Foreign investors who own property in Dubai are now required to adhere to updated regulations concerning the delegation of Power of Attorney (PoA) for property sales. These changes are set to impact the way transactions are handled when the owner is based outside the UAE.
Mandatory UAE-Based Bank Accounts for Sellers
Effective this week, individuals selling property in Dubai must ensure that sale-related payments are processed through a UAE-based bank account registered in their own name. Real estate transactions will no longer accept cheques issued to PoA holders. Only cheques made out to the actual property owner, as listed on the title deed, will be considered valid.
This update is particularly significant for those who traditionally assign PoA authority to trusted individuals, often family members, in order to expedite the sales process.
PoA Limitations Introduced in Financial Transactions
Historically, cheques could be issued in the name of the PoA holder based on a Dubai court-approved PoA. That practice is now being phased out.
From now on, the legal owner must be the direct recipient of any proceeds from the sale. This ensures that the financial transaction is aligned strictly with the ownership recorded in the property’s official documentation.
Push for Greater Transaction Transparency
These reforms are part of a broader initiative by UAE authorities to enhance transparency in real estate dealings. The focus is on eliminating ambiguities by ensuring all payments are directly traceable to the rightful owner. In essence, intermediaries or proxies can no longer be used to receive payment.
Despite the stricter framework, Dubai continues to attract a high volume of investment from both local and overseas buyers. In fact, the number of transactions involving non-resident investors has seen an uptick in 2025 compared to the previous year.
Streamlining PoA Registration Through Dubai Courts
A market expert noted that PoA-related procedures were often cumbersome in the past, especially when documentation required validation through the Ministry of Foreign Affairs (MoFA), or when personal details needed updates.
The Dubai Land Department now encourages overseas sellers to obtain their PoA directly through the local courts, an option that can even be facilitated remotely via platforms like Zoom. This move is intended to simplify the process while retaining legal oversight.
Payments Must Reflect the Owner on Record
These regulatory updates specifically affect sellers aiming to process payments through a PoA arrangement. While a PoA can still represent the owner in both purchase and sale transactions provided it is legally verified by the UAE courts the new rule stipulates that all payments must be directed exclusively to the individual named on the title deed.
Source: https://www.propertynews.ae/uae/overseas-investors-must-follow-new-rules-when-selling-dubai-property/
