Helpful Centers

Buying a property in Morocco follows the French process very closely, which is not surprising, given that Morocco was formerly a French colony and maintains close relations with France to this day.

After you have made an offer on a home and it has been accepted, an initial contract is drawn up. This contract is known as a “Compromis de Vente” and it is customary for a 10% deposit to be paid at this time. This deposit is fully refundable if the Compromis de Vente has the appropriate clauses included when the buyer and seller sign it. It is usual for the contract to include a clause that the purchase is conditional upon arranging a mortgage, so it is essential that you ensure that you have an “escape” clause in the event a mortgage cannot be finalized.

Arranging a mortgage in Morocco is slow and painful, and although a decision in principle may be obtained, the mortgage can only be granted after the contract is signed. Therefore, it is even more essential to ensure you have the “escape” clause included in the Compromis de Vente.

Mortgages are typically offered for 15-year terms. However, you can frequently get this extended to 25 years, although usually with a higher interest rate applied. Interest-only terms for the first six months of the loan are also offered, but not for the whole mortgage term. You are strongly advised to have professional help when arranging a mortgage in Morocco, as the application process is cumbersome and bank staff are not very experienced in handling applications for non-resident applicants.

Once the Compromis de Vente is signed, searches will be conducted and if satisfactory, a notary will sign the completion document. You should budget for approximately 5% of the purchase price to cover the additional costs and fees that will be levied. There will also be a monthly mortgage tax of 10%, which is charged each month over the life of the mortgage.

Appointing a lawyer as the notary is strongly recommended as under Moroccan practice, the notary acts for both the buyer and seller. Therefore, you need to be sure the title deeds and mortgage documentation are properly checked in your own best interest. You also should make certain that the lawyer checks what works are expected to take place in the area, as the bank may not do so and this may adversely affect the property or your ability to sell it in future.

Some developers will provide complete packages for buying Moroccan property. However, you should be aware that although the lawyers and notaries they appoint may provide you with a degree of convenience, you would need to protect your own interests.

Appointing an independent lawyer or expert on Moroccan Mortgages to advise you is strongly recommended, no matter who is acting as the notary, as they will be able to handle the language, local customs and have a good working knowledge of the whole property purchasing experience that will prove invaluable.