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Buying A Property In Morocco
Buying a property in any country is a complicated process. Buying a property in a country where you do not speak the language, you do not understand the culture and you do not understand the legal system is even more complicated than normal!
Buying a property in your own country tends to appear more straightforward because you are familiar with the process and the way in which things work. When you read a guide about how to buy a property in another country you may think that it seems far more complicated than buying one at home.
Generally speaking, this isn't so. A foreigner buying a property in the UK would find the process just as complicated and confusing as you find the process of buying a property in, say, Brazil or Romania.
Our Guide to Buying a Property in Morocco is designed to explain the process as simply as possible, to point out some of the key issues and problems involved and to answer some of the questions most frequently asked by our Clients.
IMPORTANT NOTE: Remember that this can only be a GENERAL guide. It is no substitute for proper independent legal advice. We will be happy to provide that advice upon request.
Is buying a property overseas a good idea?
For many of our clients this has been one of the best decisions of their life. The person buying a holiday home sees a huge lifestyle benefit and they often become so comfortable in the area that they later decide to retire there. They usually also see it increase enormously in value over the years. The person retiring finds a better climate, a lower cost of living and, often, a far more active social life than they enjoyed at home. The investor who buys well and takes good advice sees an asset that often performs far better than the stock exchange – and often with less risk.
Buying a property overseas is not for everyone, but it suits a very large number of people. There are now over 800,000 British households that own a property overseas (Source: MINTEL).
Will Morocco do well for you?
Well, we don't have a crystal ball, but we do have over 20 years experience and regularly advise clients who want to put together a portfolio (large or small) of overseas property investments around the world and who are confused by the huge amount of choice now available to them. Contact us or download our 'Buying Property as an Investment" booklet for more details.
Is the way you buy a house in Morocco the same as at home?
No. The systems abroad are very, very different from the English, Irish or US way of doing things.
Generally speaking, however, provided that the appropriate checks are carried out, in most countries there is hardly any more need to worry than there is when buying at home.
Unfortunately, very often people buying property overseas take little or no legal advice and are far too "casual" about the purchase and about the signing of legal documents. If they go about things in this way it can turn out badly. They may find there is no title to the property, that it was built without planning permission. . . or that it does not even exist! DO NOT DO THIS. For your own safety, insist on taking proper, independent, legal advice.
Can you make all the same checks that you would make in Britain?
No. As we have already said, the systems are very different. We can only do what is normal in the country where you are buying the property. We cannot turn this into an 'English' transaction.
Sometimes the local procedure is not as safe as our system. Sometimes it is better. It is always different!
Remember, though, that every year thousands of local people successfully and safely buy houses and apartments.
That is what we set out to do for you.
The role of the estate agent (US: realtor)
Most UK, Irish and US buyers use the services of an estate agent to help them find a property.
Most (but not all) estate agents are, of course, honest, but however honest and helpful they may be you must remember that they are only paid if the property is sold and that they are not able to give you independent legal advice.
Once you have found a property that you would like to buy you will almost certainly be asked to sign some form of reservation or preliminary/promissory purchase contract. It is far better to sign NOTHING until it has been checked by your lawyer. This can, usually, be done quickly – see below.
Be very careful before using the services of the estate agent's "own" lawyers. Are they looking after your interests or the interests of the agent who is providing all their work?
Sales direct from a seller or developer
Increasingly, our clients are buying directly from a seller or developer, without the intervention of an estate agent.
You still need to take all the same precautions.
EVEN SOME MAJOR DEVELOPERS SELL PROPERTY THAT IS ILLEGALLY CONSTRUCTED OR NOT SAFE TO BUY.
The Role of the Notary
In most countries in the world the Notary () plays a major part in the process of buying and selling real estate.
The Notary is an official who is there to put on the public record the fact that the formal documents recording the sale/purchase have been signed in his or her presence and understood by the parties concerned.
The Notary also carries out a number of checks as to the status of the property and/or the buyer and seller. The Notary may act for both buyer and seller.
The Notary will, however, almost always know NOTHING about UK, Irish or US law and, often, has limited English. The use of the Notary is, therefore, no substitute for your own independent legal advice.
