Sale Proceeds and Payment Rules

DLD Circular No. 29/R/2025 introduced strict payment rules for property transactions executed under a Power of Attorney. The intent is to safeguard the integrity of fund disbursement and reduce fraud risk where an agent acts on behalf of an absent or non-resident seller. The rules operate as a registration filter at the closing of the transaction.

The Default Rule

Sale proceeds are directed to the title deed owner. An agent acting under a POA cannot unilaterally receive funds into their own account on the basis of a generic POA. Receipt of funds is treated as a separate authority distinct from authority to sell, and must be reflected in the POA wording, the sale agreement, and the receipt itself.

The Three Permitted Methods Where a POA Is Used

The Circular sets out three methods by which sale proceeds may be received where the seller acts through an agent.

Manager's Cheque in the Seller's Name

A manager’s cheque issued in the seller’s name for the full sale amount. This is the default acceptable method. It directs the funds to the registered owner’s account through a guaranteed instrument, with no reliance on the agent for downstream transfer.

Cheque in the Agent's Name with Explicit Receipt Wording

A cheque may be issued in the agent’s name only if the receipt explicitly states that the amount was received on behalf of the seller. The receipt wording is the operative safeguard. A cheque to the agent without compliant receipt wording is not accepted.

Notarised Acknowledgement

A notarised acknowledgement confirming receipt of the amount for the sold property from the owner. Where the owner has already received funds outside the closing — for example, through a prior bank transfer — a notarised acknowledgement to that effect is acceptable in lieu of cheque presentation at the counter.

The In-Person Position

Where the seller attends the registration in person, the rules are wider. A cheque in the seller’s name for the full sale amount is acceptable in personal cheque or manager’s cheque form. A personal cheque may also be accepted where supported by a notarised receipt or a bank statement matching the sale amount. The agent rules are not engaged where the seller signs personally.

The Minor's Position

Where the seller is a minor, payment must comply with the relevant court order. The court order will typically prescribe both the form of payment and the account into which proceeds are to be deposited. Compliance with the order is a registration condition.

POA Wording Implications

For the agent to receive funds at all, the POA must expressly authorise receipt of funds. A POA that authorises sale but is silent on receipt of proceeds does not, on its own, support payment to the agent. The Sale Agreement and the receipt issued at closing must align with the POA’s authorisation. Misalignment between the three documents is a common cause of registration delay.

Practical Implication

Sellers using a property POA should specify whether the agent is authorised to receive funds, and in what form. Brokers and conveyancers should verify the POA wording and the cheque routing before closing. Where the principal is non-resident, manager’s cheque to the seller’s UAE bank account is the cleanest route.

For broader transaction context, see conveyance.ae.
For execution support, see poas.ae.