Dubai has introduced new legal guidelines requiring overseas property sellers to ensure that sale proceeds are transferred only to the bank account of the individual named on the title deed. Effective from June 2025, this guideline forms part of a broader effort to enhance Anti-Money Laundering (AML) compliance, increase transparency, and align with international best practices. The Dubai Land Department now mandates identity consistency across all documents and invalidates outdated or informal Powers of Attorney (PoAs) unless properly notarized and registered. Even with a valid PoA, payments must go directly to the title holder’s account. This new rule affects non-resident owners, joint investors, and offshore account users. Non-compliance may result in rejected transactions, frozen funds, or legal disputes. While the changes may introduce logistical challenges, they are widely supported for promoting market credibility. ATB Legal advises affected investors to update their documentation and banking arrangements to remain compliant and ensure smooth property sales.
Introduction
Dubai’s real estate market continues to attract international investors seeking luxury, security, and long-term value. With high demand and lucrative returns, the Emirate has firmly established itself as a global property hub. However, in a significant policy shift, the Dubai Land Department authorities have introduced new legal guidelines in June 2025 aimed specifically at overseas property sellers. This guideline is enforceable as part of Dubai’s real estate regulatory framework. The key highlight of the new regulation is that, effective this week, all property sale proceeds must now be transferred directly into a UAE based registered bank account of the individual named on the title deed. No more reliance on third-party bank accounts or informal Power of Attorney (PoA) structures will be accepted.
This move is part of Dubai’s broader commitment to tighten anti-money laundering (AML) protocols and reinforce transparency in property transactions. For overseas sellers, particularly those operating through representatives, this legal update represents both a compliance obligation and an opportunity to enhance legal and financial clarity.
What Are the New Rules?
Under the new legal guidelines issued by Dubai’s Land Department and supported by the Real Estate Regulatory Agency (RERA), an overseas property owner must ensure that:
- Payments from a property sale are received in the same name of the seller/owner as listed on the title deed;
- Power of Attorney (PoA) can no longer be used to receive sale proceeds unless the PoA is duly registered and compliant with the updated format and notarised by the Dubai courts;
- Third-party bank accounts are not permitted to receive property sale proceeds;
- All transactional documents must match the identity and details on the seller’s name as per the title deed exactly.
The rule effectively limits room for ambiguity or abuse and reinforces buyer protection.
Rationale Behind the Regulation
This initiative is primarily designed to align Dubai’s real estate sector with international AML and KYC (Know Your Customer) practices. Authorities have observed increasing instances of sales involving funds transferred to unrelated or unverifiable accounts, leading to potential fraud, tax evasion, and reputational risks for Dubai.
With this regulation, the focus is on:
- Preventing misuse of PoAs by unauthorized persons;
- Ensuring the authenticity of beneficiary accounts;
- Avoiding title disputes post-sale;
- Protecting the buyer and seller by clearly linking proceeds to the registered title holder.
Who is Affected?
The regulation directly impacts:
- Overseas investors who hold property in Dubai but operate remotely;
- Investors who have delegated property dealings to relatives or agents through PoA;
- Sellers using offshore accounts or joint accounts not listed in title deeds.
What About Power of Attorney?
Power of Attorney plays a role but with tighter scrutiny. As per the new regulation, only PoAs notarized in the UAE will be considered valid.
Further, the PoA:
- Must explicitly state the agent’s authority to manage sales and receive payments;
- Must be registered with the Dubai Land Department;
- Cannot override the rule requiring the bank account to match the title deed holder.
If these conditions are not met, the transaction may be delayed or rejected.
Payment Channels & KYC Compliance
To comply with the new regulation, sellers must ensure that their receiving bank account is:
- In the same full legal name as appears on the title deed;
- Held in a UAE bank or a recognized international financial institution;
- Supported by full documentation (passport copy, Emirates ID, utility bill, etc.).
All payment processing will also now follow enhanced due diligence checks by the buyer’s bank and possibly require confirmation through the online platform or RERA-verified agencies.
Key Risks of Non-Compliance
Failure to comply with the new regulation may result in:
- Transaction delays and failed sales;
- Freezing of sale proceeds by the bank or authorities;
- Legal disputes over rightful ownership or payment entitlement;
- Ineligibility to re-enter the market or re-invest using sale proceeds.
Practical Steps for Overseas Sellers
To navigate the new requirements smoothly:
- Review the title deed: Ensure the name matches your bank account and the same is reflected on the title deed.
- Update personal documentation: Emirates ID, passport, proof of address.
- Avoid informal PoAs: Use only notarized and registered documents.
- Coordinate with a UAE lawyer: Ensure all documents meet the latest compliance guidelines.
- Use approved RERA brokers: They understand the updated requirements and can assist with compliant paperwork.
Looking Ahead
The new regulation may be the first of several reforms aimed at:
- Digital tracking of property transfers;
- Automated flagging of suspicious bank account links;
- Tightening rules around offshore entities owning property in Dubai.
- More clarity is expected on how trust ownership and corporate structures will be addressed.
Key Takeaway
The new regulation signals Dubai’s seriousness in becoming a more regulated, reliable, and globally trusted real estate investment destination. For overseas sellers, the regulation is clear, prepare your documents, verify your account, and consult legal professionals to ensure smooth and compliant property transactions. At ATB Legal, we are ready to assist overseas clients in meeting the new compliance obligations, reviewing documentation, and facilitating seamless legal transactions.
