I would like to know the views of people who have bought off plan on developments in Morocco about how you appointed your solicitor and the changes that your solicitor managed to negotiate into your contract.
I have reserved on Tanjah Beach and am a little uncomfortable with the process.
There is one solicitor that is in place to represent all 3500 buyers. He says that he was not appointed by the developers, but if he wasn't then how did he get into this position?
He claims to have built many forms of protection into the contract and has approached the contract as if he was a buyer.
However, I am uncomfiortable, as I have not appointed this company and can't be certian that he will put my best interests before the developers. He seems genuine and lists off a number of improvements he has made to the contract. However, crucially, the buyers will not have any input into the contract and there is no room for negotiation or changes to clauses once it is finalised.
He is charging 2% of costs. On 3500 units at an average of £70k per unit, I make that to be a £4.9million fee. Nice work if you can get it!
If you could let me know what you all think of this process and how it has compared to your experiences, i would much appreciate it.
Thanks.
Full Version: Solicitors For Moroccan Developments
QUOTE(boomorbust? @ Apr 13 2007, 06:14 PM) [snapback]606087[/snapback]
I would like to know the views of people who have bought off plan on developments in Morocco about how you appointed your solicitor and the changes that your solicitor managed to negotiate into your contract.
I have reserved on Tanjah Beach and am a little uncomfortable with the process.There is one solicitor that is in place to represent all 3500 buyers. He says that he was not appointed by the developers, but if he wasn't then how did he get into this position?
He claims to have built many forms of protection into the contract and has approached the contract as if he was a buyer.
However, I am uncomfiortable, as I have not appointed this company and can't be certian that he will put my best interests before the developers. He seems genuine and lists off a number of improvements he has made to the contract. However, crucially, the buyers will not have any input into the contract and there is no room for negotiation or changes to clauses once it is finalised.
He is charging 2% of costs. On 3500 units at an average of £70k per unit, I make that to be a £4.9million fee. Nice work if you can get it!
If you could let me know what you all think of this process and how it has compared to your experiences, i would much appreciate it.
Thanks.
I have reserved on Tanjah Beach and am a little uncomfortable with the process.There is one solicitor that is in place to represent all 3500 buyers. He says that he was not appointed by the developers, but if he wasn't then how did he get into this position?
He claims to have built many forms of protection into the contract and has approached the contract as if he was a buyer.
However, I am uncomfiortable, as I have not appointed this company and can't be certian that he will put my best interests before the developers. He seems genuine and lists off a number of improvements he has made to the contract. However, crucially, the buyers will not have any input into the contract and there is no room for negotiation or changes to clauses once it is finalised.
He is charging 2% of costs. On 3500 units at an average of £70k per unit, I make that to be a £4.9million fee. Nice work if you can get it!
If you could let me know what you all think of this process and how it has compared to your experiences, i would much appreciate it.
Thanks.
Unbelievable , i've never bought abroad but this just reads like another scam or rip off , you are a number on a file to this solicitor ........you are nothing to him ....... Spain , France , Florida , Bulgaria ........now Morrocco , where next Iraq or Afganistan , my advice is if your uncomfortable with all this ..................BAIL OUT .
QUOTE(grey shark @ Apr 13 2007, 11:10 PM) [snapback]606415[/snapback]
Unbelievable , i've never bought abroad but this just reads like another scam or rip off , you are a number on a file to this solicitor ........you are nothing to him ....... Spain , France , Florida , Bulgaria ........now Morrocco , where next Iraq or Afganistan , my advice is if your uncomfortable with all this ..................BAIL OUT .You will be really crazy if you use lawyer to buy a Moroccan property. Find well know notaire for only £200-£400.
Although you do not legally require a solicitor in order to buy a Moroccan property,
it is highly reccommended, as the notaire will not provide you with independent legal advice.
You should also have all three contracts translated into English by a proFezsional firm, therefore ensuring that both you and
your lawyer are fully aware of what you are signing. It is also advisable to inspect your new home before you sign
the final contract, just to double check that it is still in the same state as when you agreed to the sale.
Properties without the correct title deeds are commonplace in Morocco but, despite
what you might hear, it is imperative that you do not purchase a property without the
correct documentation. If you are not in possession of the title deeds,
you do not officially own the property – regardless of how much you paid.
See this when Buying a Home in Morocco ..
http://www.buyassociation.co.uk/property/t...in-morocco.html
Thanks for the info.
If anyone else who has bought off plan could descibe the legal process they are going through, I would much appreciate it.
In the article in the previous posting from Kal, it says that you can only get a mortgage in morocco for 40% of your net salary. This has not been explained to me before. Is there any way around this or any other options?
If anyone else who has bought off plan could descibe the legal process they are going through, I would much appreciate it.
In the article in the previous posting from Kal, it says that you can only get a mortgage in morocco for 40% of your net salary. This has not been explained to me before. Is there any way around this or any other options?
That is a very interesting article, thanks for posting.
I also didn't know about Moroccon lenders only lending against 40% of net salary (this can really skew figures if buying one of the more expensive props). Agents keep quiet about this, perhaps because it is hoped the lending product will have improved substantially between now and when the majority of properties complete? Are there any buyers out there whose props are nearing completion and who have already looked into their mortgages and can verify the facts in the article?
The other thing that appears to contradict the sales hype is the situation re capital gains tax. My understanding was that this is nil after 10 years of ownership - but the article states that it's 20% unless it has been your MAIN RESIDENCE for ten years!
