Many apartment owners in Kuwait discover, within months of taking the keys, that owning a flat does not stop at the front door. There is a lift that needs a maintenance contract, a roof that leaks, parking that has to be organised, a watchman waiting for his salary, cleaners, an electricity bill for corridors and outdoor lighting, and water pumps, tanks and fire systems. Then a monthly or annual demand arrives for common maintenance charges: sometimes from an organised owners' association, sometimes from the developer who sold the units and kept managing the building, and sometimes from a single owner who volunteered to run things without any clear mandate.
The same questions follow every time. Am I really obliged to pay? Who sets the amount? Can I stop paying because the lift has been out of service for months, or because the accounts make no sense? What if the developer is charging sums I cannot trace? And does the tenant pay, or the owner? This article answers exactly those questions. It does not re-explain the whole regime of floor and apartment ownership, which we covered in Floor and Apartment Ownership under Kuwaiti Law, nor buyer protection before handover, which we discussed in Off-Plan Sales and Real Estate Development in Kuwait.
Our focus here is the "common purse" after people move in: the legal basis of an owner's duty to contribute, how costs are shared according to ownership shares, how an owners' association is formed and takes decisions (in general terms), the role of the manager and the developer, the owner's right to inspect accounts, the consequences of refusing to pay and how claims are decided in court, when a poorly performing manager can be removed, who pays to repair defects in common areas, and finally how these charges play out between landlord and tenant.
The Short Answer
As a rule, the owner of an apartment or floor in a multi-owner building must contribute to the cost of preserving, maintaining and managing the common parts, because those parts are owned by all owners in common and each owner benefits from them by virtue of owning a unit. An owner generally cannot escape the obligation by saying he does not use the lift, does not own a car, or keeps the flat empty: the obligation follows ownership, not actual use, unless the building's regulations or an agreement among owners provide otherwise.
Costs are, in principle, shared in proportion to each owner's share in the common parts, which is usually tied to the relative value or area of the unit as set out in the title deed or the association's regulations. But a duty to pay is not a duty to accept every figure demanded. An owner may ask for the basis of the charges and how they were spent, challenge decisions that breach the law or the regulations, and press for the manager to account or be replaced if the building is badly run.
Withholding payment in protest is a risky route that can expose the owner to a lawsuit for arrears and costs. The safer course is to pay what is clearly due and dispute the rest through proper legal channels. Where the developer runs the building and sets the charges, what matters is the sale contract, the building regulations and the developer's legal capacity as manager; a developer may not turn management into an undisclosed profit centre at the owners' expense.
The Legal Framework
Several sources work together in Kuwait, and an owner should know where each one sits before judging whether a demand is sound:
- The Kuwaiti Civil Code (Decree-Law No. 67 of 1980): regulates co-ownership generally and contains specific provisions on the ownership of floors and apartments, distinguishing privately owned units from common parts owned by all, setting out owners' contribution to common costs, and governing the formation and management of an owners' association. It also contains the general rules on obligations, contracts, liability and agency, which govern the owner's relationship with the manager and the developer.
- Specific regulations on apartment and floor ownership: there are legislative and administrative rules on registering and conveying units and on organising and registering owners' associations with the competent authorities. Because these may be amended, we recommend checking the text in force at the time of the dispute rather than relying on old copies or hearsay.
- The building regulations or association by-laws: in practice the most important document, as it usually sets the cost-sharing method, payment dates, the manager's powers, how meetings are called and how common areas may be used, all within the limits the law allows.
- The sale contract between developer and buyer: it may contain clauses on post-sale management, service charges, or the buyer's obligation to join a management scheme. These clauses are read subject to mandatory rules and cannot authorise what the law forbids.
- The Civil and Commercial Procedure Law (Decree-Law No. 38 of 1980): governs how arrears are claimed in court, whether by ordinary action or by a payment order where the conditions are met, as well as the appointment of experts and enforcement.
