VEFA

[ScottieDog]

I have heard of two systems that control buying off-plan in Morocco:

Firstly, the developer needs to prove to a bank or guarantor, prior to starting build that they have 50% of the capital needed

Secondly, every developer needs to work with a lawyer to draw up a contract document called the VEFA (Vente en l'etat futur d'achevement). This contract was introduced as law in 2002 and I am led to believe works as a two-way security for uncompleted properties.

The VEFA is drawn up by a notaire or lawyer after the foundations and ground floor have been built and prior to the promotion of the project to potential buyers. The VEFA contract must contain the following information:

The building permission documents
Selling Price
Delivery schedule
Stages of payment
Methods of payment
Guarantee from the bank that capital is secured
Certified copies of architect plans
Attestation from engineers that the foundations and ground floor are completed

Once you are happy with the VEFA, you and the developer will sign it in front of the notaire and pay a deposit. At the same time as signing, you should receive a Cahier de Charge - detailing what building materials, furnishings, fittings, white good and finishings you will have in the property.

Now - my questions are:

1) Has anyone else heard of the VEFA?
2) Does anyone know if one exists for Alkudia Smir?
3) How does it relate to the Prelim Contract (Compromis De Vente)

Alan

[shak]

I have heard of it but nothing as comprehensive as you have the practical problem is that by the first floor and the foundations are established we have already signed contract ( private contract it may be) and paid up 30 % or so and if you dont like the contract try and get your money back. j

[ScottieDog]

I also have the following information:

Sales for possession on completion (VEFA in French), commonly called "vente sur plan", is the contract by which a person, the purchaser, enters into an agreement with another, the vendor, in order to buy property. The vendor undertakes to build the property within a determined period and the purchaser undertakes to pay the price by instalments corresponding to the progress of the work.

The Moroccan parliament adopted a law relating to sales for possession on completion. This law has been in effect since November 7, 2003.

The contractual process of such sales for possession on completion is:

The Reservation Contract (I) (optional)
The Preliminary Contract (II)
The Final Contract (III)

1/ The Reservation Contract
The contract by which the client reserves the purchase of a real property from the vendor, in return for the payment of a deposit.

The reservation contract includes, notably, the detailed description of the real property, the selling price and the terms of payment. The funds are placed in escrow with the notary in charge of the real-estate transaction.

2/ The Preliminary Contract
This contract is mandatory. It is concluded at the completion of the foundations of the building. It must include a certain number of indications relating to the real property, especially the delivery period, price, terms of payment and bank guarantee.

Specifications are established and signed by the vendor, and then given to the purchaser. They include the necessary indications relating to the consistency and technical characteristics of the building, the nature and quality of the materials, the elements of equipment, and the completion and delivery periods.

The bank guarantee given to the purchaser:

Repayment guarantee: At the signing of the preliminary contract, the vendor grants the purchaser a bank guarantee in order to secure the payments already made by the purchaser.
Concealed defect guarantee: The client benefits from a one-year concealed defect guarantee from the delivery of the real estate.
Ten-year guarantee: During the 10 years following the completion of the work, the client benefits from a ten-year guarantee on the real estate.

3/ The Final Contract
The property transfer of the real estate is carried out once the full price is paid and a residence permit is obtained.

To me, this says that the foundations have to be built before we enter into the Preliminary contract and pay the deposit? Does this mean that the current proposal to sign a prelim contract before construction starts is against Moroccan Law?

[azul]

These are good questions to ask a lawyer, preferrably a Moroccan lawyer. Does anyone know of such a lawyer available that can be asked?

[azul]

Here is the name of a lawyer who says they have extensive experience with real estate, in the Tetouan region, but that is all I know.

Oulamine Law Offices
Reda Oulamine
Member of the New York, Paris and Casablanca Bars
Réda Oulamine
Avocat aux Barreaux de New York, Paris et Casablanca
2, rue Abou Faid Masri, Gauthier-Casablanca
Tel: (212) 22 228 285/ US Number: 202-558-6649
Fax: (212) 22 228 286
reda@oulaminelegal.com
http://www.oulaminelegal.com

[shak]

Fadesa in their arrogance have not dealt with the situation, when I was in their office, I raised similar issues though not exactly same.

I was told about the stage payments not about what %, or at what at what stages of the comstruction. As I was made feel preveliged that I was buying there and the staff was giving me time as others have been buying it without seeing the plot etc.

These contractstage payments etc issue arose from my experience in marakesh. Further like France the mortgage has to be agreed before hand.

Lets see how Fadesa deal with this ?????

[ScottieDog]

azul - thanks for the details of the lawyer. I tried their website and it gave the message:

"This domain name expired on 09/27/06 and is pending renewal or deletion"

Will try the email and see what the say,

SD