KUWAIT: Kuwait’s Minister of Commerce and Industry Khalifa Al-Ajeel has issued a ministerial decision regarding commercial advertisements and marketing for real estate, as part of efforts to regulate the real estate market in Kuwait. According to a statement issued by the Ministry of Commerce on Sunday, the new decision limits real estate advertisements to companies and institutions that are licensed to conduct real estate brokerage activities in Kuwait or internationally, as long as their license is valid. Additionally, media platforms are restricted to merely publishing these advertisements.
The decision defines real estate advertisements as any promotion related to the sale, purchase, leasing, renting, transfer, or any type of transaction linked to a specific property. Such advertisements can be published in newspapers, magazines, on the internet, through social media platforms, in public spaces, on roads, in exhibitions, or through any other advertising method.
The new regulations specify that companies and institutions involved in advertising must adhere to several requirements. These include avoiding the use of misleading language or phrases that suggest non-existent specifications or benefits, ensuring there are no legal barriers to transferring the property’s ownership, verifying the accuracy of all official documents related to the property, and obtaining written approval from the property owner before publishing any advertisement. Additionally, the necessary mechanisms to obtain this approval will be defined in a way that safeguards the interests of all parties involved in the real estate market.
The decision further states that no property may be advertised—regardless of type—without obtaining a property identification letter from Kuwait’s Municipality. This letter must remain valid throughout the advertisement’s duration. Licensed companies are prohibited from advertising properties without a valid property identification letter, although this requirement does not apply to international properties. The decision also prohibits the concealment of any significant flaws that may affect the value of the property or the buyer’s decision. Advertisers are required to provide all available information to potential buyers.
Property owners may advertise directly (for sale, purchase, lease, rental, or transfer) but must adhere to all the regulations outlined in the decision and clearly indicate that they are the property owner.
Properties outside Kuwait
For properties located outside Kuwait, the decision emphasizes that licensed companies or institutions must obtain prior approval from the property owner to market the property. This approval must be granted via a power of attorney, authorization, or official letter notarized by the Kuwaiti Embassy in the country where the project is located. The same rules for advertising within Kuwait apply to properties abroad.
Furthermore, the decision mandates that all licensed companies or institutions involved in real estate advertising must uphold the highest standards of transparency and accuracy in their advertisements. These include clearly stating the advertiser’s license details, including the company’s commercial license number. The advertisement must also provide an accurate description of the property and the price. No misleading terms or phrases should precede or follow the price, such as "negotiable” or "price to be reviewed.”
If images of the property are included in the advertisement, they must be genuine and accurately represent the property being advertised. It is prohibited to use images copied from websites or other electronic platforms. In cases where the advertisement concerns a property under development, only illustrative drawings of the project should be used, not images of other properties. If the property is for rent, the advertisement must clearly state the actual income from the property and whether this income is gross or net. — KUNA