Buying Off-Plan in Morocco: Your Legal Protection Against the Developer

New developments are multiplying in and around Agadir: seafront residences, complexes with pools, flats in Inezgane or Ait Melloul. Many are sold off-plan, before construction is finished. Buying off-plan often secures a better price, but it carries specific risks: delays, the developer going bust, or a property that differs from what was promised. Moroccan law provides a protective framework. You still need to know it and insist on it.

A specific legal regime

The sale of property under construction (vente en l’état futur d’achèvement, or VEFA) is governed by special provisions of the Code of Obligations and Contracts, introduced by Law 44-00 and strengthened by the 2016 reform. They apply to residential, professional, commercial and industrial buildings, and many of their rules are mandatory: the developer cannot override them with a contractual clause.

Step 1: the preliminary contract

The sale usually begins with a preliminary contract, which can only be signed once the building permit has been obtained. It must contain mandatory information, including:

• the parties’ identities and the reference of the land title;
• a precise description of the property: area, floor, plans, materials and fittings;
• the price, payment terms and any price review;
• the delivery date;
• the refund or completion guarantees.

The preliminary contract must be drawn up in the form required by law. Beware of mere “reservation slips” accompanied by a cheque: they do not offer the same protection.

Step 2: payments tied to construction progress

The price is paid in instalments as construction progresses, according to a schedule regulated by law. The developer cannot demand most of the price before construction has actually advanced. Each call for funds must correspond to a stage that has genuinely been reached, which the buyer can have verified.

Step 3: guarantees

To protect buyers against a developer’s default, the law provides for guarantees, such as a bank or insurance guarantee for refunding the sums paid, or a mortgage in the buyer’s favour. Before paying anything, check which guarantee is provided and that it has actually been put in place.

Step 4: the final contract and handover

The final contract of sale is signed once construction has reached the stage set by law, and handover takes place on completion. When you receive the keys, draw up a detailed handover report and note every snag: finishes, cracks, missing fittings, floor areas. Check that the property matches the contract, especially the area.

The most common problems

1. Late delivery: the law provides for compensation when the delay is the developer’s fault; it can be claimed amicably or in court.
2. Non-compliant property: smaller area, lower-quality materials, different view or orientation. The buyer can ask for a price reduction, remedial work or, in serious cases, termination of the sale.
3. No occupancy permit: without it, permanent utility connections and resale become complicated.
4. Land title not split: the flat remains within the development’s “parent” title and the buyer cannot obtain their own title. The developer must then be required to split the title and record the sale.
5. Defects appearing after handover: the builder and architect remain liable for a statutory period for serious defects affecting the building’s structural soundness.

Our advice before reserving

• Check the developer’s identity, track record and financial position.
• Look at the land title and the building permit.
• Have the preliminary contract reviewed before making the first payment.
• Pay by transfer or cheque, never in cash, and keep everything.
• Visit the site regularly and keep dated photos.

A lawyer to deal with the developer

The office of Maître Said Laachili advises buyers of new homes in Agadir, Inezgane and Ait Melloul, reviews preliminary contracts and represents buyers in cases of delay, non-compliance or blocked titles, as part of its real estate law practice. Buyers living abroad should also read our guide for Moroccans abroad.

To go further: buying property in Agadir and land title or melk land. A dispute with a developer? Contact the office.