A Power of Attorney (PoA) is a double-edged sword. Although it enables people and organizations to handle complicated transactions and legal issues effectively, there may be unanticipated circumstances in which this effective tool needs to be canceled. The grounds for annulling a PoA are just as diverse as the Emirate’s skyline, ranging from altering business partnerships to interpersonal conflicts. Understanding how to cancel a Power of Attorney in the UAE is crucial. It protects your rights, money, and decisions. The process involves specific legal steps and follows both civil and Islamic laws. Proper cancellation of Power of Attorney prevents misuse of your affairs, avoids legal troubles, and ensures you’re back in control. It’s important for anyone living or doing business in the UAE. This article explains the steps involved in canceling a PoA and the implications and legal considerations.

Understanding Power of Attorney (PoA) in the UAE

Now let us understand what Power of Attorney in the UAE means. A power of attorney is a legal document that gives someone the authority to act on behalf of another person (the principal) in certain legal or financial matters in the event that you become mentally incapacitated or temporarily leave the country and are unable to do so yourself. This person is typically an agent or an attorney. One or more people who are a minimum of 21 years old and in good mental condition must be assigned as your agent.

What are the purposes of a Power of Attorney? Power of Attorney (PoA) purpose is to give someone else the authority to act on your behalf. They’re commonly used when people can’t handle their affairs due to travel, illness, or other commitments. Business owners often use PoAs to delegate tasks like signing contracts or managing accounts. Foreigners might set up PoAs to manage property or investments while they’re away. In legal matters, PoAs allow lawyers to represent clients in court. They’re also useful for handling government paperwork, like visa applications or vehicle registrations. Some people create PoAs for healthcare decisions if they become unable to make choices themselves. Overall, PoAs are practical tools for managing various personal, financial, and legal matters in the UAE.

Reasons for Cancelling a Power of Attorney

One can cancel a PoA for so many reasons. Here are a few of those:

Change in personal circumstances: Life is often unpredictable, and situations that once needed a POA can change, making the document unnecessary or even problematic. Health improvements, expats returning from abroad and deciding to stay for long periods, and changes in family dynamics like a divorce or a family dispute are a few personal circumstances changes that might lead to the cancellation of a PoA.

Completion of the task or purpose for which the PoA was granted: PoAs are often created for specific purposes. Once these purposes are fulfilled, it is better to cancel the PoA. Keeping a PoA active after its purpose is fulfilled can be risky. The person with PoA might still have legal authority to act on your behalf, even though you no longer need them to. This could lead to misunderstandings or even misuse of the power. Canceling the POA after task completion clearly defines the end of the attorney’s authority and protects you from potential future complications. It also keeps your legal affairs tidy, ensuring that only current, necessary PoAs are in effect. 

Dissatisfaction or loss of trust in the attorney: Trust is the foundation of any arrangement. When this trust is broken, it’s often necessary to cancel the PoA. You might become dissatisfied if the attorney consistently makes choices you disagree with. When trust is lost, continuing the PoA can put your assets, business, or personal affairs at risk. Cancelling the PoA promptly is crucial to protect your interests. You might become dissatisfied if the attorney consistently makes choices you disagree with. If the attorney isn’t giving your affairs the attention they need, it can lead to problems. Good communication is crucial. If the attorney stops keeping you informed about important decisions or ignores your input, it can lead to dissatisfaction.

Legal reasons or disputes: Sometimes, legal issues arise that make it necessary to cancel a PoA. If you and your attorney disagree on important matters or get into a legal conflict, it’s usually best to cancel the PoA. If new laws affect how PoAs work or what they can be used for, you might need to cancel an existing PoA to comply with the new regulations. In some cases, a court might order the cancellation of a PoA. Sometimes, a PoA might conflict with other legal documents like a will or a business contract. These are a few legal reasons why a PoA is cancelled. 

Legal Procedures for Cancelling a PoA in UAE

In the UAE, it’s important to formally cancel the PoA through proper legal channels, even if the task is complete. This ensures the cancellation is officially recognized and recorded. Here is a step-by-step guide on how to cancel power of attorney in Dubai:

• Review the PoA document for any specific cancellation clauses: Firstly, carefully read your original PoA document. Some PoAs include specific instructions on how to cancel them. If your PoA has such clauses, you’ll need to follow them. Look for any mention of cancellation procedures, notice periods, or specific forms that need to be used.