I also didn't know about Moroccon lenders only lending against 40% of net salary (this can really skew figures if buying one of the more expensive props). Agents keep quiet about this, perhaps because it is hoped the lending product will have improved substantially between now and when the majority of properties complete? Are there any buyers out there whose props are nearing completion and who have already looked into their mortgages and can verify the facts in the article?
The other thing that appears to contradict the sales hype is the situation re capital gains tax. My understanding was that this is nil after 10 years of ownership - but the article states that it's 20% unless it has been your MAIN RESIDENCE for ten years!
CGT is 20% after 10 years (in Morocco.) It had looked like it would be 0% for a while, but its 20%. I know some of the agents have been slow to amend their websites accordingly. Do remember that it is 40% back here in the UK, so 0%/20% is an irrelevance for most.
33% to 40% of net take home pay LESS your credit commitments is the norm for mortgages in France. Moroccan system is based on the French one. I'd be surprised if the affordability element of the decision to lend were relaxed much. I haven't really looked into mortgages in Morocco, other than to check that I should be able to get a mortgages there (based on salary / credit comittmetns.) That said, I'm sure you could pull a bit of a fly one. I doubt the Moroccan mortgage providers would spot if you borrowed further against your British property the week before you completed in Morocco. Its a risk though and I'm not recommending you take it!
33% to 40% of net take home pay LESS your credit commitments is the norm for mortgages in France. Moroccan system is based on the French one. I'd be surprised if the affordability element of the decision to lend were relaxed much. I haven't really looked into mortgages in Morocco, other than to check that I should be able to get a mortgages there (based on salary / credit comittmetns.) That said, I'm sure you could pull a bit of a fly one. I doubt the Moroccan mortgage providers would spot if you borrowed further against your British property the week before you completed in Morocco. Its a risk though and I'm not recommending you take it!
Firtsly in reply to solicitor on tanjah beach - I speak as one who bailed out of this development last Nov. However in all cases i would NEVER use a solicitor recommended by the developer. Is it the developer Gilmar or Dreamworld the primary agent recommneding this? If it is Dreamworld I would not trust to that either you MUST get an independent solicitor/notaire.
Re the rules for CGT - I thought the rules for CGT were different for Moroccan local vs expatriate? Also did I see something rgarding different rules on CGT for oof plan vs established build? or am i dreaming?
Re the rules for CGT - I thought the rules for CGT were different for Moroccan local vs expatriate? Also did I see something rgarding different rules on CGT for oof plan vs established build? or am i dreaming?
Here's my understanding of what happens if you are a UK domiciled person - gained from a little research on the internet and a visit to my local tax office last year:
Your Moroccan property, built or otherwise, is an investment. If you sell
an investment and the gain after reasonable expenses is greater than the
threshold permitted each year then CGT is due. CGT annual exemption for the
year 2006/07 is £8,800 for every individual. If two of you are buying the
CGT exemption will be approx. £17,600.
The amount of CGT you pay is determined by your:
1) Overall income.
2) Taxable gain. (Note this can be offset against losses.)
3) Number of full years you held the asset. (The longer you held it the
greater the tape relief.)
For more information go to: http://www.direct.gov.uk/MoneyTaxAndBenefi...mp;chk=dyI1d%2B
Your Moroccan property, built or otherwise, is an investment. If you sell
an investment and the gain after reasonable expenses is greater than the
threshold permitted each year then CGT is due. CGT annual exemption for the
year 2006/07 is £8,800 for every individual. If two of you are buying the
CGT exemption will be approx. £17,600.
The amount of CGT you pay is determined by your:
1) Overall income.
2) Taxable gain. (Note this can be offset against losses.)
3) Number of full years you held the asset. (The longer you held it the
greater the tape relief.)
For more information go to: http://www.direct.gov.uk/MoneyTaxAndBenefi...mp;chk=dyI1d%2B
QUOTE(The Soup Dragon @ Apr 18 2007, 11:23 PM) [snapback]611513[/snapback]
Here's my understanding of what happens if you are a UK domiciled person - gained from a little research on the internet and a visit to my local tax office last year:
Your Moroccan property, built or otherwise, is an investment. If you sell
an investment and the gain after reasonable expenses is greater than the
threshold permitted each year then CGT is due. CGT annual exemption for the
year 2006/07 is £8,800 for every individual. If two of you are buying the
CGT exemption will be approx. £17,600.
The amount of CGT you pay is determined by your:
1) Overall income.
2) Taxable gain. (Note this can be offset against losses.)
3) Number of full years you held the asset. (The longer you held it the
greater the tape relief.)
For more information go to: http://www.direct.gov.uk/MoneyTaxAndBenefi...mp;chk=dyI1d%2B
Your Moroccan property, built or otherwise, is an investment. If you sell
an investment and the gain after reasonable expenses is greater than the
threshold permitted each year then CGT is due. CGT annual exemption for the
year 2006/07 is £8,800 for every individual. If two of you are buying the
CGT exemption will be approx. £17,600.
The amount of CGT you pay is determined by your:
1) Overall income.
2) Taxable gain. (Note this can be offset against losses.)
3) Number of full years you held the asset. (The longer you held it the
greater the tape relief.)
For more information go to: http://www.direct.gov.uk/MoneyTaxAndBenefi...mp;chk=dyI1d%2B
Soupdragon, you aren't meant to mention any of the above. People are being sold on the 0-20% CGT and aren't meant to know about the 40% they will face back home. That's why the developer has a solicitor to represent everyone. Keeps everyone in the dark to this and other nasty surprises.
Then heaven help them if they haven't bothered to do even the tiniest bit of research about taxes in Britain with all the publicity there has been on this issue lately!!!!
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