Morocco Strengthens Consumer Protection: Real Estate Warranty Period Extended to Two Years

A significant amendment to Morocco’s Code of Obligations and Contracts has recently come into effect, aimed at enhancing consumer protection in the real estate market. This amendment was published in issue 7328 of the Official Gazette, making it officially enforceable.

Key points of the amendment:

1. Extension of the warranty period for real estate sales from one year to two years after the date of delivery.
2. Retention of the maximum warranty period of five years from the date of sale.

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.”

Legislative Background:

• This amendment was approved by the House of Representatives on July 8th of last year.
• The proposal was submitted by the Progress and Socialism Party group.

Main Objectives of the Amendment:

1. To give consumers sufficient time to ensure the property is free from defects and damages.
2. To improve consumer protection and enhance fairness in contractual relationships.
3. To keep pace with the increasing demand for real estate, especially those purchased under joint ownership schemes.

According to the explanatory memorandum of the law, 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 considered an important step towards strengthening consumer rights in the Moroccan real estate market. It is expected to contribute to improving the quality of real estate transactions and increasing trust between sellers and buyers.