The real estate market in Dubai has brought a significant change in the regulations that all the foreign property owners need to be aware of. Because dictated by the Dubai Land Department (DLD), a new provision now requires that all proceeds of property sale should be paid directly to the owner, as indicated on the title deed, other than to a Power of Attorney (POA) holder.
This action is a subset of a greater transparency and anti-money laundering initiative in 2026. Although it enhances financial security, it has also taken the majority of the international sellers by surprise, causing some to postpone transactions and even have their finances held up.
What is the New Rule and Why It Matters?
Under the new law, any form of payment in transacting a property should be equivalent to the name on the title deed. This implies that no more payment by third parties, including those made to the legally appointed POA.
Earlier on, foreign suppliers used lawyers or their own family members to collect the money on their behalf. That is no longer an option. A transaction may be instantly rejected at transfer point in case a buyer writes a cheque in an incorrect name.
Change in No More POA Payments
The greatest change in the Dubai Property Rule 2026 is the total elimination of POA-fund collection. A POA document cannot be executed to receive the proceeds of sale even in case it is valid and the document is notarized.
This is in case of cheques of the manager, as well as bank transfers. The government will not accept payments unless made directly to the property owner. Bank checks The bank may check on any discrepancy in names and this will lead to delays or the funds may be frozen.
Why is a UAE Bank Account a requirement now?
The fact that the payments have to be sent directly to the seller makes owning a UAE bank account an optional choice of overseas property owners. The absence of a local account can significantly prolong delays on the part of sellers, who can receive their money.
A non-resident seller must now open his / her own UAE bank account prior to starting a sale. This will make the process of payment hassle free and in line with the new rules.
Risks of Non-Compliance
Any nonobservance of the new rules can derail the whole transaction. In case funds are emitted to a POA holder or wrong name, the transfer will be stopped.
There are situations where the funds might be stuck until banks do compliance audits. This may cause a legal problem between buyers and sellers and particularly when the deadlines are not met.
What do Overseas Sellers do?
The new system requires preparation from oversea sellers. Make sure that prior to putting your property on sale, your title deed and bank account are active and identical.
Others that can also be considered are the review of any existent POA documents although they are no longer useful in receiving money. In collaboration with a registered real estate broker or DLD-approved trustee office, this can be beneficial to prevent last minute surprises.
FAQs
Can the holder of a Power of Attorney be provided with the funds of the sale of property in Dubai?
No, according to the new rule, one will have to pay the owner of the property appearing on the title deed.
Are overseas sellers required to have a UAE bank account?
Yes, to receive sale proceeds a UAE bank account in the name of the seller is now required.
What will be the case with issuing a cheque with a wrong name?
It will reject the transaction and renew the cheque properly, which will lead to delays.
Is it possible to freeze funds according to the new regulation?
Yes, non-compliant payments can issue a temporary freeze of funds by banks, pending verification.
Does this rule apply in every transaction of property?
Yes, it is applicable to any property sales which is being discussed by the Dubai Land Department.
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