In the context of selling a vehicle, a POA means an agent has the authority to handle the sale and transfer ownership. The agent can also complete all necessary paperwork with the Roads and Transport Authority (RTA) and any other authorities (if needed).
There are two primary types of POA in the UAE: General POA and Special POA.
- General POA: This grants the agent wide authority to act on behalf of the principal in matters, including selling property or vehicles. However, the General POA is not specific to one task.
- Special POA: This is a more targeted POA, granting the agent authority only for a specific purpose, such as selling a car.
For selling a vehicle, the Special POA is the most common choice. It ensures the agent can complete the sale and transfer ownership without affecting other personal or financial matters.
What Rights Does a POA Grant to an Agent for Car Sale?
A POA to sell a car typically provides the following rights to the agent:
- Selling the Vehicle: The agent can negotiate and finalize the sale of the vehicle.
- Transferring Ownership: The agent can process the transfer of ownership through the RTA.
- Completing Documentation: The agent can sign all required documents, including the vehicle registration and sales agreements.
- Handling Payment: The agent can receive payments from the buyer and manage the financial aspects of the sale. Some buyers and banks may require additional authorization or direct owner confirmation before releasing funds to an agent.
To ensure you create a legally valid and effective POA, follow our step-by-step guide on “How to Make a Power of Attorney in the UAE.”