Scope and form
- Applies to premises in which a commercial, industrial or craft business is operated, under a written lease with a certain date (Arts. 1 to 3).
- A jointly prepared inventory of fixtures is mandatory on taking possession.
Right to renewal and eviction
- The tenant is entitled to renewal after two years of actual occupation (Art. 4).
- A landlord who refuses renewal must pay eviction compensation equal to the loss suffered (value of the business, moving costs, loss of customers), except on legitimate grounds: non-payment, unauthorised change of activity, damage to the premises, demolition and reconstruction (Arts. 7 and 8).
- A reasoned notice to quit served by extrajudicial act, with fifteen days' notice for serious grounds, and a validation procedure.
Rent and assignment
- Rent review under Law 07-03 (every three years, capped at 8% or 10% depending on use).
- Assignment of the lease together with the business without the landlord's consent, subject to notification (Art. 25).
Key articles
Art. 4
« The right to renewal of the lease is acquired by a tenant who proves occupation of the premises for two consecutive years, under one or more successive leases. »
Art. 7
« The landlord may refuse to renew the lease provided that it pays the evicted tenant eviction compensation equal to the loss caused by the failure to renew. »
A lawyer's points to watch
- Without a written lease, the tenant loses the protection of Law 49-16: put any oral lease in writing.
- A formal notice to pay with a fifteen-day deadline is an essential prerequisite to eviction for unpaid rent.
- Eviction compensation is negotiated on the basis of an expert valuation; plan ahead for the valuation of the business.
The English text on this page, including the quoted articles, is an unofficial translation. Information sheet prepared by Maître Lahfaia Law Firm, Rabat. It does not constitute legal advice. Only the text published in the Official Bulletin of the Kingdom of Morocco is authoritative; the articles cited may have been amended since this sheet was written.