Conduct due diligence at the Commercial Court Registry
Agency: Commercial court registry
The notary obtains the modèle J form (also called modèle 7) to check the selling company’s legal standing at the commercial court registry and to ensure that it is not in a state of insolvency, liquidation or receivership. The notary should insert a clause in the deed of assignment on the subject.
Time and cost: Less than 1 day (online), MAD 20
Complete due diligence at the Land Registry
Agency: Land Registry (“Conservation Foncière”)
The notary verifies whether there is an open file for the selling company with the Land registry (Conservation fonciere) where the property is located. If one already exists, the notary will verify that all relevant information is accurate and where applicable, update it with the information that both managers have the power to sell or buy the property at a definite cost and that their tenure as manager is still valid.
The notary also verifies that the selling SARL is the owner and the property is not encumbered. The notary can check the encumbrances on the property online.
Time and cost: Less than 1 day (online), MAD 100
The sale contract is signed by both parties and authenticated by the notary
Agency: Notary
The signatures of the parties in the sales deed are only certified by the public notary if a notarial deed is established. Since January 2011, the stamp duty is paid directly at the Land registry. It is no longer necessary to purchase the stamps and stamp each page as previously required. The deed can be prepared by the parties, in some cases assisted by their lawyers. At this point the parties will usually pay all fees and taxes to the notary, who will then pay all taxes and fees to the authorities on behalf of the parties.
The documentation shall include:
- The sales agreement signed by the parties
- ID cards of each party; if the parties’ signatures are filed with the local authorities, only a certified copy of their ID cards and the date and number under which the deed was filed will be required 10% VAT on notary fees.
Time and cost: 1 day, MAD 12,879.7 (0.75% to 1% of the transaction value (notary fees) + 600 dirhams in stamps (20 dirhams per page, 5 pages, 6 copies))
Obtain an “Attestation Fiscale” from Regional General Tax Authority
Agency: Regional General Tax Authority
The pre-sale agreement (Promesse de vente) is delivered to the “Percepteur” to obtain an Attestation Fiscale from the tax collection authority (la Perception), showing whether there are outstanding taxes. As of 2016, the notaries can obtain the tax clearance after finalizing the property transfer. The “Attestation Fiscale” is mandatory by law (Article 139 du Code General des impôts).
The tax collection authority enters the request for tax clearance in its automatic system; this triggers requests for clearance from other agencies:
- The Direction Régionale des Impôts to verify the payment of Council or Local Tax (Taxe d’habitation/ Taxe des services communaux)
- The Commune Urbaine de Casablanca to verify the payment of the urban tax
Once clearance is obtained from both agencies, the tax collection authority delivers the tax clearance certificate showing that the seller has cleared all taxes.
Time and cost: 15 days, no charge
Registration of the deed with Tax Authority
Agency: Tax authority of Casablanca
The registration duty is 4%, pursuant to the Loi de Finances 2012. Since January 1, 2018, the registration of the sales deed with the Tax Authority must be carried out electronically, and the payment of the property transfer tax must also be paid by electronic means.
Time and cost: 2 days, MAD 59,537.94 (4% of property price for registration duty)
The buyer applies for the inscription of the registered deed on the land registers (Conservation Foncière, du Cadastre et de la Cartographie)
Agency: Land Registry (“Conservation Foncière”)
Listing of the registered sales deed in the land registry is an additional formality, which is separate from registration. The buyer applies for the listing of the registered deed on the land registers. According to a law 14-07, which entered into force on May 23, 2012, such listing must be completed within 3 months from the date the deed was drafted for authentic deeds and as from the date the last signature was certified for private deeds.
Parties submit a statement that must include the following: 1. designation with land title number, of building to be listed; 2. nature of right due to be listed; 3. acquisition method and nature and date of deed testifying to it; 4. if applicable, cause of resolution, restriction or right to dispose of or special notice that needs to be listed at the same time as main right, together with details of beneficiary. This statement must be signed by both parties. An original copy of the private deed or a copy of the authentic deed concerned is attached to such application.
Time and cost: 3 days, MAD 22,426.73 (MAD 100 + 1.5% of property value for stamp duty, with a minimum of MAD 500)