Loans & mortgages
Financing the purchase of the property may take several forms. For example:
• a first (or second) mortgage from a UK/Irish/US lender, secured on your existing UK/Irish/US property
• a mortgage on your new Moroccan property from a lender in Morocco (or, occasionally, elsewhere)
Moroccan mortgages are different from UK/Irish/US mortgages.
The mortgage market is only JUST starting in Morocco but a few mortgages are becoming available. You will, of course, have to meet the bank's eligibility criteria.
At the time of writing typical interest rates are about 8% and a normal Loan to Value ration is about 70%. Most mortgages do not exceed a term of 15 years. Interest only mortgages are not generally available.
You should bear in mind that the range of mortgage products on offer to you will not be as wide or as flexible as you are used to in the UK, Ireland or the US.
Also, because the market is quite new, it is difficult to predict the formalities, paperwork, timescale or complications likely to be involved in taking out a Moroccan mortgage.
Choosing the wrong mortgage is an expensive mistake.
Many of our clients discuss their position with us so that they can decide whether a local or an overseas mortgage will suit them best. We can then, if they wish, introduce them to specialist mortgage brokers in their own country or in Morocco so that they can arrange the best mortgage for their individual needs.
Structural surveys
As is the case with the purchase of a property anywhere, it is often prudent to have the property you intend to buy surveyed (US: inspected). We strongly recommend a survey, especially in the case of older or unusual properties or in the case of properties that have been extended or modified. Structural surveys typically take 7 - 10 days. The time and cost varies from place to place.
We can, if you wish, make arrangements for such a survey and will be pleased to advise about the merits of doing so.
What is the process of buying a property in Morocco?
Preparation
The process of buying a property – whether for your personal use or as an investment – SHOULD start with thorough preparation.
This will save to a lot of wasted time AND money.
We STRONGLY recommend that you make contact with us BEFORE you go to look at any property.
That way we can deal with all of the key issues (such as those listed below) calmly and clearly, before you get involved in the rush and pressure always associated with buying a specific property anywhere in the world.
Who should own the property?
Getting this question of ownership wrong is probably both the most common and the most expensive mistake people make when buying property overseas. There are many people who could be made the legal owner of the property or, as the case may be, the shareholders in the company that owns the property. The best choice is, often, not obvious.
Getting this wrong can cost you tens of thousands of pounds/euro/dollars of totally unnecessary taxes, during your lifetime and on your death.
Most local lawyers will be unable to help you make this decision as it involves an understanding of both the local AND your own legal, tax and inheritance systems.
We will be happy to assist you in making this vital decision.
What are the options?
There are many ways to purchase the property. These include:
- in your own name alone
- in your name and in the name of your co-purchaser(s)
- wholly or partly in your children's names or in the name of somebody whom you would like (eventually!) to inherit the property from you
- in the name of a limited company, whether English, Moroccan or "off-shore"
- via your SIPP/SSAS pension fund
- via an investment fund (REIT, PUT etc)
- via an investment club
- via a trust
Each method has its own advantages and disadvantages. The one that will be best for you will depend entirely upon your own personal circumstances.
We shall be pleased to advise as to the most advantageous method for you.
The 'Reservation Contract', 'Offer to Buy' or 'Preliminary/Promissory Purchase Contract'
A Reservation Contract (Contrat de Reservation) is a contract, usually short, under which you pay a small amount of money (typically £2000, $3,000 or €3,000) to take the property off the market for a short time (typically 2 to 4 weeks). During this period your lawyers can check things out. If everything is in order you then sign a preliminary/promissory purchase contract and pay over a full deposit. If there are any problems, you pull out. Usually, if you pull out because of legal problems you will be contractually entitled to your money back. If you simply change your mind you will often lose the deposit.
An Offer to Buy is a formal written offer to buy a property. It should, ideally, be drafted by your lawyers or a qualified estate agent to make sure that it contains any clauses needed to protect your position. Once you have made the offer, if it is accepted by the seller this can create a legally binding commitment. An Offer to Buy is not a document to be signed lightly.
A Preliminary/Promissory Purchase Contract (Contrat Preliminaire/Compromis de Vente) is a legally binding contract to buy the property. It is followed up by a formal contract of sale, so to that extent it is a preliminary contract, but it is legally binding. If you do not go ahead with the purchase you will almost certainly lose your deposit and may face further action from the seller.
