Nadia Sadak, Thursday, 21 November 2013
This article is part of a series of 8 articles about buying property in Morocco. The other articles in the series cover the following topics:
Knowing all of the documents you will need before and during the buying process of a property is always a plus. The more you know about the whole
process, the easier it will be for you to deal with it once it is time for it. It is quite obvious that every person that would like to purchase
property in the country must meet certain requirements, including the presentation of certain documents. Whether the buyer is a foreigner or not, the
whole process is very similar, however foreigners would need to present extra documents.
Before you buy a property you will have to make sure that you do have enough money in order to pay the property off. In case you do not have all of
the money in cash and in hands you will probably need a mortgage (since loans are usually not enough to pay the price of the property off). These
mortgages work differently from bank to bank and in case the person that is interested in buying the property is a foreigner, things may get even
complicated. If you are a non resident you will have the opportunity to get a mortgage of up to 70% of the total value of the property and pay it in
20 years tops. The payment period for a mortgage also differs depending on the age of the person and his status.
If you would like to apply for a mortgage you will need the following documents:
Do you need a lawyer to set up the contracts?
- Copies of your passport with a legal stamp proving that you are legally in the country.
- A copy of the deposit receipt or the Purchase Contract
- A reference letter written by your trusted bank proving that you have a mortgage and also proving that you intend to use the money to pay your
property in Morocco.
- Pay stub or any other Proof of income (national or international)
*Now depending on your status the proof of income may differ. Let’s take a look at some documents that will work for you.
- If you are retired you can present your pension or investments paperwork proving that you will have enough to pay off your mortgage and therefore
be able to pay your brand new property.
- If you are self-employed you will need to present a supporting letter from your personal accountant as proof that you work. You may also be
requested to present other proof of income such as the copies of your bank statements and others.
- If you are legally employed you will be requested to present your P60 or Inland Revenue Tax Return, the last 3 pay slips and also all of the
supporting bank statements that you have. You will also be requested to show the copies of your work contract as well as the original copy.
It is not mandatory, however it is a good option if you do not feel very ready to do it all on your own. We all know that buying a property the first
time and when dealing with larger amounts of money people may get easily confused. If you would rather have someone showing you the whole way and
helping you avoid detours or other related issues make sure you have a lawyer beside you during the whole process. Some people believe that brokers
can also be a great option, however brokers usually charge too much money, money which most people are not willing to spend as extra costs in the
purchase process (that we all know that is not cheap.)
Some other general documents that you will need along the way
The Land Registry –
In Morocco leaseholds are not allowed, therefore all properties (regardless of them being houses, villas or even
apartments) are bought freehold, which means they will be used as a residential property. All of the new properties that are sold have title deeds
as the country calls it the melkia), which is a document that is registered within the Land Registry. This document will show who currently owns the
property and also whether the owner has anything to pay in regards to the property, values such as fees, taxes or other expenses.
Private Contract or the Promise to Purchase
– This contract usually sets up the terms and also all of the conditions of the purchase
itself. It will have you connected to the purchase, directly. If you have a lawyer available and you are not in Morocco yet you will have him use his
Power of Attorney to sign it on your behalf.
– This document will only be issued once you present all of your IDs, passports and everything else. This should be
signed by both parties in the presence of a notary, making the property yours.
The Lawyer servicing
– Morocco today counts with hundreds of well trained and 100% fluent English speaking lawyers and professionals
of the field. If you are not very confident that you will be able to purchase your house, present all of the right documents and also be able to get
mortgage on your own do the right thing and save yourself a lot of time, money and also headaches, make sure you have a good qualified lawyer beside
yourself. It will certainly make the whole process run much, much smoother, that is for sure.