Giving Property to Your Children in Morocco: The Gift (Hiba) Explained

Many parents want to arrange during their lifetime how their house, flat or land will be passed on: to avoid a quarrelsome co-ownership, help a child settle, protect a daughter or spouse, or simply prepare for the future. In Morocco, the most common tool is the gift, known as hiba. It is subject to strict rules: a badly made gift can be annulled, sometimes years later, to the detriment of the very person it was meant to protect.

What a gift is

A gift is the act by which a person transfers ownership of an asset to someone else free of charge, during their lifetime. For real estate, it is governed by the Real Rights Code. It must be accepted by the recipient and concern a specific asset that genuinely belongs to the giver.

A mandatory form

A gift of real property must be made by authentic deed: before a notary or adouls, or by a lawyer authorised under the conditions set by law. A simple private acknowledgement is not enough.

Taking possession: an essential condition

Under Moroccan law, a gift is only complete if the recipient takes possession of the property. If the giver dies, or falls into certain situations provided for by law, before possession is taken, the gift may be annulled. For registered property, recording the gift on the land title at the land registry plays a decisive role. This is why all formalities should be completed promptly after signing, rather than “keeping the deed in a drawer”. See land title or melk land.

Gifts during a final illness

A gift made by someone suffering from the illness that will cause their death is treated as a bequest: it is only valid up to one third of the estate and, in principle, cannot benefit an heir without the other heirs’ consent. A gift made late, in haste, is therefore fragile. It is better to arrange it while in good health.

Can a gift be revoked?

A gift is in principle irrevocable. The law does, however, allow a father or mother, in limited cases, to take back a gift made to their child, unless certain circumstances prevent it, for example if the child has married or taken on commitments on the strength of the gift. These rules must be examined case by case.

Gifts and inheritance: protecting without cheating

Inheritance rules set shares that a will cannot change in favour of an heir. A lifetime gift, when genuine, is a lawful way of passing an asset to a son, a daughter or a spouse. By contrast, a sham sale designed to disguise a gift, or a fictitious gift in which the giver continues to behave as the owner, is open to challenge by the other heirs. Transparency and respect for the formalities are the best protection. To understand how estates are divided, read inheritance and division in Morocco.

Tax

Gifts between close relatives (parents, children, spouses, brothers and sisters) benefit from a favourable tax regime for registration duties, and from special treatment for capital gains tax on property. Rules and rates change with the annual finance laws, so check the position at the time of the deed.

Moroccans abroad and property in Morocco

Moroccans living abroad can give, or receive, property located in Morocco, including through a power of attorney. Care must then be taken with the form of the power of attorney and the applicable law, particularly for dual nationals. See handling a legal matter in Morocco remotely.

A worked example

A father in Inezgane wants to give a registered flat to his daughter while staying on good terms with his sons. With his lawyer, he has an authentic deed drawn up, tells his other children, has the gift recorded on the land title straight away and hands the keys to his daughter, who moves in. Years later, when he dies, the other heirs cannot challenge a gift that was properly made and actually taken up. This simplified example shows that form, possession and transparency are what make a gift robust.

Key takeaways

• A gift of real property is made by authentic deed.
• Without possession, the gift may be annulled: have it recorded on the land title without delay.
• A gift made during a final illness is treated as a bequest.
• A genuine gift is a lawful way to protect a child or spouse; a sham gift can be challenged.

Frequently asked questions

Can I give a property and keep living in it?

Some arrangements make it possible to organise occupation of the property, but they must be compatible with the requirement of possession. They call for very careful drafting.

Can a gift concern unregistered property?

Yes, but proving ownership and possession is then more delicate; registering the property first is often advisable.

A lawyer to secure your gift

The office of Maître Said Laachili assists families in Agadir, Inezgane and Biougra with preparing gifts, checking titles and preventing inheritance disputes, as part of its real estate law and civil law practice. Before buying or passing on property, also read buying property in Agadir. Planning a gift? Contact the office.