Buying off-plan (VEFA) in Morocco: contract, payments and guarantees

Buying off-plan means signing for a home that has not been built yet: the developer undertakes to build it within a set time, and you pay in instalments as work progresses. In Morocco this sale of property under construction (vente en l’état futur d’achèvement, VEFA) is governed by Law 44-00, substantially amended by Law 107-12, in force since its publication in the Official Bulletin on 18 February 2016.

The law is protective on paper: a clause that breaks its rules makes the contract void. In practice, many off-plan sales do not strictly follow this framework (a simple reservation, then a promise of sale or the final sale on delivery). That is exactly where buyers lose their protections.

It is optional and can only be signed once the building permit has been obtained. It takes the form of an authentic deed or a deed with a certified date and repeats the particulars of the preliminary contract, except the guarantee.

• Advance: 5% of the price at most, paid into a dedicated bank account that cannot be used or seized during the withdrawal period, against a receipt.
• Withdrawal: you can withdraw within one month; the seller refunds the advance within seven days.
• Term: six months at most, not renewable. It must lead to a preliminary contract or to a refund.

Any payment demanded before a reservation or preliminary contract is signed is void: never pay “reservation fees” against a simple receipt.

This is the core VEFA contract. Since Law 41-25, published in the Official Bulletin on 16 July 2026, it must be an authentic deed, in practice drawn up by a notary or adouls, or it is void; a deed with a certified date drafted by a lawyer is no longer accepted for this contract.

It must state in particular: the parties’ identities, the land title reference of the plot, the building permit number and date, the description and approximate surface of the home, the final price per m² and payment terms, the delivery deadline and the guarantee reference.

The seller lodges with the person drafting the deed the architect’s plans stamped “ne varietur”, the reinforced concrete plans, the specifications (cahier des charges) and the bank or insurance guarantee. Ask for copies.

The law caps what the developer can collect at each stage, as a share of the total price:

• 5% at reservation;
• 5% at the preliminary contract (10% if there was no reservation);
• 10% when work starts;
• 60% in three agreed phases: foundations at ground-floor level, structural work (gros œuvre) for the whole building, finishing with the occupancy permit (permis d’habiter) or certificate of conformity;
• 20% at the final sale and key handover.

Never pay an instalment ahead of the works: go and see progress, ask for the architect’s certificate and pay by transfer or cheque, never in cash.

After the preliminary contract, the seller must provide either a completion guarantee or a guarantee to refund the sums paid if the contract is not performed (bank guarantee or insurance). The person who drafted the deed may only release your funds to the developer once that guarantee is provided.

The terms of these guarantees were to be set by decree. In June 2023, La Vie éco reported that both decrees were still awaited and that insurers largely refused to cover the completion guarantee; we have found no publication since. So demand in writing the name of the guaranteeing bank, the amount covered and its duration, and check the guarantee with the bank.

Another protection: once your advances exceed 50% of the price, a provisional entry (prénotation) can be recorded on the land title with the seller’s consent. It secures your rank until the final sale is registered.

The developer can extend the delivery deadline by up to six months if it notifies you at least one month before the planned date. Beyond that, the party in default owes compensation of 1% a month, capped at 10% a year; the same rule applies to a buyer who pays an instalment late.

If the seller does not deliver by the agreed date, you can terminate without paying compensation and claim 20% of the sums paid. In other cases of termination, the injured party is entitled to 15% of the sums paid up to the structural work, or 20% up to finishing.

The right exists, but recovering money from a developer in trouble takes a long time: the press reports two to three years of proceedings. Hence the importance of the bank guarantee and of a sound developer.

On titled land, the developer must apply to split the mother title into individual titles (one per unit) and inform you within 30 days. Without an individual title, the bank cannot register a mortgage and the final sale cannot be registered.

The developer notifies you within 60 days of obtaining the occupancy permit or certificate of conformity. The final sale follows the architect’s certificate, the occupancy permit, the title split and payment of the balance. If either party refuses to sign within 60 days of formal notice, the other can seek termination with compensation or a judgment that stands as the sale.

You become the owner when the sale is entered on the land title. At key handover, make a written inspection report and list any defects (finishes, surfaces, equipment promised in the specifications).

• Get a land registry certificate on the plot’s title: owner, mortgages, seizures.
• Check the building permit at the municipality (number, date, number of floors) and compare it with the plans.
• Look into the developer: projects delivered, past delays, buyer feedback, trade register.
• Insist on a reservation or preliminary contract that complies with the law, before a notary or adouls, stating the guarantee reference.
• Read the specifications: materials, equipment, parking, storage, shared areas, delivery date.
• Be wary of prices far below market and large advances demanded with no title or permit: the Bab Darna case showed where that leads.
• If you are borrowing, have the bank approve the project before signing: it will often lend at the final sale, once the individual title exists.