Buying Off-Plan (VEFA) in Morocco: Legal Guarantees, Payment Milestones and Pitfalls to Avoid

Buying a home off-plan means acquiring a property that does not yet exist, paying gradually as construction advances. In Morocco, this arrangement, known as the sale in a future state of completion (vente en l’etat futur d’achevement, or VEFA), attracts buyers with entry prices that are often more attractive and the option to personalise certain finishes. It also carries specific risks, which the law frames closely. This guide sets out the legal framework of the VEFA, the payment milestones, the guarantees you benefit from and the pitfalls to avoid before you sign.

At Armonia Solutions, with more than 25 years of expertise, Armonia Solutions supports buyers and investors in Marrakech and Agadir, from checking the project through to taking delivery of the property. The aim of this article is not to sell you a project, but to give you the concrete reference points to buy off-plan with full knowledge of the facts, by verifying the developer, the contract and the payment schedule before any commitment. Whether you are a British or international buyer looking for a holiday home or a rental investment, the same discipline protects your money.

Key figures of the VEFA payment schedule

The law frames the pace of payments to protect the buyer: you pay only as the works progress, never everything in advance. The table below summarises the logic of the milestones set out by the regulations. Amounts are shown in dirham (MAD) with an approximate conversion to US dollars (on a basis of around 10 MAD to 1 USD) for a property of 1,500,000 MAD. These are indicative reference points only.

The legal framework of the off-plan sale

Off-plan sales in Morocco are governed by a dedicated legal regime, updated by Law 107-12, which sets out strict rules for the preliminary contract and the protection of the buyer. The key document is the preliminary sale contract (contrat preliminaire). It must be drawn up either by an authentic act (acte authentique) or by an act with a certain date prepared by a professional belonging to a regulated legal profession and authorised to draft such deeds. This formality is not a detail: it is your first line of protection.

Before the preliminary contract, the parties may sign a reservation contract, again by authentic act or by an act with a certain date, depending on the agreed form. This document specifies the property, the price and the conditions, and frames the first payment. Never sign a simple informal reservation slip accompanied by a large payment: insist on the formality required by law and on the involvement of a qualified professional. If you are buying remotely, as many international owners do, make sure a trusted local representative or lawyer reviews every document before you transfer any funds. For a wider view of how a foreign owner buys and holds property here, see our guide on owning a second home in Marrakech as a British or international owner.

Payment milestones regulated by law

The great protection of the law lies in the framing of the instalments. The buyer pays only a fraction of the price at each stage, and each payment is tied to the real progress of the works. In practice, after the reservation and the preliminary contract, roughly 60 percent of the price is spread across three calls for funds linked to the advancement of the site, and the balance is settled on handover. This mechanism prevents a situation where you have paid most of the price for a building that has barely left the ground. It also gives you natural checkpoints: at each call for funds you can, or your representative can, verify on site or through photographs and a technical report that the promised stage has genuinely been reached before releasing the next payment.

The principle to remember is simple: no payment should be disconnected from a verifiable stage of construction. If a developer asks for a large sum up front, or for amounts that do not match what has actually been built, treat it as a warning sign. A serious professional will link each call for funds to a progress report and will have no difficulty justifying it. Keep every receipt and every progress statement, because these documents form the backbone of your file if a dispute ever arises.

Completion and refund guarantees

Alongside the payment schedule, the seller must offer the buyer either a completion guarantee or a refund guarantee. The completion guarantee ensures that the property will be finished even if the developer runs into difficulty; the refund guarantee ensures the return of the sums paid if the project does not go ahead. Insist on knowing which one applies to your project, with which institution it is lodged, and ask for the corresponding document. This is one of the most important points to check before signing.

Do not accept vague verbal assurances here. The guarantee is a formal commitment backed by a bank or an authorised body, and it should be identifiable on paper. If a developer cannot clearly tell you which guarantee protects your payments, that alone is a reason to pause and seek professional advice before committing. In practice, ask to see the guarantee agreement itself, note the name of the bank or authorised body, and keep a copy in your file alongside the preliminary contract and every payment receipt. A guarantee you cannot document is, for your purposes, a guarantee that does not exist.

Vetting the developer and the project before signing

Beyond the contract, the quality of the developer is decisive. Research their history, their delivered projects, whether deadlines were met and their financial health. A serious developer accepts transparency: building permits, plans, the specification of finishes (cahier des charges), the status of the land title (titre foncier) and a realistic timetable. Check that the land holds a clear land title and that the project has obtained the necessary authorisations.

Stay cautious in the face of an offer that seems too good. Respect for the legal payment schedule and the presence of valid guarantees are worth more than a tempting discount. As an international buyer, you will also need to document the origin of the money you bring into Morocco; our guide on proving the source of your funds explains how to prepare a file that passes without friction. Taking the time to build a clean, well-documented purchase file is never wasted effort. Where possible, cross-check the developer against public records, ask other buyers in earlier phases of the same programme about their experience, and treat unusually aggressive sales pressure as a reason to slow down rather than to hurry.

