Frequently Asked Questions - Rental Law

Frequently Asked Questions.

I. Rental Agreement

The new legislation consists primarily of the Law No. 67-12 for residential and commercial leases and the Law No. 49-16 for commercial, industrial and craft leases.

Yes. Both laws require a written contract with a fixed date.

  • Residential/Professional: Article 3 of Law No. 67-12.
  • Commercial : Article 3 of Law No. 49-16.

According to theArticle 3 of Law No. 67-12A residential or commercial lease must include:

  • The full names and addresses of both parties.
  • A description of the rented property, its annexes, its intended use and its equipment.
  • The amount of the rent and the payment schedule.
  • The nature of the rental charges for which the tenant is responsible.

The duration is freely determined by the parties in the contract (Article 2, Law No. 67-12For commercial leases, a tenant acquires the right to renewal after a consecutive occupancy of at least two years (Article 4, Law No. 49-16).

No, a written contract is now mandatory. A verbal agreement would violate the law.Article 3 laws 67-12 and 49-16. The main consequence is the difficulty in proving the terms of the lease and the inability to use certain expedited legal procedures, such as the rent recovery procedure described in theArticle 22 of Law 67-12.

The fundamental difference lies in the use of the property and the applicable law.

  • THE residential leases are for housing and are governed by the Law No. 67-12.
  • THE commercial leases are for the operation of a commercial, industrial or craft activity and are governed by the Law No. 49-16, which offers strong protection of "commercial property", including a right to renewal.

It is a consensual and written contract by which a landlord makes a property available to a tenant for a specific period and use, in exchange for rent. It details the rights and obligations of both parties as defined by the applicable law (67-12 or 49-16).

  • Residential/Professional: The lease does not automatically terminate upon its expiry. The landlord must give valid notice based on specific grounds listed in the relevant section.Article 45 of Law 67-12Otherwise, it continues.
  • Commercial : The tenant has a right to renewal after two years of occupancy (Article 4, Law 49-16The landlord can only refuse renewal under certain conditions, and must often pay eviction compensation (Articles 6 & 7, Law 49-16).

A lease can be terminated for breach of contract.Article 56 of Law 67-12 allows the landlord to request termination if the tenant uses the property for other purposes, makes unauthorized alterations, neglects it, or fails to pay rent. For commercial leases, theArticle 8 of Law 49-16 lists the cases in which the landlord can evict without compensation for non-payment or other serious breaches.

Both laws require a contract with a "certain date," which gives it probative value. A private, unregistered contract is valid between the parties, but to be enforceable against third parties and used in certain official procedures, its date must be certified by a competent authority.

The main obligation is to establish a written contract (Article 3 of both laws) and for both parties to draw up a jointly agreed descriptive inventory of the premises, to be attached to the contract (Article 7, Law 67-12 and Article 3, Law 49-16).

This is a detailed description of the property's condition at the time the tenant takes possession. It is crucial because it serves as proof. If it is not done, theArticle 8 of Law 67-12 presumes that the tenant received the property in good condition.

Yes, it must be specified. The consequences of the end of the term differ: in a residential lease, the landlord must always issue a formal notice of termination for a valid reason. In a commercial lease, the expiry of the term is a prerequisite for the tenant to exercise their right to renewal.

  • Residential/Professional: Subletting is prohibited without the landlord's written consent (Article 39, Law 67-12).
  • Commercial : Subletting is permitted unless the lease agreement expressly prohibits it (Article 24, Law 49-16The landlord must be informed.

The Law No. 67-12 explicitly applies to furnished and unfurnished properties for residential or professional use (Article 1The general rules of the law apply.

II. Rights and obligations of the landlord

The primary right is to collect rent and charges on time (Article 12The landlord also has the right to terminate the lease and repossess the property if the tenant fails to meet their obligations (Article 56) or for personal use under strict conditions (Article 45).

The landlord must:

  • Delivering goods that meet basic health and safety standards (Article 5).
  • To guarantee the tenant peaceful enjoyment of the property (Article 9).
  • Carry out all major repairs necessary for the maintenance of the property (Article 10).
  • Provide rent receipts detailing payments (Article 11).

The law does not grant the landlord a right of access without the tenant's consent. The tenant's right to peaceful enjoyment (Article 9) implies that the landlord cannot enter at will. Access for necessary repairs must be agreed upon with the tenant (Article 17).

The landlord is responsible for all repairs necessary for the preservation and maintenance of the building (Article 10). This generally concerns major structural repairs, roofing, plumbing, etc., as opposed to minor repairs which are the responsibility of the tenant.

