Land Grabbing: A Redistribution of Powers and Responsibilities - L'Economiste

Source: leconomiste

For some observers, it is a consequence of the ongoing reform of the legal profession. For others, it bears the imprint of Hicham Sabiry, Secretary of State for Employment and, in his professional career, a jurist and notary. Bill No. 041.25, approved by the Government Council on April 30 and rapidly adopted by the House […]

For some observers, it is a consequence of the ongoing reform of the legal profession. For others, it bears the imprint of Hicham Sabiry, Secretary of State for Employment and, in his professional career, a jurist and notary.Bill No. 041.25, approved by the Government Council on April 30 and rapidly adopted by the House of Representatives on June 15, introduces major changes to real estate transactions in Morocco.The bill simultaneously amends several legislative texts, including Article 4 of Law No. 39-08 on Real Property Rights, Law No. 18-00 governing co-ownership, and Law No. 51-00 relating to lease-to-own real estate transactions.Among its key provisions is a profound amendment to Article 4 of Law No. 39-08, which previously allowed lawyers admitted before the Court of Cassation to draft deeds relating to property transfers, the creation, transfer, amendment, promise of sale, or cancellation of real property rights, as well as powers of attorney associated with such rights. Under the new legislation, these documents must now be executed exclusively through authentic deeds, failing which they will be deemed null and void.As a result, this responsibility will be permanently removed from lawyers and assigned exclusively to notaries and adouls.Since notaries are the only professionals authorized to hold funds in escrow, receive checks, and manage financial deposits as trusted third parties, they will effectively gain a monopoly over the drafting of authentic deeds and the handling of the vast majority of real estate transactions.A Framework Inspired by the French Model«This is a very significant reform in the fight against land grabbing. In France and in other civil-law jurisdictions, authentic deeds are mandatory, and lawyers are not authorized to draft documents relating to real estate transactions and real property rights», explains Jamal Mohada, a notary based in Marrakech. Bill No. 041.25 therefore excludes lawyers from drafting deeds relating to real estate transactions, ending a prerogative that had until now been enshrined in Article 4 of Law No. 39-08. The reform is clearly inspired by the French legal model. «Drafting deeds related to real estate transactions represented a substantial market», explains a business lawyer.«In southern Morocco, for example, whether involving transfers of ownership, sales of registered property, or melkia property, most deeds were drafted by lawyers. Going forward, such deeds will no longer be valid. Once the law enters into force, they will be systematically rejected by the National Agency for Land Conservation».According to this lawyer, the reform removes a significant source of business from legal practitioners who had traditionally positioned themselves in the real estate sector.Some lawyers reportedly provided their letterheads to public scribes for the drafting of private deeds with certified dates under Article 4 of Law No. 39-08. Certain powers of attorney were subsequently falsified and used in land-grabbing schemes.The mandatory involvement of notaries and adouls is expected to provide greater legal security and reduce the risk of fraud.Hassan EL ARIF