Unpaid Fees Threaten Morocco’s Growing Condominium Sector

In real estate, a condominium refers to a set of lots whose ownership is shared among several people. This concept, which has recently arrived in Morocco, is far from having a bright future ahead of it, mainly due to the non-payment of syndicate fees. "The concept of condominium in Morocco is a relatively recent one, which entails several specific challenges. By far, non-payment of fees remains the main problem facing condominiums in our country. The Moroccan co-owner does not easily pay the Syndic fees, he pays out of customer satisfaction and not out of legal obligation...," explains to Challenge Dalila Ennaciri, CEO of GESTIS & President of AMCOP. At the root of the non-payment of syndicate fees are the financial difficulties of the co-owners, a lack of transparency in the management of funds, negligence or disagreements between the members of the syndicate.

This non-payment is not without consequences for the condominium. "The lack of payment of fees by some co-owners creates a budget deficit that directly impacts the maintenance and management of common areas. The funds necessary for repairs, maintenance of common spaces, security services, and administrative costs become insufficient. This can lead to deterioration of infrastructure, a decrease in the quality of life of residents, and a loss of value of the real estate assets," explains Dalila Ennaciri, deploring the fact that legal remedies to recover "unpaid fees can be long, costly, and sometimes ineffective." The other problems facing condominiums are: recent and summarily applied legislation, and the lack of regulation of the syndic profession. "On another level, Moroccan legislation on condominiums is relatively recent, with Law 18-00 adopted in 2002. Despite its amendment in 2016, the law remains very timid and especially out of step with its application on the ground in the absence of intervention powers based on power to this effect as a neighborhood police," observes the president of AMCOP.

Dalila Ennaciri makes several proposals that could help get condominiums out of their predicament. "The syndic must in advance send the fee calls and share the financial situation with the co-owners. After exhausting the reminders and the amicable phase, the syndic, whether voluntary or professional, must send formal notices to the delinquent co-owners. The syndic must initiate legal proceedings to recover unpaid fees. Also, Moroccan law on condominiums provides for depriving defaulting co-owners of attending general meetings, depriving them of the right to vote and make major decisions such as the budget vote," she recommends. The expert calls for strengthening the legal framework and control mechanisms to ensure compliance with the rules and obligations of each co-owner, but also for the implementation of incentive and deterrent measures to encourage the payment of fees and sanction offenders.