1. The principle: the lease runs with the property
When a tenanted property changes owner, the new buyer succeeds the landlordin all their contractual rights and obligations. The lease does not lapse with the sale: it continues, on the same terms, with the same tenant, until its term. The buyer collects the future rents, but also takes on the landlord's obligations (peaceful enjoyment, maintenance, return of the deposit at the end of the lease).
This is a direct consequence of the nature of the lease: a personal right, binding persons through a contract, independently of any publication. The sale transfers ownership (a real right) but does not touch the lease contract, which continues to produce its effects.
2. The lease binds the buyer, even if not registered on the land title
Many buyers believe that a lease absent from the land title is not enforceable against them. This is false, and case law has settled it clearly. In its ruling of 3 November 2022 (ref. 64648), the Casablanca Commercial Court of Appeal denied a buyer the right to evict a commercial occupant whose lease right was not registered on the land title: a personal right such as the lease does not require registration to take effect.
The logic is consistent: the land title publishes real rights (ownership, mortgage, usufruct, easements), which must be registered to be enforceable against third parties. Personal rights — first among them the lease — bind without publication.
The lesson for the seller: you cannot "erase" the lease by failing to mention it. The lesson for the buyer: the land title does not tell everything — an occupant present on site, even invisible in the register, can be binding on you.
3. No automatic notice to quit for sale
The sale is not, in itself, grounds for notice. A landlord who wishes to sell free of any occupant cannot simply notify the tenant of a departure "because I am selling". Notice obeys grounds and a procedure framed by the rules in force, which differ according to the nature of the lease:
- Residential lease: governed by Law 67-12, which frames the term, the notice and its admitted grounds. Ending the lease means complying with the legal forms and deadlines.
- Commercial lease: governed by Law 49-16, particularly protective of the tenant. Recovering the premises may give rise to an eviction indemnity that is often substantial for an established business.
In practice, a seller who wants to sell free of occupants has two routes: lawfully ending the lease before the sale (within the admitted grounds and forms), or negotiating an amicable departure with the tenant — often in exchange for compensation. In both cases, have the way forward validated by your lawyer or notary before committing to a buyer.
4. The impact on price: a tenanted property is not worth a vacant one
Selling occupied or selling empty does not yield the same price. The buyer of a tenanted property is not buying an available home: they are buying a rental income, subject to a deferred-enjoyment constraint. Depending on the buyer's profile, this works one way or the other:
- For an investor, a property already let to a good tenant at a market rent can be an asset: immediate yield, no vacancy, no tenant search.
- For a buyer who wants to occupy the property, the occupancy is a brake: they will have to wait for the end of the lease or negotiate the exit. Hence a discount compared with an equivalent property sold vacant.
The size of the gap depends on several parameters: the level of the in-place rent relative to the market (an under-market rent weighs on value, a market rent supports it), the residual term of the lease, the quality of the tenant (payment regularity), and the nature of the lease (a protected commercial lease weighs more heavily than a residential lease close to its term). These mechanisms — over-rent, under-rent, reversion value — are at the heart of leased property valuation.
5. Seller side: quantify the discount instead of suffering it
The classic trap for the seller of an occupied property is to accept a discount dictated by the buyer, for lack of an objective reference. "It's let, so I lower the price": without quantification, the negotiation is run blind, to the disadvantage of the party with no file.
An independent appraisal report compliant with RICS (Red Book) standards objectifies two values: that of the vacant property and that of the occupied, as-is property, with the gap documented and justified (rent, residual term, nature of the lease, comparables). The seller then enters the negotiation with an argument — not an intuition. If the discount the buyer demands exceeds the real gap, the report demonstrates it. Cost: from 3,500 MAD excl. tax, report within 5 to 8 days (48-72 h express), firm quote within 24 h.
This quantification also helps choose the disposal strategy: sell occupied straight away, or first recover the property (through lawful notice or negotiated departure) to sell it vacant.
6. Buyer side: rental due diligence is mandatory
Buying a tenanted property relying on the land title alone is buying blind. The land title reveals neither the leases, nor the rents, nor the arrears, nor the litigation. Before signing, the buyer must audit the actual rental situation:
- Complete rent roll: list of occupants, rents, charges, lease dates and terms, residual term.
- Copy of the written leases of each tenant (residential and commercial).
- Recent receipts to spot any hidden arrears.
- Business goodwill assignment deeds where relevant, to check the chain of the lease right.
- Ongoing litigation (eviction proceedings, rent or indemnity disputes).
- Physical visit of each unit to identify the actual occupants — sometimes different from the official tenants.
In parallel, an independent appraisal objectifies the value of the property in its occupied state, which directly serves the negotiation of the purchase price.
7. Summary: what seller and buyer must remember
- The lease runs with the property: the sale does not end it, the buyer takes over the current contract.
- No automatic notice to quit for sale: to sell vacant, you must end the lease in the legal forms or negotiate a departure.
- The lease binds even when not registered on the land title (Casablanca Commercial Court of Appeal, 3 November 2022).
- Price depends on occupancy: in-place rent, residual term, nature of the lease. Quantify the vacant/occupied gap instead of suffering it.
- Buyer: audit before signing. The land title does not tell everything.
8. FAQ
Can I give my tenant notice because I want to sell?
The sale of a tenanted property is not in itself grounds for notice. The lease continues with the buyer, and notice obeys grounds and a procedure framed by the rules in force (Law 67-12 for housing, Law 49-16 for commercial leases). To sell vacant, you must either end the lease in the legal forms before the sale, or negotiate an amicable departure — confirm the way forward with your lawyer or notary.
Is the lease binding on the new owner if it is not registered on the land title?
Yes. The Casablanca Commercial Court of Appeal, in its ruling of 3 November 2022 (ref. 64648), confirmed that a lease — a personal right — binds the buyer even when not registered on the land title. The land title publishes real rights (ownership, mortgage), not personal rights such as the lease. The buyer succeeds the landlord in their rights and obligations.
Does a tenanted property sell for less than a vacant one?
Often yes, because the buyer cannot dispose of the property immediately: they are buying income, not an available home. The size of the gap depends on the in-place rent relative to the market, the residual term of the lease, the quality of the tenant and the nature of the lease. An independent appraisal quantifies this gap instead of leaving it to the buyer's assessment.
Does the tenant have a right of first refusal to buy the property?
It depends on the lease regime and the contract clauses: any priority or pre-emption right falls under the rules in force and the stipulations of the lease. Before putting the property up for sale, have the existence of such a right checked by your notary or lawyer — ignoring it can undermine the sale.
How can a buyer secure the purchase of a tenanted building?
Through rental due diligence: written leases for each occupant, rent rolls (rents, charges, residual terms), recent receipts, business goodwill assignment deeds where relevant, ongoing litigation, and a physical visit to identify the actual occupants. The land title does not reveal the leases. An independent appraisal, in parallel, objectifies the value of the occupied property, which serves the price negotiation.
Selling or buying an occupied property? Quantify the vacant and occupied value.
RICS-certified experts — appraisal report documenting the gap between vacant value and occupied value, within 5 to 8 days (48-72 h express). Reports compliant with Red Book standards, anywhere in Morocco, from 3,500 MAD excl. tax.
Note: The enforceability of the lease against the buyer of a building is confirmed by the Casablanca Commercial Court of Appeal ruling of 3 November 2022 (ref. 64648). Lease regimes fall under the rules in force (Law 67-12 for housing, Law 49-16 for commercial leases): grounds and forms of notice, any priority rights and the assignment procedure must be confirmed with your notary or lawyer. To quantify the vacant and occupied value of your property, see our real estate appraisal service or the ReaConsult blog.