- General conditions required for real estate activities
- Promise of sale :
- As-built minutes
- Transfer of property
- Foreign customers
General conditions required for real estate activities
Property developers must be licensed to be able to undertake real estate activities. Property developers are licensed through decision of the Minister in charge of Housing upon the advice of the real estate consultative commission. Property developers applying for a license agreement must enjoy their civil and political rights, and must have never been subject to a lawsuit for offences of honor or for breach of trust, as they must have never gone bankrupt. They must show evidence:
• Of a sufficient capital ;
• A personal competence with the commitment to engage professional experts and qualified staff.
Promise of sale :
The sale of a property in the framework of a real estate project before its execution can be conducted only property developers. The promise of sale defines rights and obligations of the developer and that of the purchase. It must include:
• The origin of the land property, the number of the parcel, when available
• The parcel approval date for lands to be developed and the construction decree number for the sale of buildings to construct;
• The price and payment procedures (in case two successive payment bills are not respected by the purchaser, the property developer may consider the sale to be void provided formal notification sent by a bailiff remains unfulfilled for a period of two months).
• The date of delivery and price delivery method;
• Delay penalties;
• The guarantee of good execution of the works
As built minutes
Prior to delivering the promised building, the property developer must provide the purchaser with a copy of as-built minutes and the use authorization delivered by municipal services. .
Transfer of property
The transfer of property is made upon the full payment of the promised building’s final cost. The final sales contract must be prepared within one month from the project follow up.
Foreign customers:
The authorization of the Governor is required for physical or moral entities, property developers or purchasers holding a foreign citizenship, willing to purchase lands or houses from a property developer. Exemption is granted to foreigners willing to acquire or lease lands or buildings located in industrial or tourist areas for the development of economic projects.
Legal references
Law n° 90-17 dated February 26, 1990, related to the rewriting of real estate legislation as modified and complemented by the following laws: - Law n° 91-76 dated August 2, 1991 complementing law n° 90-17 dated February 26, 1990, rewriting real estate legislation ; - Law n° 91-98 dated December 31, 1991 concerning the 1992 Finance Management Law (Article 58 related to advantages granted to property developers) ; - Law n° 93-120 dated December 27, 1993 promulgating the Investment Incentive Code - Law n° 94-16 dated January 31, 1994 ; o decree n° 91-1330 dated August 26, 1991, approving the general real estate tender document o decision of the Minister of Equipment and Housing issued on November 27, 1991, defining property developers licensing criteria. Law dated June 4, 1957 related to property transactions, namely: - Law decree n° 77-4 dated September 21, 1977 ; - Law n° 40 dated May 11, 2005.
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