When Decree Law No. 95 of 2024 came into effect, it introduced significant Kuwait Rental Law Amendments designed to balance landlord and tenant rights and address practical gaps in the 1978 Lease Law. Below, we break down each change, explain its impact, and outline what you need to do to comply.
Overview of New Kuwait Rental Law Amendments
Decree Law No. 95/2024 amends key provisions of Decree Law No. 35/1978. Its goals are to:
- Make written leases enforceable as executive documents
- Streamline appeal procedures for rent disputes
- Accelerate resolution of pending litigation
These reforms modernize Kuwait’s rental framework to match today’s real-estate market dynamics.
Key Changes under Decree Law No. 95/2024
Enforceable Written Lease Contracts (Article 11 Bis)
- Lease must be in writing and signed by both landlord and tenant
- Rent amount and due date clearly stated in the contract
- Notarization per Law No. 10/2020 with an attached executive formula
- Tenant must be formally notified before enforcing overdue rent
Streamlined Appeals Process (Article 26)
- Decisions from Rental Departments now appealable to the Court of First Instance in its appellate capacity
- Faster scheduling of appeal hearings to reduce backlog
Transfer of Pending Cases (Article 2)
- All ongoing rent disputes before the Court of Appeal (except reserved judgments) move to the Court of First Instance
- Cases must be resolved within one month of the decree’s enactment
Exempted Lease Agreements under the New Amendments
Certain contracts fall outside the Kuwait Rental Law Amendments:
- Mudaraba (Profit-Sharing) Leases: When the lease is structured as a mudaraba, it is not governed by the Lease Law.
- Unconventional Terms: Contracts with atypical financial obligations (e.g., risk-sharing, profit participation) are excluded.
- Non-Executable Leases: Any lease that cannot be stamped with an executive formula remains unenforceable under this law.
For guidance on your specific contract, call Abdulaziz Al-Subaie Law Firm at 50766923.
How to Notarize a Lease Contract with Executable Formula
To ensure your lease is enforceable:
- Include all statutory clauses outlining each party’s obligations.
- Sign before the authorized notary public.
- Attach the executive formula as per Law No. 10/2020.
- Confirm both landlord and tenant have approved the terms in writing.
Once properly notarized, the lease functions like an execution order, simplifying rent recovery in case of default.
Rights of Tenants and Landlords After the Amendments
Tenant Rights
- The property must be fit for its intended use.
- Right to terminate or claim damages if the premises are uninhabitable.
- Landlord must maintain major repairs, or tenant may deduct repair costs from rent.
- Automatic renewal if tenant remains in occupation with landlord’s knowledge.
- Protection against eviction upon sale—tenancy continues under the new owner.
Landlord Rights
- Perform necessary restorations to preserve the property.
- Receive full rent on agreed dates.
- Reclaim a well-maintained property at lease end without major damage.
- Prevent alterations by tenant without written consent.
- Prohibit subletting or assignment without landlord’s approval.
Shared Rights
- Lease ends on contract expiration, unless renewed by mutual agreement.
- Rent amount fixed in the lease cannot change without both parties’ consent.
- New owners inherit existing leases when property ownership transfers.
- Written notice required for termination—15 days for short-term; one to two months for longer terms.
- Death of a contracting party does not automatically terminate the lease; heirs may continue tenancy or terminate.
Frequently Asked Questions
What are the formal requirements for a valid lease? All essential terms—parties’ details, rent amount, payment schedule, duration, and obligations—must be clearly written, signed, and notarized.
Do the amendments introduce new benefits? Yes. They strengthen landlords’ ability to collect rent, accelerate dispute resolution, and offer greater flexibility in long-term contracts.
When does a lease automatically end? At contract expiry, by mutual termination, legal annulment, or force majeure events specified in the lease.
How much notice is required to vacate? 15 days for leases up to three months; one month for leases over three months; two months if over six months.
Can a tenant remain after a property sale? Yes. The lease survives the sale, protecting tenants’ rights until lease end.
Contact Us
For expert advice on Kuwait Rental Law Amendments, lease drafting, or dispute resolution, reach out to Abdulaziz Al-Subaie Law Firm and Legal Consultancy at 50766923. Ensure your contracts comply with the latest regulations and safeguard your rights.
