Morocco to Introduce New Regulations for Real Estate Developers

For years, several real estate scandals have been detrimental to the sector, including Bab Darna, which has hundreds of victims. Several frauds have been exposed in the ranks of operators who pass for professional developers, throughout the country where only Article 30 of the General Tax Code defines the real estate developer. This means that there is still no regulatory text based on a law, with prerogatives, rights, but also obligations, to establish and preserve the credibility of true professionals and guarantee the security of customers’ interests.

It is in this logic that the FNPI, in its memorandum published in 2018, had expressed the wish to create a developer status with the objective of delineating the spheres of responsibility, meeting the required quality standards, promoting transparency, regulating the profession and protecting employees and workers.

From now on, it will be necessary to count on the obligation to sign contracts with all the trades, such as the design office, the control office, the architect, the obligation to take out decennial insurance and the claim for civil liability insurance from the construction company and verification of its validity, reports La vie éco.

Regarding the financial aspect, "the FNPI refuses to include this clause in the reflection it is conducting, to avoid any discrimination based on the size of the developer" and in practice, "a national body of real estate developers should be created. This is an entity that should have more powers than the federation, including taking responsibility for the control of developers and documents", explained Taoufik Kamil, president of the FNPI.

"That said, the regulation of the profession is essential to stop, at least limit, assimilating associations with real estate developers" hammered Mr. Kamil. But for the moment, the project is still under discussion with the supervisory authority, according to the same source.