Buying property off-plan through a VEFA contract (Vente en l'État Futur d'Achèvement) is a widely used purchasing method in Morocco. It enables buyers to acquire brand-new properties in modern developments while staggering payments across construction milestones.
To safeguard buyers against delivery delays or construction flaws, Moroccan Law No. 107-12 strictly regulates off-plan real estate developments.
1. Legal Stages of a VEFA Contract Under Law 107-12
Moroccan law establishes a structured process to protect buyers' deposits:
- Reservation Agreement: An optional initial contract to reserve the unit. By law, the advance payment cannot exceed 5% of the total property price.
- Preliminary Sales Agreement: Signed only after the developer obtains the building permit and completes ground-floor foundation works. It must be drafted by a notary, adoul, or certified lawyer.
- Final Deed of Sale: Executed upon issuance of the Occupancy Permit (Permis d'habiter), individual land title splitting, and full settlement of the purchase price.
2. Mandatory Payment Schedule
Developers are legally prohibited from demanding advance payments outside the statutory schedule:
- 5% upon signing the reservation contract.
- 5% upon signing the preliminary sales contract.
- 10% at the start of foundation works.
- 60% paid progressively across structural and finishing construction stages.
- 20% upon key handover and final deed execution.
If taking out a loan for your final payment, review our guide on conventional vs Mourabaha mortgages in Morocco.
3. Essential Guarantees Required from Developers
Always verify with your notary that the developer provides the following mandatory guarantees:
- Completion Guarantee (Bank Guarantee): Ensures the underwriting bank will step in to finish construction if the developer faces insolvency.
- 10-Year Structural Warranty (Assurance Décennale): Covers structural defects affecting building integrity for ten years post-handover.
Check property legal safety tips in our guide to land titles and title registration in Morocco.
4. What to Do in Case of Handover Delays?
Construction delays remain a common issue in off-plan purchases. Law 107-12 specifies that for unjustified delays, developers owe a late delivery penalty of 1% per month calculated on the total funds already disbursed by the buyer (capped at 10% per year).
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