1 Legal framework

1.1 What legislation governs real estate in your jurisdiction?

The principal laws governing real estate in Côte d'Ivoire are:

  • the amended West African Economic and Monetary Union Treaty of 2003 (Article 4c on free movement of goods);
  • Regulation 02/2002/CM/UEMOA of 23 May 2002 on Anti-competitive Business Practices;
  • the 2010 Uniform Act Relating to General Commercial Law;
  • the 2010 Uniform Act Organising Securities;
  • the Ivorian Constitution of 2016;
  • the Ivorian Civil Code of 1964, Book II on property and obligations;
  • the General Tax Code;
  • Law 96-766 of 3 October 1996 on the Environment Code;
  • Law 98-750 of 23 December 1998 on Rural Land Tenure;
  • Law 2002-102 of 11 February 2002 on the Creation, Management and Financing of National Parks and Financing of National Parks and Nature Reserves;
  • Law 2004-412 of 14 August 2004 Amending Article 26 of Law 98-750 of 23 December 1998 Relating to Rural Land Tenure;
  • Law 2019-576 of 26 June 2019 Establishing the Construction and Housing Code;
  • Law 2020-624 of 14 August 2020 Establishing the Urban Planning and Urban Land Code;
  • Ordinance 2018-646 of 1 August 2018 Establishing the Investment Code;
  • Ordinance 2019-1088 of 18 December 2019 Amending Ordinance 2018-646 of 1 August 2018 Establishing the Investment Code;
  • Ordinance 2015-208 of 24 March 2015 Creating the Electronic Land Register;
  • Ordinance 2013-280 of 24 April 2013 on the Reduction of Transfer Duty in Real Estate Matters;
  • Ordinance 2013-481 of 2 July 2013 Setting the Rules for Acquiring Ownership of Urban Land;
  • Ordinance 2013-662 of 20 September 2013 on Competition;
  • Decree 64-164 of 16 April 1964 on the Prohibition of Private Deeds in Real Estate Matters;
  • Decree 71-74 of 16 February 1971 on Land and Property Procedures;
  • Decree 95-859 of 6 October 1995 Fixing the Modalities and Conditions of the Sale of Housing of the State's Real Estate Assets;
  • Decree 96-894 of 8 November 1996 Determining the Rules and Procedures Applicable to Studies on the Environmental Impact of Development Projects;
  • Decree 99-594 of 13 October 1999 Fixing the Modalities of Application of Law 98-750 of 23 December 1998 to Customary Rural Land;
  • Decree 2012-1047 of 24 October 2012 Fixing the Modalities of Application of the Polluter-Pays Principle as Defined by Law 96-766 of 3 October 1996 on the Environment Code;
  • Decree 2013-225 of 22 March 2013 Regulating the Status of Co-ownership;
  • Decree 2013-223 of 22 March 2013 on the Creation, Organisation and Functioning of the Commission for the Approval of Real Estate Developers and Programmes;
  • Decree 2013-482 of 2 July 2013 on the Modalities for the Application of the Ordinance Setting the Rules for the Acquisition of Ownership of Urban Land;
  • Decree 2015-195 of 24 March 2015 on the Creation, Attributions, Composition and Functioning of the Building Permit One-Stop Shop;
  • Decree 2015-883 of 23 December 2015 Determining the Modalities for the Application of Ordinance 2015-208 of 24 March 2015 Creating the Electronic Land Register;
  • Decree 2016-590 of 3 August 2016 on the Creation, Attributions, Organisation and Functioning of the Rural Land Agency;
  • Decree 2016-562 of 27 July 2016 on the Organisation of the Ministry of Planning and Development;
  • Decree 2018-647 of 1 August 2018 Setting the Terms of Application of Ordinance 2018-646 of 1 August 2018 on the Investment Code;
  • Decree 2019-219 of 13 March 2019 Amending Decree 2015-195 of 24 March 2015 on the Creation, Attributions, Composition and Functioning of the Building Permit One-Stop Shop;
  • Decree 2019-266 of 27 March 2019, Setting the Modalities of Application of Law 98-750 of 23 December 1998 to Customary Rural Land;
  • Decree 2019-265 of 27 March 2019 Establishing the Procedure for Consolidating the Rights of Provisional Concessionaires of Rural Land;
  • Decree 2019-264 of 27 March 2019 on the Organisation and Powers of Sub-Prefectural Rural Land Management Committees and Village Rural Land Management Committees; and
  • Decree 2019-594 of 3 July 2019 on the Regulation of Planning Permission.

