The Moroccan Mortgage Process Explained
Morocco was once a French colony and still has close ties to the country, so it is unsurprising that buying property in Morocco is very similar to the process of buying property in France.
We recommend that you appoint a specialist in Moroccan mortgages, either a lawyer or other expert, regardless of the notary. This specialist will be invaluable in helping you navigate the language, local customs, and the general property purchasing process.
The initial contract is drawn, after a offer is made and accepted on a home. This type of contract is called “Compromis de Vente” and it is the custom to make a down payment of ten percent at this time. Provided the Compromis de Vente is protected by the proper clauses at the time of signature by both buyer and seller, the deposit is refundable. It is important to have an “escape” clause in the event that your mortgage cannot be finalized. Make sure that this clause is included in your contract and make it conditional upon arranging for your Moroccan Mortgage.
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. Because of this, be absolutely certain that in your Compromis de Vente, there is an “escape” clause.
In most cases, Mortgages are available with 15-year terms. But, you often are able to have this lengthened to 25 years, though the interest rate here will be greater. The first six months of the mortgage are interest-only, but different terms apply for the remainder of the term.
First the Compromis de Vente is signed and then a search will take place. If the search is 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.
It is strongly recommended under Moroccan practice that you get a lawyer as the notary who will act for both the buyer and the seller. For this reason, you have to be certain the title’s deed and the mortgage paperwork are appropriately researched for your own good. Always make sure that you have a lawyer check what works will take place nearby in the future! The bank will probably not do so, and if you do not check it may be harder to sell the property later on.
It is also easy to find developers who will handle construction and the transaction of real estate deals, offering total packages for purchasing Moroccan property. Along with considering the convenient opinions of the appointed lawyers and notaries you need to make independent decisions in protecting your interests.
