A

A.P.R.:  The annual percentage rate that integrates all of the fees of the credit (loan). The rate of the actual loan, miscellaneous fees, bank commission and death insurance. It is this value that must be taken in account when comparing other rates offered by banks for your property loan.  Generally finance companies and banks who sell loans do not state the rate including the death insurance.  The A.P.R. includes all the fees.

B

Bearer of right:  Person who holds a certain right.

Bond:  The person (guarantor) who commits as a guarantee to pay the creditor if the debtor does not fulfil his obligation towards his debt.

C

Case fees: Fees generated by the study and the set up of a property loan.  The amount varies and can be negotiated with your bank.

Cession (Sale): The transfer of ownership of a property from one person to another.  This may be from a sale or an inheritance.

Checklist inspection:  A document to be signed by both parties indicating the state and inventory of the habitation at entry and at departure of the tenant from the apartment (habitation).

Collateral:  Property (a building or apartment) or personal property (furniture, etc) pledged by a borrower to his creditor to secure a loan and subject to seizure in the event of default.

Co-ownership rule book: Defines the functioning of the co-ownership, the rights and the obligations of the co-owners and the tenants of a building, the lots and the quota of the expenses that will be affected to them.

D

Debt load: Calculated by dividing the reimbursements of the total of the loans (ex: car, property, etc.)  by the revenues.

Deposit:  A partial payment, for example: The amount paid by the buyer at the time of the signature of the sales agreement.  It usually represents a certain % of the total cost of the property.  If the sale does not happen the seller has the right to keep the amount paid. There is one exception: The buyer can retrieve the deposit paid if the buyer proves that a suspensive condition stated in the sale agreement has not been respected.

E

Exclusive intention on sale: Memorandum of understanding signed by the seller and the buyer in which the seller commits to selling only to that buyer during a certain period of time.  Only the seller is committed, the buyer has no obligation to buy unlike the sales agreement in which both parties are engaged.

F

Fiscal advantage: The acquisition of a property as well as some types of work on existing property may benefit of a tax reduction on the total revenue or deduction or abatement on the taxable revenue.

Fixed rate: Interest rate that stays the same for the entire duration of the loan.

Formal legal notice:  A warning delivered by a bailiff or by registered mail to a non paying debtor ordering payment with a deadline stated. Failure to abide by the notice will lead to legal actions.

Furnished rental: Apartment rented furnished.

G

Guarantee: Ensures that the terms of the contract are executed and respected.  Ex: the guarantee of completion of construction, guarantee of unpaid rent, guarantee of delivery of property etc.

Guiche property: Plots that you can acquire the right of usage but you cannot acquire the ownership since it is owned by the State.

H

Hidden vice (Hidden construction defect): It is a defect in the certified conformity of a building that does not appear at the delivery of the project.

Home automation: A set of automated management techniques for the habitation (security, comfort and communication).

Housing scheme:  A project to divide a lot into several plots designated for the construction of several buildings.

I

Interest:  Interest that must be paid to the bank when the balance of the account is debtor.

Interest rate: A rate which is charged for the loan of money to buy a property.  The interest rate can either be fixed at one rate for the entire duration of the loan or can be revisable.  In the last case the rate varies according to the index of reference.  Generally the variation happens once a year usually at the anniversary date of the signature of the loan.

J

Joint ownership:  Juridical status enabling the distribution of a property. Property that can be owned by several people who have identical rights. This status remains in the case of death of one of the owners in which the heir becomes owner of the joint ownership property.

K

L

Lease: A rental contract concerning a property that is for habitation use or a mixed one (professional and for habitation).  The contract determines the conditions of usage of the property notably the duration of the contract and the cost of rental. The lease commits the landlord to a certain length of time.  However, the tenant can terminate the lease at any time but the tenant must give notice as stated in the lease (example: 1 month notice, 2 months etc.).

M

Mandate:  Authority or approval given by a person (the constituent) to another (the delegate) to do something for them in their name.  Ex: A mandate given to a real-estate company by an owner.

Market value:  The market value of a property.  This value is obtained at one time given and depends on supply and demand.

Master builder: A professional or a company (architect, constructor, company, head of building site) that manages the work on the construction site.

Melkia or unregistered property:  Buildings that are not listed at the property conservation agency (Conservation Foncière).

Mortgage:  A guarantee of payment of debt for the creditor (ex. bank who loaned the money) to ensure that what is owed will be paid.  Allows the creditor to sell the property in order to be paid, banks guarantee the loans they approve to debtors with mortgages.