In fact, whichever type of document you are signing it is a good idea to get your lawyer to have a quick look at it before you do so. They are not always what they seem. See our 'Checking your Contract' service, below.
We much prefer it if clients start the purchase by way of a Reservation Contract or Offer to Buy. It is the safest.
Often, however, they come under pressure to sign a fully binding contract ('Preliminary/Promissory Purchase Contract' or 'Private Contract') at this very early stage – before anything has been checked out. Try to resist this. If there is no alternative ALWAYS get it checked by your lawyer before you sign it. Ideally, it should be subject to conditions (US: contingencies) stating that if various things do not happen (e.g. if you don't get a mortgage or permission to build a swimming pool) the contract will be cancelled and you will be entitled to your money back.
In fact, in Morocco it is most likely (especially if you are dealing with a UK/Irish agent or a Moroccan agent who specialising in foreign buyers) that you will be asked to sign a Reservation Contract (Contrat de Reservation) in the first instance and pay over a deposit of £2,000/€3,000, sometimes less. This contract will usually give you 2 – 4 weeks to make the necessary enquiries and sign a Preliminary/Promissory Purchase Contract. Where possible we prefer you to sign this type of contract as it gives us the opportunity to check that everything is in order BEFORE you part with a substantial sum of money. Some agents will, however, ask you a sign a full Preliminary/Promissory Purchase Contract (Contrat Preliminaire/Compromis de Vente) right at the outset of the purchase process. Remember that these are not really a preliminary agreement at all. They are a commitment to buy. Try to avoid signing one of these at this stage if you can.
Whichever type of contract you are asked to sign, do get it checked by your lawyer before you sign it. See above.
If you DO agree to sign a Contrat Preliminaire/Compromis de Vente at this stage it must contain 'get out clauses' (US: contingencies)(clauses suspensives) to ptotect your position. This is vital.
These 'get out clauses' might include, for example, clauses making your offer or contract conditional upon your obtaining permission to install a swimming pool, any official approvals needed for you to buy the property etc.
Off Plan Property - Legality
This all works very well for resale property but there are problems in Morocco if you want to buy a new 'off plan' property. Back in 2003, in order to protect buyers from unscrupulous or crooked developers and in preparation for the major growth in overseas sales that they were trying to encourage, the government passed a new law that sets out EXACTLY how off plan sales are to be carried out.
The new law applies whenever a developer is selling you property before it is delivered to you, where there is a timeframe laid down for the construction and delivery and where a buyer undertakes to pay the purchase price in instalments as the work progresses. .It is a good law, based on the French and Spanish models. Unfortunately, most developers are simply ignoring it!
The law limits what the developers can do. For example:
• They MUST give you certain documents. A specification, details of the planning consent, a proper written contract etc.
• They MUST get you to sign a contract prepared by a Moroccan notary and in the presence of the Notary.
• The CANNOT take any money from you until the foundations have been laid
• They MUST give you a bank guarantee or similar to safeguard you in case the project is not completed.
All good stuff and designed to protect you from the sort of scandal that has engulfed the property market in Spain.
The law is quite clear in saying that if you enter into a contract that does not comply with these conditions, IT IS VOID.
Many clients are buying from developers who do not comply. You have to weigh up the dangers and go into it with your eyes open. Remember, that it is possible to buy property from a developer who DOES comply with this law!
After you have signed the first contract
We check certain aspects of the purchase ourselves and ask the Notary (notaire) to carry out all the necessary checks for which he is responsible and we then produce a lengthy written report setting out their findings and our general observations concerning your purchase.
These checks may include checks on the planning status of the property and checks on its ownership. If all is well (and you have not already done so), you then sign the Preliminary Contract (contrat preliminaire/compromis/promesse de vente) and, usually, pay over a deposit of 10% of the price on a resale property or a down-payment of, usually, 5% on a new ('off plan') property.
The 'Cooling Off Period'
Although Moroccan law is based closely on French law, one piece of bad news is that it does not have the 7 day cooling off period given under French law. There is no cooling off period when you buy a property in Morocco. Once you have signed the Preliminary/Promissory Purchase Contract (Contrat Preliminaire/Compromis de Vente) you are committed and you can only 'escape' from the contract for good legal reasons – those stated in the contract or laid down by the general law. It is, therefore, VITAL that you are entirely happy with the terms of the purchase before you sign any contract.
