Property Law in Morocco: Buying, Selling, and Ownership

Navigating the legal landscape of real estate in Morocco requires a comprehensive understanding of various codes and regulations. Whether you are an individual investor, a corporate entity, or an heir, Moroccan property law provides a structured framework designed to ensure legal certainty and protect the rights of owners.

The Moroccan legal system distinguishes between several types of property regimes, including registered (Melk) land, properties in the process of registration, and those subject to specific commercial or agricultural regulations. Understanding these distinctions is crucial for anyone engaging in property transactions within the Kingdom.

The Process of Buying and Selling Real Estate

The acquisition of real estate in Morocco is governed by the Code of Rights in Rem (Loi 39-08) and the Dahir of Obligations and Contracts. A central pillar of Moroccan property law is the registration system managed by the National Agency for Land Conservation, Cadastre, and Cartography (ANCFCC).

Preliminary Contracts and Off-Plan Sales

In modern developments, many buyers engage in "Buying Property in the Process of Completion" (VEFA). According to the amendments to the Code of Obligations and Contracts (notably Article 618-3 bis), parties may sign a "Reservation Contract" (Contrat de Réservation) before the preliminary contract. However, such a contract is only legally valid once the building permit has been obtained. Sellers are required to provide guarantees, such as a bank guarantee or insurance, to protect the buyer's installments in case of non-completion.

Co-ownership Regulations

When purchasing an apartment or a unit in a managed complex, Law 18-00 relating to the Status of Co-ownership of Built Buildings applies. Article 11 of this law stipulates that the "Co-ownership Regulation" (Règlement de Copropriété) must be filed with the Land Registry. Buyers must be provided with copies of the architectural plans and the co-ownership rules, and the sale contract must explicitly state that the buyer has reviewed these documents.

Special Provisions for Agricultural Land and Legal Entities

Moroccan law maintains strict oversight regarding agricultural land to ensure it remains productive and serves the national interest.

Under specific legislation concerning the acquisition of agricultural land by joint-stock companies (Sociétés Anonymes) or limited partnerships by shares, there are rigorous compliance requirements. If a company fails to adhere to the "Book of Specifications" (Cahier des Charges) agreed upon during acquisition, the State reserves the right to intervene.

According to Article 2 of the relevant law, if a company violates the conditions or if its approval is withdrawn, the property title may be transferred back to the State. In such cases, the company is entitled to compensation based on the property value at the time of transfer, minus any outstanding debts or mortgages. If the State does not wish to take ownership, the property may be sold via public auction.

Expropriation for Public Utility

The State possesses the authority to acquire private property for public interest projects, such as infrastructure or irrigation networks. This process is governed by Law 8-81 regarding Expropriation for Public Utility and Temporary Occupation.

When the State initiates expropriation:

1. Compensation: An administrative commission, chaired by a judge and including representatives from the Ministries of Finance, Interior, and Agriculture, determines the compensation (Article 6).
2. Transfer of Title: Once a court judgment for the transfer of ownership is deposited with the Land Registry, the property is cleared of all previous encumbrances or mortgages (Article 37).
3. Rights of the Owner: Owners have the right to be heard by the commission and can challenge the compensation amount in court if they deem it unfair.

Public Auctions and Forced Sales

In scenarios involving debt recovery or the liquidation of assets (such as the sale of a commercial business or "Fonds de Commerce"), the law provides for public auctions.

Under the Code of Rights in Rem (Articles 203–207), if a property is mortgaged and the debtor defaults, the "holder" of the property has the right to pay the debt to stop the sale until the moment the auction is finalized. If the auction proceeds:

• If the current holder wins the bid, they remain the owner from the date of the original registration.
• If a third party wins, ownership transfers only after the auction report is recorded in the Land Registry.

For minors or protected individuals, Article 209 of the Code of Civil Procedure dictates that if a property's value exceeds 2,000 Dirhams, it must be sold via public auction through the court to ensure the protection of the minor's interests.

Key Takeaways for Property Owners

• Registration is Mandatory: For full legal protection against third parties, all transactions must be registered with the Land Registry (Conservation Foncière).
• Verify Co-ownership Rules: Always review the "Règlement de Copropriété" before purchasing an apartment to understand your rights and obligations regarding common areas.
• Agricultural Restrictions: Non-Moroccan individuals or certain corporate entities face specific restrictions on owning agricultural land outside urban zones; professional legal due diligence is essential.
• Public Utility Safeguards: While the State can expropriate land, the law guarantees a structured process for compensation and legal recourse.

Understanding these legal frameworks ensures that property remains a secure investment and that the rights of all parties—buyers, sellers, and heirs—are upheld under Moroccan law.

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