Morocco Tightens Real Estate Laws: New Requirements for Property Transactions

Article 4 of the Real Rights Code now stipulates that "sales agreements or related powers of attorney must be subject to contractual formalism. They must be drawn up in an authentic act or in a dated document drawn up by a lawyer approved by the Court of Cassation, unless a special law provides otherwise." It is mandatory to sign the deed drawn up by a lawyer and have all its pages initialed by the parties and by the person who drafted it, informs Finances News Hebdo.

Similarly, the competent authorities must legalize the signatures of the parties. Also, the signature of the lawyer who drafted the deed must be approved by the chief clerk at the court of first instance where the lawyer practices. In other words, private deeds drafted freely or by a public writer are not legally recognized for this type of operation.

The sales agreement is a pre-contract that is concluded before the signing of the final contract or pending the fulfillment of a condition, in particular the obtaining of a loan or land titles for the developer.

Long awaited, the change made to Article 4 of the Real Rights Code will help preserve the rights of all contracting parties and avoid problems with the administration, particularly disputes between seller and buyer. Many such cases are brought before the courts. According to the magazine, this change should also put an end to certain unhealthy practices that avoid mentioning the sales agreement and replace it with a reservation or commitment act that can introduce clauses that are illegal or abusive.