Significant Reforms in Moroccan Real Estate Transactions
In a groundbreaking move to enhance the security of real estate transactions, the Moroccan Parliament has enacted a major reform aimed at eliminating fraudulent practices in the property market. The recent legislation strictly prohibits private contracts and certain forms of power of attorney, declaring them null and void. This decisive action intends to protect buyers, particularly Moroccans living abroad (MRE), by mandating the creation of official and authentic deeds for all property transfers, including sales and lease-to-own arrangements. Traditional customary agreements, known as "O’rfi" (customary deeds), have been completely banned from the legal framework.
Impact of the New Regulations
This new legal requirement extends to promises of sale and special powers of attorney concerning real estate assets. By enforcing these stringent formalities, the lawmakers aspire to cultivate a genuine climate of trust while addressing the multitude of disputes that have emerged from ambiguous or falsified documents. While this comprehensive overhaul of the real rights and obligations code significantly bolsters contractual security, it has also raised concerns among stakeholders. The mandatory nature of these official procedures could potentially increase costs and extend processing times, which may adversely affect ordinary citizens and small investors as they navigate the national market.
As reported by bladi.net.
