Constitutional Court Turns Away New Challenge to the Ban on Irrevocable Real Estate Agencies

Kuwait's Constitutional Court has refused a second direct challenge to Law No. 125 of 2023 on the Regulation of Real Estate Agency, the law that stops property powers of attorney from being made irrevocable. The decision, issued in the Council Chamber on 21 October 2026 in direct challenge No. 7 of 2025, is published in Kuwait Al-Youm Issue 1815, pages 32 to 34, dated 1 November 2026.

The challenge was brought by a real estate management company. It attacked Article 2 of the law, which provides that a real estate agency may not in any case be irrevocable, and Article 4, which gave parties to existing irrevocable agencies one year to regularise their position, failing which the agency is treated as a final sale. The company argued that this discriminated between agency holders, interfered with ownership and freedom of contract under Article 30 of the Constitution, and imposed a fee of half a percent of the property's value under Minister of Justice Decision No. 348 of 2021.

The court did not reach the merits again. It had already upheld the same law on 25 June 2025 in direct challenge No. 17 of 2024, finding that it targets the use of irrevocable agencies to sell property while avoiding registration and State fees. Because constitutional rulings bind everyone, the same arguments cannot be reopened. Complaints about Articles 7, 8 and 9 of the executive regulations (Ministerial Decision No. 1722 of 2024) were also turned away: whether a regulation goes beyond its parent law is a question of legality for the administrative courts, not the Constitutional Court. The challenge was declared inadmissible and the bond forfeited.

On the same day, the court also dismissed a challenge to the repeal of Article 29 bis of the Housing Care Law (Law No. 47 of 1993), holding that the complaints concerned how the housing authority applied the repeal, not the law itself.

WEFAQ's view: the constitutional route against this law is now closed. Anyone still holding an old irrevocable property agency should treat the law as settled and take advice on registration and transfer.

Source: Constitutional Court (Council Chamber), decisions of 21 October 2026 in direct challenges No. 7 of 2025 and No. 3 of 2026; Kuwait Al-Youm Issue 1815, pages 31 to 34, 1 November 2026.

This article is provided for general information only and does not constitute legal advice. For advice specific to your circumstances, please contact WEFAQ Law Firm.