New amendments to law benefit property owners and tenants

• Many individuals residing in Kuwait may find themselves unable to rent, as rental costs could exceed their financial means. In such circumstances, social peace and security would be at risk, with a portion of the population feeling exploited by another segment.

By Attorney Abdulrahman Al-Houti
Special to the Time Kuwait

Real estate wealth is a crucial pillar of the nation’s economy, and the Kuwaiti legislator has placed significant emphasis on its regulation.

The framework for property ownership and transfer was established with the Real Estate Registration Law No. 5 of 1959, followed by the Land Registry System Law No. 21 of 2019. Furthermore, the legislator introduced the Real Estate Rental Law No. 35 of 1978, specifically designed to govern the benefits derived from real estate wealth.

This law has undergone several amendments aimed at protecting this wealth and balancing the rights of property owners and tenants. These changes were implemented to prevent any social group from infringing upon another’s rights, ensuring that property owners do not exploit tenants’ housing needs by charging rents beyond their financial means.

As a result, many individuals residing in Kuwait may find themselves unable to rent, as rental costs could exceed their financial means. In such circumstances, social peace and security would be at risk, with a portion of the population feeling exploited by another segment. This situation undermines the constitutional principles emphasizing justice, freedom, and equality as the foundations of society, as well as cooperation and compassion as strong bonds among citizens, as stipulated in Article 7 of the Constitution.

Moreover, the first guarantee for preserving human dignity is ensuring that individuals can find shelter for themselves and their children. Consequently, this issue has been a primary concern for the Kuwaiti legislators in enacting laws on this subject, particularly because the two main pillars of all legislation regulating the relationship between landlord and tenant are justice and compassion.

• Undoubtedly, the Kuwaiti legislator has been diligent in amending the Real Estate Rental Law to protect the real estate sector by ensuring its continuity and encouraging those with financial means to engage in construction. This is essential because society, by its very nature, is growing in population, and such growth must be met with an increase in built real estate of various types, whether for investment or non-investment purposes.

If there is hesitation in construction, the real estate market will face increased demand coupled with decreased supply. This situation will be governed by market forces according to the principles of a free economic system, which is the system adopted by the State of Kuwait, ultimately leading to an increase in rental prices.

• While property owners have rights concerning tenants, particularly the right to receive the agreed-upon rent in exchange for the use of their properties to meet their obligations resulting from the construction of these properties, the legislator has continuously introduced amendments to facilitate rent collection for property owners in more accessible and quicker ways.

One such amendment was made to Article 26 of the Real Estate Rental Law, which stipulates that an appeal against a rental judgment will not be accepted unless the rent, as determined by the court, is deposited when submitting the appeal application.

Moreover, Article 26 ‘bis’ of the same law permits the landlord to pursue a payment order to claim the due rent, requiring only the attachment of the lease contract, proof of the rent demand notice, and a certificate from the Execution Department confirming that the rent has not been deposited. It is evident that when the legislator granted the landlord this capability, the intent was to ease the process, allowing the landlord to obtain their rights without resorting to a full lawsuit.

• Moreover, the legislator, in his diligence to ensure the stability of the real estate sector and to prevent it from facing housing crises similar to those experienced in other countries, issued Decree-Law No. 95 of 2024, amending certain provisions of Decree-Law No. 35 of 1978 concerning the rental of real estate.

Article 1 of this decree introduced a new provision to the Real Estate Rental Law, specifically Article (11 bis), which stipulates that both the landlord and the tenant may agree to authenticate the lease contract, rendering it equivalent to an enforceable title for rent collection after issuing a notice to the tenant and obtaining a certificate confirming that the rent has not been deposited. This is contingent on the lease contract being in writing, with the rent amount specified in the contract, and the contract being notarized in accordance with the provisions of the Real Estate Registration Law.

Consequently, the lease contract becomes equivalent to an enforceable title, allowing an execution file to be opened at the competent Execution Department, thereby enabling all legal measures related to the enforcement of judicial rulings to be taken within this file.

• Additionally, this amendment includes a change regarding the court responsible for hearing rental appeal cases. It introduces a new paragraph to Article 26 of the Real Estate Rental Law, stipulating that appeals of rulings issued by the rental divisions fall under the jurisdiction of the Court of First Instance sitting as an appellate body.
Furthermore, Article 2 of this decree provides for the referral of all ongoing cases before the Court of Appeal, across all its divisions, to the Court of First Instance, except for cases reserved for judgment.

Undoubtedly, this amendment alleviates the burden of prolonged litigation and enables landlords to receive their dues on time while also encouraging tenants to fulfill their contractual obligations by paying the rent due within the legal deadlines.