How to Buy Off Plan Property in Morocco?

Buying Off Plan Property in Morocco: What to Know

If you're eyeing a new-build apartment in Casablanca, Tangier or Marrakech before it's finished, you're looking at what Moroccan law calls a vente en l'état futur d'achèvement (VEFA). Off plan property in Morocco has real upside — better prices, choice of unit, staged payments — but the legal framework has teeth you should understand before you sign anything.

Quick answer

Off plan property in Morocco is governed by Law 107-12 (which amended Law 44-00 on VEFA), integrated into the Dahir des Obligations et des Contrats (DOC), Articles 618-1 to 618-20. You sign a preliminary contract before construction, pay in tranches tied to build progress, and receive final title only after the developer delivers. The law requires a bank or insurance guarantee, a notarized or adoulaire contract, and caps what the developer can demand up front. Skip any of these and you have no legal protection — full stop.

The contract structure is fixed by law

You don't get a single contract. You get three, in sequence.

First, a contrat de réservation (reservation contract) — optional, but common. The developer can only ask for a reservation deposit capped at 5% of the sale price under Article 618-3-1. That money sits in an escrow account. If the project doesn't launch within the agreed timeframe, you get it back.

Second, the contrat préliminaire de vente (preliminary sale contract). This is the real commitment. It must be executed either before a notary (notaire) or by adoul (traditional notaries for Islamic-law acts), or drafted by a lawyer registered with the Bar and authorised to draft such contracts. A private signed contract won't cut it — Article 618-3 of the DOC makes the formal act mandatory, and courts will void informal versions.

Third, the contrat définitif de vente — the final deed, signed once construction is complete and the developer has obtained the permis d'habiter (occupancy permit) and cadastral registration of the unit at the ANCFCC (Agence Nationale de la Conservation Foncière, du Cadastre et de la Cartographie).

Most buyers don't realise the preliminary contract is what gets them into court if things go sideways. Read it like your life depends on it.

Payments are staged — and the guarantee is everything

Here's where off plan property in Morocco either protects you or exposes you. Law 107-12 sets maximum payment tranches tied to construction milestones:

• Up to 50% once foundations are complete
• Up to 75% once the structural work (gros œuvre) is finished
• Up to 90% once finishes are done
• The final 10% on delivery of the keys and the occupancy permit

The developer cannot demand more than these caps at each stage. If they do, refuse — and cite Article 618-9.

Critically, the developer must provide either a bank guarantee or an insurance guarantee covering reimbursement of your payments if the project fails or is abandoned. This guarantee has to be attached to the preliminary contract itself. No guarantee, no contract. If a developer tells you "we'll get it later" — walk away. This is the single most abused rule in the sector, and the one that leaves buyers wiped out when a promoter goes bust.

Watch out: Ask to see the actual guarantee document — issued by a licensed Moroccan bank or insurer — before you sign anything or transfer a dirham. A verbal assurance is worthless.

Costs and taxes you'll actually pay

Budget beyond the sticker price. For an off plan purchase in 2024-2025, you're looking at:

• Registration duties (droits d'enregistrement): 4% of the sale price for residential property, paid at the Direction Générale des Impôts (DGI)
• Land registration fees (conservation foncière): 1.5% plus a fixed 150 MAD for the certificate
• Notary fees: roughly 0.5% to 1% of the price, plus VAT (TVA) at 10% on the notary's fee
• Stamp duty (timbres): 20 MAD per page, small but adds up
• VAT on the property itself: 20% is included in the developer's price for new builds, though a reduced rate or exemption may apply for social housing under specific conditions

Foreign buyers can purchase freely in urban zones. Agricultural land is off-limits without a vocation non agricole reclassification. If you're financing from abroad, register the incoming transfer with the Office des Changes — this is what lets you repatriate the sale proceeds later without headaches.

What happens if the developer delays or defaults

Delays are common. Sometimes the project stalls for years.

The preliminary contract must specify a delivery date. If the developer misses it, Article 618-13 lets you either demand execution with damages, or terminate the contract and recover everything paid — activated through the bank/insurance guarantee. Late-delivery penalties (typically 1‰ per day of delay, capped) should be written into the contract; if they're not, negotiate them in.

If the developer goes bankrupt, the guarantee is your lifeline. Without it, you join the queue of unsecured creditors in the procédure collective at the Commercial Court — and historically, off plan buyers in that queue have recovered pennies on the dirham, if anything.

Two practical moves before you sign:

1. Verify the developer's track record. Check prior projects, delivery timelines, and whether they've faced disputes. The Ordre National des Architectes and OMPIC's commercial register are starting points.
2. Verify the land title. The developer must own the land free of mortgages that would block your future title. Ask for a recent certificat de propriété from the ANCFCC.

Is off plan property in Morocco a bad idea? No. Thousands of transactions close every year without incident. But the buyers who get burned almost always ignored the guarantee requirement or signed an informal contract to "save on notary fees." Don't be that buyer.

For deeper reading on related transactions, see our category page on Moroccan real estate law.