What are the specific powers granted by a general power of attorney, and how do they differ in the UAE from a general POA

December 27, 2023 freedailyupdate

It is critical to understand the different forms of powers of attorney and how they differ in the scope of powers conferred when granting authority to another person to act on one’s behalf. There are two types of power of attorney in the UAE: special and general power of attorney.

General Power of Attorney

A general power of attorney is a comprehensive permission document that allows the attorney-in-fact complete agency powers over the principal’s legal and financial affairs. Unless otherwise indicated, it authorizes the agent to carry out all actions and transactions that the principal is legally capable of carrying out.

A general power of attorney in the UAE should have the following features

It covers all matters and does not need to list each approved act individually. As a result, it is a useful one-size-fits-all document.
Regarding any issues that may occur, the agent has full decision-making ability as if they were the principal themselves.
A broad power of attorney is effective until it expires or is revoked by the principal. It does not cease when a certain task is completed.
To be legally recognized in the UAE, general powers of attorney must be notarized and registered with the Ministry of Justice.
A general power of attorney uae provides maximum freedom while also granting very broad powers with little monitoring. If agents are not carefully selected and managed, they may be able to abuse authority in the absence of the principal.

Special power of Attorney

A particular power of attorney restricts agency authority to pre-authorized subjects or acts that are mentioned individually. It carefully limits the boundaries of the agent’s powers, as opposed to the authorization of a general power.

A special power of attorney should include the following features

The agreement clearly states which particular activities or categories of tasks the agent is authorized to do on behalf of the principal.
Powers are limited to the topics specified and do not extend to other areas.
Without the principal’s consent, the agent cannot act outside of the scope of authority or make independent judgments.
In contrast to a standard power of attorney, which is open-ended, a special power of attorney expires once the indicated aim is met.
Special powers of attorney are not required to be registered in the UAE, however, they must be notarized.
A special power of attorney, by limiting jurisdiction to pre-approved areas, gives principals more oversight and control over agency actions than a general version. However, it must be updated for any new tasks.

UAE General Power of Attorney

In the UAE, general powers of attorney are routinely utilized to confer full agency rights for a variety of financial and legal problems. It is used in many different kinds of situations, including:

Real Estate Transactions

A general POA authorizes agents to sell, buy, or rent properties on behalf of the principal and sign relevant papers. It simplifies processes when the owner is away.

Healthcare Choices

A general power of attorney empowers agents to make healthcare decisions and access medical records in medical emergencies when family members are absent.

Finance and banking

Using a general power of attorney, agents can access bank accounts, execute transfers and investments, file taxes, and do other things.

Business Administration

A general POA can be used by partners who are away on business or on vacation to keep operations operating smoothly through approved agents.

In contrast to other nations, general powers of attorney in the UAE require registration at the Ministry of Justice to be officially recognized. This adds a degree of security. Fees are assessed based on the value of the matters permitted.

POA (Special vs. General)

While a general POA provides the greatest amount of flexibility, principals may opt to limit agency powers for supervision and accountability. This control is provided by special POAs with narrower pre-defined scopes.

Tasks such as a one-time property sale, a brief medical procedure, or a single commercial transaction are examples of situations when special POAs make more sense than general POAs.

Overall, general and special powers of attorney play significant roles in the UAE legal system. However, their different frameworks of wide vs. narrow jurisdiction meet a variety of demands and allow principals to select appropriate agency connections.

The Registration Procedure for Powers of Attorney in the UAE

Powers of attorney must meet the registration requirements of the relevant emirate to be legally effective and enforceable in the UAE. Typically, the procedure entails:
A notary public or a civil court notarizes the power of attorney document.
If the material was originally written in another language, it should be translated into Arabic. The translation must also be notarized.
Submitting the original POA to the Ministry of Justice, along with supporting papers such as ID proofs.
Paying the registration fees, which vary depending on the value or extent of the allowed matters.
After inspection and approval, you will be given a registration number as proof.
Registered POAs are officially acknowledged for one year before they must be re-registered.

POA Revocation and Replacement

Principals can revoke a power of attorney at any moment if the agency relationship needs to be terminated. The procedure entails sending a formal revocation letter to the registration authority.
Notifying the agent of the end of their powers in writing or another verifiable manner.
Any actions made by the agent after obtaining revocation are void and may necessitate legal action.
In addition, principals may replace an existing POA by registering a new document that trumps the previous one. This could be done to alter the agent, change the permitted matters, or end a disputed agency agreement.

Resolution of Disputes

Rare disagreements between principals and agents regarding the usage of POAs may necessitate intervention. After exhausting all other avenues of resolution, evidence-based civil cases can be filed in the relevant courts. Proper documentation of instructions and transactions aids in the settlement of claims fairly.

Conclusion

Finally, general and special powers of attorney are significant legal tools utilized in the UAE to delegate authority to representatives. A general POA provides the most flexibility with authorization, whereas a special POA provides more control with limited, pre-defined powers. The decision is influenced by the specific situation and the principals’ preference for broad or narrow agency ties. When powers of attorney are properly executed and registered, they are formally recognized to facilitate essential financial and legal affairs when the principals are unavailable or abroad.