Reasons For Using A Power of Attorney?
Table of Content
- 1 Reasons For Using A Power of Attorney?
- 2 (Eg) Property Sales
- 3 So What Should You Consider When Choosing A Power of Attorney In Dubai?
- 4 Trust
- 5 Loyalty
- 6 Knowledge, Skills And Experience
- 7 Location
- 8 Network
- 9 Willingness
- 10 Attention To Detail
- 11 No Conflict Of Interest
- 12 Strong-minded, Confident & Assertive
- 13 Someone Like You!
(Eg) Property Sales
So What Should You Consider When Choosing A Power of Attorney In Dubai?
Ok, so you have decided to appoint someone as Power of Attorney to represent your property interests in Dubai. The next and perhaps most important step is to decide who that person will be…
By appointing someone as Power of Attorney, you are giving that person written authorisation to act on your behalf both in a legal and a financial sense. That person is authorised to sign documentation and handle certain business matters as if you were doing so personally. The use of Power of Attorneys in the Dubai real estate market is no different.
Assigning a Power of Attorney is not something that should therefore be done hastily or without proper consideration. Since the chosen person will be looking after important legal and financial affairs, you need to make sure that you are comfortable that they have the required knowledge, experience and skills to act in this capacity. I have made some suggestions below as to certain characteristics you should consider when choosing your Power of Attorney representative:
I start with this one as it is perhaps the most important of all. Trust is paramount when choosing a Power of Attorney. You need to feel 100% comfortable that the chosen individual(s) will represent you in the best possible way. If not, then you may as well stop reading now.
If someone’s experience and/or past action’s have shown them to be reliable, responsible and trustworthy, this is a great place to start. Listening to client referrals or recommendations from other trusted friends or colleagues is another good idea.
Always choose someone who has your best interests in mind and who a strong understanding of his/her duty as well as a commitment to take it seriously. Loyalty cannot be compromised here.
Knowledge, Skills And Experience
This is equally as important as trusting someone and in many ways ties in with this. You will need to be comfortable that the chosen Power of Attorney possesses the required knowledge of the task in hand, experience in having completed similar actions previously and the necessary skills to allow them to competently act in this capacity. They should be able to make important decisions and solve any issues that may arise.
In the Dubai real estate market, the rules and regulations can be quite frustrating and change regularly so you will want to employ someone who has a strong understanding of the requirements and processes involved and experience in completing all of the tasks previously. Someone who is legally qualified is highly desired and indeed recommended.
You will also want to appoint someone who is based within Dubai as they are more likely to understand all of the local rules and regulations and in a practical sense, be available to represent you as and when required. This is one of the reasons why you are giving POA in the first place! The further away the appointed person is located, the longer the processes will take and therefore the higher risk of delays, disputes and even loss of money.
It is worth considering someone who has a strong network and ongoing client base in the area in which they are working. This will make both your life and their life much easier when trying to get things done. The ability to collaborate with other attorneys, accountants, officials etc is important and local government connections are also very useful tools.
Of course, it goes without saying really that the chosen person should know what tasks are required of him/her and be willing to undertake such tasks. Make sure your Power of Attorney is familiar with the requirements and has the time, money and resources to carry these out effectively.
Attention To Detail
This is very important as any mistakes can cause major issues further down the line, whether this be procedurally or financially. Again, appointing someone who know the steps involved and has a good financial understanding will go a long way to prevent any problems from occurring.
No Conflict Of Interest
Your chosen Power of Attorney should not hold anything that could be considered a conflict of interest to either you or the task at hand. They should be acting in the best way possible for your interests, not their own.
It is worth noting here that the authorities in Dubai now stop anyone working for a real estate company (regardless of designation) from representing clients as Power of Attorney. As such real estate brokers in Dubai can longer act as Power of Attorney. The broker’s job is to negotiate and manage the deal rather than represent either party in a legal sense. This has been introduced to prevent such conflicts of interest and to stop the risk of any abuse of power.
It is always worth using an independent party anyway as they will have your best interests at heart and will be 100% focused on completing the property transaction rather than making commissions or further sales.
Strong-minded, Confident & Assertive
These are useful attributes for any Power of Attorney. Representing multiple property investors can be a stressful and demanding job with pressures from all sides; including brokers, banks, sellers and buyers. A good POA will be able to manage these expectations, face up to any difficult situations and solve any problems or issues.
Someone Like You!
Giving Power of Attorney can be quite a personal thing so who better to represent you than someone who has the same ethics, morals and prudence as you!
I hope the above guide helps in you some way in deciding who to appoint as Power of Attorney and what to look out for when doing so. Giving someone Power of Attorney is not a decision to be taken lightly so my advice would be to take your time, do your homework and make sure you are 100% satisfied before proceeding. Always proceed with caution and only use someone who is experienced and qualified to act in the capacity that you require. There are many great benefits to be had by appointing a Power of Attorney so if you follow this advice, you too can start benefiting from this as well removing a little more stress from your life!
[Nb – The author of the above article is an LLB Bachelor of Laws graduate from the UK and is the Managing Partner of Your POA Dubai (www.yourpoadubai.com). Your POA specialise in representing national and international clients as Power of Attorney for a wide range of property related matters; from Property Handovers & Title Deed Registrations to Sales, Purchases & Gift Transfers. If you need a Power of Attorney or have questions on any property related matters in Dubai, please contact us here or call on +971 52 832 7420]