1.2 What special regimes apply to different types of real estate?

Land: Land is the baseline for all types of real property.

There are two types of regimes governing land in Côte d'Ivoire:

  • the rural land regime, regulated by Law 98-750 of 23 December 1998 on Rural Land Tenure; and
  • the urban land regime, governed by the Ordinance 2013-481 of 2 July 2013 Setting the Rules for Acquiring Ownership of Urban Land.

Both regimes concern the conditions for land acquisition in Côte d'Ivoire.

The rural land regime applies to all land, whether developed or not, and regardless of the nature of the development.

It constitutes a national heritage to which any natural or legal person may have access. However, only the state, public authorities and Ivorian individuals are allowed to own it (see Article 1 of Law 98-750).

The urban land regime applies to urban land, with the exception of land used for industry or the promotion of tourism (see Article 1 of Ordinance 2013-481).

Any occupation of urban land must be justified by the possession of a final concession title issued by the minister in charge of construction and urban planning.

Urban land is composed of all land in the private or public domain of the state covered by urban planning documents.

The urban planning documents are the set of rules and institutions established to regulate urban growth and development (see Article 3 of Law 2020-624 of 14 August 2020 Establishing the Urban Planning and Urban Land Code). These are, in particular:

  • the town planning certificate;
  • the general or specific town planning regulations;
  • the general land use rules;
  • the building permit;
  • the prior town planning agreement; and
  • the certificate of conformity.

Residential: Residential real estate is an area developed for people to live in. It cannot be used for commercial or industrial purposes. This regime is governed by Law 2019-576 of 26 June 2019 Establishing the Construction and Housing Code.

The location of these residences will be determined in accordance with the land use coefficient and the setbacks determined by the specific town planning regulations of the municipality.

In the absence of specific town planning regulations, the general town planning regulations will apply.

The management of construction and the built environment throughout the whole national territory is based on the risk posed by the construction and use of the building.

Commercial and industrial: 'Commercial property' refers to land and buildings that are used by businesses to carry out their operations. Examples include shopping malls, hotels and structuring projects (see Article 1 of the Investment Code 2018).

'Industrial real estate' refers to land and buildings that are used by industrial businesses for activities such as factories, agro-industry and health.

2 Ownership

2.1 What types of ownership rights exist in your jurisdiction?

Articles 578 to 624 of the Ivorian Civil Code recognises the following types of ownership rights:

  • exclusive ownership;
  • the division of ownership between a right of usufruct (a right to receive an income and product from real estate without outright ownership);
  • bare ownership (ownership without the right to use and derive profit from the property); and
  • co-ownership.

2.2 What ownership structures are commonly used in your jurisdiction?

The most commonly used ownership structures are exclusive ownership and co-ownership.

2.3 Are there any restrictions on real estate ownership in your jurisdiction?

There is no restriction on foreign entities holding property in Côte d'Ivoire.

However, a foreign national or foreign entity may not hold interest in rural land. According to Article 1 of Law 98-750 on Rural Land: "any person or entity can have access to land; however, only individuals and public or private entities of Ivorian nationality can own land in the rural domain."

2.4 Is ownership of land and buildings constructed thereon legally separable?

No. According to Article 552 of the Ivorian Civil Code, "ownership of the land entails the ownership of the top and bottom".

This means that when a building is constructed on land, it belongs to the owner of the land.

2.5 What security interests can attach to real estate? How are they prioritised?

The security interests that can attach to real estate and their prioritisation in Côte d'Ivoire are as follows.

Mortgages: This is the most common form of security over real estate assets in Côte d'Ivoire. It can be granted in favour of any type of creditor and can be used to secure any type of debt. However, the mortgage is an expensive type of security interest, as registration taxes apply as a percentage of the amount of the secured obligations (see Articles 190 and following of the 2010 Uniform Act Organising Securities).

Lenders' liens: This is a form of security most commonly used in Côte d'Ivoire to secure loans to finance the acquisition of real estate assets. It is less expensive than a mortgage, but it can only be granted in favour of lenders that have granted the loan used to finance the acquisition of the real estate assets that are included within the scope of the security interest (see Articles 224 and following of the 2010 Uniform Act Organising Securities).

