Given that Morocco was formerly a French colony and maintains close relations with France to this day, it is not surprising that buying a property in Morocco follows the French process very closely.

An initial contract is constructed after your offer on a home is accepted. This type of contract is called ” Compromis de Vente” and it is the custom to make a down payment of ten percent at this time. A full refund of this deposit is available if the appropriate clauses were drafted into the Compromis de Vente at the time the agreement is signed. A contract will usually include a clause that the purchase will be conditional on obtaining a mortgage; this makes it necessary for you to include an “escape” clause in the event that a mortgage cannot be obtained.

In Morocco, getting a mortgage is like pulling teeth, and is not finalized until the signing of a contract. Thus, it is extremely important that your Compromis de Vente includes the so-called escape clause.

When purchasing a property in Morocco, it is suggested that you enlist the help of an independent lawyer or someone with in depth knowledge of the Moroccan mortgage system, regardless of who will be the notary. It is important to have the assistance of someone with local customs and language knowledge as well as an understanding of the property purchasing process.

Generally, mortgages are offered for terms of fifteen years. This can be extended to 25 years, but it will be accompanied by a much higher interest rate. You can not get an interest only mortgage for the entire duration of a mortgage, though an interest only option is offered for the first six months of a loan It is highly recommended that you should seek the services of a professional to get you a mortgage in Morocco, as the application process is a tedious task and banking staff has little knowledge about the application procedure for non-resident applicants.

When the Compromis de Vente is signed, investigations will take place, and if the result is acceptable, a notary public will vouch for the finished form. You will need to budget out about 5 percent of the purchase price to take care of any previously unseen fees. For the life span of a mortgage in Morocco, there is also a monthly mortgage tax of 10% included in the contract.