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Real estate agency fees in Morocco

What Our Agency Fees Cover

For your real estate purchases in Morocco, your property searches, finding one or more buyers, property visits, any travel by a Laforain Immobilier agent or one of their associates, possible negotiations between landlords and tenants, buyers or sellers, for advice on buying, selling, or renting properties in Marrakech, Essaouira, or Agadir, for drafting sale or lease agreements, whether commercial or residential, for compiling files, such as purchasing a property on credit in Marrakech, our agency Laforain Immobilier charges what is commonly known as agency fees, which vary depending on the type of transaction:

Transactions	Commission Scale
Purchase	2.5% excluding VAT, or 3.00% including VAT, on the total value of the property, payable by each party.
For sale	2.5% excluding VAT, or 3.00% including VAT, on the total value of the property, payable by each party.
Long-Term Rental
Unfurnished Rental	1 month excluding tax of the rental amount, payable by each party.
Furnished Rental	1 month excluding tax of the rental amount, payable by each party, but with a security deposit of two months' rent.
Short-Term Rental
– 3 Mois	25% excluding tax of the monthly rent, payable by each party.
– 6 Mois	25% excluding tax of the monthly rent, payable by each party.
– 12 Mois	1 month excluding tax of the annual rent, payable by each party.
Business Assets	10% excluding tax of the value of the business assets

* In the case of rental following agency fees, additional rental fees may sometimes be required when the owner delegates property management to us, Laforain Immobilier.

When Should We Pay Laforain Immobilier?

The agency fees are to be paid at the time of signing the lease or transaction. They must be paid in a single payment and cannot be requested again at the time of lease renewal, for example. Payment methods, whether by check, bank transfer, or cash, should be arranged with the Laforain Immobilier agent or one of their affiliated partners. If there are fees related to the condition report, they must be paid separately, after its completion, even if performed by the real estate agency, unless agreed otherwise with the agency, considering the possibility of free completion. The portion of the fees owed by the tenant and that due by the landlord must be clearly specified to avoid any ambiguity.

Understanding Property Management by Laforain Immobilier

Delegating the property management of your property, your real estate portfolio, or simply your apartment offers many advantages. The services provided are, of course, charged to the owner in return for this activity. Laforain Immobilier in Marrakech, to whom the owner entrusts the management of their property, therefore receives a fee. This fee is calculated based on the rent (including charges) collected by the owner. While these fees are set entirely freely, property management fees generally amount to 10% (excluding taxes) in Marrakech, Essaouira, or Agadir of the annual rent collected. This base rate only includes the collection of rents; additional services such as issuing receipts, paying charges, and their adjustment are not included. Therefore, the price for these additional services must be added to this base rate:

Laforain Immobilier takes care of everything, from renting out and managing your property or real estate portfolio in Morocco:

We estimate your rent during the first visit to your property,
We look for candidates through advertisements, real estate partners, and via the website www.laforainimmobilier.com
We also conduct a solvency study of the future tenant,
We draft the lease that the tenant must legalize in our presence,
We also carry out the restoration of your property to rent it out as quickly as possible.

The role of the notary

The notary is the guarantor of the law and morality. He is sworn in and must defend the interests of his clients. He is responsible for carrying out administrative checks on the properties for sale by verifying the land title, requisition, or melkia. He acts as the contact between buyers, the administration, the cadastre, and the land registry. He is responsible for preparing the preliminary sales agreements and final deeds for each transaction. If you are not Moroccan, the notary can handle the payment of the TPI (tax on real estate profits) on your behalf and obtain the tax clearance (if taxes are due) necessary for the repatriation of funds abroad. Notarial fees on a property are 1%, but he also collects payment for additional fees (registration, taxes, stamps, processing fees, etc.) and settles them for you. Laforain Immobilier recommends highly professional and competent notaries and offers informational meetings even before a potential purchase. Please make a request.

Legal and Taxation

Rights and taxes due by the buyer:

In Morocco, the costs incurred following a real estate acquisition vary depending on the legal nature of the property: (these percentages apply to the value of the acquired property, including VAT).

