Bouskoura: he pays MAD 332,500
the developer never delivers — here is what the court gives him back (Casablanca Commercial Court 2021)

1. What the buyer really recovers

The principle is now settled: when the developer fails to deliver the agreed work within the deadline, the buyer is entitled to rescission of the contract with full restitution of the sums paid. Not 90%. Not a discount for the developer's administrative costs. The full amount — that is, MAD 332,500 in this ruling. The court even corrects the first-instance calculation error that had reduced the restitution to MAD 285,000.

On top of this come damages for loss of opportunity (notably the inability to rent the property on the dates originally planned) — the court awards MAD 20,000. This item stays modest: 6% of capital over 2-3 years is well below a standard rental yield or even the cost of inflation. That is the whole limitation of off-plan actions in the event of developer default.

2. The rejection of statutory interest — a practical oddity

The court excludes statutory interest, holding that it is a form of damages already covered by the lump-sum indemnity. This is an unfavorable reading for the claimant: in practice, Moroccan statutory interest (around 3-4% per year depending on the period) would have added MAD 20,000 to 40,000 over the 2019-2021 period. The court's logic is to refuse the combination, but it leads to a modest compensation that does not make up for the time value of the money tied up.

3. The real lesson: prevent, don't repair

The ruling teaches less through its legal solution (long settled) than through its final figures. Mohamed S. recovers, after 2 years of proceedings and several years of his money being tied up: MAD 332,500 + MAD 20,000 = MAD 352,500. That is his initial capital. No yield, no appreciation. Meanwhile, the money could have earned MAD 50,000 to 70,000 placed in a term deposit or a real estate fund. The real economic loss is well above the compensation awarded.

The practical consequence is clear: due diligence BEFORE buying is the only real safety net. Check the developer's track record (how many projects delivered in the last 5 years, average delay, ongoing litigation), require the bank completion guarantee, refuse verbal promises on delivery, pay in instalments indexed to real construction milestones — all of this costs less than a 2-3 year procedure to recover your capital without appreciation.

4. How to protect yourself from a defaulting developer

Here is the prudent buyer's off-plan (VEFA) checklist in Morocco:

• Developer track record: ask for the list of projects delivered in the last 5 years, with their original and actual delivery dates (average gap = a major signal)
• Bank completion guarantee (GFA): required by Law 44-00 on off-plan sales — check the bank's letter
• Notary escrow account: pay the deposits into an escrow account, not directly to the developer
• Payments indexed to construction milestones: 5% at reservation, 30% at the start of foundations, 30% at the shell, 25% at delivery, 10% at snagging clearance
• Late-penalty clause: 1% of the price per month of delay beyond 60 days, capped at 10%
• Automatic-rescission clause beyond a certain delay (6 or 12 months) with restitution within 30 days
• Pre-purchase appraisal of the project: review of the permit, the condominium bylaws, and any general-assembly minutes

Protect your purchase with our independent RICS appraisal service, our condominium advisory, and browse more analyses on the ReaConsult blog.