Required Disclosures for Commercial Leases in Bahrain

Governed primarily by Law No. (27) of 2014 with respect to the Leasing of Premises (effective 7 February 2015), commercial landlords in Bahrain must prioritize transparency regarding the operational capabilities of their units. The tenant's ability to legally open their business hinges on the structure's compliance with municipal and administrative standards.

Specification of Purpose & Registration

The most critical disclosure involves the Specification of Purpose for the property. Under Law No. 27 of 2014 (as amended by Law No. 10 of 2020), Article 4(c) requires that the intended use of the rented property be specified in the contract. Article 6(c) further stipulates that lease contracts failing to include this purpose shall not be registered. Additionally, Article 7 mandates that the landlord deliver the property in a condition fit for its intended purpose; if the property is unfit, the tenant may seek rescission or rent reduction under Article 8.

• You must disclose the exact registered address layout for Commercial Registration (CR) purposes.
• As a best practice for risk mitigation, landlords should disclose any pre-existing municipal violations or utility arrears that could impede the tenant's ability to obtain permits.

Transparency & Service Charges

For office towers or malls, your lease must explicitly define Service Charges. Under Article 15 of Law No. 27 of 2014, the lessee is only liable for electricity, water, and other fees (service charges) if explicitly agreed upon in the contract. In the absence of such an agreement, these costs remain the landlord's responsibility. These requirements are supported by the principle of good faith under Article 129 of the Civil Code (Law 19/2001). Disclose:

• How the AC chilling metric (district cooling or HVAC) is billed.
• The exact scope of daily security and janitorial services.
• Whether the service charge is fixed, or fluctuates based on "Open Book" auditing.

Structural & Fire Safety

Commercial spaces must pass Civil Defense fire inspections to operate legally. Under Article 9 of Law No. 27 of 2014, the landlord is bound to maintain the leased property to keep it in a condition fit for its intended use and must perform all necessary repairs during the lease period. Structural and fire safety standards are further regulated by Law No. 13 of 1977 (Regulation of Buildings Law) and Decree Law No. 5 of 1990 (Civil Defense). Failure to disclose known building-wide inspection failures that render the space unfit for use can result in lease rescission.

How Landager Helps

Landager tracks lease terms, commercial required disclosures deadlines, and mandatory inspection reports - making it easy to stay compliant with Bahrain regulations.

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