Do I need official permission to buy a property in Morocco
Not for EU citizens.
Are there any restrictions on a foreigner owning property in Morocco
Only the restrictions that are imposed upon a Moroccan person. No special rules apply to foreigners.
Signing the Deed of Sale
As soon as everyone is ready to proceed, we prepare a final report for you, the Notary pays the taxes on your behalf and the Final Contract of Sale/Title Deed (acte de vente) is signed. This is the document transferring ownership to you. This must, by law, be prepared by and signed in front of the Notary, who must carry out various further checks before doing so.
The acte de vente is signed pretty quickly, even in the case of a new property not yet completed. You are then secure in the ownership of the land. There then usually follow a series of stage payments as the construction process progresses.
The whole process up to the signing of the acte de vente will (in the case of a resale property with no mortgage) typically take about 12 – 16 weeks.
Special points for new properties
Is the property specification agreed in detail? How are you going to deal with the handover and snagging list? Are you clear about what 'common parts' – general facilities to be shared by all the owners in your complex – are included in the price? What are the arrangements for the management and control of those facilities? There will, probably, be other points as well.
It can be a good idea to have a new property surveyed (inspected) before delivery to establish whether there are any defects present.
What are the main dangers when buying property in Morocco?
The important thing to understand is that there is no simple list of dangers that you need to check.
For different people and different types of property or for people who are buying for different purposes the dangers will be different.
So this is probably a good time to put in the 'Disclaimer clause'!
Having said that, there are some dangers that arise in every country and every transaction. For example:
• Does the seller have good legal title and the right to sell?
• Is the property affected by debts?
• Has the building been constructed legally?
• Does the property suffer from any defects?
• Is what the Seller and the agent have told you about it true?
In addition, in France there are issues that often need special attention. These include:
• Are you SURE you have chosen the correct form of legal ownership?
The restrictions on freedom of choice as to who can inherit your property make this vital.
• Will you be able to get planning consent for any changes that you want to make?
Many of our clients are buying older properties. Some of those properties will suffer from considerable restrictions on what can be done with them. Even something as 'simple' as putting in a swimming pool is often not straightforward or may be prohibited completely. You should always ask your lawyer to clarify the planning situation – especially if you want to make any alterations to the property. This will, usually, require some action locally.
• Is the property built in an area that is specially protected?
• Are the boundaries of the property clear?
• Is the existing planning status of the property clear?
• Is the Seller asking for illegal "black money" payments?
The price you declare in the Deed of Sale as the price paid for the property should, legally speaking, be the full price paid. This is the value used to calculate all of the taxes arising out of the transaction. Declaring any other value can lead to all sorts of problems, both locally and in the country where you live.
Despite this, in some parts of France there is still a culture of under-declaration. This is part of the wider addiction to 'black money' – money that is kept well out of sight of the taxman.
Sometimes you will have to compromise. Before doing so you need to understand the issues and risks involved and how your position can best be protected. We will be happy to advise you on this point.
Are you aware of the rules of any condominium or home owners association of which the property forms a part? These can be somewhat restrictive.
There will usually be other issues that arise in the special circumstances of any particular transaction.
Do I have to be in Morocco to complete the transaction?
The Seller and the people buying the house usually need to attend, in person to sign the Final Purchase Contract/Deed of Sale (Acte de Vente). However, if this is inconvenient, arrangements can be made for a Power of Attorney to be granted enabling another person to attend on their behalf. This should be in the Moroccan form and, generally, signed in front of a Notary Public, usually near to where you live. We can arrange for this to be prepared. We recommend that you give a Power of attorney even if you intend to be present in person (which we also recommend).
How do I get the money to Morocco?
There are important decisions to make as far as obtaining the currency to buy your property is concerned. Should you buy it now or later? Should you take an option contract to guarantee your right to buy at a certain rate in the future or should you "forward buy" (committing yourself to the purchase at a set rate but paid for largely on delivery)?
Who should you use to transfer the funds?
Getting this right can save you a lot of money! On a €300,000/£200,000/$350,000 purchase it can easily amount to a saving of €3,000/£2,000/$3,500.
