Required Commercial Disclosures in Kuwait for Major Landlords and Companies

In the arena of corporate real estate and major showrooms in Kuwait, the path of "disclosure" differs from the individual residential consumer. Office tenants, most often an institution or company, base their decisions on Due Diligence. Nevertheless, the Kuwaiti Civil Code imposes fundamental disclosures on commercial property lessors to avoid nullity and compensation.

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Inevitable Engineering and Legal Disclosures in Contracting

To avoid lawsuits for (rescission due to impossibility or gross lesion), lessors of towers and complexes must formally inform companies of the following:

1. Disclosing Operational Constraints for Licensing (Municipality License)

The landlord does not have the right to lease a building for a restaurant if the approved plan from "Kuwait Municipality" designates the specifications of this floor strictly for "Administrative Offices" and not as "Commercial." The landlord must attach a copy of the building permit proving the category; concealing this destroys the company's hopes of getting their license issued and exposes the landlord to massive compensation claims.

2. Disclosing Emergency and Fire Fighting Requirements

High-rise towers and car showrooms in Kuwait are subject to protocols of the (Civil Defense / General Fire Force). The landlord must disclose to the tenant whether the premises meet the "building fire license" and are ready to be connected, or if the tenant (as part of the Fit-out) must design and install water sprinklers entirely at their own expense to obtain their license.

3. Limited Electrical Load Capacity (Ministry of Electricity)

For high-consumption food stores or light factories, commercial real estate management must disclose the maximum (kilowatt) load allocated to that space. Concealing weak electricity and then preventing the tenant from increasing the load constitutes fraud that empties the contract of its utility.

4. Disclosing Exclusivity Clauses

If the landlord manages a commercial complex and previously signed an exclusivity contract in the pharmacy business (for example) with a specific tenant, they are obligated to disclose this and reject any offer from a competing pharmacy to lease in the same building. Ignoring this exposes the landlord to fines and claims from the old tenant and the new tenant under the unfair competition clause.

5. Distribution of Maintenance and Management Fees (Service Charges)

One of the sensitive financial disclosures is the inclusion of a separate addendum detailing the amounts imposed by the complex's management on shop owners in return for cleaning, guarding the complex, and cooling common areas.

With the advanced Landager platform, commercial complex managers can attach all "Building Manuals" with every draft contract as a formal disclosure, facilitating the decision-making process for tenant companies and protecting the landlord from future lawsuits.

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