Required POA Wording by Transaction Type

DLD Circular No. 29/R/2025, issued 16 July 2025, requires that a property Power of Attorney expressly authorise the specific transaction the agent is to perform. Generic language such as “full authority to manage property” is not sufficient. A POA that fails to use the prescribed terminology will be rejected at the Real Estate Registration Centre regardless of how broadly it is drafted in other respects.

Why Generic Wording Fails

The policy intent of the Circular is to prevent agents from acting beyond the principal’s actual instruction and to support the DLD’s verification system. Where wording is precise, the act authorised by the principal is unambiguous on the face of the document. Where wording is generic, the scope of authority becomes a matter of interpretation, exposing the principal to acts they did not contemplate and creating registration risk for counterparties.

Sale

The POA must use one of the following formulations:

  • “sale of real estate”
  • “sale of fixed assets”
  • “sale of immovable property”
  • “transfer for consideration”
  • “conversion for consideration”
  • “waiver for consideration”
  • “sale to oneself or to others”


The instrument must reference the named property and the title deed. Where the agent may purchase the property from themselves — sale to oneself — that authority must be expressly stated. The general formulations above do not, on their own, authorise self-dealing unless “sale to oneself or to others” is specifically included.

Purchase

The POA must use one of the following formulations:

  • “joint purchase”
  • “purchase in partnership”
  • “co-purchase”
  • “purchase for oneself with explicit specification of the ownership share”


Where the purchase is in partnership or for joint ownership, the ownership share must be specified explicitly. The Circular treats the share as a material term of the authority granted, not as a matter to be resolved in subsequent documentation.

Gift / Grant

The POA must use one of the following formulations:

  • “grant of real estate”
  • “grant of fixed assets”
  • “grant of immovable property”
  • “assignment without consideration”
  • “conversion without consideration”
  • “grant”
  • “transfer without consideration”
  • “donation”
  • “acceptance of the grant”
  • “receiving the grant on behalf of the beneficiary or for oneself”


A distinction operates here between two roles. Authority to grant the property — to act on behalf of the donor — is one set of formulations. Authority to accept the grant — to act on behalf of the beneficiary — is another. A POA addressing only one side of the transaction does not authorise the other.

Mortgage

The POA must use one of the following formulations:

  • “real estate mortgage”
  • “mortgage of immovable property”
  • “mortgage of fixed assets”
  • “security mortgage”


Where the mortgage is granted as in-kind surety for a third party’s debt, the POA must specify whether the guarantee is for the third party’s debt or for the principal’s own debt. The Circular treats this as a distinct term of authority. A POA that merely authorises mortgage without identifying the secured obligation is incomplete in the in-kind surety scenario.

Usufruct

The POA must use one of the following formulations:

  • “sale of the usufruct right”
  • “grant of the usufruct right”
  • “conversion of the usufruct right (sale or grant)”
  • “transfer of the usufruct right (sale or grant)”
  • “waiver of the usufruct right for or without consideration”


Usufruct is the right to use and enjoy property owned by another, including any income it produces, without holding ownership. In Dubai it is a registrable right with its own title under the DLD framework.

Musataha

The POA must use one of the following formulations:

  • “musataha contract”
  • “right of construction and investment”
  • “sale of the musataha right”
  • “transfer of the musataha right for or without consideration”
  • “waiver of the musataha right for or without consideration”


Musataha is the right to construct on, and economically exploit, land owned by another for a fixed term. Like usufruct, it is registrable as a separate right against the underlying land.

The Drafting Discipline

A property POA should be drafted around the specific transaction the principal intends. Where multiple transaction types are anticipated — for example, sale of one property and mortgage of another — each must be expressly authorised using the Circular’s terminology. Stacking authorities into a single instrument is permissible, but each authority must be stated discretely. The instrument should also name each property and reference each title deed.

For drafting and notarisation execution, see poas.ae. For procedural treatment, see the Procedure subpage.