- Decree-Law No. 35 of 1978 on the Lease of Real Estate: governs landlord and tenant relations, including who bears service costs under the lease.
The golden rule is that the law sets the minimum protections and the building regulations and sale contract fill in the detail within those limits. Where a clause conflicts with a mandatory rule, the mandatory rule prevails; where the regulations are silent, the general rules of the Civil Code apply.
The Substantive Rules
1. Which common parts are the charges for?
Common parts are everything intended for shared use or for the service of the building as a whole and not allocated to a particular unit. They typically include the land, foundations, main walls and structure, entrances, corridors, stairs and lifts, the roof unless allocated to a specific owner, guard and service rooms, the shared sections of water, electricity and drainage networks, central air-conditioning where it exists, tanks and pumps, alarm and fire systems, and unallocated shared parking.
The practical consequence is direct. What lies inside a unit and serves it alone, such as internal pipework, doors and windows, is paid for by its owner. What serves everyone is paid for by everyone according to their shares. The grey zone is parts that serve some owners but not others: a lift serving one tower of a multi-tower compound, parking allocated to certain units, or a garden reachable only from ground-floor flats. Here the building regulations usually decide, and if they are silent, actual benefit may be taken into account.
A common problem is a developer or manager treating the roof or parking as its own property after the units are sold, leasing or allocating it at will while charging owners for its upkeep. Whether such areas are common or allocated depends on the title deeds, approved plans and sale contracts. If they are common, the owners share in them and in any income they produce; if they are allocated to someone, that person should bear their costs. One party cannot keep the benefit and pass the burden to others.
2. The legal basis of the owner's obligation
The duty to contribute is not a favour. It is a legal obligation rooted in co-ownership itself and usually confirmed by the building regulations and the sale contract. It therefore attaches to the unit and arises from owning it. Anyone buying a flat in an existing building should check for arrears before completing, obtain a statement from the association or management of what is outstanding, and state expressly in the purchase contract who bears arrears accrued before transfer.
An owner is not exempt simply because he does not use a particular service. A ground-floor owner is not automatically exempt from lift costs, and an owner without a car is not automatically exempt from shared parking costs, unless the regulations adopt a use-based allocation. Leaving the flat empty does not suspend the obligation either, because preserving the building protects the value of every unit, occupied or not. Nor can an owner escape by renouncing his share in the common parts, since those parts are inseparable from the unit.
Costs usually fall into two kinds: recurring costs such as security, cleaning, common electricity, lift and pump maintenance contracts and building insurance where it exists; and exceptional costs such as re-waterproofing the roof, replacing a lift, restoring the facade or upgrading fire systems. The second kind generally requires an association decision by the majority set by law or the regulations, and a manager should not act alone except in genuine emergencies, such as a safety hazard, reporting to the owners at the earliest opportunity.
3. Sharing costs by ownership share
The general rule is that each owner bears common costs in proportion to his share in the common parts, usually determined by the ratio of his unit's value or area to the building as a whole, as shown in the title deed or the regulations. A large flat pays more than a small one, and a ground-floor shop may carry a different share from residential units depending on the regulations.
The regulations or an owners' agreement may adopt a different key for particular costs, for example spreading lift costs over the floors it serves, charging allocated parking to its holders, or billing shared water by sub-meters where they exist. Changing the allocation key after the association is formed is not something the manager can do alone; it requires a valid decision under the applicable rules and may need special consent where it substantially affects some owners' rights.
A recurring problem is a manager splitting charges equally between units of very different sizes, or exempting units owned by the developer, its relatives, or unsold stock without any basis. Unsold units remain the developer's property, so the developer bears their share like any other owner unless there is a valid agreement to the contrary. An improper allocation can be challenged, and any owner who has overpaid may seek correction and recovery of the excess once it is proved.
4. The owners' association: formation and decisions in general terms
The owners' association is the framework for managing common parts where a building has several owners. It is typically formed by operation of law once its conditions are met, such as the number of owners required by the text, without the need for a separate founding contract, although some regulations require registration or filing of its by-laws with a particular authority. All unit owners are members, each usually with a vote proportionate to his share.
