MOROCCO Law and Practice Contributed by: Loris Marghieri, Dounia El Aissaoui and Julien Nouchi, Gide Loyrette Nouel
Representation and warranty insurance is not a common practice in Morocco. 2.6 Important Areas of Law for Investors When considering the purchase of real estate in Morocco, investors should consider the fol - lowing: • the general principles of contract law, includ - ing provisions governing the sale and pur - chase of real estate; • tax regulation and structuring aspects; • foreign exchange control regulations, espe - cially the rules applicable to the transfer abroad of revenue generated from invest - ments made in foreign currencies in Morocco; • registration and publicity formalities; • construction, urban planning and zoning regulations; • environmental law; • regulations applicable to the contemplated business activity to be conducted from/within the building; and • regional and local practice or customs. 2.7 Soil Pollution or Environmental Contamination Moroccan environmental law is based on the “polluter pays” principle, which means that the person responsible for the pollution is liable for damages and must take appropriate measures to remedy the pollution. If pollution is discov - ered, the owner of the property has the burden of proving that the previous owner or a tenant caused the pollution in order to avoid liability. 2.8 Permitted Uses of Real Estate Under Zoning or Planning Law Zoning and planning regulations must be checked before planning a construction project and applying for a building permit.
The plans and regulations for each local area are generally available to the public for a nominal fee from the local urban agency ( agence urbaine ), using a dedicated application form ( note de renseignement ) indicating applicable uses and restrictions regarding footfall, the maximum building height, etc. No agreement with public authorities is required to facilitate a private development project. Nev - ertheless, in certain cases involving a specific real estate project (mainly relating to tourism, industrial and/or artisanal projects, as well as social housing), it is possible to request and obtain authorisation from the competent authori - ties to derogate from the applicable urban regu - lations. 2.9 Condemnation, Expropriation or Compulsory Purchase Under Law No 7-81, the Moroccan state is entitled to expropriate land for reasons of pub - lic necessity or for temporary use (following a dedicated administrative and judicial procedure). In this case, compensation must be paid to the owner for the expropriated property. The com - pensation is based on the current and effective damage directly caused by the expropriation, according to the value of the property on the date of the expropriation decision. 2.10 Taxes Applicable to a Transaction Asset Deals With respect to an asset deal, the following taxes and fees are due. • Notary public fees, generally in the range of 0.5%–1% of the purchase price, and usually paid by the purchaser. • Registration duties with the tax administra - tion, which are calculated at a rate of:
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