Real estate in Morocco: Towards the end of reservation contracts?

The Governing Council will examine this Thursday the bill amending and supplementing Law No. 25-90 relating to subdivisions, groups of housing and subdivisions. The text provides, among other things, for tougher sanctions against developers entering into reservation contracts.

For Mohamed Lazrak, notary in Rabat and former secretary general of the National Council of the Order of Notaries of Morocco, the toughening of sanctions against developers concluding reservation contracts, provided for in the new text, remains insufficient. “With this new bill, we will move from monetary sanctions to criminal sanctions, including a prison sentence of one year to 5 years. However, developers proceed, as the subdivisions are completed, to the conclusion of reservation contracts for the benefit of future buyers. It is now, under the new bill, a criminal sanction,” he explains to Media24.