Why Do I Need a Power of Attorney for Gift Transfer in Dubai?

The process of property transfer through gift giving in Dubai requires a Power of Attorney (POA) even when the recipient is a close family member such as spouse or child or parent. The process of property gift transfer in Dubai requires legal procedures that must be completed. A Power of Attorney stands as the essential document to execute during this process.

In this article, we will explain why a Power of Attorney is required for gift transfers in Dubai, how it works, and how a Notary Public in Dubai can assist you with this process according to the UAE laws.

What is Gift Transfer in Dubai?

Gift transfer is the act of conveying property to another person without receiving an exchange (money) for it. This generally takes place among family members. For instance, parents may give a property to their children or a husband may give one to his wife. These transfers are legal in Dubai and can only be so if they are registered with the Dubai Land Department (DLD).

However, gift transfers between first degree relatives (parents, children, and spouse) are permitted with a lower cost, but still need to be legally documented and approved.

What is Power of Attorney (POA)?

A Power of Attorney is a legal document that allows you to grant someone else to act on your behalf. The person that holds this responsibility is called your “agent” or “representative.” They can sign documents, file documents, and do other legal work for you.

There are two basic types of POA:

• General POA: Your agent has the authority to deal with many aspects of your affairs, including banking, property, and legal matters.
• Special POA: Your agent can only do one particular task, for example, give a property as a gift.

For gift transfer in Dubai, a Special Power of Attorney is usually required.

Why a Power of Attorney is Required for Gift Transfers in Dubai?

Here are the most common reasons why a POA is required when transferring property as a gift in Dubai:

1. If You Are Not in Dubai

If you are not living within the UAE or cannot personally appear to the Dubai Land Department, you can give someone a power of attorney to do it for you.

2. To Comply with the Dubai Land Department Regulations

You must appear personally or produce a notarized Power of Attorney when registering a gift transfer at the Dubai Land Department.  Without this, the process may be stopped or delayed.

3. It Makes the Process Faster and Easier

Applying a POA means that your representative can go to government offices, sign papers, and submit documents without having to wait for you. It saves time and effort.

4. Legal Documentation for Gift Transfers

Although the property is being given away as a gift, the Dubai Land Department still wants to see that everything is correct. POA assists in establishing that your representative is lawfully empowered to act for you.

5. This is Compulsory by the UAE Law

UAE law (Federal Law No. 5 of 1985) provides that if someone is to act for you in legal matters, a POA is required. Also, in the UAE POA has to be notarized to be valid.

When a Power of Attorney Is Not Required

 There are cases where a POA may not be required. For instance:

• When both the donor and the recipient of the gift are in Dubai.
• If they can both go to the Dubai Land Department and sign the papers personally.

But, the rules may differ based on your case. It is always advisable to seek advice from a lawyer or a notary before embarking on the process.

 What Should a Power of Attorney Include?

When drawing up a POA for gift transfer, it should include:

• Your full name along with your ID or passport number
• The agent’s full name together with their ID number
• A detailed description of the property that will be gifted such as the property title deed.
• The powers that you wish to grant to your agent such as the signing of documents and the registration of the gift etc.
• The period for which the Power of  Attorney is to be used
• The document should be in Arabic or bilingual (Arabic-English).

 How to Get a Power of Attorney in Dubai

Follow the following simple steps to obtain a valid Power of Attorney for gift transfer:

1. Prepare the POA – You can write the POA on your own or seek assistance from an attorney.
2. Arabic Translation of the POA – If the POA is in English, it must be translated into Arabic.
3. Notarize the POA – You should seek the services of a licensed Notary Public in Dubai or use online notary services that have been approved by the UAE Ministry of Justice.
4. Submit to the Dubai Land Department – If needed, the POA also has to be registered during the gift transfer process.

Costs Involved in Gift Transfers in Dubai

When gifting property to a close family member, the Dubai Land Department fee is lower than the usual fee for sales. You’ll typically pay:

• 0.125% of the valuation value of the gifted property, provided that the fee shall not be less than AED 2,000
• Other charges such as registration fee, charges for documents etc.

Service partners fees:

• If the property price is more than or equal to AED 2,000,000, a fee of AED 4,000 + the VAT for the service partners fee.
• If the property price is less than AED 2,000,000, a fee of AED 2,000 + VAT for the service partners fee

Although it is a gift, the legal process and paperwork is still required.

How Notary Public Dubai Can Help You

Writing a Power of Attorney and execution of a gift transfer may be difficult especially if you are not familiar with legal steps in the UAE. That’s where Notary Public Dubai comes in.

We can assist you with:

• Drafting a valid Power of Attorney for gift transfer.
• Translating your document into Arabic language.
• POA notarization.
• Helping you register the gift transfer with the Dubai Land Department.

We intend to ensure that the process is as easy, efficient and legal as possible whether you are in Dubai or elsewhere in the world.

We offer professional services in drafting, translation and notarization of POAs according to UAE law. We can assist you with your gift transfer and make it easy and stress free. Contact us today.