In the United Arab Emirates, a special power of attorney (SPA) is a legitimate and legal instrument that grants someone or something written authorization to make decisions on someone else’s behalf. Those who intend to travel frequently utilize this paper, and it is necessary for someone else to have permission to handle personal matters while they are away.
The special power of attorney in Dubai is typically needed when you need to oversee operations or finish an authority cycle but are unable to do so for an unknown reason, or when you essentially want someone else to do it on their behalf.
The agent’s options are restricted to certain situations while dealing with extraordinary powers of attorney. The principal must be extremely specific about the powers they want the agent to have, as this sort of power of attorney is restricted to what is stated in the signed document. Furthermore, the principal may designate a different person in each of the multiple special powers of attorney that they create.
General POA Vs Special POA
A general power of attorney is more expansive than a special power of attorney, which grants the agent authorization for a restricted set of actions under specific conditions—like purchasing or selling real estate, taking money out of an account, or operating a business.
The agent is authorized by a broad power of attorney to handle all financial and legal matters on behalf of the principal. Giving an agent broad authority to handle financial transactions for both personal and business use, bill payment, purchasing life insurance, donating to charities, managing real estate, and filing tax returns is an option for someone who will be traveling abroad for a year.
Types of Special Power of Attorney in Dubai
Principals can designate agents to take over their affairs in the event of obligations or other exceptional circumstances using a variety of powers of attorney. Every kind of power of attorney is dependent upon the principal’s current circumstances.
- Limited Attorney Power
A limited power of attorney is a formal declaration given by the principal to an agent for a specific transaction and a predetermined amount of time. Once the transaction is completed or the principal becomes unable, the restricted power ends.
- Springing Power of Attorney
The future event that prevents the principal from acting causes the springing power of attorney document to take effect.
- Medical Power of Attorney
The aforementioned contract grants an agent the authority to decide on important medical matters on the principal’s behalf. The agreement takes effect right away with the presiding physician’s approval.
Process to Get a Special Power of Attorney
Step 1: Determine the type of special power of attorney and its application.
Step 2: Consult a lawyer
In the UAE and around the world, the laws governing special powers of attorney are subject to change. It is therefore highly recommended that you speak with a well-prepared attorney and ask for assistance in creating the spa record. As such, your agreement reflects your needs and provides sufficient insurance for both you and your agent. Additionally, your chosen legal expert can provide you and your representative with a detailed audit of the liberties permitted by the authoritative report. Don’t forget to ask about scenarios where your rights could be applied.
Step 3: Signing the document
For the document to be legally binding in Dubai, it must be signed in front of a public attorney. Another unsigned report will be needed at that point, assuming that involvement with the arrangement has proactively indicated the spa period to the meeting with a public legal official in Dubai. The public notary in Dubai cannot notarize a document once it has been signed. Make sure you have the appropriate identification with you so you can present it to the public notary in Dubai. This will enable the public accountant to verify the signatories’ identity. A notary is prohibited from performing the document notarization if they are a party to the understanding agreement (either the principal or the agent).
Requirements for a Special Power of Attorney
The credentials of the principal and the agent must be completed while drafting a special power of attorney. The document’s preparers are required to provide a detailed description of the approved transactions and deadlines.
If the special power of attorney is signed outside of the nation, it needs to be notarized by being in front of a notary public to confirm that there was no undue influence or pressure.
A competent form of identification with the principal’s signature and photo on it must also be shown. All signed copies of the paper have the signatures of the witnesses appended as well.
- Form filing for a special power of attorney
- Two sets of the principal’s passport copies.
- Two sets of the required documentation.
- A justification to purchase a spa.
- The date must be mentioned, and the form must be signed.
- The signature of the principal.
- The name, ID number, and expiration date of the primary
- The head’s name and address.
- The processor will refer to one or more other documents.
- The ID, the real address, and the agent information.
Clarity in Authorization
It is paramount for the principal to delineate the scope of authority with precision in the Special Power of Attorney (SPA) document. This clarity ensures the agent comprehensively understands their responsibilities and the boundaries within which they must operate. A well-defined scope prevents overreach and misunderstandings, facilitating a smooth operation. For instance, if the agent is to handle financial transactions, the document should specify which accounts they can access and for what purposes. This meticulous detailing safeguards both parties’ interests and ensures actions are taken within the agreed-upon framework.
Specificity of Transactions
Detailing the specific transactions or decisions the agent is authorized to undertake is crucial. The principal should itemize the activities, whether they involve managing real estate, handling financial accounts, or making medical decisions, to eliminate any vagueness. This specificity aids in preventing disputes that could arise from a broad or ambiguous interpretation of the agent’s powers. For example, if the agent is to sell a property, the SPA should detail the property’s description, the minimum acceptable sale price, and any other pertinent conditions.
Duration and Termination
Outlining the duration of the Special Power of Attorney is vital. The document should clearly state the start and end dates of the authorization, or the conditions under which the SPA will cease to be effective. This could include completion of the specified task, the principal’s death, or incapacitation, unless otherwise stated. Additionally, incorporating conditions for termination gives the principal and agent a clear understanding of when and how the authority concludes, ensuring no legal oversights in the transition of responsibilities or termination of the SPA.
Revocation Clause
Including a revocation clause within the SPA provides the principal with the flexibility to withdraw the agent’s authority as circumstances change. This clause is a safety net, allowing the principal to terminate the agent’s powers without having to wait for the natural expiration of the document. The revocation process should be straightforward, such as a written notice to the agent and, if necessary, to any third parties involved with the SPA.
Legal Review
Consulting a legal expert for a review of the Special Power of Attorney document is highly recommended. This step ensures that the SPA adheres to local laws and regulations, which might have specific requirements or restrictions concerning the powers that can be delegated. A legal professional can identify potential issues, offer advice on the document’s structure, and suggest amendments to enhance clarity and enforceability. Legal oversight helps in mitigating risks and ensuring that the SPA effectively captures the principal’s intentions and legal standards.
Cost of a Special Power of Attorney in Dubai
For a personal or individual, the notarization fee ranges from approximately AED 200 to 300 plus VAT (value-added tax) and may differ based on how long the power of attorney lasts. For a corporate document, AED 2000.
