Buyer's Guide to Morocco
Morocco follows French law very closely so the process of buying is very similar to that of France. After an offer has been accepted, an initial contract called a 'Compromis de Vente' is drawn up. At this point, it is normal for a deposit of around 10% of the purchase price to be paid.
This deposit can be fully refundable based on clauses added at the time of signing. The contract can also include a clause that any completion is subject to obtaining mortgage financing. Whilst it is possible to obtain a mortgage in principle before signing the initial contract, a formal offer of lending can only be issued after this contract is in place. Therefore, if borrowing is required, it is important that a 'get out' clause is included.
After the initial contract is signed the searches will be undertaken and the completion is signed at the Notary. Total additional costs to the purchase will be in the region of 5% of the purchase price and a mortgage tax equating to 10% of the interest payable is taken every month and paid direct to the government. The purchase costs include:
Registration tax 2.5% of purchase price
Notary fees 1% of purchase price
0.5% Notary tax
1% for transfer of title deeds
Administration fees totaling approximately €500
1% to 2.5% to obtain title deeds if not in place
Estate agent fees if not included in price
Other important points to consider:
It is always a good idea to appoint an independent lawyer as the Notary who undertakes conveyance will work on behalf of the buyer and seller.
It is not uncommon for developers to sell pre-constructed properties before they have bought the land or sought planning permissions, so it is important to ask your lawyer to check the title deeds of the property before signing the final contract.
Your legal adviser should also check the CRI of that region to see what other infrastructure works are forecast close to where you are buying. Unlike many countries the banks in Morocco may not undertake these searches themselves.