Regulatory Change: UAE Bank Account Now Mandatory for Real Estate Sellers

A new requirement has been introduced for property sellers in Dubai. All sellers must now have a personal UAE bank account to receive funds from a property sale. This update is part of the Dubai Land Department’s ongoing efforts to improve transparency, reduce risk in high-value transactions, and meet international anti-money laundering standards.

What Has Changed

Previously, sellers could use a PoA (Power of Attorney) to appoint someone else, such as a relative, agent, or company representative, to manage the sale and receive the funds, even without a local bank account.

This is no longer allowed. Sale proceeds must now be transferred directly into a UAE bank account in the seller’s name. This applies to both individuals and corporate entities.

PoAs can still be used for administrative tasks, such as signing contracts, marketing, or attending handovers. However, PoAs can no longer be used to receive sale proceeds.

What Sellers Need to Know

This change has direct implications for anyone planning to sell a property in Dubai:

1. Sellers must open a UAE bank account before beginning the sales process.
2. Non-resident owners must visit the UAE in person to open an account, as this typically requires in-person verification and documentation.
3. Delays may occur if the seller is not aware of the new rule before starting the transaction.
4. Corporate sellers must ensure the account is under the registered company name and meets all KYC (Know Your Customer) requirements.

Why This Matters

This new requirement offers several advantages. It reduces the risk of fraud or disputes involving Power of Attorney misuse while improving transparency around the flow of funds and ownership. Additionally, it gives sellers more direct control over their transactions and aligns Dubai’s real estate processes with international compliance standards.