The association acts through the general assembly of owners, which decides by the required majority, and through a manager who implements decisions, runs day-to-day affairs and represents the association towards third parties. The majority required varies with the importance of the decision: routine management needs a lower threshold, substantial alterations need a higher one, and some matters cannot be touched without the consent of the owner concerned. We deliberately give no numerical quorum here, because the applicable text and the building regulations govern, and they must be checked case by case.
A valid decision requires proper notice to all owners in the prescribed manner and in good time, a defined agenda, a quorum, the required majority, and signed minutes. A decision taken without proper notice, outside the agenda, by an insufficient majority, beyond the association's powers, or abusively to harm a group of owners is open to challenge. Conversely, valid decisions bind all owners, including those absent or dissenting, and that is the basis on which a non-paying owner can be held to the charges set.
In practice many smaller Kuwaiti buildings have no functioning association at all and run on verbal understandings or the goodwill of the longest-standing owner. That works while everyone agrees and collapses at the first dispute, because the claimant has no documented decision to rely on and the objector does not know the basis of the demand. We therefore advise owners to put management arrangements in writing before a dispute arises.
5. The building manager: powers and liability
Whether the manager is an owner, a professional management company or the developer itself, he acts in principle on behalf of the association. He must implement its decisions, safeguard the owners' money, spend it for its intended purposes and render account for it. His relationship with the association is governed by the rules of agency or by the management contract, which require due care, no mixing of association funds with his own, and no self-dealing or contracts with related companies at unfair prices without disclosure and approval.
The manager is liable for losses owners suffer through his fault or negligence, for example letting the lift maintenance contract lapse so the lift breaks down, ignoring a roof leak until it damages top-floor flats, or leaving fire systems uninspected. We covered liability for lift accidents specifically in Lift Accidents in Kuwait, and the manager's dealings with contractors relate to what we explained in Maintenance Contracts in Kuwait.
6. The developer who manages the building after sale and sets charges
In modern compounds and towers the developer often keeps management after selling the units, directly or through an affiliated company. That is not unlawful in itself and can help in the early stage before owners organise. But it raises legitimate questions: in what capacity does the developer manage the building? Who set the charges? Do they reflect actual cost, or include a profit margin? When does management pass to the owners?
The view closest to general principles is that after the sale the developer is not managing its own property but common property belonging to the owners, in which it participates only to the extent of the units it still owns. If its management rests on a clause in the sale contract or the regulations, it is bound by that clause and by a manager's duties of transparency and accounting. If there is no clear basis, its role is closer to de facto management that the association may end by appointing another manager under the applicable rules. A standard-form clause should not be used to keep owners under a management they cannot hold to account.
Warning signs include flat charges that rise every year without a cost breakdown, service contracts with companies linked to the developer, income from common parts, such as leasing the roof to telecom operators or renting out parking or advertising space, that is not credited to the owners, refusal to hand over accounts and documents on request, and making handover of a unit or issuance of a clearance certificate conditional on charges with no contractual basis. In such cases owners may demand a detailed account and recover whatever was collected without entitlement.
7. Transparency, accounts and the right to inspect
An owner's right to know where his money went flows directly from the fact that the manager handles other people's funds. The manager should present a periodic account to the general assembly showing income, expenditure and balance, supported by invoices, contracts and receipts, and prepare an estimated budget for the following year on which the charges are based.
Any owner may ask to inspect the accounts and supporting documents, preferably in writing with proof of delivery. An unjustified refusal is itself evidence of poor management and can be taken to court by way of an action for an account, in which the court may appoint an accounting expert to examine the books and determine what each party owes.
We recommend owners insist from the outset on a separate bank account dedicated to association funds, no cash payments without receipts, a committee of owners or an auditor to review the annual account, and a reserve for major works to avoid sudden demands. These simple steps prevent many disputes before they start.
