VEFA in Morocco: what the law actually requires before you sign off-plan

Roughly one in two property buyers in Morocco today is buying something that doesn’t exist yet: VEFA (sale in a future state of completion, Morocco’s off-plan sales mechanism) dominates the new-build market, including in Marrakech. Many online guides summarize its payment schedule as “20% at signing, 30% at structural completion, 30% when watertight, 20% at delivery.” That figure circulates widely, but it no longer matches the law in force since the 2016 reform. Here is what the Code of Obligations and Contracts actually requires, and what it changes for an off-plan purchase in Marrakech.

The payment schedule the law actually imposes

Off-plan sales are governed by law No. 44-00, promulgated on October 3, 2002, then amended and completed by law No. 107-12 (dahir No. 1-16-05 of February 3, 2016, published in Official Bulletin No. 6518 of November 17, 2016). Article 618-6 of the Code of Obligations and Contracts, as rewritten by this reform, caps payments across five stages — not four:

Stage	Legal cap
Signing the reservation contract	5%
Signing the preliminary contract (or 10% if there was no reservation)	5% or 10%
Start of works	10%
Three construction milestones (foundations, structural work, finishing)	60% total
Final sale deed and handover of keys	20%

The text specifies these are maximum amounts at each stage: a developer cannot demand more, even though some sales contracts offer “payment facilities” that speed up the pace in exchange for a discount. These arrangements remain possible if freely accepted, but they must never exceed the legal caps at each stage.

The guarantees a developer must provide after the preliminary contract

As soon as the preliminary contract is signed, the seller is legally required to provide the buyer with either a completion guarantee for the works or a reimbursement guarantee covering installments already paid in case the contract isn’t executed. The references of this guarantee — bank guarantee or insurance — must appear in writing in the preliminary contract itself, with a copy given to the professional who drafted the deed.

The seller is only released from this obligation once the final sale deed is registered on the land title, or inserted into the registration application if the property isn’t yet titled. In practice, a developer who refuses to disclose the guarantee’s references before signing isn’t complying with the law — this isn’t an administrative detail to negotiate later.

The reservation contract: withdrawal rights and an escrow account

The reservation contract, signed before the preliminary contract, can only be concluded after the building permit has been obtained, on pain of nullity. The law caps the amount requested at this stage to 5% of the price, and requires the seller to deposit the sums received into a special bank account, in their own name, where they remain unavailable and unseizable until the withdrawal period expires.

That withdrawal period is one month from the date the reservation contract is signed. If the buyer withdraws, the seller must refund the full amount paid within a maximum of seven days. After six months without a preliminary contract being signed, the reservation contract lapses and the funds must be returned. No payment of any kind is valid before the reservation contract — or, failing that, the preliminary contract — is signed: the law qualifies any earlier payment as “null and void.”

Delays, penalties and termination: who owes what to whom

“The seller may benefit from an additional period not exceeding six months to complete the works, provided the buyer is informed one month before the initial deadline expires.”

Beyond this grace period, the law provides for a late penalty capped at 1% per month of the amount due, up to 10% per year — whether the delay is attributable to the buyer (payment) or the seller (delivery). This penalty only applies one month after a formal notice has been sent to the defaulting party.

In case of termination, the compensation owed to the aggrieved party depends on how far the project has progressed: 15% of amounts paid if the structural work is complete, 20% if finishing works and the occupancy permit have been obtained. Conversely, if the seller misses the agreed delivery deadline, the buyer can terminate without owing any penalty — and is even entitled to compensation of 20% of amounts paid. This is one of the least understood points of law 107-12: the contractual balance of power isn’t systematically against the buyer, provided the developer’s failures are precisely documented.

What this means in practice for an off-plan purchase in Marrakech

In the Marrakech market, new-build prices generally range between 6,000 and 28,000 dirhams per square meter depending on the neighborhood and standing, with a frequent 10 to 25% premium on new builds compared to an equivalent resale property in the same area. Multi-month construction delays remain a recurring complaint among buyers, with several industry professionals citing building-material shortages affecting timelines since early 2025.

Against that backdrop, the legal five-stage schedule offers real protection: the 60% tied to construction progress should only be demanded after physical verification of each phase, typically via an architect’s certificate or a joint site visit. A buyer who agrees to pay faster than this schedule gives up an important negotiating lever in the event of a later dispute — with no legal benefit in return, only a commercial discount.

Checklist before signing a VEFA contract

• Building permit obtained and verifiable before any reservation contract
• Reservation deposit capped at 5% of the price, paid into an escrow account
• References of the completion or reimbursement guarantee written into the preliminary contract
• Payment schedule matching the legal caps (5% / 5–10% / 10% / 60% / 20%)
• Precise delivery deadline, with a quantified late-delivery penalty clause
• No payment made before the reservation or preliminary contract is signed
• Preliminary contract reviewed by a notary, an accredited lawyer, or an adoul before signing

This article is an educational summary of the legal framework governing VEFA under law 44-00 as amended by law 107-12. It does not replace personalized notarial or legal advice: the amounts, deadlines and penalties mentioned are legal caps or references, not a guaranteed estimate for any specific project.