Apply for property transfer at the Real Estate Registration Office at the Ministry of Justice
Agency: Real Estate Registration Office at the Ministry of Justice
A seller (or a designated third party with authorization from the seller) submits an application to transfer of property together with a preliminary sale/purchase agreement at the Real Estate Registration Office of the Ministry of Justice. Other documents include Civil IDs of both seller and buyer, Articles of Association (if these are two companies) and the original deed. The Real Estate Registration Office reviews the submitted documents and authorizes the deal. Once approved, the Real Estate Registration Office issues a letter to request the Municipality to issue the cadastral description certificate.
Time and cost: 1 day, no charge
Apply for the Cadastral Description Certificate (Shahadat Al-Awsaf) from the Municipality
Agency: Kuwait City Municipality
The seller must request a Cadastral Description Certificate from the Municipality providing the details of the property in question (i.e. its size, the developments on it, the zoning, etc) and confirming that the property is in compliance with all the Municipality regulations. This document is prepared following an inspection of the property by an architect of the Municipality.
The warehouse is likely to be in one of the following areas: Shuwaikh, Sulaibiya, Sabhan, Al Rai, Anghara and Ardiya. This is however not an exclusive list. The Kuwait Municipality, which is the authority responsible for zoning, may authorize the construction of a warehouse in an area that is not ordinarily used for warehousing.
The documentation shall include:
- Application from the seller on the selling company’s letterhead
- Copy of the deed of title of the property provided by the seller
- A letter issued by the Real Estate Registration Office
- Documents proving the authority of the person submitting the application on behalf of the seller
The Cadastral Description Certificate will also include among other things: any violations that the property has incurred (e.g. non-maintenance of the property, or encroachment of the property borders on neighboring plots), any violations of the structure (e.g. if the building does not meet the fire regulations), usage of the plot (e.g. for commercial or residential purpose). Any licenses granted to the plot (e.g. license to have machinery brought onto the property to be used on the plot) and drawings of the plot and structures approved from the Municipality showing the areas and utilization of the plot.
Time and cost: 1 day, KWD 10
Inspection of the property by an architect representing the Municipality
Agency: Kuwait City Municipality
The Municipality will send out an inspector/architect to inspect the property in question and collect the relevant information; after which the Municipality will issue the Cadastral Description Certificate and transfer the same along with a letter of no objection to the transfer to the Ministry of Justice to continue the process of the property transfer.
The process is typically as follows: the seller will go to the Municipality (with jurisdiction over the location of the warehouse to be sold) to submit an application for an allocation letter (specifying the size of the plot and the buildings on it if any) and a description certificate (description of the existing buildings if any on the plot and size/use of such building). The fee to be paid for these documents is KD150 (for a commercial property). The seller concurrently delivers the warehouse’s title deed to the Municipality against a receipt thereof. The engineer/architect responsible for the area then fixes a date to meet with the seller at the warehouse to carry out the inspection, or may alternatively carry out the inspection on his own. Meanwhile, the seller should obtain clearance from the utility authorities (i.e. electricity, water and telephone). When the Municipality engineer completes the inspection (verifies the deed against the actual plot of land and stores report at the Municipality) and the Municipality has issued the descriptions certificate and the allocation letter for the property, the seller will be issued with a receipt with a reference number from the Municipality with which the seller will receive the original title deed, the allocation letter and the descriptions certificate from the Real Estate Registry Division at the Ministry of Justice.
Time and cost: 14 days, KWD 150
Obtain clearance from the Ministry of Communications
Agency: Ministry of Communications
The Seller must obtain a clearance from the Ministry of Communications (necessary for all types of properties both commercial and residential). The clearance is to confirm that the previous owner/seller has settled all related utility bills.
Time and cost: 1 day, no charge
Obtain clearance from the Ministry of the Electricity regarding outstanding electricity bills
Agency: Ministry of Electricity and Water
Parties obtain a certificate of Ministry of Electricity and Water that there are no outstanding electricity bills or other dues to the Ministry.
Time and cost: 1 day, no charge
Obtain a certificate from the Ministry of Commerce and Industry evidencing the signatory authority of the legal representative of the parties
Agency: Ministry of Commerce and Industry
Parties obtain a certificate from the Ministry of Commerce and Industry evidencing the signatory authority of the legal representative of the parties who will sign the sale agreement, together with copies of their civil identification cards, in order to check that the companies are authorized to buy or sell property in their Articles of Association. They obtain Form I “Undertaking & Acknowledgement” and Form IX “Acknowledgement of the Representative” from the Department of Commercial Companies at the Ministry of Commerce and Industry, that must be submitted for registration in Procedure 6. Form I shows that the parties exist and have the power to conclude the sale/purchase transaction in accordance with their own Article of Association. Form IX confirms the authority of their representatives who follow up the Procedures with the Department.
Time and cost: 1 day, KWD 10
Pay the registration fee, sign a new deed, and register the name of the new owner
Agency: Real Estate Registration Office at the Ministry of Justice
Once the Cadastral Description Certificate is issued by the Municipality, the parties receive a phone text message to visit the Ministry of Justice to complete the transaction. The parties must appear in person, or through their attorneys, to sign the deed before the notary public. The notary public is a governmental employee at the Ministry of Justice. The documentation includes the original deed, IDs of seller and buyer, the Cadastral Description Certificate from the Municipality and the preliminary sale agreement. The notary public reviews the documents, verifies the contents of the written agreement (a form commonly prescribed by the Ministry of Justice) and authenticates the required signatures. The sale agreement is used as the deed of title. An original of the sale agreement is provided to the buyer. It is printed on the official authorized paper and is stamped. The 0.5% registration fee is paid before the parties sign the notarized sale agreement. The notary public delivers the notarized sale agreement to the Contracts Control Department for it to be recorded under the name of the buyer. All the procedures are completed by the one notary.
Time and cost: 1 day, KWD 2,929.76 (0.5% of property value (registration fee) + KWD 5 for the stamp)
