Difference Between Titled and Untitled Property in Morocco
In the Moroccan real estate market, understanding the difference between a titled property and an untitled property is essential to secure a property purchase or rental. This guide clearly explains both concepts, their legal implications, associated risks, and how to verify a property’s legal status.
What is a titled property in Morocco?
A titled property is a real estate asset that has an official title deed (Titre Foncier) issued by the Land Registry (Conservation Foncière). This document is the legal proof of ownership, protects against disputes, and provides maximum security for buyers.
What is an untitled property in Morocco?
An untitled property is a property that does not have an officially registered title deed. It may exist physically as a house or land, but ownership is not guaranteed by the Land Registry, exposing buyers to significant legal risks.
What are the main risks of buying an untitled property?
Risks associated with untitled property include ownership disputes, double sales, lack of legal protection, and the inability to register the property in the buyer’s name, which may result in financial loss.
- Ownership disputes with other claimants
- Impossible to obtain a bank mortgage
- No legal ownership guarantee
- Risk of sale cancellation
Why are titled properties safer?
A titled property is secure because it is officially registered with the Land Registry. This ensures transparency, makes ownership enforceable against third parties, and protects buyers from double sales and legal disputes. It is a key condition for a safe real estate purchase in Morocco.
How can an untitled property be converted into a titled property?
Converting an untitled property into a titled one requires a land registration procedure with the Land Registry, usually through a notary or lawyer. The process includes ownership verification, cadastral checks, building permits, and payment of administrative fees.
- Identify the real owner
- Request a cadastral extract
- Submit a registration file to ANCFCC
- Pay required administrative fees
Why do banks refuse mortgages for untitled properties?
Banks generally refuse mortgage loans for untitled properties because these assets cannot be legally mortgaged and do not provide sufficient guarantees in case of default.
Can an untitled property be sold legally in Morocco?
Yes, an untitled property can be sold through an adoul contract or private agreement, but without registered title deed. Such transactions are risky because the buyer does not receive officially enforceable proof of ownership recognized by the Land Registry.
How can you verify whether a property is titled or untitled?
To verify a property’s status, consult the Land Registry through the Mohafadati online platform or in person. The title deed must be clear, up to date, and free of mortgages to ensure a secure transaction.
- Access Mohafadati
- Enter the title deed number
- Check legal registrations
- Consult a notary if needed
Which documents confirm a property’s land status?
Essential documents to determine land status include the title deed, cadastral extract, non-mortgage certificate, and copies of previous notarized deeds.
- Original title deed
- Cadastral extract
- Non-mortgage certificate
- Previous notarized deeds
Main differences between titled and untitled property
| Criteria | Titled property | Untitled property |
|---|---|---|
| Legal security | High | Low |
| Can be mortgaged | Yes | No |
| Bank loan eligibility | Possible | Impossible |
| Risk of dispute | Low | High |
| Official registration | Yes | No |
What do notaries and real estate experts recommend in Morocco?
Moroccan notaries strongly recommend purchasing only properties with a registered title deed. This guarantees ownership, prevents disputes, and protects buyers against fraud and double sales.
What hidden costs come with untitled property?
Untitled properties often involve significant additional costs such as land registration fees, legal fees, cadastral expenses, and long administrative delays that may last months or even years.
- Land titling fees
- Notary or lawyer fees
- Cadastral and survey costs
- Risk of financial loss
Common cases of untitled properties in Morocco
- Old houses in historic medinas
- Inherited land not officially registered
- Family joint ownership properties
- Informal constructions in suburban areas
These properties require extra caution before any real estate transaction.
FAQ – Titled vs Untitled Property
Is an untitled property illegal?
No. An untitled property is not illegal, but it lacks enforceable legal protection and exposes buyers to significant risks.
Can I buy an untitled property if the price is very low?
Even at a low price, buying an untitled property remains risky unless it is converted into a registered titled property beforehand.
How much does it cost to convert an untitled property?
Conversion costs vary depending on the property situation, administrative fees, and notary charges, and may represent several percent of the property’s value.
Can an untitled property be mortgaged?
No. An untitled property cannot be used as collateral for a bank mortgage.
Can a title deed include charges or liens?
Yes. A title deed may include mortgages or easements, which must always be verified before completing a transaction.