• Notify the attorney in writing of the intent to cancel: It’s important to inform the person who has been acting as your attorney that you plan to cancel the PoA. Write a clear, dated letter stating your intention to cancel the PoA. Keep a copy for your records. This is to ensure the attorney stops acting on your behalf.

• Draft a formal cancellation notice: Create an official document stating that you’re cancelling the PoA. This notice can include details like your full name and address, the attorney’s full name and address, the date and details of the original PoA, a clear statement that you’re revoking the PoA, the date the cancellation takes effect, and your signature.

• Notarize the cancellation notice: The cancellation notice must be notarized to be legally valid. Take your cancellation notice to a UAE notary public. They will verify your identity and witness your signature. The notary will then add their official seal and signature to the document, making it legally binding.

• Register the cancellation with the relevant authorities: If your original PoA was registered with any government offices or courts in the UAE, you need to register the cancellation with the same authorities. This usually involves submitting the notarized cancellation notice to the relevant department. They will process it and update their records to show that the PoA has been cancelled.

The importance of following the legal process when cancelling a Power of Attorney (POA) in the UAE can’t be overstated. Proper cancellation ensures the courts and authorities recognize that the POA is no longer valid. If not cancelled correctly, a POA might still be considered valid, leading to potential legal or financial issues down the line. Following these rules keeps you on the right side of the law.

Implications of cancelling a PoA

When you cancel a PoA, the attorney loses his/her power over your assets and you gain the power over them. You become responsible for the previous decisions made by your attorney so you have to make sure you go through everything so have a good knowledge about everything related to your assets and need to review and potentially rectify actions taken by the attorney. Ongoing transactions will be affected in the process. Disputes might arise over actions taken by the attorney before cancellation and it is the best to resolve them amicably.

Legal insights

Legal consultation and professional advice are crucial when cancelling a Power of Attorney in the UAE. The complex legal system, combining civil law and Sharia principles, can be challenging to navigate. A lawyer ensures proper procedure, prepares documents correctly, explains implications, and protects your interests. They can handle disputes, navigate cultural nuances, and provide up-to-date knowledge of UAE law. While it’s possible to cancel a POA without a lawyer, professional guidance offers peace of mind and can save time and stress, especially for complex situations

Conclusion

In conclusion, cancelling a Power of Attorney in the UAE involves several steps, from reviewing the original document to registering the cancellation with relevant authorities. The reasons for cancellation can be many, including changes in personal circumstances, completion of tasks, loss of trust, or legal disputes. It is important to follow the proper legal procedures to ensure the cancellation is valid and recognized, protecting yourself from potential misuse and future complications. The UAE’s unique legal system, combining civil law and Sharia principles, adds complexity to this process. While it’s possible to cancel a PoA without legal assistance, seeking professional advice is highly recommended. Legal experts can navigate the intricacies of UAE law, handle potential disputes, and provide peace of mind. Ultimately, understanding and properly executing the PoA cancellation process is essential for anyone living or doing business in the UAE, safeguarding your rights, assets, and decisions.

Frequently asked questions

1.Can I cancel a power of attorney in the UAE? 

Yes, you can cancel a Power of Attorney (POA) in the UAE. The process involves creating a formal cancellation document, having it notarized, and registering it with the relevant authorities.

2.Can a PoA be cancelled unilaterally by the principal? 

Yes, as the principal, you have the right to cancel a POA unilaterally in the UAE. You don’t need the attorney’s agreement to do this.

3.What happens if the attorney refuses to acknowledge the cancellation?

The cancellation is still legally valid if you’ve followed the correct steps  and you can seek legal help in this case.

4. How long does the cancellation process take?

It usually takes a few weeks as the process includes drafting and notarising the cancellation document, registering with authorities, and informing relevant third parties.

5.Is it necessary to inform third parties involved with the PoA? 

Yes, it’s important to inform third parties like banks and financial institutions, government departments, business partners or clients, and property management companies to prevent unauthorized actions and ensure everyone is aware of the change.

6.Are there any fees associated with cancelling a PoA?

Yes, there are some fees. You have to pay for notarisation registration and legal fees if you’re consulting a lawyer.