House for residential use, for a period longer than 3 years, or undeveloped land with a commitment to build within 7 years:
- Registration Fees 4 %
- Notarial Tax 1 %
- Land Registry Office 1.5% + 150 MAD (property certificate)
- Fees 1%, with a minimum fee of 2500 MAD + 7% VAT
- Update of constructions with the Land Registry Office if necessary: 0,5 % + 75 MAD
- Miscellaneous Fees (stamps, etc.) Approximately 1500 to 3000 MAD depending on the files.
Note: Monitoring the file by the foreign exchange office may sometimes incur additional costs, which may be spread over time. In the case of acquiring an untitled property (melkia), title registration fees must be added; these fees depend on the land area and the price of the acquired property. They may sometimes be shared with the seller.
- Publication Fees 450 MAD
- Ad Valorem Fees 1.5% up to 50,000 MAD + 2% of the value above
- Surface Rights 45 MAD per are (urban area); per hectare (rural area)
- Fixed Fees 75 MAD
- Duplicate 75 MAD
- Surveyor Approximately 2,500 MAD
- Miscellaneous Fees (stamps, etc.) Approximately 1,500 MAD
Commercial Premises or Unbuilt Land Without a Commitment to Build:
- Registration Fees 5 %
- Notarial Tax 0,5 %
- Land Registry Office 1 %
- Fees 1%, with a minimum fee of 2500 MAD + 7% VAT
- Miscellaneous Fees (stamps, etc.) Approximately 2,000 MAD
Agricultural Land

A foreigner cannot claim to buy agricultural land. To be able to purchase such a property, it is necessary to change the legal status of the land by having it declared as non-agricultural (a process that can sometimes be lengthy).

Some Regulatory Elements:

Urban Tax (U.T.) The primary or secondary residence is subject to the urban tax. This tax depends on the rental value of the property, which is determined by comparison or direct assessment by the census commission. This rental value is reconsidered annually with an increase of 2%. However, if you are Moroccan residing abroad, you benefit from a 75% reduction (from the rental value), even if your property is occupied by your children or parents, or if it is not continuously occupied by yourself. The urban tax does not apply to new premises and constructions for 5 years from the issuance of the occupancy permit.
General Income Tax : Real Estate Income and Profits
1. Profits fonciers :
  If you sell a building or land, the profits you make will be subject to the General Income Tax in the category of real estate income and profits at a rate of 20%, with a minimum payable of 3% of the transfer price. The profit is determined by the difference between the sale price and the current value of the land and justified investments. The current value is obtained by applying a coefficient established annually by ministerial decree.
  However, you may benefit from a total exemption:
  - On the profit realized from the transfer of a property used as a principal residence:
    - For at least 5 years and up to 10 years when the sale price does not exceed 1 million MAD.
    - For at least 10 years, regardless of the transfer price.
  - On the profit realized from the first sale of social housing.
  - On the profit realized by any person who makes property transfers within the calendar year, where the total value does not exceed 60,000 MAD.
  - On the profit from gratuitous donations involving ascendants and descendants, between spouses, and between siblings.
  50% Exemption
  - The profit corresponding to the portion of the transfer price exceeding 1 million MAD for a residence occupied as the primary home for more than 5 years and less than 10 years.
  Your declaration must be submitted to the registration officer within 60 days following the date of transfer, along with the payment of the tax. This declaration must be accompanied by documents justifying the expenses related to the investment that have been incurred.

Rent

The rents for the premises mentioned in the first article, whether furnished or not, as well as their dependencies, such as cellars, garages, courtyards, gardens, are freely agreed upon between the parties. Any tenant has the right to request a rent review, through legal channels, within three months from the date of the lease, if they believe that the rent or the sublease price does not clearly correspond to the legitimate return on the capital representing the current value of the property and the capital actually invested, or is disproportionate to the benefits or utilities that the location and the conditions of the rented premises are likely to provide to the tenant, whether for their residence or for the exercise of their profession.

A party requesting a rent revision who abuses the right granted to them by the previous paragraph and loses their request may be ordered to pay damages to the landlord ranging from 1 to 3 months' rent.

In addition to the rent amount, the tenant is required to reimburse the landlord, with justification, for services and supplies related to the use of the rented premises or to pay a lump-sum compensation for rental charges as enumerated by the current regulations; in the absence of an agreement between the parties, this compensation is determined by the judge.

Under penalty of nullity of the clause, the landlord cannot require the tenant, at the time of entry into the premises, to pay a security deposit exceeding the amount of one month's rent as a guarantee for the payment of rent or as compensation for excessive damage caused by the tenant to the rented premises. This security deposit is returned to the tenant when they leave the premises after fully fulfilling their obligations.

Notwithstanding any contrary agreement, a request for an increase or decrease in rent can be made by either the landlord or the tenant whenever modifications have been made to the specifics and characteristics of the rented premises that are likely to alter the conditions on which the amount of the rent was based. However, a request for a rent revision is not admissible, notwithstanding any contrary clause, before the expiration of a period of at least three years from the date of the lease agreement or from the last revision carried out under the first paragraph of this article.

In setting the new rent, the judge takes into account the modifications made to the specifics and characteristics of the rented premises, considering the location of the building, its actual value, its age, the level of comfort, the state of maintenance, and the general economic conditions. All these factors must be assessed and evaluated as of the date of the request. Repairs required by Article 639 of the Code of Obligations and Contracts carried out by the tenant will not be considered in setting the new rent.

