Questions & Answers
Will a person be held liable for money owed by the landlord to the tenant if he has a POA from the landlord?
If a landlord has granted a power of attorney to another individual to handle their property and litigation, can the PoA holder be held liable for an execution order, especially where a property has been sold and the owner owes money to a previous tenant for a RERA case?
The proceeds of sale have been transferred into accounts held in the name of the PoA holder.
Greetings,
If a Power of Attorney (PoA) holder has received proceeds from a property sale into their personal accounts, they may be subject to legal liability, especially if those funds should have been used to satisfy a RERA judgment or execution order against the property owner.
While a PoA generally acts on behalf of the landlord, misuse of authority or handling funds improperly can expose the PoA to civil or even criminal liability, depending on the case details.
To assess your legal position and explore recovery or defense options, we recommend you book a consultation with Future Vision for Advocacy and Legal Consultancy or formally authorize our office to represent you.
We are happy at Future Vision Law Advocates and Legal Consultancy to assist you and provide the best legal services that meet your needs.
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Under UAE law, a Power of Attorney (PoA) holder is not personally liable for the debts of the principal unless it is proven that the PoA holder acted beyond the limits of the authorization or personally benefited in an unlawful manner (such as transferring sale proceeds to their own accounts).
In such cases, legal action can be taken against the PoA holder. Our center specializes in these matters, and you may contact us via WhatsApp for more details and legal support.
You must verify the terms of the power of attorney and whether the agent is authorized to conduct these financial transactions and dispose of the sale proceeds.
Legal action against the agent: If there is suspicion of misuse of the power of attorney or improper performance of duties, a complaint may be filed against the agent with the relevant authorities.
For assistance, please contact us via phone or WhatsApp.
Dear questioner
If the PoA clearly grants the individual the authority to act in all matters related to the property and legal proceedings, they are essentially stepping into the shoes of the landlord for those specific actions.
The transfer of the sale proceeds into accounts held in the name of the PoA is a significant point. If the PoA was authorized to handle the sale and receive the proceeds on behalf of the landlord, these funds are essentially the landlord's assets held by their agent.
The court overseeing the execution order could potentially argue that these funds are available to satisfy the landlord's debt to the previous tenant.
If you need further clarification, kindly share your WhatsApp number.
Dear Questioner,
Thank you for your question.
In general, a Power of Attorney (POA) holder acts as a legal representative of the property owner, and their liability depends on the scope of authority granted in the POA document and their actions.
If the POA has received sale proceeds in their personal account, and those proceeds are linked to a judgment or execution order (such as a RERA ruling in favor of a previous tenant), the POA may potentially be held liable if they are found to have misappropriated or withheld funds that should rightfully go toward settling the owner's debt.
In such cases:
The execution order may be extended to the POA if the court finds evidence of wrongful conduct.
The burden of proof will be important, such as bank transfer records, the purpose of the fund transfer, and whether the PoA was acting within the legal scope of their authority.
If needed, we can help you review the POA terms and execution file to determine the best course of action. Please feel free to share further details.
Best regards,
Mohammed Salah
Legal Consultant
The agent acts in the name of and for the benefit of the principal. Therefore, the primary liability for the debt owed to the previous tenant rests with the landlord, who was the party in the RERA case.
If the POA holder acted outside the scope of the authority granted to them in the Power of Attorney document and their actions led to further losses or complications in the RERA case or the execution order, they could potentially be held liable for those specific consequences.
To hold the POA holder directly liable under the execution order, the previous tenant would likely need to demonstrate one of the scenarios mentioned above, proving that the POA holder's actions (beyond simply acting as an agent for the sale) directly contributed to the non-payment or were in breach of their duties.
If you need further clarification, you may ask.