Security trusts: A security trust is also rarely used in Côte d'Ivoire in relation to real estate assets, as it involves the transfer of ownership of the real estate asset to a security trustee, which maintains the asset separate from its own estate and acts for the benefit of the secured creditors. This is also a very expensive security due to the annual fees payable to the security trustee in addition to the registration fees. However, it is a very efficient security if the settlor faces insolvency proceedings, subject to the possession of the real estate asset not being retransferred by a subsequent agreement to the settlor (see Articles 55 and following of Law 2002-102 of 11 February 2002 on the Creation, Management and Financing of National Parks and Financing of National Parks and Nature Reserves).

3 Registration

3.1 What body administers the land register in your jurisdiction?

The physical land register in Côte d'Ivoire is administered by the Registrar of Land and Mortgage Property in the land district where the property is located. The electronic land register is administered by the Central Registrar of the Electronic Land Register.

3.2 Is registration of real estate rights, transactions and encumbrances mandatory? What are the consequences of failure to register?

Yes. All documents transferring immovable property must be registered and published at the Land Registry.

In addition, according to Article 12 of Law 98-750 on Rural Land Tenure, "any concessionaire of unregistered land must apply for registration at his own expense".

The consequence is until a deed of sale is registered and published with the Land Registry, it is not binding on third parties.

3.3 What are the formal and documentary requirements for registration?

The formal and documentary requirements for physical registration include the following:

  • a letter of request for formality addressed to the Land Registry;
  • a completed formality form;
  • a copy of the deed of sale duly signed by the parties and the notary, if applicable;
  • the original of the deed to be registered;
  • receipts of payment; and
  • the title deed(s), if applicable

The formal and documentary requirements for electronic registration are:

  • parts of the land title creation procedure;
  • the final plan of the building;
  • the series of analytical slips successively established;
  • the deeds and documents analysed by the Land Registry; and
  • any other documents produced in the course of the procedure.

3.4 What is the process for registration?

The process for physical registration is as follows:

  • submission of an application for registration at the Land Registry with the required documents;
  • publication of this land requisition;
  • opposition by any interested person;
  • physical identification of the parcel by demarcation and counter-demarcation in the land register;
  • a judicial phase before the court in case of unresolved opposition; and
  • registration in the land register.

The process for electronic registration consists of the allocation of an electronic land title. It involves the following steps:

  • the generation of the electronic deposit retracing the steps and recording completion of the procedure;
  • the creation of the electronic land title;
  • the electronic recording of the rights revealed during the procedure;
  • the automatic generation of analytical slips; and
  • the generation of a land statement or an electronic certificate.

3.5 Is registered information publicly accessible?

Yes. It is publicly accessible at https://econsultation.dgi.gouv.ci/.

It can be consulted remotely and in real time by subscribers with an access code.

4 Commercial leases

4.1 What types of commercial leases exist in your jurisdiction?

As far as we know, the 2010 Uniform Act Relating to General Commercial Law recognises only one type of commercial lease.

4.2 Are the terms of a commercial lease regulated or freely negotiable? What do they typically cover (eg, duration; security deposit; rent; sub-letting; termination)?

Certain terms in a commercial lease are regulated and others are freely negotiable.

The terms of a commercial lease which are regulated cover the following points:

  • the scope of the commercial lease;
  • the conclusion and duration of the commercial lease;
  • the obligations of the lessor;
  • the conditions and procedures for renewal of the commercial lease; and
  • the conditions for termination of the commercial lease.

4.3 What are the formal and documentary requirements for conclusion of a commercial lease?

The 2010 Uniform Act Relating to General Commercial Law contains no express provisions on the documentary requirements for leases.

There are no requirements on the form that a lease agreement should take. Thus, a lease agreement can be executed either in writing or orally.

As a matter of course, the better option is to draft the lease agreement in writing and have the parties sign it.

Furthermore, a written commercial lease need not be notarised or registered; it can be executed privately between the parties.

However, to establish a company in Côte d'Ivoire, the commercial lease contract must be registered with the tax authorities (see Article 550, paragraph 1 of the General Tax Code).

4.4 What is the process for concluding a commercial lease?

The conclusion of a commercial lease follows the same principles as any other agreement: once negotiated, the lease agreement is signed by the parties, each of which in principle keeps an original copy.

4.5 What are the respective obligations and liabilities of landlord and tenant under a commercial lease, and what are the consequences of any breach?

