KUWAIT CITY - The new amendment to the Real Estate Rental Law, recently approved by the Council of Ministers, introduces significant changes.

The amendment permits landlords and tenants to mutually agree on having the lease contract authenticated by a notary at the Ministry of Justice.

This involves validating signatures and appending an executive formula, which grants the lease the authority of a legally enforceable instrument.

This means that landlords can collect overdue rent after notifying the tenant and providing a certificate confirming that no deposit has been made.

The amendment introduces Article (11) bis to Decree Law No. 35 of 1978 concerning real estate leases. This new article outlines the following requirements for lease contracts to be accompanied by the executive formula:

  1. The lease contract must be in writing and signed by both the landlord and the tenant.
  2. The rent specified in the contract must be a fixed amount and payable on a specific date.
  3. Both parties must appear before a notary public to authenticate the lease contract and attach the executive formula.

Additionally, a second paragraph was added to Article 26, stating that appeals against rulings issued by rental departments will now be made directly before the General Court in an appellate body.

Under the new amendment, all cases currently pending before the Court of Appeal in all its circuits, except those reserved for judgment, will be referred to the Court of First Instance. These cases must be resolved within one month of the decree-law’s issuance.

The explanatory memorandum clarifies that the addition of Article 11 bis is intended to address the unique nature of rental disputes and the provisions governing them, as outlined in Decree-Law No. 35 of 1978. The goal is to simplify the procedures for handling disputes and to expedite their resolution, thereby reducing the length of litigation. This change aims to alleviate the difficulties faced by many property owners due to the risks associated with rental contracts, which are often circulated frequently and have significant economic and social implications.

The amendment applies to both existing rental contracts at the time of its implementation and those renewed thereafter.

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