From entrusting powers for the management of a company to carrying out just about anything for and on behalf of the main owner, a Power of Attorney (POA) is an instrument of delegation of powers for the legal authorisation of any person to represent you. In this write up, we have put together major questions with answers on the totality of what a Power of Attorney is and what it constitutes-so here we go.<\/p>\n\n\n\n
What can a Power of Attorney do?<\/strong><\/p>\n\n\n\n A Power of Attorney can handle various matters depending on the requirements. For example, in real estate management, a Power of Attorney is used when one or both parties are unavailable and someone else is required to represent the other to finalise the property transaction. A Power of Attorney is one practical way of ensuring that documents are signed without the presence of the concerned party in person.<\/p>\n\n\n\n What are the advantages of issuing a Power of Attorney?<\/strong><\/p>\n\n\n\n Issuing a POA to a trusted representative means you can focus on other things while the bearer carries out the function for which the POA was issued. It saves time, money, energy and lots more. You will not need to travel every time an action needs to be taken in respect to the purpose of the POA.<\/p>\n\n\n\n Many tourists purchase properties in the UAE and the process of sale takes a while before a Title Deed is received. This is one reason why many buyers prefer to give a Power of Attorney so that all the formalities can be carried out on their behalf. However, it should be noted that there are limitations when dealing with a property under a Power of Attorney.<\/p>\n\n\n\n What is required to issue a Power of Attorney and can I issue it to anyone?<\/strong><\/p>\n\n\n\n A Power of Attorney can be issued by anyone that has reached the age of majority, that is, the legal age. In most countries the age varies between 16 to 18 and 21 years old. The laws of the country will have to be consulted to know the prescribed legal age. In the UAE, the legal age of majority is 21 in most emirates. Likewise, anyone can be appointed as an Attorney provided, he\/she is of the legal age and is mentally capable to execute the purpose of the Power of Attorney.<\/p>\n\n\n\n What risks should I be mindful of when issuing a Power of Attorney?<\/strong><\/p>\n\n\n\n Before appointing any person to act under an issued Power of Attorney, you must ensure that such person is trustworthy and able to fulfill the duties just as you will want it.<\/p>\n\n\n\n Anyone instructed as your Attorney via a Power of Attorney is practically the same as you legally, bearing in mind that, decisions taken under the application of the Power of Attorney becomes legally binding. The major thing to look out for is that the person is equipped with the trust, knowledge, skill and experience required to get the job done.<\/p>\n\n\n\n Having said that, there are different types of Power of Attorney and understanding what each entails is a ladder to giving the right Power of Attorney to the right person.<\/p>\n\n\n\n What are the different types of Power of Attorney in the UAE?<\/strong><\/p>\n\n\n\n The major forms of Power of Attorney are \u2018General\u2019 and \u2018Special\u2019. A general Power of Attorney enables the holder to act in a broad capacity, whereas a special Power of Attorney grants powers for specific purposes. An example of a Special Power of Attorney will be for the operation of the company\u2019s bank; meanwhile the managerial power of the company is not delegated in the POA. The risk involved in a special power of Attorney is lower to that of a General Power of Attorney.<\/p>\n\n\n\n To what extent am I protected after giving a POA?<\/strong><\/p>\n\n\n\n Simply put, the type of Power of Attorney you give determines the level of protection you can have. A Power of Attorney given can only be used for what it has been authorized to do. In this light, whatever you don\u2019t want done, don\u2019t include in the Power of Attorney.<\/p>\n\n\n\n