Buying off-plan in Morocco (VEFA) —
guarantees, risks, valuation

1. What is VEFA?

VEFA — Vente en l'État Futur d'Achèvement — is the Moroccan legal framework governing off-plan real estate purchases. Introduced by Law 44-00 (2002, amended 2016), it allows buyers to acquire a property before or during construction, with progressive payments matched to construction milestones.

VEFA is the dominant acquisition mode for new-build residential in Morocco — roughly 70-80 % of new apartments in Casablanca, Rabat, Tangier, Marrakech are sold off-plan.

2. The buyer's protections under Law 44-00

• Preliminary sales contract — Notarised or certified document, mandatory before any payment.
• Milestone-based payments — Prescribed schedule capped at 30% at foundations, 70% at shell completion, 90% at delivery, final 10% at handover.
• Developer's guarantee — Bank guarantee or deposit insurance covering payments made.
• Right of retraction — 7 days after the preliminary contract signature.
• Delivery deadline — Stipulated in the contract with penalty clauses for delay.
• Warranties — Biennial (minor defects), decennial (structural), perfect-completion (1 year post-handover).

3. Typical risks

• Delayed delivery — Common (12-24 months average slippage on large projects).
• Developer solvency — Insolvency of the developer mid-build; guarantee crucial.
• Specification changes — Reduced finishes vs. marketing samples.
• Surface reduction — Final surface smaller than contractual (~1-3% acceptable, beyond is actionable).
• Common area defects — Poor finishing, inadequate equipment.
• Tax and registration delays — Lengthy process to get the final deed (Titre Foncier) after delivery.

4. Pre-signature checklist

• Developer's ANCFCC title on the land — fully registered (TF)
• Building permit granted by the local authority
• Detailed plans (floor, elevation, common areas) matching marketing
• Technical specifications (CCTP) — list of finishes, materials, equipment
• Delivery deadline in contract + penalty per day delay
• Developer bank guarantee certificate (Law 44-00 compliance)
• Legal representation — notary independent of the developer
• Independent RICS valuation of comparable completed units

5. Valuing an off-plan asset

A RICS valuation of a VEFA property serves two main purposes:

1. Bank mortgage collateral — Banks require a completion-value valuation to underwrite the loan.
2. Negotiation & due diligence — Independent benchmark vs. developer's asking price.

Methodology follows RICS VPGA 4 (developer sale) + VPS 5 (comparables of completed similar units). The valuation estimates:

• Market Value on completion (hypothetical — as if built and finished to spec)
• Current value with construction risk discount (~10-20 % of completion value)
• Sensitivity to delay risk and finishing quality

6. Delivery and handover process

At delivery, the buyer should:

1. Conduct a walk-through inspection with the developer
2. List all defects and non-conformities in a formal handover report
3. Withhold the final 10 % payment until all defects are remedied
4. Only sign the final deed (acte définitif) once satisfied
5. Register the deed at ANCFCC for full TF ownership

Frequently asked questions