Dubai Amends Sales Regulations: Bank Account in Owner's Name Now Mandatory

Dubai has recently introduced new regulations for property sales, designed to provide greater clarity and security for both buyers and sellers. A key change is that sellers are now required to have a bank account in the United Arab Emirates. This means all payments and cheques can only be deposited into the account of the property's actual owner.

A cheque will therefore only be accepted if it is made out in the name of the person listed on the title deed. Consequently, transactions via powers of attorney (also known as POA) are no longer permitted. In the past, it was quite common for investors to grant a power of attorney to a family member or a third party to sell a property on their behalf. This was convenient for those who could not be present during the sales procedure. With the new regulations, this is now a thing of the past.

From now on, every sale must be processed directly through the official owner. This means that only the name on the title deed is decisive for payment. This measure is intended to prevent fraud and to ensure the process is more transparent for all parties involved.

What does this mean for buyers and sellers in Dubai?

This rule will bring changes, particularly in popular areas such as Dubai Marina and Palm Jumeirah. In these neighbourhoods, property is frequently bought and sold, and in the past, many people used powers of attorney to facilitate a quick sale.

With the new approach, sellers must now be present in person or, at the very least, open a bank account in the United Arab Emirates. This may take extra time in some cases, but it also reduces the potential for misunderstandings or legal issues.

For buyers, this new regulation provides greater security. They can now be certain that payment goes directly to the property's official owner and that no intermediaries are involved. It is also expected that this will make the real estate market even more professional and secure.

Although the new rules are primarily intended to make the process more transparent, some investors may need to adjust their working methods. Ultimately, however, this creates a fairer and more controlled market for everyone.