The landlord may terminate the lease to house himself, his spouse, his direct ascendants, his direct descendants or his legal dependents, subject to the strict conditions set out in the Articles 45 and 49 of Law 67-12These include possession of the property for at least 18 months and the fact that the intended occupant does not have alternative suitable accommodation.

The landlord can initiate a specific and expedited rent recovery procedure. This involves requesting an order from the presiding judge to serve the tenant with a formal notice to pay. If the tenant does not pay, the landlord can obtain a payment order (Articles 22 to 27, Law 67-12Repeated non-payment is also a valid reason for eviction (Article 45).

The security deposit must be returned to the tenant within a maximum of one month from the date the property is repossessed. The landlord may deduct any sums owed by the tenant for rent or repairs, provided that these are legally justified (Article 20, Law 67-12).

The landlord must guarantee the tenant against defects that significantly hinder the use of the property (Article 9, Law 67-12).

Yes. However, the lease continues with the new owner under the same terms and conditions. The tenant's rights are not affected by the sale (Article 4, Law 67-12).

The landlord is responsible for the maintenance of the building and its common areas. The costs are generally passed on to the tenants in the form of rental charges, the nature of which must be specified in the lease (Article 3).

III. Bail commercial

This is the Law No. 49-16, promulgated by Dahir No. 1-16-99, which applies to leases of premises for commercial, industrial or artisanal use.

The provided law does not define goodwill, as this is defined in the Moroccan Commercial Code. However, theArticle 8 of Law 49-16 indicates that the loss of customers and goodwill is a key element, and theArticle 7 shows that the value of the company, based on tax returns, is central to the calculation of eviction compensation.

The tenant acquires the right to renewal after proving two consecutive years occupancy. This condition is waived if the tenant has paid a sum of money in exchange for the right to lease (often called "key money" or "key money") (Article 4).

The compensation must be equal to the loss suffered by the tenant as a result of the eviction.Article 7 specifies that this includes the value of the business (based on tax returns for the last four years), renovation costs, lost assets of the business and moving costs.

The law does not contain a provision allowing the landlord to evict a commercial tenant for personal residential use in the same way as Law 67-12. Eviction is possible for demolition and reconstruction (Article 9) or if the building presents a safety hazard (Article 13), but this triggers a right of priority for the tenant in the new building or full eviction compensation.

The tenant cannot change the business activity without the landlord's consent. However, the tenant may be allowed to add complementary or related activities as long as they are compatible with the building, by informing the landlord who has two months to object (Article 22).

Rent review is subject to Law No. 07-03. However, if a sublease has a higher rent than the main lease, the landlord has the right to request an increase in the main rent (Article 24Furthermore, if the tenant adds new permitted activities, the landlord may request a new rent adjustment (Article 23).

  • Right to lease : This refers to the legal rights of commercial tenants, which include the right to occupy the premises and the right to renewal. It is a key element of the business's goodwill.
  • "Sarout" (ساروت): This is the colloquial Arabic term for the sum of money paid by the tenant to the landlord or a previous tenant to obtain the right to rent the premises.Article 4 it refers to as the "counterpart to the right to lease".

The landlord must give the tenant notice of termination stating the reason and providing for a notice period of 15 days for non-payment or danger of collapse, or 3 months for other serious reasons such as the desire to demolish and rebuild (Article 26). If the tenant does not comply, the landlord must take the matter to court to validate the termination notice.

If the landlord wishes to terminate a lease where a business exists with registered creditors, they must inform these creditors. The creditors may object to the payment of eviction compensation directly to the tenant, ensuring that their claims are settled first.Articles 29 and 30).

IV. Rights and obligations of the tenant (Rights and obligations of the tenant)

The tenant's main obligations are as follows:

  • Pay the rent and rental charges on the agreed date (Article 12).
  • Use the property "as a responsible person would" and in accordance with the use specified in the contract (Article 14).
  • To ensure the routine maintenance of the property and to carry out minor repairs resulting from daily use (Article 16).
  • Do not make any modifications or alterations to the property without the landlord's written consent.Article 15).
  • Inform the landlord without delay of any urgent repairs that are the landlord's responsibility (Article 17).
  • Return the property at the end of the lease in the condition in which it was received, as described in the inventory of fixtures (Article 19).

If the tenant does not pay the rent on time, the landlord can initiate a formal notice procedure. If payment is not made within the period specified in the formal notice, the landlord can take legal action to obtain a payment order and, potentially, the termination of the lease.Articles 22 and followingRepeated non-payment is a serious reason that may justify termination of the contract.Article 56).

