international mortgages
morocco
Morocco follows French law very closely so the process of buying is very similar to that of France.
After an offer has been accepted an initial contract “ compromise de vente” is drawn up. At this point it is normal for a deposit of around 10% of purchase price to be paid. This deposit can be fully refundable based on clauses added at time of signing. The contract can include a clause that any completion is subject to obtaining mortgage financing.
Whilst it is possible to obtain a mortgage in principle before signing the initial contract a formal offer of lending can only be issued after this contract is place so it is important if borrowing is required for completion that a get out clause is included. It is always a good idea to appoint an independent lawyer as the Notary who undertakes conveyance will work on behalf of the buyer and seller.
After the initial contract is signed the searches will be undertaken. It is not uncommon for developers to sell pre-constructed properties before they have bought the land or sought planning permissions so it is important to check the title deeds of the property before signing the final contract. Your legal adviser should also check the CRI of that region to see what other infrastructure works are forecast close to where you are buying. Unlike many countries the banks in Morocco may not undertake these searches themselves.
Total additional costs to the purchase will be in the region of 5% of the purchase price and a mortgage tax equating to 10% of the interest payable is taken every month and paid direct to the government.
The purchase costs include.
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Registration tax 2.5% of purchase price
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Notary fees 1% of purchase price
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0.50% Notary tax
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1% for transfer of title deeds
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Administration fees totaling approximately € 500
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1% to 2.5% to obtain title deeds if not in place
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Estate agent fees if not included in price.
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All completion s are signed at Notary.
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We will charge a 1.5% mortgage placement fee which will include broker fee. This fee is payable upfront but refundable bar £ 250 should the mortgage not complete.
If you would like to speak with a representative to discuss your requirements please call +(34) 677 874 948
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