Common Mistakes to Avoid When Drafting a Power of Attorney in the UAE

In the UAE, where transactions worth millions are finalized with a single signature, a power of attorney (POA) can simplify complex legal processes. However, if drafted carelessly, it can turn into a legal trap. A single mistake—whether in wording, dates, or scope—may result in disputes, financial loss, or even the invalidation of the POA.

So, what are the common POA mistakes in the UAE, how can you avoid them, and what role does notarization play in securing your rights? Let’s explore.

What is a Power of Attorney in the UAE?

Under the UAE Civil Transactions Law (Federal Law No. 5 of 1985), a POA is a legal contract by which one party (the principal) authorizes another (the agent) to act on their behalf within the powers defined in the document. These powers may be broad (general POA) or limited (special POA), but any act outside the scope of the POA is not legally binding unless explicitly approved by the principal.

Main Types of POA in the UAE

• General POA – Grants the agent broad authority to manage the principal’s financial, commercial, and administrative matters.
  
• Special POA – Restricted to a specific transaction or task, such as selling property.
  
• Lawyer’s POA – Exclusive to licensed lawyers, allowing them to represent clients before UAE courts.

Common Mistakes in Drafting a POA in the UAE

1. Vague or overly broad wording
   Using generic phrases such as “managing all affairs” can expose the principal to misuse and legal risks.
   
2. Not specifying a validity period
   Failing to set an expiry date may keep the POA active for years after the intended purpose has ended.
   
3. Granting unnecessary powers
   Authorizing powers that go beyond the actual need often results in abuse or disputes.
   
4. Failure to notarize the POA
   Unnotarized POAs are generally invalid in Dubai and across the UAE.
   
5. Errors in personal or property details
   Mistakes in names, Emirates ID numbers, or property details can render the POA void or unusable.
   
6. Ignoring property-related restrictions
   Leaving out clauses related to mortgages, sales, or specific conditions can cause major financial losses.
   
7. Using expired POAs
   Government departments and banks reject POAs that are no longer valid.
   
8. Overstepping legal limits in litigation
   Only licensed lawyers can represent clients in UAE courts; assigning this power to a non-lawyer is invalid.

The Role of Notarization in Preventing Mistakes

A private or public notary in Dubai plays a crucial role in preventing errors by:

• Verifying the identity and legal capacity of both principal and agent.
  
• Ensuring that the scope of powers is clearly and accurately defined.
  
• Confirming compliance with UAE laws and regulations.
  
• Officially notarizing the document to make it legally enforceable.
  

Notarization turns a simple document into a legally binding instrument that is recognized by banks, courts, and government authorities.

Legal Risks of Mistakes in a POA

• Invalid Transactions – Any act outside the POA scope is considered null and void.
  
• Financial Losses – Broad powers may be misused, leading to unauthorized sales, withdrawals, or commitments.
  
• Court Disputes – Ambiguities or overreach often result in lengthy legal battles.
  
• Criminal Liability – Misusing a POA for fraud, forgery, or embezzlement can expose the agent to prosecution.

FAQs

1. What are the most common mistakes when drafting a POA in the UAE?
   Vague wording, missing expiry dates, lack of notarization, and errors in personal details are the most frequent mistakes.
2. How can I avoid legal issues when issuing a POA?
   Work with a professional notary, define powers clearly, limit validity, and always notarize the document.
3. Do POAs need to be notarized in Dubai?
   Yes. To be legally recognized, most POAs must be notarized at a public or private notary office.
4. Can mistakes in a POA be corrected after issuance?
   Yes, but it often requires revoking the original POA and drafting a new, corrected version.
5. What legal consequences can result from an invalid POA?
   An invalid POA can lead to rejected transactions, financial disputes, unenforceable contracts, and even court cases.

Final Note

Avoiding mistakes in a POA is not just about legal compliance—it’s about protecting your rights, finances, and peace of mind.

👉 Ensure your power of attorney is drafted and notarized correctly—contact our expert notary team in Dubai today for trusted, professional POA services.