MOROCCO Law and Practice Contributed by: Loris Marghieri, Dounia El Aissaoui, Julien Nouchi and Mounia Larhrissi, Gide Loyrette Nouel
• Assurance dommages aux biens Insurance that tenants can purchase to cover damage to the landlord’s property caused by the ten - ant. It may include coverage for accidental damage, such as broken windows or dam - aged appliances. 6.13 Restrictions on the Use of Real Estate The parties generally provide that the leased premises are rented for a specific purpose, with any change being subject to the landlord’s pri - or consent. In addition, the use of the leased premises may be restricted by legal or regulatory provisions, such as town planning and zoning regulations. In the context of commercial leases, a judge may grant permission to the tenant (even after a 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. 6.14 Tenant’s Ability to Alter and Improve Real Estate Law No 49-16 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. 6.15 Specific Regulations Specific regulations apply to financial leases (credit bail), lease agreements for the use of agri -
cultural land, temporary occupation authorisa - tions for publicly owned land, etc. 6.16 Effect of the Tenant’s Insolvency The Moroccan Commercial Code governs insol - vency proceedings but lacks specific provisions for leases when the lessee is insolvent. If insol - vency does not lead to liquidation, a court- appointed administrator may maintain the lease if it is essential to the tenant’s business. Under Article 588 of the Code, a lease cannot be ter - minated solely due to judicial reorganisation pro - ceedings. 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 Under Law No 49-16, tenants cannot be deprived of the right to assign their leasehold interest, whether with or without their business. However, they and the assignee must notify the landlord, as the assignment is not binding until notice is given. The tenant remains liable for prior commitments. Unless the lease states otherwise, subleasing is allowed, but the tenant must notify the landlord, with the sublease tak-
ing effect from the notification date. 6.19 Right to Terminate a Lease
Law No 49-16 permits landlords to seek judi - cial termination if the lease includes a termina - tion clause and the tenant fails to pay at least
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