MOROCCO Law and Practice Contributed by: Loris Marghieri, Dounia El Aissaoui, Julien Nouchi and Mounia Larhrissi, Gide Loyrette Nouel
• a guarantee against hidden defects: claims must be made within two years of delivery and, in all cases, within five years from the conclusion of the deed of sale (unless other - wise agreed). The seller’s warranties in a share deal cover standard representations, including the com - pany’s existence, share capital, ownership, corporate matters, financial standing, accounts accuracy, operations, key contracts, employ - ment, litigation and tax matters. There is not typically a cap on the seller’s liability for a breach of its representations and warran - ties. 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 regulations; • legal requirements for tourism, hospitality or other industry-specific activities; • 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 follows the “pol- luter pays” principle in Article 2 of Law No 11-03, holding polluters liable for damages and reme - diation. If pollution is found, the property owner must prove a previous owner or tenant caused it to avoid liability. 2.8 Permitted Uses of Real Estate Under Zoning or Planning Law Zoning and planning regulations must be reviewed before launching a construction project or applying for a building permit. Local plans and regulations are publicly accessible for a nominal fee from the urban agency through a note de renseignement , which specifies applicable land uses, footfall limits, maximum building height and other restrictions. While no agreement with public authorities is generally needed for private developments, exceptions apply. For specific real estate projects – mainly in tourism, industry, artisanal sectors or social housing – develop - ers can request and obtain special authorisa - tion from the relevant authorities to deviate from urban regulations. 2.9 Condemnation, Expropriation or Compulsory Purchase Under Law No 7-81, the Moroccan state may expropriate land for public necessity or tem - porary use through an administrative and judi - cial procedure. In such cases, the owner must receive compensation based on the actual dam - age directly caused, determined by the prop - erty’s value on the expropriation decision date.
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