The express and implied terms of the lease agreement are binding on the parties, unless the agreement is void. Therefore, their respective obligations and liabilities are those agreed in writing or oral between the tenant and the landlord. If any of the parties is in breach of any of the agreed terms, this will give rise to legal action against that party by the other.

In almost all cases, a claim requesting damages as well as an eviction order will be initiated by the landlord.

Articles 112 to 114 of the Uniform Act Relating to General Commercial Law provides the landlord with the right to terminate the lease where, among other things:

  • the tenant does not pay rent on the agreed terms to the landlord or its duly authorised representative,
  • the tenant does not use the leased premises like a 'good father' and in accordance with the purpose of the lease or, in the absence of a written agreement, in accordance with the purpose presumed from the circumstances; or
  • the property deteriorates due to a lack of maintenance by the tenant during the lease.

On the other hand, under Article 123, a tenant may extend or renew the lease in accordance with the law or with the consent of the landlord if it has been conducting business in the rented property for the past two years.

4.6 How are rent variations typically effected throughout the term of the lease?

No statutory provisions govern how rent variations are to be effected during the term of the lease. All rental variations and escalations are usually governed by the lease agreement entered into by the parties. As a matter of practice, rent increases are implemented on renewal of the lease agreement.

4.7 What taxes are levied on rental income?

The rental value of land and buildings of any nature, as well as any portion of vacant land forming part of the building, are taken into account in determining the rental value to serve as the tax base for the developed property.

The valuation process is done annually by the tax administration of the area where the property is located. The rental value is considered to be the amount of money that the property owner gets from leasing out the property or, where he or she is the occupant, the amount that he or she would received had the property been rented out.

The tax rate is 4% of the rental value.

The basis for this rate is that the house is being occupied by the owner as his or her residence and not for any commercial or industrial purpose.

The above rate also applies to the following cases:

  • a single house occupied by the owner as his or her main habitat; and
  • a single secondary residence in the personal use of the owner and which does not generate any property income. However, in the case of a secondary residence, the owner must obtain a 'certificate of secondary residence' from the General Directorate of Taxes; otherwise, the applicable tax rate will be 11%.

The rate is 15% of the rental value for buildings owned by juridical persons and enterprises, which are used for their own businesses. This increased rate also applies to properties owned by individuals which are used for their own commercial purposes (Article 156 of General Tax Code).

In addition, a public hygiene and sanitation tax is due on all properties owned by diplomatic missions and international organisations. The rate is 2% of the rental value (Article 166 of General Tax Code).

4.8 Can a commercial lease be triple net?

There are no 'triple net' commercial leases in Côte d'Ivoire. Since the parties are free to agree on the terms of the lease, some leases may include terms pursuant to which the tenant agrees to pay specific property expenses such as building insurance, maintenance and rubbish collection fees, in addition to rent and utilities.

4.9 How are landlord and tenant disputes typically resolved?

Usually, landlords and tenants resolve their disputes amicably. If an amicable settlement cannot be found, either party may escalate the dispute before the competent court, which can be a commercial or a civil court.

4.10 What types of guarantees are market practice and required by landlords to secure the tenant's obligations

Legally, there is no requirement to include guarantees in lease agreements. However, the terms of a guarantee can be freely negotiated in the agreement between the parties.

In Côte d'Ivoire, it is common for most landlords to request security deposits as opposed to guarantees.

5 Real estate transactions

5.1 What form do real estate transactions typically take in your jurisdiction?

Real estate transactions must be concluded in writing.

In Côte d'Ivoire, the establishment of real estate acts without the presence of a notary is prohibited. In other words, all real estate transactions must be concluded before a notary under penalty of nullity (Article 5 of Decree 71-74 of 16 February 1971 on Land and Property Procedures).

In addition, the contract is generally executed following negotiations between the parties, who are often introduced to each other by real estate agents.

5.2 Which players are typically involved in a real estate transaction in your jurisdiction?

Generally, the owner, the buyer (or tenant), the notary and a real estate agent.

5.3 Is the seller bound by a duty to disclose? What representations and warranties will it typically make?

The buyer must independently inspect the status of the property, inscriptions, encumbrances and so on. To this end, either it will hire a legal consultant or the broker will assist.

