Buying Property in Morocco
Financing a
Moroccan property purchase
Currency: Dirham (Dh)
Loan to Value: Up
to 70% of the valuation price
Term: Up to 15 years
There are
built in mortgages in place for
investors in Moroccan property. It
is possible when purchasing a
Moroccan property to borrow up to 70%
of the value of the Moroccan
property for a duration of up to 15
years from a Moroccan bank. The
interest rate (Feb 06) is at 5.5%.
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 To
assist you in forming a decision about
buying property in
Morocco this page will make you
aware of all you need to expect. The most important factor
is to work with an established agent, like ourselves, who
can guide you through each step of the process and help
you avoid any pitfalls.
Using an Agent
A good agent is essential when you
buy a
property in
Morocco. At Fair Deal Investments
we offer a wide selection of carefully selected properties
for sale in Morocco. At the moment we only offer new (off
plan) developments in Morocco as these generally offer the
best value for money and are more in line with popular
demand.
3 steps to buying property
in Morocco:
1. Making an Offer.
When you have decided on a property to buy in
Morocco you will need to make a verbal offer through the
agent which will need to be accepted by the vendor. Once
an agreement on price is achieved, sale negotiations
will proceed.
At this stage a lawyer should be appointed by you to
formalise the agreement. With the property being
off-plan there is often little or no room for
negotiation at this stage as the price is normally fixed,
dependant upon the current phase of construction.
2. Appointing a Lawyer.
It is wise to appoint a
lawyer who is fluent in your
language so that you properly understand all the
legalities and exactly what is happening. Our agents
will gladly recommend you a good solicitor who will carry out
all the necessary checks on the property and complete
the legal requirements of the sale.
3. The Purchase.
The purchase of a property in Morocco is a
standard procedure, similar to anywhere on the European
Continent. The buyer will open a Euro account with a
bank in Morocco and transfer Sterling or Euros to this
account. The Euros will then be converted into Dirhams
when paying funds to the vendor.
Standard Procedures:
Reservation Fee
- This is required immediately to reserve the unit(s)
and freeze the price. The required reservation fee
depends on the unit you choose, the developer and the
development, but typically is around € 3,000.
Deposit -
After 30 days, 30% of the cost of the property is due.
This acts as a deposit and is all you are required to
pay until completion of the property. 30% is common
however various developers and developments require
different deposit payment percentages. They may also
require interim payments throughout the construction
process. You will need to ensure you fully understand
exactly what payment structure is in place before
committing to buying a property in Morocco.
Completion -
Upon completion, the remaining 70% is payable. Some
buyers will look to finance this sum with a mortgage.
The balance of 70% may vary depending on the specific
payment structure adopted for your development.
Additional Costs
- Property buyers in Morocco should expect to pay around
6.5% of the property price. This amount is generated
from lawyer fees, notary costs, registration etc. Land
sales are subject to a charge of 1% to cover the
notaries' fees
Mortgages
Mortgages are available in
Morocco. Buyers can borrow up to 70% over 15 years with
an interest rate (Feb 06) of around 5.5%.
We recommend visiting our
Mortgages in Morocco page for
more information.
Tax Liability
Understanding your Moroccan tax
responsibilities is essential when looking to purchase a
property in Morocco. Click here to visit our
Morocco Property Tax section to
find out more. Alternatively you can e-mail:
morocco@cu-again.com.
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CU-AGAIN