Nonitage

When purchasing a property in Morocco, it is suggested that you enlist the help of an independent lawyer or someone with in depth knowledge of the Moroccan mortgage system, regardless of who will be the notary. It is important to have the assistance of someone with local customs and language knowledge as well as an understanding of the property purchasing process.
Since Morocco was previously a French colony and still maintains close relations with France today, it is perhaps unsurprising that when purchasing a Moroccan property the process is very similar to buying in France.
Fifteen years is a typical mortgage term. This can be extended to 25 years, but it will be accompanied by a much higher interest rate. Although whole mortgage interest-only plans are not available, you’ll only pay interest for the first six months of your loan. Since the application process is such a burden in Morocco, and bank staffs are so inexperienced, arranging a mortgage with professional help is strongly advised.
A preliminary contract is drawn up as soon as you have made an offer and the homeowner accepts it. This type of contract is called “Compris de Vente” and it is the custom to make a down payment of ten percent at this time. A full refund of this deposit is available if the appropriate clauses were drafted into the Compromis de Vente at the time the agreement is signed. A contract will usually include a clause that the purchase will be conditional on obtaining a mortgage; this makes it necessary for you to include an “escape” clause in the event that a mortgage can not be obtained.
Negotiating a Moroccan mortgage is tedious and frustrating, and while an agreement might be arrived at, the mortgage may be issued only once the contract is signed. Thus, again it is extremely important that your Compromis de Vente includes the so-called escape clause.
Once the Compromis de Vente is signed and the searches will take place. If these are satisfactory, then the notary will complete the document by signing it. It is recommended that 5% of the overall purchase price be reserved to ensure any incidental costs and additional fees that may be incurred will be covered. In addition a mortgage tax of 10% is charged monthly for the duration of the mortgage.
Moroccan practice dictates that a notary will act on behalf of both the homeowner and the new buyer, so it is recommended you use a lawyer as the notary. So, be sure the paperwork concerning title deeds and mortgages are properly checked in order to protect you. It is also important to verify that the lawyer has looked into what projects will occur in the region, as the bank may not take such action, ultimately lessening the property value or your ability to sell it.