Dubai is the fastest growing real estate and business hub in
the world today. Property deals, business contracts and investments worth
millions of dollars take place here every day. But in such an environment,
transparency and legal security matter the most.
This is where two
words become most important – Escrow Dubai and POA Dubai.
If you want to buy, sell, or give legal authority to someone
in Dubai, then it is very important for you to understand both these terms.
What is Escrow Dubai?
Escrow Dubai is
actually a secure payment system implemented by the Dubai government to make
real estate transactions transparent.
·
Understand in simple words: When a buyer buys a
property, he does not give the money directly to the developer or seller.
·
The money is first deposited into the Escrow
Account.
·
This account is under the control of a third
party (usually a bank).
·
The money is not released until the developer or
seller fulfills the terms of their deal.
👉 This means that both
the buyer and the investor get legal security and the risk of fraud is largely
eliminated.
Why is Escrow Dubai
necessary?
The Dubai real estate market is very large and attractive,
but if there is no security, then the risk is equally big. Escrow System offers
many benefits:
·
Security for the buyer: Your money remains safe
until the project is completed.
·
Control over the developer: The developer gets
the money only when he has fulfilled the promise.
·
Transparency: Every transaction takes place
under the regulation of the Dubai Land Department (DLD).
·
Protection from fraud: Protection from fake
projects or fake deals.
What is POA Dubai
(Power of Attorney)?
POA Dubai means Power of Attorney – that is, you give the
right to another person to do legal or financial work on your behalf.
For example:
·
You live in India and want to buy property in
Dubai.
·
You cannot come to Dubai every time and do the
signing or documentation.
·
In such a situation, you can give POA Dubai to a
trusted person (or lawyer).
With this, that person can sign contracts on your behalf,
finalize property deals, and complete legal work.
Types of POA Dubai
There are mainly two types of Power of Attorney in Dubai:
1. General POA
·
It gives a person authority in almost all your
legal and financial matters.
·
Such as banking, business, property, court cases
etc.
2. Special POA
·
It is given for a specific work.
·
Like only signing property deals or looking
after banking work only.
Special POA Dubai is usually used for property transactions.
How are Escrow Dubai
and POA Dubai connected?
Many times real estate investors or buyers are not present
in Dubai themselves.
In such a situation, they give POA Dubai to someone so that
he can complete the work related to the escrow account on their behalf.
That is, Escrow Dubai gives you financial security and POA
Dubai gives you legal flexibility.
If you are buying
property in Dubai, pay attention
Step 1: Verify the
Escrow Account
·
Visit the Dubai Land Department (DLD) website to
ensure that the project money is going to the correct Escrow Account.
Step 2: Use POA
·
If you cannot be present yourself, give a
Special POA to a lawyer or trusted person.
Step 3: Consult the
right lawyer
·
Sign every document and agreement only after
understanding it.
Legal Regulations of
the Government of Dubai
·
Escrow Account can be opened only in
government-registered banks.
·
It is necessary to get the POA legalized by the
Dubai Court or Notary Public of Dubai.
·
For international buyers – POA may have to be
attested by the UAE Embassy.
Tips for small
business owners and investors
·
Use Escrow Dubai every time you make a
property-related transaction.
·
Never make cash or direct payment.
·
Choose a reliable and professional lawyer when
granting POA Dubai.
·
Always keep a copy of all your documents.
Conclusion
If you want to buy or sell property in Dubai, then never
forget two things – Escrow Dubai and POA Dubai.
·
Escrow gives you financial security.
·
POA gives you legal flexibility and convenience.
By using both of these correctly, you can not only make your
investment safe, but can also enter the real estate market of Dubai without any
tension.
FAQs – Escrow Dubai
and POA Dubai
Q1: Is every property
deal in Dubai done through an Escrow Account?
Yes, as per the rules of Dubai Land Department, all off-plan
property deals are done through an Escrow Account.
Q2: How long is a POA
Dubai valid?
It depends on the period that is written in the POA
document. Special POA is often valid only till a specific work is completed.
Q3: Can I buy a
property without coming to Dubai?
Yes, you can get someone to manage all the documents and
deals on your behalf by giving POA Dubai.
Q4: What do I need to
open an Escrow Account?
Escrow Account is for developers. The buyer just has to make
sure that their money is going into the right Escrow Account.
Q5: Is General POA
safe?
General POA gives a lot of rights to someone, so give it
only if the person is completely trustworthy.
