Morocco - Purchase a Property

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Procedure

The following are the procedures to follow when Purchasing a property in Morocco.

Step 1

1.The fist thing is to contact a real estate agent, and a lawyer because these people are so helpful in understanding the legalities and procedures, usually done in the local language. The agent, also known as simsaar, usually does not speak English. The English-speaking lawyer also comes in handy when dealing with the simsaar. The real estate agent or simsaar typically charges the buyer 2.5% of purchase price as commission.

step 2

The next stage is Site inspection by the Moroccan Surveying Authority is done.

• The Moroccan Surveying Authority inspects the property and also conducts the survey of a property, and prepares the report of its findings on the property . The report is subsequently delivered to the Measurement Department. This is done within 7 days at no cost.

Step3

2.Before you purchase the property it would be important to open a Moroccan bank account that enables foreign currency to be converted to Dirham to be used for the transaction, and for easier repatriation of funds in the future. It is usual to pay a deposit once the purchase price has been agreed on. This is not a guarantee, however, that the seller takes the house off the market, so it is safer to just give a deposit instead of paying the full amount immediately.

Step 4

3.Request for the registration form that was submitted by the buyer to the Real Estate Registry.At this stage you should go for the negotiations and the agreement on all material terms of the contract, You should pay the seller the requested price,before you go to the Real Estate Registry to request registration. At this point in time , you can pay the registration fees and request for Surveying Authority to complete a survey of the land or house.Sometimes, houses being sold are still occupied. The buyer has to wait for the owner or occupant to move out and hand over the key.

The buying process in Morocco is otherwise the same as in France and Spain, with a notary acting for both parties.Signatures on the sales deed of the contracting parties should be notarized. The sales deed should then be registered with the relevant registration office. The buyer then applies for the listing of the registered deed to the land registry.

Step 5

4. You can now pay the Taxes and legal fees.Due to the complex nature of Moroccan property registration and ownership system, it is highly advisable for the buyer to hire a lawyer at this stage to represent him. Legal fees are negotiable, ranging from 1% to 5% of the property value plus 10% VAT. A 2.5% registration duty is applicable to acquisition of buildings by individuals or legal entities. A duty of 2.5% is also imposed on acquisition of undeveloped land to build houses and premises.

Step 6

5.Notary Fee and Stamp Duty:The signatures in the sales contract must be certified by a government appointed notaire. Notary fee is negotiable ranging from 0.5% to 1% (plus 10% VAT). Copies of contract are stamped in each page. Standard stamp duty is MAD20 (US$2.26) per page.Notary Tax is different from the notary fees above. Notary tax is fixed at 0.5% of property value.

Step 7

Pay for Land Registry Fee:Aside from the registration, the sales deed is also listed in the land registry. Land registry fee is 1%.

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Required Documents

• Copies of contract stamped in each page
• Notary Tax statement.
• sales deed
• registration form
• Planning permission,
• building license,

Office Locations & Contacts

Minister of Housing and Urban Planning

Nabil BENABDALLAH

P.0.Box

Email : [email protected]

Telephone: 06 61 86 40 92

http://www.mhu.gov.ma/Pages/default.aspx

Eligibility

• To be eligible to purchase a property or do any renovation work on the property in Morocco you must have a permission from the local authority or approved to be authenticated
• There must be signature of validity applied for in the land registry and ensure that they have all agreed to the sale the property to a new owner.
• To be Eligible the lay down the conditions relating to the payment of the purchase price.
• If you are foreigner you must be having an entry visa in Morocco As a non resident you are able to stay for 90 days at a time on a tourist visa.If you intend to stay longer, you should apply for residency permit.

Fees

Standard stamp duty is MAD20 (US$2.26) per page

Notary Fee and Stamp Duty: 0.5% to 1%

VAT 10%

registration duty of 2.5%

Stamp Duty 1% buyer

Legal Fee 1.50% buyer

Real Estate Agents Fee 3% buyer

Costs paid by buyer 10% - 10.50%

Costs paid by seller 0%

ROUNDTRIP TRANSACTION COSTS 10% - 10.50%

Validity

The document is valid for a long time

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Processing Time

The process takes 3 months or more depending on the complexity of the matter.

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Instructions

• Most business in Morocco is conducted in Arabic or French, to ensure you understand what documents you are signing it may be wise to engage the services of a local translator.
• Do not sign any documents that you do not fully understand.
• In addition, you should appoint a local Lawyer to provide independent advice and guidance.
• You should ensure that your notary checks the following:

i) Who is the legal owner of the property, do they have the right to sell.

ii) Check the identity of the seller to prove they are who they say they are.

iii) Check that the details of the property are correct, e.g. size and construction details

Required Information

• Conditions relating to the payment of the purchase price.
• Official property tax statement from the Property Tax Authority office.
• Information from Real Estate Registry to confirm if the property was registered.

Need for the Document

There are many ways and many types of property available to purchase in Morocco. From traditional houses in the Kasbah to new off plan apartments.

Property tends to come with either a Titre Foncier which are full title deeds registered at the Cadestre Office which detail exact information about the size and ownership of the property, or for most old Medina and Kasbah properties Adoul papers (Religious Notary) where details of the properties previous ownership are recorded and can go back for several hundred years.

Once you have decided to go ahead with the purchase of a Moroccan property, for your own peace of mind you should always engage the services of a notary. There are no current requirements to obtain Moroccan Residency in order to be able to purchase a property. Foreign real estate ownership is allowed in Morocco, though foreigners cannot buy agricultural land.

If you generate any rental income from your Moroccan property you will be subject to local taxation laws and required to pay income tax. Houses with more than 4 rental bedrooms are required to obtain permission to act as a local guesthouse.

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Other uses of the Document/Certificate

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External Links

http://www.globalpropertyguide.com/Middle-East/Morocco/Buying-Guide

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