8. Refusing to pay: consequences and court claims
Refusing to pay charges validly set is a breach of a legal obligation and allows the association, through its lawful representative, to bring a court claim for arrears, either by ordinary action or by applying for a payment order where the debt is in writing, liquidated, due, and meets the other conditions of the Procedure Law. Compensation for late payment may also be sought where the law or the regulations provide for it and its conditions are met, along with litigation costs.
Owners commonly defend such claims by pointing to poor service or neglected common areas. That defence can reduce the amount due if the charges cover services that were never provided, but it rarely extinguishes the obligation entirely. The safer course for an objecting owner is to record the objection in writing, request the accounts, pay the undisputed portion, and bring his own action for an account or to annul the decision, rather than withholding everything and ending up as the defendant with added costs.
Two questions should be checked in every case: whether sums owed to the association enjoy any priority or special security over the unit, and what limitation period applies to recurring charges. Both depend on the text in force and the nature of the debt, so we state no firm rule here. What is clear in practice is that letting arrears build up harms both sides, and a new buyer may inherit the problem if he did not take precautions.
A manager or developer may not resort to self-help measures the law does not permit, such as cutting water or electricity to the unit, blocking lift or building access, deactivating parking cards, or naming and shaming the owner on notice boards or group chats. Debts are recovered through the courts, and conduct that harms the owner may give rise to civil liability and, depending on its nature, other consequences.
9. Mismanagement and removing the manager
By a valid general assembly decision, the association may remove the manager and appoint another, in accordance with the law, the regulations and the management contract. Mismanagement justifying removal includes repeated refusal to account, misapplication of funds, neglect of basic maintenance to the point that services fail, contracting with related parties at inflated prices, ignoring assembly decisions, and using common areas for private benefit.
If the assembly cannot be convened, or the manager obstructs meetings, a group of owners may call one where the regulations allow, or apply to the court for an interim manager or other measures to protect the common parts. Removal does not release the outgoing manager from rendering a final account and handing over funds, documents, contracts, keys and system credentials to his successor, and his liability for past errors survives removal.
10. Repairing defects in common parts: association, developer or contractor?
Not every repair to common parts is a final burden on the owners. Wear and tear, such as worn lift components or tired paintwork, is a normal common cost. But where the problem is a design or construction defect that appears after handover, such as structural cracks, leaks from waterproofing that was faulty from the start, or defective drainage, the owners, through the association, may have recourse against the selling developer under the warranty against hidden defects, and against the contractor and engineer under the Civil Code's warranty for collapse or defects threatening the building's soundness and safety, commonly known as the ten-year warranty, where its conditions and time limits are met.
In such cases the association should not rush to bill owners without preserving its right of recourse: document the defect, obtain a technical report, notify the developer or contractor in writing, and observe the legal deadlines for bringing a claim. Where safety requires urgent repair, the association may fix the problem first and recover the cost later, keeping evidence of the defect's condition before repair.
An individual owner may face a defect that spreads from a common part into his flat, such as a roof leak into the top-floor ceiling or a main drain leaking into walls mid-building. The association bears the repair of the common source, and compensation for damage to the flat depends on the cause: management neglect, a construction defect, or another owner's act.
11. Landlord and tenant disputes over the charges
The owner remains liable to the association for his unit's charges even when it is let. The association-owner relationship is one of co-ownership, while the owner-tenant relationship is a lease governed by the contract and Decree-Law No. 35 of 1978. The association therefore cannot, as a rule, claim directly from the tenant absent an agreement allowing it, and the owner cannot excuse himself to the association on the ground that the tenant has not paid him.
Who ultimately bears the charges depends on the lease. If rent is stated to be inclusive of services, the landlord cannot bill the tenant for them on top. If the tenant agreed to bear service charges or part of them, he is bound within the agreed limits. Leases should spell out what is and is not included, bearing in mind that major exceptional costs such as replacing a lift or restoring the facade are by nature the owner's burden, not the tenant's. We addressed maintenance inside rented flats in Maintenance of a Rented Apartment in Kuwait.