No, the tenant may not make any modifications to the structure or equipment of the property without the prior written consent of the landlord. In the event of unauthorized modifications, the landlord may demand that the premises be restored to their original condition at the tenant's expense or retain the improvements without paying compensation.Article 15Substantial and unauthorized modifications may constitute grounds for termination of the lease (Article 56).

The tenant is responsible for "tenant's repairs", that is, minor repairs and routine maintenance that are not due to age or a construction defect. This includes, for example, the maintenance of plumbing and electrical installations, the replacement of broken windows, or the upkeep of paintwork (Article 16Major repairs remain the responsibility of the landlord (Article 10).

If the landlord fails to carry out the repairs for which they are responsible (major repairs, etc.), the tenant must first send a formal notice. If nothing is done, the tenant can take legal action to obtain authorization to carry out the work themselves and deduct its cost from the rent, up to the limit set by the judge (Article 18).

At the end of the lease, the tenant must return the keys and the property in the same condition as when they moved in, in accordance with the move-in inventory. If damage is found and is not due to normal wear and tear, the cost of repairs may be deducted from the security deposit (Article 19).

Yes, the tenant has the right to accommodate relatives; this is part of the peaceful enjoyment of the property. However, this must not become a disguised sublet. The law strictly prohibits subletting or assigning the lease without the landlord's written consent (Article 39).

Using the property for a purpose other than that stipulated in the contract (for example, converting a residential property into a commercial one) constitutes a serious breach of the tenant's obligations. This gives the landlord legitimate grounds to seek judicial termination of the lease agreement.Article 56).

V. Rent

The initial rent amount is freely determined by agreement between the landlord and the tenant. This amount must be clearly stated in the lease agreement, as required by law.Article 3 of Law No. 67-12.

Yes.

  • For residential/commercial leases: The rent may be revised every three years from the date of conclusion of the contract or the date of the last judicial or contractual revision (Article 34, Law 67-12).
  • For commercial leases: The general review is governed by Law No. 07-03 (not provided). However, the Law No. 49-16 provides for specific cases of review, particularly if the tenant adds a new activity (Article 23) or if the sublet rent is higher than that of the main lease (Article 24).

The conditions are a mutual agreement between the parties or, failing that, compliance with a three-year notice period for residential/commercial leases. If the rent is clearly at least one-third lower than the actual rental value, the landlord may also request a review to bring it in line with the market price (Article 37, Law 67-12).

For residential and commercial leases, the increase is calculated based on a reference index set by regulation. The rate of increase cannot be less than 8% for residential premises and to 10% for premises used for professional purposes (Article 34, Law 67-12). For the commercial sector, the calculation depends on law no. 07-03.

The revision is made either by a written agreement between the parties, or, in case of disagreement, by a referral to the competent court by one of the parties to set the new rent in accordance with the provisions of the law.

This is an official reference index (whose value is set by regulations) which serves as the basis for calculating the maximum permitted rate of increase during the three-year rent review for residential or commercial leases, as stipulated by law.Article 34 of Law 67-12.

Yes. If the tenant disagrees with the rent increase proposed by the landlord (in the absence of a prior agreement), they can refuse it. It will then be up to the landlord to take the matter to court to validate the rent increase, and the tenant will be able to present their arguments.

These are the costs related to the use of the property and common areas that the tenant pays in addition to the rent. The law does not provide an exhaustive list, but...Article 3 of Law 67-12 requires that their nature be specified in the contract. They typically cover water and electricity expenses for common areas, cleaning, elevator maintenance, etc.

The law does not specify the allocation method. This is generally defined in the building's condominium regulations and must be reiterated or clarified in the lease agreement, in accordance with the obligation of transparency.Article 3 of Law 67-12.

A rent receipt is a document that confirms payment of rent and charges. It is OBLIGATORY. L'Article 11 of Law No. 67-12 obliges the landlord to provide it to the tenant upon simple request, detailing the sums paid.

potential breaches of its obligations (unpaid rent, damages). For residential/commercial leases, its amount cannot exceed two months' rent (Article 20, Law 67-12).

For residential/commercial leases, the security deposit must be returned to the tenant within a maximum period of one month from the date of return of the keys (Article 20, Law 67-12).

The landlord may withhold all or part of the security deposit to offset any sums owed for unpaid rent or charges, or to cover the cost of repairing damage caused by the tenant. Any withholding must be legally justifiedeither by mutual agreement or by a court decision (Articles 20 and 21, Law 67-12).