On the date the contract is signed, the notary will usually obtain a fresh extract from the Real Estate Administration and formally state on the contract document that the buyer has inspected the content of the title deed and has no objections. The seller's warranties will typically involve warranties that:

  • it has not already sold or leased the property to a third party;
  • there are no other registered or unregistered rights of third parties on the property, other than those registered with the Real Estate Administration; and
  • there are no outstanding tax liabilities, or if there are, the seller has been given a deadline to make the payment.

5.4 What due diligence is typically conducted in a real estate transaction?

With the assistance of their lawyers and notaries, buyers will normally conduct due diligence on transactions.

Due diligence is conducted mainly to verify the ownership of title over the property and any encumbrances over the property, so as to protect the buyer against pre-existing claims over the property.

In other words, this due diligence will include a review of:

  • titles;
  • the legal capacity of the seller;
  • the nature of the current owner's right over the property;
  • the source of right or title of the current owner;
  • the legality of the construction;
  • encumbrances over the property; and
  • whether the land is a part of any acquisition process.

Due diligence is generally conducted between acceptance of an offer and execution of a preliminary sale agreement.

5.5 What are the formal and documentary requirements for conclusion of a real estate transaction?

The minimum requirements include:

  • the title deed (obtained by the notary or the attorney); and
  • the personal documents of the parties (ID/passport copies for natural persons and extracts from the company register for legal entities).

If a party to the contract is represented by a proxy, a notarised power of attorney must be presented in original, with a translation into the local language if applicable. The notary will usually prepare the contract draft (this service is included in the notary's fee and cannot be excluded). However, the parties are free to present their own draft, in which case the notary's fees can be reduced by 10%.

5.6 What is the process for concluding a real estate transaction? How long does this take? What costs are incurred?

Once the contract for sale has been exchanged and all completion documents and other completion items – such as an apportionment account – have been agreed, the parties may move towards completion.

If the buyer is obtaining financing:

  • the lender will also need to be satisfied with the title to the property; and
  • all conditions precedent of the lender will need to be complied with by the buyer in advance.

The period between exchange of the contract for sale and completion will depend on the nature of the transaction and the timeframe agreed between the parties.

The buyer will need:

  • to pay the full agreed consideration in respect of the property; and
  • to pay the fees of its various professional advisers.

The seller will need to pay the fees of its professional advisers.

5.7 What are the respective obligations and liabilities of buyer and seller, and what are the consequences of any breach?

Ivorian contract law is based on the principle of freedom of contract (Article 1134 of the Civil Code), and thus the buyer and seller may negotiate their respective obligations and liabilities under the agreement, as long as these do not violate the prevailing laws and regulations.

Under the Civil Code, the essential obligations of a seller under Articles 1602 and 1603 are:

  • to hand over the object of the sale and purchase to the buyer; and
  • to guarantee that the object of the sale and purchase is free from any encumbrances and not related to any legal proceedings.

According to Articles 1650 and following of the Civil Code, the essential obligations of a buyer are:

  • to pay the agreed price in a timely manner through the agreed method;
  • to examine the object of the sale and purpose that is handed over by the seller; and
  • to receive delivery of the object of the sale and purpose.

Any breach of the above conditions entails the payment of damages and, where applicable, the nullity of the contract.

5.8 What taxes are payable on a real estate transaction?

In case of the transfer of property through a direct sale, taxes are assessed at the following rates:

  • 10% for lease transfers;
  • 4% for sales of real estate;
  • 10% for sales of businesses; and
  • for mortgages, 5% for the financial lessor on the acquisition of the property and 1% for acquisition of the immovable property by the lessee from the exercise of the option.

6 Real estate finance

6.1 Who are the most common providers of real estate finance in your jurisdiction? Do any restrictions apply in this regard?

Commercial banks are the most common providers of real estate finance in Côte d'Ivoire.

In terms of restrictions, the issue, exposure or sale of foreign real estate securities is subject to the prior authorisation of the Regional Council for Public Savings and Financial Markets.

Direct investments by foreign natural or legal persons in Côte d'Ivoire must be the subject of a declaration for statistical purposes by letter to the Treasury before the investment is made.

6.2 What forms of real estate finance are available in your jurisdiction?

As far as we know, there are only mortgage loans in Côte d'Ivoire.

6.3 What formal, documentary and other requirements do lenders typically require of borrowers?

Each bank and/or financial institution has its own specific requirements and criteria in order to approve a loan application.

