Buyers Guide

In order to purchase real estate in Morocco, a purchaser must sign two mandatory contracts to secure and take possession of the given property; namely a Preliminary Sales Contract and a Final Contract. In addition to these contracts, a Reservation Form must also be signed in order to reserve one's chosen Villa or Ryad (townhouse). Below details the process by which a purchaser may pay for and take possession of the Villa or Ryad (townhouse).

1. The Reservation Form

  • This is a contract entered into between the developer, EHC Maroc SA, and the purchaser which enables the latter to legally reserve a plot of land for the construction of the chosen Villa or Ryad (townhouse).
  • Upon signing the Reservation Form, a deposit of Euro 7,500 is payable to EHC Maroc SA's solicitors, Taylor Wessing or, for purchasers in Morocco only, MAD 80,000 is payable to a Moroccan Notary, Maitre Hamdoun.
  • Purchasers will have a 15 day cooling-off period from the date of signing the Reservation Form during which time they may notify EHC Maroc SA should they wish to terminate the reservation contract and have their deposit returned (net of any bank charges).
  • The deposit (net of any bank charges) is also refundable in the event that EHC Maroc SA fails to enter into the Preliminary Sales Contract and, in the case of the Euro deposit, will also be refunded (net of any bank charges) to purchasers who enter into the Preliminary Sales Contract within the required time period. For purchasers in Morocco, the MAD deposit (net of any bank charges) will be offset against the future amounts due pursuant to their Preliminary Sales Contract.
  • After the end of the cooling-off period, the deposit is non refundable if the purchaser fails to enter into the Preliminary Sales Contract within the relevant 21 day period (see below).

2. The Preliminary Sales Contract

  • The Preliminary Sales Contract details specifications relating to the real estate, notably the delivery period, price and technical characteristics of the Villa or Ryad (townhouse).
  • Within 21 days of the end of the cooling-off period, the purchaser must transfer 10% of the total purchase price to the Moroccan Notary, together with the relevant Tax and Fees, which will be held by it in a client account and either sign a Preliminary Sales Contract before the Moroccan Notary in Marrakech or sign a Power of Attorney (before a Notary in their own country who must arrange for the Power of Attorney to be legalised) authorising a 3rd Party Attorney to complete the Preliminary Sales Contract on behalf of the Purchaser and ensure that the 3rd Party Attorney attends before the Moroccan Notary and executes the Preliminary Sales Contract within the 21 day period.
  • All monies paid by a purchaser under the Preliminary Sales Contract and Final Contract shall be protected by a Bank Guarantee and shall be reclaimable in the event that EHC Maroc SA fails to deliver the real estate.
  • Upon receipt by it of the 10% payment (plus Taxes and Fees), the Moroccan Notary will request the Bank to issue to it the Bank Guarantee. The Bank will issue the Guarantee to the Notary within 10 working days of such a request and, upon receipt by it of the Guarantee, the Notary will execute the Preliminary Sales Contract either in the presence of the purchaser in Marrakech or in the presence of the 3rd Party Attorney pursuant to the Power of Attorney. The Notary will then send the executed Preliminary Sales Contract, together with the Guarantee, to the Purchaser.

3. Deferred Payment

  • After signing the Preliminary Sales Contract, further instalments of the purchase price are due as follows: -
    • 40% of the total purchase price (plus Taxes and Fees) is payable to EHC Maroc SA by 31st January, 2007;
    • 20% of the total purchase price (plus Taxes and Fees) is payable to EHC Maroc SA by 30th September, 2007;
    • 20% of the total purchase price (plus Taxes and Fees) is payable to EHC Maroc SA by 30th June, 2008.

3. The Final Contract

  • The real estate is deemed complete when a permit to inhabit or a certificate of compliance, signed by the architect, is obtained.
  • On completion of the Villa or Ryad, which should not be later than 30th December, 2009, a Final Contract is entered into under which payment of the outstanding 10% of the purchase price (plus Taxes and Fees) is made to EHC Maroc SA and the transfer of the aforementioned real estate to the purchaser is completed.

Taxes and Expenses Relating to the Purchase of Real Estate

Moroccan tax and conveyancing legislation differs from the English system and as such purchasers are recommended to seek professional advice from a Moroccan lawyer.

General benefits of the Moroccan taxation system.

  • Full exemption from capital gains tax when the real estate has been the main residence for eight years.
  • Exemptions, for residents, from income tax on the rental income for the three years following the completion of the construction.
  • Non-residents benefit from the provisions, in order to avoid double taxation, of the tax treaties that Morocco maintains with a number of countries.

As a broad indication, initial incurred purchase costs are likely to be as follows:

  • Preliminary Sales Contract:
    • Registration of Contract – 1% of the 10% deposit amount
    • Notary Tax – 0.5% of the deposit amount
    • Notary Fee – 0.5% of the purchase price
    • Misc Expenses – MAD 10,000 (Stamps, translation, correspondence with Foreign Currency Office, etc.)
  • Final Sales Contract:
    • Land Conservation Fee – 1% of the purchase price
    • Land Registration Fee – 2.5% of the purchase price
    • Notary Fee – 1% of the purchase price

Important notice

  1. No description or information given by Knight Frank LLP or Hamptons Estates Limited whether or not in these Particulars and whether written or verbal ("information") about the property or its condition or its value may be relied upon as a statement or representation of fact. Neither Knight Frank LLP nor Hamptons Estates Limited have any authority to make any representations and accordingly any information given is entirely without responsibility on the part of the agents or the seller(s) or lessor(s).
  2. These particulars do not constitute, nor constitute part of, an offer or contract, nor shall they merge in any offer or contract which may hereafter be made between the sellers or lessors and the recipient of the information.
  3. The photographs show only certain parts of the property at the time they were taken. Any areas measurements or distances given are approximate only.
  4. Any reference to alterations to, or use of any part of the property is not a statement that any necessary planning, building regulations or other consent has been obtained. These matters must be verified by any intending buyer or lessee.
  5. Any buyer or lessee must satisfy himself by inspection or otherwise as to the correctness of any information given.

Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 20 Hanover Square, London W1S 1HZ where you may look at a list of members' names.

Hamptons Estates Limited is a limited company registered in England with registered number 2036215. Our registered office is 7 Lower Sloane Street, Sloane Square, London SW1W 8AH.