Illustrative case (simulation)

Take a buyer who reserves an off-plan apartment at 1,500,000 MAD, about 150,000 USD. On reservation, they pay 5 percent, or 75,000 MAD. On signing the preliminary contract before the authorised professional, they pay a further 5 percent, or 75,000 MAD. During construction, they pay 60 percent split into three calls for funds tied to progress, or 900,000 MAD in total. On handover, they settle the remaining 30 percent, or 450,000 MAD, after checking that the property conforms to what was agreed. This case is purely illustrative: the exact percentages and the precise split depend on the contract and the project.
The simulator below spreads the payment according to the logic of the legal milestones and shows an approximate conversion into US dollars. The amounts remain indicative and do not replace a careful reading of your own contract.

Best practices and mistakes to avoid

A few reflexes protect your purchase. Insist on the legal formality of the preliminary contract and the involvement of an authorised professional. Check the land title, the authorisations and the completion or refund guarantee. Tie each payment to a progress report and keep all supporting documents. Allow a margin on the timetable, because building sites often experience delays.

The classic mistakes are: paying a large sum on a simple informal reservation slip, neglecting to vet the developer, accepting a payment schedule disconnected from real progress, and signing without reading the specification of finishes. Avoid relying solely on a model or a show flat: ask for written commitments on materials and fittings. Finally, think about the running of the property once it is delivered. Many international owners let their home when they are not using it, and a clear management framework protects the asset; our guide on the rental management mandate and the clauses that protect the owner is a useful next step.

The relational side of buying in Morocco

Buying off-plan in Morocco also means understanding a culture of relationships, where trust and human contact matter as much as documents. A visit to the developer, a frank conversation and a recommendation from a trusted third party are often the starting point of a transaction. This relational dimension never replaces the legal formality, but it accompanies it: a developer who accepts transparency, answers your questions and respects local rhythms, including during festive periods such as the two Eid celebrations and the month of Ramadan, inspires more confidence. Taking the time to meet the teams, to visit other completed projects and to talk with previous buyers is fully part of the Moroccan way of concluding a property deal calmly and soundly.

Frequently asked questions

What exactly is the VEFA?

The sale in a future state of completion is the purchase of a property under construction. You become the owner progressively, and you pay as the works advance, within a legal framework designed to protect the buyer.

Is the preliminary contract compulsory?

Yes. The preliminary contract must follow the legal formality, drawn up by an authentic act or an act with a certain date by a qualified, regulated and authorised professional. Never accept a simple informal document for an off-plan purchase.

What guarantees should I demand?

Insist on a completion guarantee or a refund guarantee. The first ensures the property is finished even if the developer runs into difficulty; the second ensures the return of the sums paid if the project fails. Ask for the document and the guaranteeing institution.

How are the payments staggered?

After the reservation and the preliminary contract, 60 percent of the price is spread across three phases linked to progress, and the balance is settled on handover. Each call for funds must correspond to a real stage of the site.

What should I check about the developer?

Check their history, their delivered projects, their track record on deadlines, the land title of the plot, the building permits and the guarantees offered. A serious developer accepts transparency and provides the documents without reluctance.

What happens at handover?

At handover you inspect the property, list any reservations and check that it conforms to the contract and the specification. Note any corrections needed before the keys are handed over.

Can I buy off-plan from abroad?

Yes. Many British and international buyers purchase remotely, but you should mandate a trusted lawyer or representative to check every document, and you should keep proof of the origin of your funds for the transfer and any future resale.

What currency will I actually pay in?

Purchases in Morocco are settled in dirham (MAD). The US dollar and other figures shown here are only approximate conversions to help international buyers gauge the scale of each payment; your contract and your calls for funds will be expressed in dirham.

Do I need a notaire or a specific professional?

The preliminary contract must be drawn up by a professional from a regulated legal profession authorised to prepare such deeds. Using a qualified professional is not optional formality: it is the mechanism that gives your contract its legal force and its certain date.

Is off-plan riskier than a standard purchase?

It carries the risk of delay or developer default, but Law 107-12 frames the payments and requires guarantees. With a compliant contract, valid guarantees and a serious developer, the risk is greatly reduced.

Conclusion

Buying off-plan in Morocco can be an excellent operation, provided you respect the legal framework and leave nothing to chance. Law 107-12 protects you through a strict formality for the preliminary contract, a schedule tied to progress and the obligation of completion or refund guarantees. Vet the developer, demand the documents, tie each payment to a site report and take care over the handover. Would you like to secure your off-plan purchase? Ask for a free, personalised evaluation from Armonia Solutions, with more than 25 years of expertise in Marrakech and Agadir.

Sources

Secretariat General du Gouvernement of Morocco, legal texts and Official Bulletin (Law 107-12): www.sgg.gov.ma. Internal sources and field expertise of Armonia Solutions, more than 25 years of expertise in Marrakech and Agadir.