We can discuss these issues and, where appropriate, refer you to currency brokers. We are not currency brokers and do not attempt to research all of the options available. Instead we refer you to people who have given our clients good service in the past.
Many of our clients ask us to transfer their funds for them. Why? Well, our bank and currency brokers are doing this all the time and so make fewer mistakes. We will also often (but not always) be able to eliminate bank charges in relation to the transfer. These can amount to hundreds of pounds/euro/dollars, even for a small transfer. But, most importantly, because of the very large volumes of currency we transfer, our currency brokers guarantee that we will receive a better exchange rate than our clients would if they dealt with them direct. We also have a special arrangement under which we do not send the brokers we deal with a single penny of your money until after they have proved that their bank has sent the money abroad. This gives you complete protection against the risk of the broker going bust whilst in possession of your money – something that happened to a major broker 2 or 3 years ago. All this makes our sending the money on your behalf a really good idea.
What about paying the taxes due?
We will arrange for the payment of any property transfer taxes due in relation to the transaction.
Is there a Land Registry system in Morocco?
Yes. After the Final Purchase Contract/Deed of Sale (Acte de Vente) has been signed we will arrange for it to be registered at the appropriate Land Registry and for the payment of any Land Registry fees.
What taxes will I have to pay as the owner of a property in Morocco?
As a non resident of Morocco you will have to pay certain taxes in Morocco and you will also have to declare any income and gains in the country where you are tax resident.
Please download our 'Guide to Taxes in Morocco' booklet for more information.
What other ongoing obligations will I have in Morocco?
These will vary depending upon who becomes the legal owner of the property. We will be happy to advise on this point.
Should I make a local Will?
This is, generally, a good idea. You will also need to amend your English/Irish/US Will. We will happily assist you with both of these tasks.
What happens to my property when I die?
This is a complex subject. Please download our 'Dealing with an Inheritance in Morocco booklet.
Why do I need The International Law Partnership?
You will need advice on a range of issues that will be very different from the advice needed by a person from Morocco buying a house in Morocco.
You will need to have the Moroccan system – and its implications – explained to you. You will need to plan your affairs taking into account the combined effect of the legal and tax systems in your own country and those in Morocco. The local system may produce the most unexpected and undesirable results if left on its own.
As we mentioned in the section on preparation, it is vitally important to choose the best form of legal ownership for the property. This can save you thousands of pounds. The interaction of your own law and Moroccan law, particularly with regard to taxation and inheritance rights, calls for careful consideration. This is especially so as the cost of rectifying a wrong initial decision is often as much as, if not more than, the whole expense of the purchase in the first place!
Giving all this advice calls for specialised knowledge of both legal systems and, increasingly, also of European Union legislation on property, tax and inheritance. Of course, it also requires language skills.
A local lawyer cannot be expected to be conversant with foreign legal & tax systems and will almost certainly not be in a position to advise non-Moroccan clients appropriately and fully. He or she will, often, not think about the problems that their 'normal' procedure may create for foreigner buyers.
The local lawyer may also not speak English, at least to the standard needed to have a sensible discussion with you about complex technical matters.
It is, therefore, potentially very expensive not to seek the assistance of a specialist lawyer able to advise on Moroccan legal matters within the context of your own law and your own legal and tax system.
The International Law Partnership is the ONLY firm of solicitors that deals ONLY with international transactions and that can offer you, under one roof, the services of a team of lawyers from many jurisdictions.
How can The International Law Partnership help me buy a home in Morocco – and what will it cost?
The work we can do for you
We offer you the choice of four services. You may want to use just one of these services, or several.
Preliminary Meeting
We strongly suggest that you arrange a meeting with us before you go to look for property. This way we can discuss all of the key issues – including which areas might best suit your needs, the types of property available, who would be the best owner for tax purposes, how the property should be paid for, mortgages, inheritance issues and how to minimise your tax liabilities – calmly before you get into the rush and pressure involved in buying.
The meeting can also cover whatever other issues may be important to you. It can be face to face, over the telephone or by video conference.
To arrange a meeting just telephone us. The meeting will typically take an hour to an hour and a half and we will follow it up with a letter confirming the points discussed.
Our fee is a fixed £500/€750/$950 + UK VAT.
Pleliminary check of your Contract or Offer to Buy
If you are asked to sign ANYTHING we strongly suggest that you fax it or email it to us first.
