Mediation Saves Moroccan Beach Property Investment

	Mediation is a technique whereby a neutral third party helps two or more disputing parties negotiate a solution.

It is not only the glitzy, Dubai-based construction companies that are attracted to the current property boom in Morocco. For ordinary Moroccans, investing in property is a means of financially securing an uncertain future. With this in mind, a group of 19 friends jointly purchased a large plot of coastal land to construct beach cottages. They could cover the purchase price but not the building costs, so they hired the services of real estate expert, Mr. Hassani *.

His task was to identify possible investors and handle administrative procedures. After much negotiation, the owners of a successful construction company, the Alami family, agreed to come on board the project as investors. After the signing of the purchase contract issues were raised regarding Mr. Hassani’s payment. Instead of paying Mr. Hassani his professional fees, the Alami family had agreed to give him a share of the land, but refuses later to grant it to him alleging he had not completed the administrative tasks.

In response, Mr. Hassani began legal proceedings. A court injunction was issued halting all further construction on the land until the dispute was settled. The group knew that a court proceeding could take years, leaving their investment hanging in the balance. Frustrated, they sought advice from the notary who had originally put their sales contract together. He suggested using an ‘out-of-court’ technique to settle the dispute: mediation.

Mediation is a technique whereby a neutral third party helps two or more disputing parties negotiate a solution. Throughout 2007 and 2008, USAID’s ‘Improving the Business Climate in Morocco’ program organized commercial mediation trainings in Rabat. The notary, Mr. Azzouzi, had successfully completed this training and was ready to take on his first case. Mr. Hassani and the Alami family agreed to give mediation a shot. As it was the Muslim holy month of Ramadan, negotiations were held in the evening, after the daylight fast was broken.

“It was a challenging first case,” reflects Mr. Azzouzi. “Disputes are always multi-faceted and this case was further complicated by the fact that 19 people were indirectly implicated,” he added. Interestingly, the timing of the case helped. Whenever emotions became high, Mr. Azzouzi would get the disputing parties back on track with the simple words: “It’s Ramadan.”

By the end of the sacred month a solution was found. The Alami family bought Mr. Hassani’s share of the land and paid his services rendered; in return he withdrew his court petition and claim to the property. Part of a wave of the first commercial disputes to be successfully resolved through mediation, this case offers inspiration to Moroccans hoping to invest their savings for the future.