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Authorization Letter vs Special Power of Attorney

Authorization letter vs special power of attorney is done by POA&More with great professionalism and experience. A special power of attorney is a legal document issued by a competent authority in Dubai, granting the attorney the right to perform certain legal work on behalf of the principal. This power of attorney is limited to certain powers and is time-bound.

 

Authorization letter vs special power of attorney

Authorization and special power of attorney are legal terms that are often used interchangeably, especially in the context of commercial and legal transactions in Dubai and the UAE. Both terms refer to the process of authorizing an attorney to perform certain acts on behalf of a principal.

 

What is an authorization letter vs special power of attorney?

Authorization letter vs special power of attorney

An authorization letter vs special power of attorney is a formal legal document issued by a principal authorizing another person (an attorney) to perform certain acts on his behalf. These acts can be very diverse and include:

  • Commercial acts: such as concluding contracts, opening bank accounts, representing the company in negotiations, etc.
  • Legal acts: such as filing lawsuits, defending cases, representing the client in court.
  • Real estate acts: such as buying or selling properties, renting properties, and managing properties.
  • Personal acts: such as receiving correspondence, withdrawing money from the bank, and renewing a passport.

 

When should you use a special power of attorney in Dubai?

The need for an authorization letter vs special power of attorney in Dubai is common in many cases, the most important of which are:

  • Long-term travel: If you are traveling outside the country for an extended period and want a trusted person to manage your financial or real estate affairs in your absence, a special power of attorney gives this person the necessary powers to do so.
  • Temporary or permanent disability: In the event of illness or injury that prevents you from managing your personal affairs, a special power of attorney can give a family member or trusted friend the authority to make decisions on your behalf.
  • Business management: If you are a business owner and want to delegate some administrative tasks to an employee or partner, a special power of attorney can clearly specify the powers granted to this person.
  • Specific transactions: In some cases, you may need a special power of attorney to conduct a specific transaction, such as buying or selling a property, transferring ownership of a car, or signing a contract.

Read more: Special Power of Attorney Form Dubai

 

When should you use an authorization letter in Dubai?

Authorization letter vs special power of attorney

In Dubai, as in many other places, an authorization letter vs special power of attorney is required in many cases. Here are some common cases that call for the use of a letter of authorization in Dubai:

  • Real estate transactions: buying, selling, renting, or any type of property-related transaction.
  • Banking transactions: withdrawing money, transferring money, or any other transactions related to your bank account.
  • Vehicle registration: registering a new car, transferring ownership of a car, or any transactions related to vehicle registration.
  • Corporate: attending shareholders meetings, making decisions on behalf of the company, or any transactions related to company affairs.
  • Government transactions: renewing residency, obtaining a visa, or any transactions related to government agencies.
  • Travel: allowing someone else to represent you in case of travel or absence.
  • Wills: appointing a guardian for your children or your property in the event of death.

 

Legal requirements for a special power of attorney in Dubai

A special power of attorney in Dubai is a legal document that grants the attorney the authority to perform certain legal acts on behalf of the principal. This authority is specific and limited by the terms of the power of attorney. Therefore, in the following lines, we explain the basic requirements for issuing a special power of attorney in Dubai:

  • Both the principal and the attorney must provide a valid ID, such as a passport or Emirates ID.
  • This ID must be valid at the time of issuing the power of attorney.
  • Both the principal and the attorney must be legally competent to conclude contracts.
  • The principal must be sane and of age, and not suffer from any legal disability that prevents him from concluding contracts.
  • The power of attorney must be written in clear and understandable language.
  • The power of attorney must include precise details of the powers granted to the agent.
  • The principal must sign the power of attorney before a notary public or an authorized person.
  • The power of attorney must be notarized by a notary public.
  • Additional notarization may be required by the relevant government agencies, depending on the nature of the powers granted.

Read more: How to Cancel Power of Attorney in UAE: Step by Step

 

Legal requirements for an authorization letter in Dubai

Authorization letter vs special power of attorney is a legal document that gives another person the right to act on your behalf in certain matters. In Dubai, these documents are subject to specific laws to ensure that the rights of all parties involved are protected. In the following lines, we explain the legal requirements for making an authorization letter vs special power of attorney:

  • Clear definition of powers: The authorization letter must clearly and explicitly define the powers granted to the principal. Is he authorized to sell a specific property, manage a bank account, or sign contracts? Each power must be precisely defined to avoid any ambiguity.
  • Identity of the parties: The authorization letter must include the full identities of the parties, including their full names, nationalities, ID numbers, and addresses.
  • Authorized signature: The signature of the authorizer must be certified, either by a notary public or by a competent government agency. This procedure ensures the authenticity of the signature and prevents forgery.
  • Authorized translation: If either party does not speak Arabic, the authorization letter must be accompanied by a certified translation into Arabic.
  • Duration: The duration of the authorization letter must be specified. Is it valid for one year, five years, or indefinitely?

Read more: Power of Attorney Dubai Property: 6 Important Tips

 

Which is More Suitable for Business Transactions in Dubai: authorization letter vs special power of attorney?

Authorization letter vs special power of attorney

A special power of attorney is more suitable for commercial transactions in Dubai for the following reasons:

  • Greater flexibility: Authorization letter vs special power of attorney gives the attorney broad powers to perform a variety of commercial actions, making it more flexible than a letter of authorization.
  • Greater legal strength: A special power of attorney is legally documented, making it more powerful than a letter of authorization in the eyes of the law.
  • Wide acceptance: A special power of attorney is widely accepted in all commercial and legal transactions in Dubai.

Read more: Cost of Power of Attorney in Dubai

 

Why use POA&More to do Authorization letter vs special power of attorney?

Because POA&More lets you create an Authorization letter vs special power of attorney quickly and easily, providing ready-made, customizable templates to fit your needs. All of this with speed, high quality, and a price that suits everyone.

 

Frequently asked questions

 

What is the purpose of the authorization letter?

The purpose of an Authorization letter vs special power of attorney is to transfer certain powers from an attorney to a principal to perform certain actions on his behalf.

 

When to use a special power of attorney?

A special power of attorney is usually used in the following cases:

  1. Sale and purchase and contracts.
  2. Mortgage and donations.
  3. Reconciliation and acknowledgment.
  4. Arbitration and oath-taking.
  5. Pleading before the court.
  6. Selling a specific piece of land.
  7. Withdrawing a specific amount from the bank.
  8. Signing a lease contract.

Sources

[Wikipedia]

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