Dubai Tightens Power of Attorney Rules for Non-Resident Sellers

Non Resident Sellers in UAE

In a move aimed at reinforcing transparency and control in high-value real estate transactions, Dubai has introduced new regulations impacting how non-resident property owners handle sales through Power of Attorney (PoA). Effective immediately, cheques issued for property transactions will only be accepted in the name of the title deed holder, with no exceptions for PoA holders when it comes to receiving sale proceeds.

This change has significant implications for “overseas property sellers”—a term generally referring to individuals who own property in Dubai but reside outside the UAE and are not holders of valid UAE residence visas. While many of these investors purchased property under the framework of Federal Decree-Law No. 33 of 2006 (Regulating Ownership of Property in the Emirate of Dubai), the execution of sale-related procedures has until now remained relatively flexible, especially for those appointing local representatives through PoA.

Why the Change?

The updated directive, stemming from internal circulars by the Dubai Land Department (DLD), is part of a broader initiative to enhance financial accountability, seller verification, and secure fund disbursement. By mandating that payments be issued solely to the person listed on the title deed, Dubai is reinforcing a one-to-one link between ownership and financial benefit, especially important when sellers are located abroad.

Until recently, many non-resident property owners relied on relatives or trusted agents in the UAE, issuing them PoAs—sometimes remotely—to manage property sales. These representatives could not only sign documents but also receive sale proceeds via bank cheques, as long as the PoA was notarised through Dubai Courts. That practice is no longer accepted.

The new rule seeks to remove ambiguity by centralising financial control in the name of the legal owner, streamlining verification, and reducing the risk of disputed payments.

According to market experts, this move increases transactional confidence and prevents misuse of PoAs in cases where beneficiaries were unclear or improperly authorised.

What’s Still Permitted Under PoA?

This regulatory change does not abolish the use of Power of Attorney. A PoA holder may still legally act on behalf of the seller during the transaction process—such as attending appointments, negotiating with brokers, and signing legal documents—provided the PoA is attested through Dubai Courts. Remote issuance via platforms like Zoom has been made available to accommodate sellers abroad.

However, the cheque for the sale must now be issued directly to the property owner’s UAE bank account, matching the name on the property’s title deed. This step effectively removes third-party collection from the transaction.

Opening a UAE Bank Account for Overseas Sellers

While non-residents are permitted to open UAE bank accounts, the process involves meeting specific banking requirements, including:

• A valid passport

• Proof of property ownership (title deed)

• Residential address in the home country

• UAE mobile number

• Profile summary or proof of income

Most banks also require an in-person visit and may set minimum balance thresholds depending on the account type.

Sellers should not wait until a buyer is secured to begin this process. Opening a bank account only after a sale agreement is in motion can lead to avoidable delays and administrative complications. To ensure a smooth transaction, it is strongly recommended that overseas sellers set up their UAE bank account as soon as they decide to list the property for sale.

This proactive step aligns with current Dubai Land Department protocols and positions sellers to complete transactions efficiently and without disruption.

Conclusion

As Dubai continues to build confidence among global investors, this change reflects the city’s evolving approach to tighten controls without discouraging investment. For non-resident owners, ensuring a compliant sales process now begins with securing a UAE bank account and understanding the limits of delegated authority.

Juris Maestro remains available to assist investors with property sales, PoA execution, and legal compliance in accordance with Dubai’s property laws.