MOROCCO Law and Practice Contributed by: Loris Marghieri, Dounia El Aissaoui and Julien Nouchi, Gide Loyrette Nouel
refusal by the landlord) to carry out one or more activities that are ancillary or related to the ini - tial business activity, as long as they are not in conflict with the purpose, characteristics and location of the building, and they are not likely to affect its security. 6.13 Tenant’s Ability to Alter and Improve Real Estate Law No 49-16 governing commercial leases provides no specific provisions regarding works initiated by the tenant. In any case, the parties are free to agree on the preferred work regime for the tenant, and it is generally provided that the tenant may not alter or improve the premises without the landlord’s prior consent, especially if the work is substan - tial and affects the structure of the building. 6.14 Specific Regulations Specific regulations apply to financial leases ( credit bail ), lease agreements for the use of agricultural land ( bail à ferme ), authorisations to temporarily occupy publicly owned land ( autori- sation d’occupation temporaire du domaine public ), etc. Habous properties, governed by a very specific legal regime, were subject to particular meas - ures following the COVID-19 pandemic crisis, with habous tenants being exempted from pay - ing their rent. 6.15 Effect of the Tenant’s Insolvency The Moroccan Commercial Code sets out the rules applicable to insolvency proceedings, but does not provide any specific rules for leases where the lessee is considered insolvent. In the event of insolvency proceedings not lead - ing to liquidation, it is customary for the court to appoint an administrator, who may decide to
uphold the lease in force if it is deemed neces - sary for the tenant’s business operations. 6.16 Forms of Security to Protect Against a Failure of the Tenant to Meet Its Obligations The main forms of security available to landlords in the event of non-payment of rent by the ten - ant are: • cash deposit of an agreed amount (limited to two months’ rent for commercial tenancies); • rent paid in advance; and • guarantees from a bank or parent company. 6.17 Right to Occupy After Termination or Expiry of a Lease A tenant has no right to remain in occupation of a property after the expiry or termination of a lease. Therefore, if the premises are not vacated on the due date, the landlord can obtain a court order to regain possession of the premises. The lease may also contain other penalty clauses if the property remains in use after the expiry of the lease without due cause. 6.18 Right to Assign a Leasehold Interest Pursuant to Law No 49-16 governing commer - cial leases, a tenant under a commercial lease cannot, in any circumstances, be deprived of the right to assign its leasehold interest – with or without its business (ie, separately). The tenant and the assignee must, however, give notice to the landlord referring to the assignment. Until such time as notice is given, the assignment shall not be binding on the landlord. The tenant remains liable to the landlord with respect to all prior commitments. Under Law No 49-16, a tenant may sublease any part of the leased premises, unless the lease
667 CHAMBERS.COM
Powered by FlippingBook