Principles of the Court of Cassation
General principles settled in the case law of the Court of Cassation that are frequently applied in common-charge and building-management disputes include:
- The Court of Cassation has consistently held that the contract is the law of the parties and may not be revoked or amended except by mutual agreement or on grounds provided by law, which applies to charge and management clauses in sale contracts and building regulations.
- It has held that interpreting contracts and documents and ascertaining the parties' common intention fall within the discretion of the trial court, provided its reasoning is sound, grounded in the record, and does not depart from the plain meaning of the wording.
- It has held that the burden of proof lies on the party asserting something contrary to the norm: a party claiming charges must prove their basis and amount, and a party claiming payment or non-entitlement must prove it.
- It has held that an expert's report is one element of evidence subject to the trial court's assessment, which may adopt it in whole or in part or set it aside with sound reasons, making accounting and technical expertise central in accounts and defects disputes.
- It has held that an agent must render account of his acts and return the principal's funds in his hands, the principle on which owners rely against a manager or developer managing the building on their behalf.
Methodological note: we state these principles in their settled general form without appeal numbers or dates, because citing a specific judgment requires reference to its official text. Nor does this mean every charges dispute will be decided the same way; the outcome depends on the regulations, the sale contract, the documents filed and the facts of each case.
Practical Steps and Documents
- Gather ownership documents: title deed or sale contract, unit plan, and anything fixing your share in the common parts.
- Obtain the building regulations or by-laws: they govern allocation, due dates and the manager's powers.
- Request decisions and minutes: the budget or charge-setting decision, the minutes of the meeting, and proof you were notified.
- Request the account in writing: with supporting invoices and contracts, keeping proof of the request and its date.
- Document the state of common areas: photos, dates and correspondence, especially repeated breakdowns and neglect.
- Pay the undisputed portion: keep receipts or bank transfers and explain in writing what you dispute and why.
- For a claiming association: prepare a detailed statement per unit, send a written demand before suing, and confirm the validity of the underlying decision and the capacity of whoever represents the association.
- For structural defects: obtain a technical report, notify the developer and contractor in writing, and watch the deadlines.
- Before buying into an existing building: ask for an arrears statement, a copy of the regulations and the latest annual account, and allocate arrears in the contract.
Hypothetical Cases
Case 1: An owner stops paying because the lift is broken
Hypothetical facts: Ahmad owns a seventh-floor flat in a building run by an owners' association. The lift was out of order for several months, so he stopped paying altogether. The association later sued him for all arrears.
Legal analysis: Ahmad's obligation stands by virtue of ownership, and the broken lift does not extinguish it entirely. He may argue that part of the charges paid for a maintenance contract that was not performed and ask for the accounts. The court, with an expert if needed, may order him to pay the arrears less any amount shown not to be due. He would have done better to pay, object in writing and hold the manager to account.
Case 2: A developer-manager raising charges every year
Hypothetical facts: A developer sold almost all flats in a residential tower but kept management through an affiliate. Charges rise yearly without explanation, and the roof is let to a telecom company with no one knowing where the income goes. The owners' request for accounts was refused.
Legal analysis: The developer is managing common property as manager and must account. If the title deeds show the roof is a common part, its rental income belongs to the owners. The owners may convene an assembly to appoint another manager under the applicable rules and sue for an account and recovery of sums collected without entitlement, asking the court to appoint an expert.
Case 3: A roof leak two years after handover
Hypothetical facts: Two years after handover of a residential compound, a major roof leak appears in the top-floor flats. The manager imposes an exceptional charge on all owners to redo the waterproofing.
Legal analysis: If a technical report shows the cause is defective original waterproofing, the cost is not a final burden on the owners and may be recovered from the developer or contractor as the case may be. The association may fund urgent repairs and then seek recovery, but must preserve its rights through notice and documentation. Top-floor owners may also be entitled to compensation for damage to their flats.
