Our practical sheets

Our practical sheets

Buy a life annuity

Acquisition: special types

The life annuity is a particular form of sale which allows the salesman (the crédirentier) to receive a part of the price at the time of the sale (the bouquet), and the remainder, in a staggered way, throughout its life, in the form of an annuity. The buyer (the debirentier) does not know, at the time he buys the property, how much he will pay in the end. There is a risk as to the price that will actually be paid.

The annuity is paid to the seller. It can benefit other people, such as the seller's spouse.

Note: If the buyer predeceases the annuitant, the annuity must continue to be paid by the heirs. It may be useful for the buyer to take out insurance to cover this risk.

Depending on the will of the parties, the seller, or the other persons benefiting from the annuity, may have the possibility to continue to live in the property until the end of their lives: the viager is said to be occupied.
If the buyer can live in the property immediately, the viager is said to be free.

All these elements( free or occupiedlife annuity, number and age of the persons benefiting from the annuity...) have an influence on the price of the property.
The life annuity sale contract thus includes adapted clauses, which provide for the conditions of the sale, and the payment of the annuity. The creditor also benefits from guarantees intended to ensure that the annuity will be well paid to him.

To know : Thereal estate agent 's commission is calculated according to the value of the property. It is due at the signature of thenotarial act.