FAQ

The conditions for obtaining a loan from a Moroccan bank for a non-resident foreigner :

  1. Be under the age of 65.
  2. Provide at least 30% of the sale price.
  3. Have an additional 10% to cover notary fees and agency fees.
  4. Have sufficient income and maximum debt at 50% taking into account all other loans.
  5. Acquire a property titled and for residential use (no or very few grant of loans for riads operated in guest house).

  6. Borrow over 7 to 10 years or 15 years maximum.

The notary must preserve the rights of both the seller and the buyer, he is an impartial agent, dedicated to monitoring the morality and legal security of the contracts he authenticates. Before the realization and signature of the compromise (or promise) of sale, he will ensure the legal status of the property: melkia, requisition of registration or land title, and will warn the acquirer of any risks. He will also verify that the property is free of any mortgage.The notary is responsible for drafting the final act of sale and recording the transaction. It takes over the formalities of land advertising.

For non-Moroccan purchasers, he can take over the declaration with the exchange office. The agency Côté Medina advises you to ask him, in order to benefit from the guarantees of retransfer during a possible resale.

In the same way it can be charged for the seller to recover the tax quitus: housing tax and settlement of the Real Estate Profits Tax (TPI).

The proceedings are written in French or Arabic.

Notary fees are essentially taxes collected by the notary on behalf of the state (transfer taxes, registration fees with the Moroccan real estate office). To these taxes are added the notary’s fees (usually 1%). Count 7.2% of notarial fees for the acquisition of a securitised property or a registration requisition (in the course of titration). And if your acquisition requires a credit from a Moroccan bank, add 1% of the amount of the credit.

If you purchase a property in Melkia, know that the notary cannot draft a sale agreement or an act of sale as long as the property is in melkia. But the notary can initiate the titration procedure, which involves obtaining a registration number. In this case, you will sign a private agreement with the seller. Upon obtaining the requisition number, the notary will draw up the deed of sale and register it. In this case, know that the costs will be 13%, or up to 19% depending on whether it is necessary or not to perform an act of istimrar. Rest assured, the agency Côté Medina will be able to guide you and explain in detail the process in question.

A convertible account is an account reserved for non-resident foreigners. Only foreign currency can be paid into it. But you can withdraw currencies or dirhams (hence its “convertible” name). You can apply for a cheque book and a bank card. This is the account you will open if you decide to acquire a property in Morocco.

All the payments you make (purchase, fees, works, share capital of SARL, etc.) must come from your convertible account (cheque, or transfer), so when you are in a position to sell your property, you will have the guarantee of retransfer from the exchange office. The entire proceeds of your sale, once the tax on real estate profits (TPI) is settled, and the various tax concessions obtained, will be credited to your convertible account and can be repatriated if you wish. Or can be used for another investment, which will itself benefit from retransfer guarantees.

If you want to rent a residential property year-round, allow a month of rent to be paid to the agency for contracts of one year and more.If you want to rent a property in free management or commercial lease (rental free management of a guest house for example), count on 10% of the rent over the entire term of the contract. The real estate agency is responsible for advising you, from the search for the property to the completion of the contract with the support of legal and tax professionals (notary and accounting firm). It can make for you the inventory and the inventory of the contradictory places or you can address a real estate expert. The agency will be settled upon delivery of the keys.

If you want to rent your property year-round, for residential use, allow a month of rent to be paid to the agency for contracts of one year and more.If you want to rent a property in free management or commercial lease (rental free management of a guest house for example), count on 10% of the rent over the entire term of the contract. The real estate agency can make for you the inventory and the inventory of the contradictory places or you can address a real estate expert. The agency will be settled upon delivery of the keys.

When you sell a property, the agency that you commissioned collects 3% tax (2.5% + 20% VAT) of the amount of the sale. These are legal fees. Agency fees are paid at the end of the real estate agent’s assignment, that is, the day the act of sale is signed.

If you want to buy a property, plan to add 3% including taxes (2.5% + 20% VAT) to the amount of the sale. Agency fees are paid at the end of the real estate agent’s assignment, that is to say the day of the signing of the notarial act of sale.Unless special negotiation, the real estate agent receives 6% including taxes (5% + 20% VAT) of the amount of the sale. Note that the seller also pays 3% including taxes (2.5% + 20% VAT) of the amount of the sale, which are generally included in the sales price displayed.

A permit to live is issued by a commission that verifies compliance with the plans and the security of the riad. A permit to live is mandatory in the following cases :

  • New construction

  • renovation after 1992. If you sell or buy an old house in the medina (which existed before 1992) and it has not been the subject of major work, the permit to live is not an obligation.

What about the GUEST HOUSES ?

Residence permit and guest house :

Until June 2012, the permit to live was also an obligation to obtain a classification guest house. (Permit to live mention “guest house”). This regulation was applied between June 2008 and June 2012 and was subsequently discontinued. Today it is no longer part of the documents to be provided.

Only the classification commission of the guest houses decides on the allocation of rankings.

It is an intermediary, usually specialized in the area where it is located. If he is able to present you with goods, unfortunately, his competences will often be limited there, it is up to you to inquire elsewhere (notaries, accountants) if you use his services.

Not necessarily ! If you have a lot of energy, a lot of time and you are adventurous, you just have to manage a good notary and/ or advice from wise friends in order to detect risky situations. This is not impossible, but it is safer to contact a real estate agent who will understand your expectations, select the corresponding goods, make an appointment for visits, and especially explain all the specificities related to a purchase in Morocco for a foreigner.

The Melkia is a document drawn up and certified by a adoul (notary in traditional law) attesting to the ownership of a property under Moroccan customary law. It preexisted at the creation of the Land Conservation and Cadastre and remained recognized after their creation. Since the creation of these two administrations it is possible to transform a Melkia into a land title.
The Melkia co-exists with the modern system especially in the medina and in the countryside, where traditions are still dominant.
The Melkia has some legal value, but limited. Indeed, it is unclear on the technical definition of the property (area, consistency, ownership limit and especially the number and quality of rights holders), which can give rise to disputes.
It is possible to acquire a property in Melkia, but the real estate agency Côté Medina advises against it. Notably because your acquisition will not be registered for land conservation. It is more prudent to go to a notary and ask him to register the property in order to obtain a land title.

A Land Title is a definitive and unassailable right of ownership of a immovable property (built or not).
The Registration Requisition, is the stage of transformation of the Melkia in Title Land. It is safer and more accurate than the Melkia, but can theoretically be challenged. It takes between 1 and 3 months to obtain a Registration Requisition number, after which it takes between 2 and 4 years to obtain a land title number.
As long as the property is under the Registration Requisition, opposition periods are open. But the practice shows that there have never been any challenges on registration requisitions past the demarcation by the cadastre. Indeed, the date of the demarcation is the subject of a publication (B.O., administrations, etc.), and any person wishing to oppose or challenge this right may appear that day. It is also the decisive step that sets the limits of ownership.
The notary fees are the same whether the property is titled or in the course of titling, that is to say in registration requisition.