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Insights · Real estate and land law

Commercial leases: the tenant’s rights (Law 49-16)

5 min read

In force since 2017, Law No. 49-16 on leases of premises used for commercial, industrial or craft purposes replaced the 1955 dahir. It protects the business goodwill, often the tenant’s main asset.

A written contract

A commercial lease is concluded in writing, with a certain date, and an inventory of the premises is drawn up when the keys are handed over. These two documents are the basis of any future discussion.

The right to renewal

A tenant who has operated the premises for at least two years has the right to renew the lease. A landlord who refuses renewal must, except in the cases provided by law, pay eviction compensation for the loss of the business.

When the landlord can recover the premises

  • Non-payment of rent, after a formal notice left unanswered within the legal time limit.
  • Unauthorised works or a change of business without agreement.
  • Demolition or rebuilding of the building, or taking back the premises, under the conditions set by law.

The procedure

Notice to quit is given by a deed stating its reason, and the court checks that the legal conditions are met. A badly drafted notice can be enough to deprive it of effect.

The firm's view

Whether signing, renewing or ending a commercial lease, the drafting of the documents often decides the outcome.

Maître Malak Elimani advises landlords and tenants and represents them before the Rabat commercial court. This article provides general information and is not a substitute for legal advice.

The information on this website is general and does not replace legal advice. Every situation requires an analysis of its own facts and documents.

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