The standard requirements of almost all institutions for real estate lending consist of:

  • proof of funds evidencing the borrower's ability to repay the loan;
  • an expert valuation/estimation of the real estate; and
  • a determination of the ownership and any encumbrances on the property through searches at the Land Registry.

6.4 What type of security interests are typically required by lenders?

The most common types of security interests preferred by lenders are those classified as proprietary security – that is, fiduciary, pledge or mortgage – as these have the nature of a preferential (priority) right.

6.5 What is the process for obtaining real estate finance? What costs are payable?

It is common to put different financing providers in competition with each other. In large transactions, it is usual to work with a broker.

Once a financing provider has been chosen, it will usually check that the property's sale price is within the market value. If the financing provider considers that part of the sale price exceeds the market value, it will require that part of it to be covered exclusively by equity without mortgage financing.

Most financing institutions do not charge a fee to set up a loan and finance themselves through the mortgage interest. If a loan is terminated before its contractual term, a penalty is usually due to the financing provider. Notarial fees, taxes and land register costs relating to the creation of the mortgage are borne by the borrower.

6.6 How is security enforced in case of any breach?

In the event of breach, the law provides various remedies to the lender to enforce the security. These include:

  • selling the property;
  • foreclosing on the property;
  • taking possession of the property;
  • appointing a receiver; and
  • suing on a personal covenant.

7 Real estate investment

7.1 Who are the most common investors in real estate in your jurisdiction? Do any restrictions apply in this regard?

Individual merchants. No clear restrictions apply.

7.2 What investment vehicles are typically used in your jurisdiction? What are the benefits and drawbacks of each?

The government actively encourages foreign direct investment and is committed to doubling foreign investment in the next few years. Foreign companies are free to invest and list on the regional stock exchange, the Bourse Regionale des Valeurs Mobilieres, which is based in Abidjan and covers the eight countries of the West African Economic and Monetary Union (WAEMU). WAEMU members are part of the Regional Council for Savings and Investment, a regional securities regulatory body.

General benefits:

  • Real estate investment relating to the creation or development of important shopping centres could qualify for exemptions if certain conditions are met.
  • Côte d'Ivoire has a qualified and low-cost workforce; and
  • The country has great tourism potential.

Drawbacks:

  • Restrictions on foreign direct investment apply in the health sector, to law and accounting firms, and to travel agencies;
  • There is a low return on investment outside of luxury property developments or exclusive coastal locations; and
  • The cost of borrowing is high.

7.3 How are these vehicles established and administered in your jurisdiction?

Please see question 7.2.

8 Planning and zoning

8.1 How is land use regulated in your jurisdiction?

Under Ivorian law, land regulation derives from the Constitution, the statutes and executive orders.

The land regime is mainly governed by Act 98-750 of 23 December 1998 (amended in 2004, 2013 and 2019) and Ordinance 2013-481 of 2 July 2013.

The Ministry of Planning and Development and the Ministry of Construction, Sanitation and Urban Planning govern land use and planning and zoning matters in Côte d'Ivoire. This is done by way of different development, sustainability, landscape conservation and special amenity plans.

The local planning authority where the property is situated is responsible for enforcing the planning laws; and each local authority will also have a development plan setting out the overall planning and development policy of that local authority.

These plans generally include broad aims in relation to housing, infrastructure and green space facilities, among other things.

8.2 What is the process for obtaining planning permission? How long does this take? What costs are incurred?

Planning permission is issued by a commission composed of all the entities represented at the Building Permit One-Stop Shop.

If the commission issues a favourable opinion, the draft decree is sent for signature to the minister of construction for ministerial planning permission and to the mayor for municipal planning permission.

Documents: To obtain planning permission, the following documents must be submitted to the Building Permit One-Stop Shop:

  • a visa from the Urban Domain Directorate;
  • approval of the Sanitation and Drainage Department;
  • an urbanism certificate;
  • plans signed by an architect;
  • a safety notice and structural plan;
  • a soil survey;
  • an environmental impact study, if necessary; and
  • the identification documents or corporate statutes of legal entities.

Cost: The cost of obtaining planning permission is:

  • XOF 50,000 for all types of dwellings; and
  • XOF 100,000 for specific real estate operations.

Timeline: It generally takes 13 days to obtain planning permission.

8.3 Can a planning decision be appealed?

No. The law does not provide for appeals if planning permission is refused.

However, in the event of the cancellation of planning permission, Article 21 of the Building Code provides that the Administrative Court may be seized on the grounds of abuse of authority.

