Buying untitled property (Melkia) in Morocco in 2024: what are the risks?

Would you like to invest in real estate in Morocco? Before you let yourself be seduced by attractive prices and tempting offers for untitled property, it's essential to understand the potential risks you could face. What are the little-known dangers of buying untitled property in Morocco? Why is it preferable to purchase titled property to ensure the security of your investment? What guarantees does a definitive land title offer? In this article, we'll reveal the answers to these crucial questions, enabling you to make an informed decision and protect your interests as you embark on your real estate journey in Morocco.

What is untitled property or melkia?

When exploring real estate opportunities in Morocco, you may come across untitled properties, also known as "melkia". But what does this really mean? An untitled property is bare or built land, a building or any other real estate asset that has not been registered with the Agence Nationale de la Conservation Foncière, du Cadastre et de la Cartographie (ANCFCC).

Land tenure in Morocco is divided into two legal systems: contemporary law for titled property, governed by the dahir of August 12, 1913 on the registration of buildings, and Muslim law for untitled property, based on possession or "hyazat". Ownership of untitled property is based on an act of peaceful, public and continuous possession for at least 10 years, exercised as owner in the eyes of third parties. This takes the form of a handwritten deed of ownership called a "moulkiya", drawn up by an Adoul.

Untitled properties, often found in rural areas, can be offered at very attractive prices. However, it's crucial not to be seduced by these tempting offers without understanding the potential risks you could be exposed to as the owner of an untitled property in Morocco.

What are the risks of buying a melkia?

Buying untitled property in Morocco may seem like an attractive deal, but it's important to consider the potential risks you're exposing yourself to. Here are the main dangers associated with buying a melkia:

1. Imprecise definition of the property: One of the major drawbacks of a melkia is the lack of precision regarding the characteristics of the property. Unlike a land title, the deed of possession (moulkiya) does not specify the land's topographical boundaries, encumbrances or easements, which can lead to problems in subsequent transactions.
2. No protection against claims: Buying an untitled property exposes you to potential ownership claims. It may happen that one of the undivided co-owners who was not consulted at the time of sale, or a neighbor, invokes an act of possession, thus calling into question your status as owner. In the case of joint ownership of an inherited melkia, it is difficult to know who all the owners are.
3. Lengthy and uncertain registration requisition procedure: If you decide to buy a melkia, you'll need to start a registration requisition procedure with the ANCFCC to turn it into a titled property. This procedure involves several complex steps and can take some time. It is therefore essential to understand the delays and uncertainties involved.

It is important to weigh up these risks before making a decision to purchase untitled property in Morocco, and to consider alternatives that offer more solid legal security.

The advantages of a titled property

Buying a titled property in Morocco offers many advantages and legal guarantees. Here are the main benefits of buying a titled property:

1. Definitive land title: Once registered, the property is clearly identified and delimited. Its title is definitive and cannot be contested. This gives you solid legal security as a property owner.
2. Easier access to bank loans: Banks often require a definitive title deed as a precondition for granting a mortgage. Obtaining a titled property thus facilitates access to financing for your real estate project.
3. Property value: A titled property tends to be worth more than an untitled one. Obtaining land title can have a positive impact on the value of the property, which can be advantageous in the event of resale or long-term investment.
4. Protection of heirs: The purchase of a titled property ensures that your heirs receive a property whose ownership cannot be challenged. You offer them legal protection and facilitate any future real estate transactions.

By choosing a titled property, you ensure greater legal certainty, a potential increase in the value of your investment and protection for you and your heirs. These advantages make buying a titled property a safer option for your real estate projects in Morocco.

Precautions to take when buying property in Morocco

When considering the purchase of a property in Morocco, whether titled or not, it is important to take certain precautions to protect your interests. Here are a few measures to consider:

1. Call on a competent professional: Engaging the services of real estate specialists in Morocco can help you navigate the complex legal aspects of buying a property. They can advise you on the steps to take, check documents and ensure the validity of the transaction.
2. Do thorough research: Before buying a property, thoroughly research its history, ownership history and any claims. Make sure you understand all the details and implications related to the acquisition.
3. Check legal documents: If you're thinking of buying a melkia, make sure you consult all relevant legal documents, such as the deed of possession (moulkiya) and any current registration requisition procedures.
4. Include protective clauses in the contract: If you decide to buy an untitled property, it is advisable to include suspensive clauses in the sales contract, guaranteeing that you will obtain a requisition number or protecting you against possible claims or oppositions.

By taking these precautions, you reduce the potential risks involved in buying real estate in Morocco, and ensure a more secure transaction. Don't hesitate to seek expert advice and carry out the necessary checks to protect your rights as a buyer.

Tips for safe real estate investment in Morocco

If you're thinking of investing in real estate in Morocco, here are some tips on how to do it safely:

1. Prefer titled property: Opt for titled real estate to benefit from solid legal security and avoid the risks associated with untitled property.
2. Make a thorough appraisal: Before investing, carefully evaluate the property you wish to acquire. Call in experts to carry out inspections and technical appraisals to ensure the property's condition and value.
3. Call on competent professionals: Hire trusted, reputable professionals to assist you throughout the purchasing process and give you informed advice.
4. Carry out thorough legal checks: Be sure to check the property's legal documents, such as land title, ownership certificates and building permits, to avoid any future disputes.
5. Diversify your investments: Don't put all your eggs in one basket. Diversify your investments by considering different property types or locations to reduce risk and maximize return opportunities.

By following these tips, you can invest in real estate in Morocco in a safer, more informed way. Don't forget to do your due diligence, get informed and surround yourself with competent professionals to protect your interests as an investor.

In conclusion, buying untitled real estate in Morocco involves major risks and limited legal certainty. Titled property offers greater guarantees and protection for owners. It is essential to take precautions when buying property, such as calling on the services of competent professionals, carrying out thorough research and checking legal documents. Investing in real estate in Morocco requires careful evaluation and diversification of investments to minimize risk. By following this advice, you'll be able to carry out your real estate projects safely and with greater peace of mind.

Contact us today. Our team of experts is here to provide you with the advice and assistance you need to avoid surprises and ensure the success of your project. Call us, send us a message on WhatsApp (+212) 6 60 41 02 18 or e-mail([email protected]), and benefit from our expertise to bring your project to fruition with complete peace of mind.