We will then phone you back and:
• Discuss whether it is necessary to sign anything at all at this stage.
• Go through the terms and legal effect of the proposed contract with you.
• Advise you whether the terms are fair and reasonable.
• Suggest any changes we think are necessary.
• Try to negotiate those changes, there and then, with the agent or developer concerned.
You will then be clear about what you are signing and the consequences of signing it. This is not as good as giving us time to carry out a full investigation but it is a great deal better than nothing at all.
We can normally provide this service, Monday to Saturday, 'while you wait'.
We will charge for the work we do on a time basis. You will appreciate that some contracts are much longer than others and that some need more modification than others. A typical fee for a short(ish) reservation contract would be £150/€225/$285 – 1 hour's work and the fee for a 5 page preliminary purchase contract might be £300/€450/$500 – 2 hours' work.
Our 'International' Service
This service gives you advice about ONLY the INTERNATIONAL legal and tax issues arising out of your purchase. This leaves you free, if you wish, to use a local Moroccan lawyer to deal with the actual purchase of the property.
We will, for example:
• explain the way the local system of property purchase works
• discuss the special issues to look out for when buying a property in Morocco
• guide you as to some of the things you should make sure your Moroccanlawyer looks into
• discuss the tax and inheritance issues and any other relevant problems arising out of the interaction of the English and Moroccan legal systems.
Once we have done this we will confirm our advice to you in writing and also brief your Moroccan lawyers by writing to them covering the key points we have discussed and explaining your wishes.
You can choose the Moroccan lawyer yourself or we can, if you wish, introduce you to one. This will, wherever possible, be a lawyer who has already given good service to our clients and who we know speaks satisfactory English. In making this introduction we would simply be introducing you to the lawyer as a client. You would then deal directly with that lawyer, not via us. We do not accept any responsibility for the advice given by that lawyer, his actions or inactions. We make no extra charge to you for introducing you to the lawyer as he will share a part of his fee with us to reflect the work that we have done.
This service goes into much more detail about your proposed transaction and covers much more 'international' ground than our preliminary meeting.
Our fee for this service is 0.5% of the value of the property, with a minimum of £750/€1,125/$1,425. For properties over £500,000/€750,000/$950,000 there is a scaled reduction in our fees.
Our Property Transfer Service
In short, this service covers everything needed in an ordinary property purchase: establishing your requirements; checking the contract documents; producing a full report concerning your proposed purchase; liaison with you, your Notary, the estate agent (US: realtor) and/or the seller etc.
Our fee for this work is 1% of the price of the property, subject to a minimum. In the case of a resale property the minimum is £1,500/€2,250/$2850. In the case of a property under construction/renovation or being sold for the first time the minimum is £2,000/€3,000/$3,800. New property is more expensive because it involves more work and because we may be dealing with your case for 2 years or more. In each case there is a scaled reduction in our fee for properties over £500,000/€750,000/$950,000 .
Which service will be best for you?
For your convenience, at the end of this guide we set out the features of each of these services in tabular form so that you can compare them and decide which is best for you.
Revising our Estimate
We try to stick to the estimated charges set out above but if the transaction becomes unusual or unduly complicated for any reason, we reserve the right to revise our charges. For example, we have had situations where one of the parties has died part way through the transaction, or divorced, or for some reason has refused to cooperate in the sale. Or where the sellers or buyers have fallen out between themselves. Or where the property has become the subject of a court case. Or where there have been defects in the title or planning situation. Or where there has been delay in the construction. Or where the money has been lost or delayed in transit by the bank. Or where you wish to negotiate substantial changes to your contract.
Payments on Account of Fees & Expenses
We require an initial payment on account of our fees and expenses. We ask for further payments on account as the work progresses. If you do not make the payments requested we reserve the right to stop work!
What does the whole purchase cost?
Our own charges are normally only a very small part of the overall cost of buying!
As a general guide, in the case of a RESALE property, the TOTAL costs (our charges for our Property Transfer Service, land registry fees, Notary's fees, taxes, bank charges etc) normally come to about 6% of the price of the property.
