The contract
- The contract is made in writing, registered and entered on the land title where the property is registered.
- It specifies the price, the period of occupation, and the amount of the periodic charge and its split between rent and the acquisition portion.
- The buyer-occupant enjoys the property and bears the agreed charges during the period of occupation.
Completion
- At the agreed date, the buyer-occupant exercises the option and becomes the owner by a deed of transfer entered at the Land Registry.
- If the option is not exercised, the law provides for the refund of part of the sums paid as the acquisition portion.
- Early termination is governed by the terms of the contract and the protective provisions of the law.
Key articles
A lawyer's points to watch
- Insist on the contract being entered on the land title: only this protects you against a sale of the property to a third party.
- Clearly distinguish, within the periodic charge, the non-recoverable rent portion from the acquisition portion.
- Check that the property is not encumbered by a prior mortgage before committing.
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.