Real Estate 2025

MOROCCO Law and Practice Contributed by: Loris Marghieri, Dounia El Aissaoui, Julien Nouchi and Mounia Larhrissi, Gide Loyrette Nouel

7. Construction 7.1 Common Structures Used to Price Construction Projects Parties may choose between two types of pric - ing mechanism (sometimes combined) for con - struction projects: • quantity construction contracts, by which the contractor performs construction work for a price based on the quantities actually used for the work; or • lump-sum price construction contracts, in which the contractor carries out the work for a fixed and non-revisable price agreed upon at the time of signing. 7.2 Assigning Responsibility for the Design and Construction of a Project Different types of contractual arrangement can be adopted by the owner: • separate contracts with the design team and the construction contractor, in which case responsibility for the design will be assumed by the design team, while the contractor will be in charge of the work; or • a single design and construction contract with a contractor, under which the contractor responsible for the work will also be responsi - ble for the design. A Moroccan architect is mandatory for building permit applications. They draft design plans, prepare the application, oversee construction, assist in project handover, and issue the final statement to obtain the compliance certificate or permit to inhabit. 7.3 Management of Construction Risk In a private construction contract, the following mechanisms are typically used to manage con -

three months’ rent despite a 15-day prior notice. Landlords may also refuse lease renewal without eviction compensation in cases such as unau - thorised alterations, non-payment, unauthorised subleasing, or misuse of the premises. 6.20 Registration Requirements It is market practice for the tenant to pay the registration fee, even though the tax code states that the party to whom the lease is beneficial must pay the registration fee. However, the lease As mentioned in 6.19 Right to Terminate a Lease , Law No 49-16 allows the landlord to apply to the court for early termination of the lease and eviction of the tenant in certain cases. In practice, however, this is a rather time-con - suming and difficult process. 6.22 Termination by a Third Party Third parties are not entitled to seek the termina - tion of a valid lease agreement. This being said, Law No 49-16 states that any public authority may terminate the lease if this is in the pub - lic interest, in which case the landlord is not required to pay eviction compensation to the tenant. 6.23 Remedies/Damages for Breach Article 264 of the Code of Obligations and Con - tracts defines contractual damages as com - pensation for actual loss and lost profit directly resulting from a breach, excluding indirect and consequential damages. It is common to specify indemnification obligations in contracts, includ - ing leases. may provide otherwise. 6.21 Forced Eviction

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