Authorities crack down on speculation in slum clearance programs

Authorities crack down on speculation in slum clearance programs
Sunday 30 March 2025 - 13:00

Well-informed Hespress AR sources have revealed that provincial governors in Morocco have issued new directives to local council presidents to combat real estate speculation in housing units provided under the country’s slum clearance programs.

These measures follow reports indicating that some beneficiaries have been pressured into transferring property rights related to buildings constructed under these social programs.

Such transfers have been carried out through contracts, often drafted by certain lawyers, particularly in the Casablanca Bar Association, and notarized by local municipalities despite violating existing laws.

According to the same sources, reports from legal affairs and dispute resolution departments confirm that these unauthorized transfers have derailed the objectives of slum clearance programs.

They have enabled individuals unrelated to the targeted beneficiaries to acquire state-subsidized housing, fostering an environment conducive to real estate speculation within projects aimed at eliminating substandard housing.

The reports highlight that sellers of these property rights are either direct beneficiaries of the programs or third parties who unlawfully obtained these rights from original beneficiaries through contracts that do not comply with legal regulations.

The new directives hold local council presidents legally accountable for any disputes arising from these property transfers. Officials have been instructed to refrain from notarizing contracts drafted by lawyers that involve the sale of property rights under slum clearance programs, except in cases where sellers can provide legal documentation proving their ownership and the removal of any legal restrictions on resale.

The Moroccan Ministry of the Interior has also emphasized that certificates of entitlement granted to beneficiaries—allowing them to apply for building permits, utility connections, or bank loans—do not constitute legal proof of ownership. Therefore, any sale or transfer contract based on these certificates is considered null and void.

Moreover, the directives stress that all property transfer agreements must comply with the Real Property Code, requiring verification of ownership and its legal origin. They also highlight the illegality of selling portions of buildings constructed on plots extracted from a primary land title unless official documentation proves the legitimate subdivision of the property in accordance with the law.

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