Significant Changes to Property Rights Legislation
The Moroccan House of Representatives has recently approved, with a majority vote, Bill No. 041.25, which amends Law No. 39.08 concerning the Code of Property Rights, along with the royal decree issued on the 9th of Ramadan 1331 relating to obligations and contracts, Law No. 18.00 concerning the system of co-ownership of built properties, and Law No. 51.00 related to rental agreements leading to property ownership. This legislative session took place yesterday, with 65 deputies in favor and 30 opposing the bill.
Justice Minister Abdellatif Ouahbi explained that this bill addresses identified imbalances in the preparation of contracts related to transactions on properties and the associated rights, particularly focusing on properties that cannot be transferred or those whose transfer is contingent upon fulfilling specific procedures. He highlighted issues surrounding contracts related to communal lands, which have led to legal complications that undermine contractual security and disrupt the stability of real estate transactions. The legislative text aims to contribute to a comprehensive reform of the documentation system related to the real estate framework.
Essential Reforms in Property Documentation
The proposed legislation incorporates several significant changes, particularly concerning Articles 4 and 317 of Law No. 39.08, Articles 618-3 and 618-17 of the royal decree regarding obligations and contracts, Article 12 of Law No. 18.00, and Article 4 of Law No. 51.00. Minister Ouahbi noted that the first set of changes within Articles 1, 2, 3, and 4 focuses on restricting the professionals authorized to document transactions concerning properties, including special powers of attorney related to property sales. This measure is intended to ensure contractual security for ongoing transactions concerning properties and associated rights while protecting property ownership through the mandatory use of official contracts and the exclusion of informal documents.
To regulate the documentation practices and enhance transparency, the bill aims to solidify the stability of transactions and secure property rights, as mandated by the constitution. The approach taken is the result of extensive consultations that concluded with an agreement to limit this authority to relevant professional organizations. Minister Ouahbi emphasized that the primary role of lawyers is to help achieve justice by representing and supporting parties to ensure the right to a fair trial, while also acknowledging their role in arbitration, mediation, and legal consultation.
Members of the ruling majority have expressed that this legislative text is part of an extensive reform initiative led by the government, aimed at modernizing the national real estate system and enhancing the governance of related documentation. This response aligns with the transformations occurring in the real estate sector and addresses practical challenges that have impacted certain aspects of legal and contractual security. They underscored that the law seeks to fortify property rights, enhance contractual security, and provide legal guarantees to stakeholders, in line with constitutional provisions and to encourage economic development and investment.
Conversely, opposition deputies highlighted the significance of this legislative text in the context of the challenges facing the documentation system within the real estate framework, which affects transaction stability. They pointed out the difficulties posed by the proliferation of various types of documentation, the continued prevalence of informal contracts, and the challenges of digitization. They called for the establishment of realistic and institutional conditions necessary to implement the provisions of this law effectively, to avoid creating new obstacles for citizens accessing legal and documentation services. They stressed that ensuring property security requires not only limiting documentation methods but also unifying standards of proof and extending legal guarantees across various processes.
As reported by agadirinfo.ma.