The rent revision takes effect on the date agreed upon by the parties or, if ordered by the court, from the day of the request. Pending the final decision of the judge regarding the rent revision, the rent continues to be paid at the old rate. The final decision on the rent revision is enforceable without the need for an appeal to settle the difference between the two rents.

End of Rent

The notice is served either by registered letter with acknowledgment of receipt, in accordance with the procedures outlined in Articles 37, 38, and 39 of the Code of Civil Procedure, or by bailiffs, in accordance with Law No. 41-80 on the establishment and organization of a bailiff corps, enacted by Dahir No. 1-80-440 of 17 Safar 1401 (December 25, 1980). The date of receipt of the registered letter with acknowledgment of receipt, or the date of notification by the court clerk or bailiff, is considered the starting point of the notice period.

If the tenant refuses the notice, either expressly or tacitly, by remaining in the premises after the notice period has expired, the landlord may petition the court to declare the validity of the notice and order the eviction of the tenant or any occupant acting on their behalf.

The landlord is not required to give notice as provided in Articles 8 and 9 of this law in the cases outlined in Article 692 of the Dahir of 9 Ramadan 1331 (12 August 1913) forming the Code of Obligations and Contracts, as well as in the event of assignment or subletting by the tenant of the rented premises without the landlord's consent.

The judge may also validate the notice if it has been given for the purpose of the landlord reclaiming the premises to live in them or to house their first-degree ascendants or descendants, or potential beneficiaries of the mandatory bequest established by Articles 266 and following of the Code of Personal Status and Inheritance.

The request for validation of the notice for the reasons mentioned in the previous article is admissible only under the following conditions:
* That the premises have been acquired by the landlord at least three years before the notice.
* That the landlord, his ascendants or descendants, as the case may be, do not already occupy a dwelling that they own and that is sufficient for their normal needs. These two conditions do not apply when the landlord offers to rehouse the tenant in a premises of equal importance, under the same conditions and for a similar rent.

The validation of the notice is mandatory when demolition or major repairs are deemed necessary. In both cases, the tenant has priority to reoccupy the premises after repair or reconstruction, provided they exercise this right within two months following the notice given by the landlord, under penalty of forfeiture. The landlord must notify the tenant two months before the completion of the repairs or construction by one of the methods indicated in the first paragraph of Article 10 above. When setting the new rent, whether by agreement of the parties or by judicial decision, the expenses and improvements made and the capital invested will be taken into account.

In case of validation of the notice, and unless this validation occurs due to the tenant's fault, the landlord must pay the evicted tenant, in addition to their justified moving expenses, compensation representing six months' rent at the last rate paid by the tenant.

If the reason turns out to be inaccurate once the tenant has vacated the premises, either involuntarily following the notice or as a result of a validation decision, the tenant is entitled to damages corresponding to the harm suffered due to their eviction.

In the absence of notice or if the notice is not validated, the lease, whether originally for a fixed term or indefinite, continues without a specified duration in favor of the tenant. In the event of the tenant's death, the lease continues:
* For residential premises, in favor of his or her spouse and descendants and ascendants who were legally dependent on him or her and were actually living with him or her at the date of his or her death;
* For professional premises, in favor of his or her spouse, descendants, or ascendants if they continue to carry out the profession for which the leased premises were designated.

Sub-Lease and Lease Assignment

By way of derogation from the provisions of Article 668 of the Dahir forming the Code of Obligations and Contracts, any transfer of the lease or sub-letting by the tenant of residential or professional premises, regardless of the form of the transfer or sub-letting, is prohibited except for:
    * Contrary stipulation in the lease agreement;
    * Written consent of the landlord;
    * If the transferee or sub-tenant will use the leased premises to carry out the same professional activity that the original tenant was engaged in.
Unless proven otherwise, the occupation of the leased premises by a third party that continues for more than three consecutive months is considered a transfer or sub-rental. The transferee or sub-tenant is regarded as occupying the leased premises without any right or title. In this case, the landlord may request the judge to order the eviction. The initial lease is automatically terminated when the eviction is ordered. Decisions made under this article are not subject to the provisions of Article 24 below.

When the lease transfer or sub-rental is not prohibited under the previous article, the landlord is required to participate in the act. To this end, the tenant must notify the landlord, either by a formal act as provided in Articles 37, 38, and 39 of the Code of Civil Procedure, or by registered letter with acknowledgment of receipt, of their intention to transfer the lease or sub-rent the premises. If the landlord refuses to participate in the act or fails to respond within thirty days of receiving this notification, it is considered as agreed.

When the sub-rental price is higher than that of the main rental for the sub-let part, the landlord is entitled to a corresponding increase in the main rent. In case of disagreement regarding this increase or, generally, regarding the conditions of the lease transfer or sub-rental, the matter is decided by the judge at the request of the most diligent party.