N

New building: Less than 5 years hold and never occupied.

Notarial deed: An authentic deed executed by the notary: ex.: the sales deed.

Notary fees:  Sums paid to the notary at the acquisition of a property.  These costs are broken down in three sectors: taxes paid to State, the actual payments to the notary and the pay outs (the money the notary advances to enable him to get certain documents).

Notary: A public officer who has received delegation of power from the State named by the Dahir Royal to give authenticity to the deeds he has drawn, these deeds are written in the French language.

Notice: Given in advance to terminate a lease.  The time of notice required is indicated in the lease (one month, 2 months etc.).

O

Older building: More than 10 years old.

P

Partial payment (deposit): An amount of money is paid to one party to another as a guarantee of the sale transaction, example: a payment that the buyer makes to the seller at the time of signature of the sales agreement.

Pay out expenses: Payments advanced by the notary to enable him to procure various types of documents: the cadastral certificate, the mortgage status, the town planning certificate, the purge of the right of preemption, the salary of the administrator of mortgages.

Pre-emption right : A right enabling a person to have priority to buy a property over anyone else at the conditions and price stated at the time the property is put up for sale by the owner.

Private deed: Deed written and signed by both parties not necessitating the intervention of a public officer (Notary).

Project manager: Person or moral person who acts as supervisor and coordinator on behalf of the party or person the building is being constructed for. Responsible for paying and ordering the work needed through architect, tradesman, etc.

Promoter: A real estate professional. Directs and promotes the future and present constructions designated for resale.

Property income: Revenue from rentals of the properties owned.

Property loan: Loan used for the acquisition of a property.

Purchase of a new property under construction: A purchase off plan.  The buyer pays for the cost of the property in several instalments as the construction of the property moves forward.

Purchase of joint ownership property: The acquisition of property by people with no relation to one another.  The buyers sign a joint ownership agreement enabling to define the shares owned by each.  The joint ownership is terminated either by the sale of property of one of the owners or in the case of death.

Q

R

Real estate asset: A property that cannot be physically moved (buildings, businesses and plots).
Real estate patrimony:  The total real estate property owned by one person.

Recent building: Less than 10 years old and previously occupied.

Registered property: The building is listed in the property registry book of the Administration of Property Conservation (Direction de la Conservation Foncière) which results in the registration of the property enabling the creation of the title deed that carries a number, a name and a detailed description of the building.The registered building presents the following features: identification of its owner and its exact location

Renovated building: Has been occupied and renovated.

Rental value: An annual payment in exchange for the lease and the use of a property.  This value corresponds to the market value of rent with conditions of use of lease, category of property and specific region.

Revisable capped rate: Interest rate that is revisable but cannot go beyond a certain amount fixed in advance at the signing of the loan.

Revisable rate: Interest rate that varies. The rate is indexed short term on the monetary market and evolves according to economical and financial factors.

S

Sales agreement: The agreement signed between the seller and the buyer of a property that confirms the sale before the definite sales deed is done with a notary.  It is a memorandum of understanding signed between the seller and the buyer of a property.  The sales agreement commits both parties.  The buyer normally pays a deposit to the seller (a % of the sale).

Sales deed: The deed in which the buyer becomes the owner of the property.  It is an authentic document that is established by the notary.

Samsar: Moroccan intermediates that manage small client portfolios.

Sublet: Lease established by tenant to rent the habitation to a third party with the approval of the owner.

Syndic: A physical person or a moral one who represents the co-ownership association as well as carries out legal tasks.

Suspensive condition: An occurrence beyond the control of the parties in which the execution of their commitments is suspended.  Example:  The buyer of property is obtaining a loan.

T

Termination: Termination of lease when the tenant does not respect obligations: does not pay rent, building fees, deposit, and insurance.

Transfer fees: Taxes and fees collected by the notary on behalf of the State and local communities when a transfer of ownership takes whether the property was sold or given without charge (sale, donation, inheritance).

Transfer of property free of charge: Transfer of ownership of property from one person to another without payment (inheritance, donation).

Transfer of property sold: Transfer of ownership of property from one person to another for a cost (sale of the property).

U

Unregistered property called « Melkia »: Buildings that are not listed at the property conservation agency (Conservation Foncière).

V

Vacation rental: Apartment rented short term, seasonal.

VEFA (Sale off plan): Sale of a property off plan thus not yet existing.  This sale makes the buyer owner of the plot, the present and future construction as well as the finished property.

Vice (Construction defect): It is a defect that may be apparent or hidden and alters the construction.

W

X

Y

Z

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