Morocco: Law 106-12 modifying Law 18-00

Law 106-12, which modified and supplemented Law 18-00 relating to the status of co-ownership of constructed buildings, brought major reforms to improve the management of co-owners' syndicates in Morocco.

One of the main contributions is the obligation to create a reserve fund. This fund makes it possible to deal with urgent or unforeseen expenses and to finance major maintenance work.

The law also strengthens the syndic's powers to recover unpaid fees. The syndic can now use accelerated procedures to force defaulting co-owners to settle their debts.

Furthermore, Law 106-12 clarifies the majority rules during general assemblies, thus facilitating decision-making for improvement and maintenance work.

Finally, it introduces new provisions regarding the condominium regulations, making it mandatory and binding on all co-owners and tenants of the building.