VI. The end of the lease

  • For a residential/professional lease (Law 67-12): The contract does not automatically end upon its expiry. To terminate it, the landlord must give notice based on one of the legitimate grounds provided by law (repossession for personal use, demolition, etc.), and this notice must be validated by the court. Without a valid notice, the lease is tacitly renewed (Article 44).
  • For a commercial lease (Law 49-16): The contract ends upon notice given by one of the parties. A landlord wishing to refuse renewal must notify the tenant by means of a reasoned notice, at least six months in advance, and generally offer compensation for eviction (Article 26).

A notice of termination is a formal act by which one party (most often the landlord) notifies the other of their intention to end the contract.

  • For a residential/professional lease (Law 67-12): The notice to vacate must be given to the tenant, clearly state the reason for termination (e.g., repossession for personal use), respect a two-month notice period, and be validated by an order from the president of the court (Articles 45 and 46).
  • For a commercial lease (Law 49-16): The notice of termination must be served by a bailiff, specifying the reasons for refusing renewal and, where applicable, the offer of compensation for eviction. It must respect a six-month notice period (Article 26).
  • For a residential/commercial lease: The notice period is at least two months before the desired effective date of the leave (Article 46).
  • For a commercial lease: The notice period for refusing renewal is at least six months before the lease expires. For termination due to serious cause (non-payment), the notice period for the formal notice is 15 days (Article 26).
  • For a residential/professional lease (Law 67-12):
    • The repossession of the premises for personal use, that of his spouse, his direct ascendants or descendants (Article 45).
    • The need to demolish or restructure the building.
    • A serious and legitimate reason attributable to the tenant: non-payment of rent, change of use of the premises, significant damage, etc.Article 56).
  • For a commercial lease (Law 49-16): The landlord may terminate (or refuse renewal) the lease without compensation for serious reasons listed in the relevant section.Article 8, notably :
    • Failure to pay rent after a formal notice.
    • Carrying out alterations affecting the safety of the building without the landlord's agreement.
    • Unauthorized change of activity.
    • Illegal subletting.
  • For a residential/commercial lease: The law primarily focuses on termination by the landlord. However, if the landlord seriously fails to meet their essential obligations (for example, by not providing decent housing or failing to carry out major repairs), the tenant can request a court-ordered termination of the lease.
  • For a commercial lease: The tenant may decide not to renew the lease. To do so, they must give notice to the landlord by extrajudicial act at least six months before the end of the lease (Article 26).

It's an early departure and a breach of contract.

  • For a residential/commercial lease: The tenant remains liable for rent until the end of the term stipulated in the contract, unless the landlord re-lets the property in the meantime. The law provides for a specific procedure for the repossession of abandoned premises (Articles 57 and following).
  • For a commercial lease: The tenant remains liable for the payment of rent and may be sued for payment and damages for wrongful termination of the contract.

The move-out inspection report is a document describing the condition of the property at the time of its return by the tenant. It is compared to the move-in inspection report. For a residential/commercial lease, it is OBLIGATORY and must be established in a contradictory manner (Article 19, Law 67-12).

If the move-out inspection reveals damage attributable to the tenant (beyond normal wear and tear), the landlord is entitled to deduct the cost of necessary repairs from the security deposit. This amount must be justified (by an estimate or invoice). If the security deposit is insufficient, the landlord can claim the remaining balance from the tenant.Article 21, Law 67-12).

This concept applies primarily to commercial leases.

  • For a commercial lease (Law 49-16): The landlord can always refuse the renewal.
    • With compensation: He can do so for any reason (personal convenience) provided he pays the tenant eviction compensation (Article 7).
    • Without compensation: He can only do so for serious and legitimate reasons as provided for in theArticle 8 (tenant's fault, dangerous condition of the building, etc.).

Eviction compensation is a sum of money owed by the landlord to the tenant of a bail commercial to compensate him for the loss of his business. It is due when the landlord refuses to renew the lease without having a serious and legitimate reason (as defined in Article 8 of Law 49-16) for doing so (Article 7, Law 49-16).

According to theArticle 7 of Law No. 49-16The compensation must be equal to the damage suffered. It includes, in particular:

  • The value of the business, determined on the basis of the tax returns of the last four years.
  • Moving and relocation expenses.
  • The fees and transfer taxes for the purchase of a fund of the same value.

The sale of the property does not terminate the lease agreement. The new owner assumes all the rights and obligations of the former landlord. The lease agreement continues under the same conditions with the new owner. This is the principle of "sale does not break lease" (Article 4, Law 67-12).

