Legal & RegulatoryPower of Attorney
Synonyms: proxy authorization، attorney-in-fact، agency deed، notarized delegation، mandate document
Last updated: 2026-10-01
Short Definition
Official authorization empowering one person to act on behalf of another, used in property management, sales, and rentals, authenticated by Notary.
Overview
A power of attorney is a legally notarized document that grants the principal the ability to authorize another person, called the agent, to act on their behalf in specified or general matters including sale and lease contracts, real estate management, and litigation. Its system is based on the principle of voluntary agency derived from the principal's will rather than directly from the law.
In the Saudi legal system, a power of attorney is issued through the Najiz electronic platform or notary offices; an agency in general terms that does not specify the type of act is invalid (Article 482 of the Civil Transactions Law), any act that is not an act of administration, such as a sale, requires a special power of attorney specifying its type (Article 484), and a power of attorney may be unrestricted or limited to a specific act or transaction (Article 481). Real estate powers of attorney must be written, notarized, and issued by a legally qualified person (an adult of sound mind), with the nature of the authorities clearly defined to prevent any excess.
Powers of attorney have gained increasing importance with the growth of the Saudi real estate market and the complexity of investment transactions, enabling property owners residing abroad to manage their assets remotely through trusted agents.
⚖️ Legal Basis
Powers of attorney in Saudi real estate transactions are governed by the Documentation System and its executive regulations, the agency provisions of the Civil Transactions Law, and the procedures for issuing powers of attorney through the Najiz platform.
💡 Practical Example
Abdul-Aziz Al-Mutairi owns two apartments in a residential tower in Al-Khobar but lives in Canada for his studies. He issued a special power of attorney to his brother Mohammed through the Najiz platform, authorizing him to lease both units, sign tenancy agreements through the Ejar platform, and receive rents and deposit them in his bank account, with a minimum rental floor of 2,800 SAR per unit per month. Using the power of attorney, Mohammed was able to lease both apartments within two weeks and register both contracts on Ejar without Abdul-Aziz needing to be present. When one contract expired, Mohammed renewed it at better terms (3,100 SAR) based on the renewal authority explicitly stated in the power of attorney.
⚠️ Common Mistakes
- ✗Issuing an open general power of attorney without specifying authorities, exposing the principal to unexpected acts by the agent
- ✗Neglecting to specify an expiry date or a revocation mechanism for the power of attorney
- ✗Trusting a power of attorney not formally notarized through Najiz or a notary office, causing it to lose its legal force
- ✗Failing to notify third parties of the revocation of the power of attorney, which may bind the principal to acts carried out after revocation
- ✗Appointing a person who is not legally competent or who is in a conflict of interest with the principal
🌍 International Differences
In the UAE, real estate powers of attorney are issued through notary offices and registered with the Dubai Land Department in accordance with RERA requirements. In Turkey, the agency provisions of the Turkish Code of Obligations (Türk Borçlar Kanunu) govern real estate powers of attorney with a requirement for notarization. In Egypt, powers of attorney are issued through real estate registration offices with strict restrictions on delegating property sales. In the UK, the Powers of Attorney Act 1971 governs general powers of attorney, while the Lasting Power of Attorney (LPA) system for incapacity was created by the Mental Capacity Act 2005 (England and Wales). In the US, each state independently regulates power of attorney laws, with the Durable POA concept being common.
FAQs
Can a power of attorney be revoked at any time?▾
Generally yes: the principal may dismiss the agent or restrict the power of attorney at any time (electronic powers of attorney can be revoked via Najiz), unless it was issued in favour of the agent or a third party, in which case that person must consent (Article 503 of the Civil Transactions Law). However, the agent and third parties who formally dealt with the agent must be notified to avoid liability for acts carried out after revocation.
Is a power of attorney issued outside Saudi Arabia enforceable inside it?▾
Yes, if it is certified by Saudi diplomatic missions (embassies or consulates) or, when issued in a state party to the Hague Apostille Convention (in force for Saudi Arabia since 7 December 2022), bears an apostille instead of consular legalization, and is officially translated into Arabic.
Can the agent appoint a sub-agent?▾
Only if the original power of attorney explicitly permits this. Otherwise, the agent has no right to delegate their authorities to third parties.
What is the difference between a special and a limited power of attorney?▾
A special power of attorney defines the type of act (leasing a specific property), while a limited power of attorney restricts the geographical, temporal, or financial scope. A power of attorney may combine both specialization and limitation simultaneously.
Does a power of attorney terminate upon the principal's death?▾
Yes, a power of attorney automatically terminates upon the principal's death or legal incapacity. The Durable POA exception recognized in some countries has no counterpart in the Civil Transactions Law, whose Article 502 ends an agency on the death or loss of capacity of the principal or the agent.
