Legal Process
The French and Morocco buying processes are different from the system used in the UK. This section will outline and explain some of the main differences.
The French Legal System
Property Law in France is different to the United Kingdom law system. The major difference we see is the French equivalent of a Solicitor is the Notaire; he will act on behalf of both Parties in the agreed transaction unlike in the UK where the solicitor act on a single party's behalf.
It is therefore important that you are aware of the Legal issues to avoid any complications you may come across and that you are guided through this process.
Here at "Biens Soleil Properties" we are dedicated to protect your interests by liaising with the Notaire and ensuring you are aware of what legal rights and obligations.
- This is usually the signature between both parties of a preliminary contract (often referred to as "Le Compromis De Vente" or "Promesse unilaterale") and paying of a deposit that is usually between 5-10% which is then held by the Notaire or sometimes the Estate Agent.
- This document is binding and it will oblige the parties to complete once all conditions (administration) have been satisfied, although both parties will have a 7 day cooling off period before you must transfer deposit funds bank to bank.
- It is not common practice in France to have a survey carried out, however your UK mortgage lender may request a valuation (not a survey).
- A search on the Title deeds and other relevancies are usually carried out buy the Buyer's Notaire, however again this has no relevance to the UK process where searches are carried out buy the Solicitor.
- As mentioned, the completion Document will be prepared by the Notaire acting for the Vendor, they will often suggest that they can act on both parties' behalf. It would be more realistic to instruct a second, your own Notaire to safeguard your interests especially if you are not a native or fluent French speaker.
- Completion is generally carried out at the Vendors Notaire Office with both parties (the buyer and seller) and often with the estate Agent who will be there to collect/ receive his commission.
- The formal conveyance document is read in French to both parties, as French legal terminology is difficult to understand as a non French speaker; therefore it is advisable to seek professional advice from an English speaking French law firm prior to the "acte Authentique" (the signature for the sale).
- Once the "acte Authentique" has been signed by both parties the buyer will hand over a Bankers Cheque for the full amount to the Notaire and he in turn hands over the keys and the ownership to the buyer.
- From this moment the Property is yours and all responsibility falls with the owner such as insurance bills etc.
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The Legal System of Buying in Morocco
The legal System is Latin based and similar to that of France.
Dealing with a recognised international agent will ensure that you receive a standard of service you are used to. For example in your own native tongue and the lawyer will be a reputable professional and who can explain things to you directly.
When you have found the property you have found you must make a verbal offer to your estate agent. Once you have agreed a price, a preliminary contract will be drawn up. At this point you must appoint a qualified lawyer who is fluent in your own language. They will then undertake any of the necessary checks on the property and start to prepare documentation.
The buyer then needs to open a Euro account with a bank in Morocco and transfer either sterling £ or Euros. This currency is converted to Dirhams. Unlike France a deposit of between 10% - 30% is paid to secure the property, with the balance due at completion. This process will take between 6-8 weeks to complete and the property is then registered with the Moroccan authorities in the name of the buyer.
As a general you should expect around 5-7% of the property price. This will cover lawyer's fees, notary costs and property registration.
It can be broken down as follows:
| Government Taxes |
2.5% |
| Land Registration fees |
1.5 - 2% |
| Notary Fees |
0.5% |
| Legal Fees and Various |
1.5% |
| VAT |
2.5% |
VAT is currently as above. In the case of old houses or land VAT is only charged on the Notary and Government reg. fees, not on the property and land itself. It is however payable on newly built property |
The following banks have confirmed they will be offering mortgages:
- Societe general
- Credit Agricole
- WAFA Bank
- Available in Morocco up to 70% of the purchase price or valuation.
- Purchase can be made in Euros, Dollars or sterling.
- It is normally over 15 years maximum.
- Interest is negotiable at 5.5%-7%
- Proof of income is required
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