Are you considering purchasing real estate under the Future State of Completion Sale (VEFA) in Morocco? Before finalizing this project, it is essential to understand the initial reservation contract—a key document that is often misunderstood. Although this contract may appear to be a mere formality, it is fundamental to grasp its implications and legal requirements to ensure a secure and compliant transaction.
1. The Nature and Legal Prerequisites of the Reservation Contract
The reservation contract in VEFA allows the reservation of a property before signing the preliminary sales agreement. This document sets the conditions of the reservation, enabling the buyer to guarantee the availability of the property while complying with current regulations. It is essential to note that this contract cannot be concluded before the building permit is obtained by the developer, thereby ensuring the project complies with existing construction standards.
“It is prohibited, under penalty of nullity, to conclude a reservation contract for a property under construction before obtaining the building permit.”
Law 107-12 amending and supplementing Law 44-00 relating to VEFA
2. Validity Period and Conversion into Preliminary Sales Agreement
According to Moroccan legislation, the reservation contract may not exceed six months. Beyond this period, it must be converted into a preliminary sales agreement. This requirement ensures that the transaction progresses diligently and avoids prolonged uncertainty for the parties. Without this conversion within the prescribed period, the reservation contract has no legal value, and any amounts paid must be refunded to the buyer.
Advance Payment and Current Regulations
According to current regulations, the advance paid by the buyer upon signing the reservation contract must not exceed 5% of the total sale price of the property. This provision aims to prevent excessive financial commitments before the final contract is signed, thus protecting the buyer’s interests and limiting initial financial risk.
Right of Withdrawal
The buyer has a one-month right of withdrawal following the signing of the reservation contract, as stipulated by Law No. 31-08 on consumer protection. In the event of withdrawal, the law requires full reimbursement of the amounts paid within a period not exceeding seven (7) days from the date this right is exercised. This measure ensures that the buyer has an adequate reflection period and can withdraw from the transaction without significant financial loss.
Mandatory Clauses and Legal Compliance
The reservation contract must include mandatory clauses, such as the delivery timeline of the property, in accordance with Article 618-3 bis of the VEFA law; Law No. 31-08 on consumer protection reinforces this requirement by ensuring that all essential conditions are clearly stated to prevent future disputes. The parties must ensure that the contract complies with the standards of transparency and fairness established by the applicable legislation.
Protection Against Unfair Terms
Law No. 31-08 protects consumers against unfair terms in reservation contracts. A clause is considered unfair if it creates a significant imbalance between the rights and obligations of the parties to the detriment of the buyer. It is therefore crucial that reservation contracts are carefully drafted to avoid any stipulation deemed unjust or disadvantageous for the buyer.
In conclusion, the reservation contract in VEFA, although temporary, is a key element to ensure clarity and security in real estate purchases. Make sure it complies with legal standards to avoid any future complications.