8.4 What are the consequences of failure to obtain planning permission or to comply with a planning condition?

Articles 520 and following of the 2019 Building Code provide for the following penalties:

  • imprisonment for between one and 12 months;
  • demolition of unauthorised constructions; and
  • administrative fines ranging from XOF 12 500 to XOF 20 000 per square metre.

8.5 Is expropriation of land possible in your jurisdiction?

Yes. However, this must be for a public purpose and is subject to payment of the market value.

8.6 Is confiscation of land possible in your jurisdiction?

The state will not confiscate land which is legitimately owned by a person/entity. However, the state can expropriate land for public purposes, subject to payment of compensation.

9 Environmental

9.1 What main environmental legal provisions apply to the development, use and occupation of real estate?

All relevant terms applicable to environmental protection in relation to the construction of real estate will be outlined first in the applicable planning document and then in the urban-technical conditions, which are mandatory and precede the building design process.

Depending on the location and planned use of the real estate, these environmental protection conditions may vary; and in some cases, the investor may be required to prepare a report to assess the impact of the planned construction on the environment.

The following laws govern environmental protection in Côte d'Ivoire:

  • the Law 96-766 of 3 October 1996 on the Environment Code; and
  • Decree 96-894 of 9 November 1996 Determining the Rules and Procedures Applicable to Studies on the Environmental Impact of Development Projects.

9.2 Who can be held liable for environmental contamination and how are clean-ups effected?

The developer or occupant of real estate may be held liable for environmental contamination.

9.3 What environmental provisions and considerations should be factored into real estate transactions?

The parties to a real estate transaction do not usually include environmental clauses in their agreements.

However, in the case of large developments, the environmental study provided to the authorities at the planning and building permission stage may and/or should be required by a potential buyer or tenant.

9.4 What initiatives are in place to promote green buildings and energy efficiency in your jurisdiction?

Sustainability is high on the Côte d'Ivoire government's agenda and the country is thus a party to treaties and agreements to reduce greenhouse gas emissions, such as the Kyoto Protocol and the Paris Agreement.

In addition, as the country is looking to expand its use of renewable energies and local power plants in rural areas, investors should expect increased opportunities in the relevant sectors.

9.5 What types of environmental certifications apply in your jurisdiction?

ISO 14001 Environmental Management Systems Standard certification has been developed to help entities to identify, manage and control activities which have an environmental impact in Côte d'Ivoire.

10 Trends and predictions

10.1 How would you describe the current real estate market and prevailing trends in your jurisdiction? Are any new developments anticipated in the next 12 months, including any proposed legislative reforms?

The real estate market in Côte d'Ivoire has been experiencing a revival – especially in the economic capital of Abidjan – since the urban land reform of 2013, which introduced the Certificat de Mutation de la Propriété Foncière. The statistics confirm that the number of notarised sales of land and property as well as conventional mortgages are on the rise.

A lack of quality business space across the sub-region, combined with increased demand from local and foreign companies in the process of constitution, offers opportunities for growth in the real estate sector.

A number of new developments are anticipated in the next 12 months, including the following:

  • the opening of 71 social housing construction sites throughout the country and the constitution of 3,060 hectares of reserves mobilised and dedicated to social and economic housing programme by the state;
  • construction and rehabilitation programmes for public property infrastructure;
  • the construction of 5,000 housing units for the police, the gendarmerie, the army and other state officials;
  • the development of land for industrial use;
  • the construction of an exhibition park;
  • the construction of industrial infrastructure for cement works; and
  • the installation of factories for the manufacture of construction materials.

Recently the Ivorian government announced the relaunch of a social housing operation involving the construction of 150,000 dwellings from 2021 to 2025, which will be entrusted to large foreign real estate groups, offering promising investment opportunities in the coming years.

11 Tips and traps

11.1 What are your top tips for the smooth conclusion of a real estate transaction and what potential sticking points would you highlight?

In our experience, it is fundamental to understand the exact purpose of the deal. If the deal involves a foreign partner, a culturally sensitive approach is equally important throughout the process.

The parties should also fully understand the legal mechanisms involved, especially if they are unfamiliar with certain contractual mechanisms.

They should:

  • set clear expectations for the transaction;
  • conduct thorough due diligence;
  • gather the necessary documents; and
  • comply with all legal requirements.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.