No. Neither Law No. 67-12 (residential/professional) nor Law No. 49-16 (commercial) provides for a general right of first refusal for the tenant in the event of the sale of the property. However, Law No. 49-16 grants a right of priority to the commercial tenant evicted due to demolition, allowing them priority for leasing in the newly reconstructed building (Article 10).

VII. Judicial Procedures

For both types of leases (residential/professional and commercial), the competent jurisdiction is the Court of First Instance of the place where the rented property is located. This is the ordinary court for rental disputes.

Law No. 67-12 (residential/professional) does not provide for a systematic mandatory conciliation procedure before any legal action. However, the law encourages amicable agreements (for example, for rent reviews).Article 34For commercial leases, conciliation is also not a mandatory pre-litigation step for most disputes. The parties can still resort to it voluntarily.

A specific and expedited procedure is planned.

  • For a residential/professional lease (Law 67-12):
    1. The landlord sends the tenant a formal notice to pay within a period of at least 15 days, by a bailiff (Article 22).
    2. If the tenant does not pay, the landlord can ask the president of the court to issue a payment order (Article 23).
    3. This order is served on the tenant, who has 48 hours to pay or appeal (Article 27).
    4. The accumulation of unpaid rent then becomes grounds for seeking legal termination of the lease (Article 56).
  • For a commercial lease (Law 49-16):
    1. The landlord must also send a formal notice invoking the termination clause, giving the tenant 15 days to pay (Article 8 and Article 26).
    2. If payment is not made, the landlord can take the matter to court in summary proceedings to have the acquisition of the termination clause recognized and order the eviction.

Eviction is always the result of a court decision.

  1. Obtaining a qualification: The landlord must first obtain a final judgment or an enforceable order for eviction (for example, after validating a notice to vacate, or for non-payment).
  2. Order to leave the premises: The judgment is served on the tenant by a bailiff, ordering him to leave the premises.
  3. Forced execution: If the tenant refuses to leave voluntarily, the bailiff, with the assistance of the police if necessary, proceeds with the forced eviction of people and property.

The limitation periods vary depending on the action:

  • Rent payments: The action for payment of rent and charges is subject to a statute of limitations by five years.
  • Rent review (residential/commercial): The right to request the three-year review is barred after one year from the date on which it becomes possible.
  • Disputing the (commercial) termination of employment: A tenant who receives a notice of termination with refusal to renew must contest this notice before the court within a period of six months from the date of receipt of the notice, under penalty of forfeiture of his right (Article 32, Law 49-16).

The bailiff (called a "judicial agent" in some contexts) plays a crucial role at several stages:

  • Notification : It officially signifies important legal acts (notice to quit, formal notice, summons, judgment). It provides a legally established date and proof of receipt.
  • Observation : He can draw up official reports of findings (inventory of premises, damage, abandonment of premises) which have strong probative value in court.
  • Execution : He is responsible for the forced execution of court decisions (seizure for non-payment, eviction).

The standard legal remedies under Moroccan law apply:

  • The call: It allows the case (on the facts and the law) to be reviewed by the Court of Appeal. This is the most common recourse against a first instance judgment.
  • The appeal to the Court of Cassation: It allows for challenging the correct application of the law by lower court judges (Court of Appeal). The Court of Cassation does not retry the facts.

Once the judgment ordering the eviction is final and enforceable:

  1. The landlord appoints a bailiff.
  2. The bailiff serves the judgment on the tenant with a notice to vacate the premises.
  3. If the tenant does not leave, the bailiff draws up a report of difficulty and asks the Public Prosecutor's Office for authorization to use the public force (police).
  4. The eviction is carried out with the assistance of the police, the furniture is removed and the locks are changed.

Summary proceedings are an emergency procedure that allows for a rapid provisional ruling that does not decide the merits of the dispute. In landlord-tenant matters, they are often used to:

  • Order an expert assessment (for example, to document damage).
  • To stop a manifestly unlawful disturbance (for example, an act of violence by the landlord).
  • To establish the acquisition of a termination clause in the event of non-payment of rent in a commercial lease in order to order eviction (Article 26, Law 49-16).
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Amal anouide

Amal Anouide is a lawyer registered with the Safi Bar Association with over 13 years of experience. She practices in all Moroccan jurisdictions (Safi, Casablanca, Rabat, Marrakech) and handles cases involving divorce, criminal law, real estate, and business law. Her firm offers specialized support to Moroccans residing abroad (MREs) and foreign nationals, including remote consultations. She is known for her rigor and compassion, and has a 5.0 rating on Google.

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