.

Core Verification Mechanisms

The Circular establishes a source-based verification matrix that compels the Registrar (and, by extension, brokers, conveyancers and in-house counsel) to confirm the validity, currency and scope of every POA through the issuing authority's official electronic platform:

Verification of POAs must be conducted exclusively through the official websites specified in the Circular. The use of QR codes to verify any legal power of attorney is strictly prohibited under all circumstances.

Conditions for Powers of Attorney Issued Abroad

A power of attorney issued outside the UAE will be accepted for real estate transactions in Dubai only if all of the following conditions are met:

1. Validity: The POA must have been issued within the two years prior to its submission.
2. Authentication: The POA must be notarised by the competent authority in the country of issuance, legalised by the UAE embassy or consulate and attested by the UAE Ministry of Foreign Affairs.
3. Original Document: The original, physical POA must be presented for review. Uncertified electronic or scanned copies are not accepted.
4. Language: If the POA is not in Arabic, it must be accompanied by a full legal translation from a UAE-licensed translator and legalized thereafter as applicable.

Approved POA Wordings per Transaction Type

The Circular requires that the power of attorney expressly authorise the specific real estate disposition being undertaken. Only POAs that include the precise terminology set out in the Circular will be accepted. The following are the approved wordings for each transaction type, as reflected in the Circular:

Sale: The POA must include wording such as "sale of real estate," "sale of fixed assets," "sale of immovable property," "transfer for consideration," "conversion for consideration," "waiver for consideration," or "sale to oneself or to others."

Purchase: The POA must specify "joint purchase," "purchase in partnership," "co-purchase," or "purchase for oneself with explicit specification of the ownership share."

Gift / Grant: The POA must include terms such as "grant of real estate," "grant of fixed assets," "grant of immovable property," "assignment without consideration," "conversion without consideration," "grant," "transfer without consideration," "donation," "acceptance of the grant," or "receiving the grant on behalf of the beneficiary or for oneself."

Mortgage: The POA must include "real estate mortgage," "mortgage of immovable property," "mortgage of fixed assets," or "security mortgage." If the mortgage is a guarantee for a third party ("in-kind surety"), the POA must specify whether the guarantee is for the third party's debt or for the principal's own debt.

Usufruct: The POA must include "sale of the usufruct right," "grant of the usufruct right," "conversion of the usufruct right (sale or grant)," "transfer of the usufruct right (sale or grant)," or "waiver of the usufruct right for or without consideration."

Musataha: The POA must include "musataha contract," "right of construction and investment," "sale of the musataha right," "transfer of the musataha right for or without consideration," or "waiver of the musataha right for or without consideration."

Generic or broad language (such as "full authority to manage property") is not sufficient and may result in rejection of the POA. The wording must clearly and specifically authorise the intended transaction, in line with the approved nomenclature set out above.

Special Rules for Minors and Interdicted Persons

Where property is owned by or is to be acquired for a minor or a person under interdiction, the following requirements apply:

• Natural persons – Emirati from Dubai: Written approval from the Awqaf and Minors Affairs Foundation (Dubai) is mandatory.
• Natural persons – Emirati from another Emirate: A court order authorising the guardian or trustee to act is required.
• Non-nationals: A local judicial order is required.
• Companies acting as guardian or trustee: The same rules apply as above; however, foreign companies generally require no additional approvals beyond those set out in their constitutional documents.

Where the minor is the transferee (in the case of a purchase or gift), the signature of the guardian, trustee, or curator is sufficient in accordance with the Circular. Any additional approvals for other types of dispositions should be assessed in light of the applicable court order and general UAE law.

Verification of Principal's Data

The Registrar must cross-check the principal's name, Emirates ID and passport number against the DLD system. If the POA cites an expired passport or ID, provide a copy of that document and verify the POA's validity through the official portals listed in the Circular. An external POA remains acceptable provided the principal's particulars are still accurate at the time of submission.

Receiving Sale Cheques

To ensure the integrity of fund disbursement and reduce the risk of fraud, the Circular prescribes the following procedures for the receipt of sale proceeds:

• In the seller's presence: The sale cheque must be issued in the name of the seller and reflect the full sale amount. Payment may be made by personal cheque, manager's cheque, or, if applicable, supported by a notarized receipt or a bank statement matching the sale amount.

• Where a power of attorney is used:
  • A manager's cheque must be issued in the seller's name for the full sale amount; or
  • A cheque may be issued in the agent's name, provided that the receipt explicitly states that the amount was received on behalf of the seller; or
  • A notarized acknowledgement confirming receipt of the amount for the sold property from the owner.

• For minors: The method of payment must comply with the provisions of the relevant court order.

Absolute Prohibitions

1. No use of POAs to amend title-holder data unless such power is expressly included in the POA text.
2. No use of QR codes as a substitute for the prescribed website verification.

Practical Implications

1. Heightened Drafting Precision: Legal practitioners must ensure POAs use the specific transaction language required by the Circular. Generic or broad authority language may result in rejection.
2. Reduced POA Shelf-Life: The two-year validity limit for foreign POAs may require parties to renew documents more frequently, especially in long or cross-border transactions.
3. Mandatory Original Presentation: Only original, properly legalized POAs are accepted. Parties relying on electronic or scanned copies must arrange for the original to be available at the time of transaction.
4. Elimination of QR Verification: Verification must be performed exclusively through the official government websites. QR code or other informal verification methods are not permitted.
5. Risk Allocation in Sale Contracts: Parties should ensure that all POAs meet the Circular's requirements at closing and consider including indemnity provisions for non-compliance.
6. Enhanced AML/KYC Alignment: The Circular's requirements support anti-money laundering and know-your-customer best practices by mandating official verification and secure payment methods.
7. Additional Steps for Minors' Assets: Parties dealing with property owned by minors must ensure all required judicial or institutional approvals are obtained, in line with the Circular and applicable UAE law.

Conclusion

Dubai Circular No. 29/R/2025 marks a significant step in strengthening the integrity and transparency of real estate transactions in Dubai. By requiring official electronic verification, precise POA wording, and strict compliance with authentication and payment procedures, the DLD aims to reduce risk and protect all parties involved. Legal professionals, agents, and investors should review their practices and documentation to ensure full compliance with the Circular's requirements.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.