Morocco Enhances Consumer Protection in Real Estate: Warranty Period Extended to Two Years
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Loading... - Mandy Kappel
- 02 Sep 2024
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Morocco has taken a significant step towards strengthening consumer protection in the real estate market with a recent amendment to the Code of Obligations and Contracts. The amendment, published in the Official Gazette, extends the warranty period for real estate sales from one year to two years after the date of delivery.
The amended Article 573 states that any lawsuit arising from defects requiring warranty or from the lack of promised characteristics must be filed within two years from the date of delivery for real estate, and in all cases within five years from the date of sale. The maximum warranty period remains at five years from the date of sale.
Objectives of the Amendment
The main objectives of the amendment are to:
i. Provide consumers with sufficient time to ensure the property is free from defects and damages.
ii. Improve consumer protection and enhance fairness in contractual relationships.
iii. Keep pace with the increasing demand for real estate, especially those purchased under joint ownership schemes.
The amendment was approved by the House of Representatives on July 8th of last year, following a proposal submitted by the Progress and Socialism Party group. The explanatory memorandum of the law notes that the previous period of 365 days was no longer sufficient given the increasing cases of property defects, which have become the subject of numerous lawsuits in the Kingdom's courts.
This amendment is expected to contribute to improving the quality of real estate transactions and increasing trust between sellers and buyers. It is a significant step towards strengthening consumer rights in the Moroccan real estate market, providing buyers with greater protection and confidence in their purchases.