In the case of a PROPERTY UNDER CONSTRUCTION, the TOTAL costs, excluding any VAT or equivalent payable on the property, normally come to about 7% of the price of the property. In Morocco new properties are subject to tax at 7% which, just to confuse you, is sometimes (but not always) included in the price of the property as quoted to you. If you are buying a new property it makes sense to ask whether the price includes the tax. 7% is a lot of money!
In both cases, if the property is less than about £50,000/€75,000/€95,000 the overall percentage will be higher. If the property is over about £500,000/€750,000/ $950,000, the overall cost will usually be a little lower.
These can, of course, at this stage be only the most general of estimates. We will give you a more detailed estimate of the likely overall cost once we know more about your particular purchase.
If a transaction does not proceed to completion – for whatever reason – we charge at our current hourly charging rate for the work actually undertaken.
Finally, all or part of these charges may attract Moroccan or English VAT at the current rate.
Extra work
Other work may be needed. For example, you may want:
• to take out a mortgage to help buy the property.
• to buy through a Limited Company or to set up a Limited Company to buy the property.
• a valuation (appraisal) or survey (inspection).
• us to negotiate the price of the property or other contractual issues.
• us to arrange for a Power of Attorney authorising someone to sign the Final Purchase Contract/Deed of Sale (Acte de Vente) on your behalf.
Note: You will then also have to pay the charges of the person who attends to sign and pay the taxes on your behalf. We will give you an estimate of these fees when we know more about your particular needs.
Other examples of extra work are explained in our Buying a Property Questionnaire.
This extra work is charged for over and above our standard charges. If any extra work is needed we will notify you before we undertake it and agree with you either a fixed price for that work or another way of charging for it.
Why are your fees so much higher than for buying a property in the UK?
Because there is a lot more work involved! The average purchase of a new property, for example, involves about 20 hours' work, most of which is invisible to you.
This is partly because the process is often more complicated and partly because our clients, who know little about the country, its legal system or its culture, need a lot more explained to them than they do when buying a property in their own country.
Are your fees higher than I would pay a lawyer in Morocco?
A local lawyer may well cost you less than we do. Their salary bill and other overheads are a lot lower but, most importantly, they usually cover only a small part of what we cover in dealing with a property transaction. Some local lawyers, however, take advantage of the international buyer and charge fees higher than ours – and for doing a lot less.
How does using the International Law Partnership differ from using a local lawyer?
There are a number of ways:
Although we are thoroughly familiar with the local laws and practices (because most of our lawyers are qualified as lawyers in other jurisdictions and our staff work very closely with lawyers from all of the countries we serve) we are also used to the requirements and expectations of the Anglo Saxon client. These are often very different from the requirements of a local Moroccan client.
Because we view transactions through the eyes of a foreigner we will often explain things to you that the local lawyers would not explain because they think they are obvious. They may be obvious to them, but they are often the exact opposite of what you would expect in your own country! Better still, we explain in clear English!
Most local lawyers will (quite understandably) know little or nothing about UK, Irish or US law. They are, therefore, quite likely to suggest a solution that would work well for a local person but which is disastrous (for example, in terms of taxes payable or inheritance law) in your own country. Our teams of specialist lawyers from different countries exist to provide that international overview. This can save you a LOT of money.
In most of the countries that we deal with lawyers are much less regulated than they are in the UK. For example, they may not have to have negligence insurance or be required to keep your money in a separate client account. These are significant safeguards for the client.
In many of the countries that we deal with it is difficult or impossible to obtain compensation from your lawyers if they make a negligent mistake. This is something that you take for granted when dealing with an English solicitor.
How do I take things forward?
If you would like us to represent you, please telephone, email or write. Our contact details are on the front cover of this guide.
We can then have a brief discussion over the telephone and, if necessary, make an appointment so that we can meet to look at the matter in more detail.
We are used to acting for Clients from all over the world and, generally, find that it is not necessary to meet in order to deal with the purchase of a property in Morocco. Of course, we are delighted to meet to discuss matters personally if this is convenient for you.
Revised January 2007
© The International Law Partnership LLP, 1985 - 2007
The International Law Partnership LLP
Solicitors & International Lawyers
Holborn Hall
193-197 High Holborn
London
WC1V 7BD
Tel: 020 7420 0400
Fax: 020 7836 3626
Email: info@LawOverseas.com
Internet: www.LawOverseas.com
© The International Law Partnership
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