Country Buying Guides - Morocco

The conveyancing process

• Independent Lawyer
It is essential to use an independent lawyer with a legal knowledge of both the English and Moroccan legal systems, who are able to translate the documents and explain the terms to your full understanding.

• Due Diligence
It is important to carry out due diligence on the property you are purchasing in order to ensure there are no encumbrances on the property. Your independent lawyer will do this on your behalf.

• Buying Process
Once the two parties have come to an agreement on the sale price, the terms and conditions of the sale are discussed with the Moroccan “Notaire” who then prepares the preliminary contract or “Compromis de Vente”. The “Notaire” is a public officer whose main role is to make sure that all processes have been undertaken correctly and all fees and taxes paid. The “compromis de vente” is just as important as the final document transferring title as it must contain all the clauses and conditions precedent to the sale. It then takes usually 1-3 months (or longer depending on the case) for the “Notaire” to prepare all the necessary paperwork before getting the parties together to sign the Title Deed “Acte de Vente”.

• Completion
Completion Occurs when the final deed of sale is signed .It is at this point that the balance of the purchase price plus the legal cost such as the Notaire’s fees and taxes and which amount to around 5.5% of the purchase price. Title Deeds and proof of ownership is provided and guaranteed by registration of the property at the Land Registry by the “Notaire”.

• Buying off-plan
Buying off-plan is always attractive in terms of purchase price, but there are risks involved that every investor should be aware of. It is wise to ask independent legal advice before signing any contract in Morocco. The purchase and sale of an off-plan property in Morocco must comply with the following requirements:

-signature of a preliminary contract upon completion of the foundations
-payment in stages
-the developer must offer financial security to secure advanced payments before completion.
-completion upon issue of the habitation licence

• Capital Repatriation
The Moroccan Government allows 100% repatriation of funds to UK buyers. In order to benefit, in case of resale, of repatriation of funds any transaction must be announced to the Moroccan Exchange Office by the intermediary of the Moroccan “Notaire”, at the time of the acquisition. It is essential that the non-resident investor opens a bank account in convertible Dirhams in a Moroccan bank. The bank will keep a record of the foreign currency deposits made, so you can repatriate funds without to go via the “Office des Changes”. It is also wise to open a Moroccan Bank account to enable you to pay your taxes, and your water/electricity bills.

• Power of Attorney
If it is not possible to attend the signing in person the purchaser may invoke a Power of Attorney certified by the Moroccan Consulate. Documents for use in Morocco require legalisation by the Moroccan Consulate. The documents must first be certified by the UK Foreign and Commonwealth Office.

• Inheritance
Most foreign legal systems’ inheritance law is different to our system, hence it is extremely important to use your independent lawyer to help you make a will so that in the unfortunate event of your passing, your wishes and not the word of the law is followed.

In Assocation With The International Property Law Centre LLP