Quick Comparison
- Recurring costs (security, cleaning, common power, maintenance contracts): shared by all owners by share, set in the annual budget.
- Exceptional costs (lift replacement, facade restoration, roof waterproofing): usually need an association decision by the required majority, except in emergencies.
- Structural or construction defects: recourse lies primarily against the developer, contractor or engineer, not the owners.
- Anything inside the unit: borne by the unit owner alone.
- Towards the association: the owner is liable even if the unit is let.
- Between landlord and tenant: the lease governs; major exceptional costs are in principle the owner's.
- Developer as manager: bound by the basis of its mandate and the duty to account; income from common parts belongs to the owners.
- Unsold units: the developer pays their share like any owner unless validly agreed otherwise.
Frequently Asked Questions
Must I pay if I never signed the building regulations?
Generally yes. The obligation stems from co-ownership, and valid association decisions bind all owners. But the amount and allocation must rest on a valid decision or regulations in force.
I live on the ground floor and never use the lift. Am I exempt?
Not automatically, unless the regulations or an association decision allocate lift costs only to those who benefit.
Can the manager cut my water or block my parking over arrears?
In our view, no. Debts are recovered through the courts, and self-help measures that harm the owner may expose whoever takes them to liability.
Who sets the amount of the charges?
The general assembly, through the budget or a valid decision, or the regulations or contract within the law. A manager or developer cannot raise them unilaterally without a basis.
I asked for the accounts and was refused. What now?
Send a documented written request; you may then sue for an account, and the court may appoint an accounting expert. An unjustified refusal suggests mismanagement.
Can the developer be removed as manager?
It depends on the basis of its mandate. If it acts as the association's manager, the association may appoint another under the applicable rules. If it relies on a fixed-term contract, its terms and their validity must be examined.
I bought a flat with arrears from the previous owner. Who pays?
That depends on the purchase contract and the nature of the obligation, which is why we always advise obtaining an arrears statement before buying and allocating responsibility expressly.
Does the tenant pay the common charges?
Towards the association, the owner remains liable. Between owner and tenant, the lease governs.
Who pays for structural cracks that appear after handover?
If they result from a design or construction defect, recourse may lie against the developer, contractor or engineer under the warranty rules, after documenting them with a technical report and notifying the party responsible.
Can I challenge an association decision to raise charges?
Yes, if it is flawed: improper notice, no quorum or insufficient majority, breach of the regulations or the law, or abuse of the majority to harm certain owners.
Do unpaid charges become time-barred?
Recurring charges may be subject to special limitation rules that differ from the general period; the text, the nature of the debt, the due dates and any interrupting step all need examining.
Who owns income from leasing the roof or shared parking?
If those areas are common under the title deeds, the income belongs to the owners and should be credited to the association's account, not kept by the manager or developer.
Conclusion
Common maintenance charges are the price of preserving each unit's value and the building's safety, and an owner's duty to pay them is real and tied to ownership rather than use. That duty is matched by an equally real right to honest management, fair allocation by share, and clear accounts backed by documents.
Disputes in this area are rarely won by withholding payment or by pressure from either side. They are won with documents: the regulations, the decisions, the accounts and the technical reports. An owner who documents and pursues his rights through proper channels is in a stronger position than one who stops paying and ends up as the defendant.
Whether you are an owner facing a demand, an association seeking to collect, or owners wanting to take management back from a developer that will not account, getting the legal position right at the outset saves considerable time and money.
Legal Notice
This article is general legal information about Kuwaiti law and is not legal advice; it creates no relationship between the reader and the firm. The rules described are subject to legislative change, to judicial application to the facts of each case, and to the terms of each building's regulations and contracts.
If you have a dispute over common maintenance charges or the management of a building or residential compound, the team at Yumnaak Law Firm can review the building regulations, your contracts and the accounts presented to you, and advise on the best route to claim or defend. Contact us through our Contact Us page or book an appointment to discuss your case.
