Life annuity

Life annuity: another way to sell or buy your property

The sale in life annuity consists in selling a real estate to a person who pays a part of the value of the property at the time of the notarial act then a periodic life annuity to the salesman until his death which must be “unforeseeable”.

The buyer is not obliged to pay the full price of the property on the day of signing at the notary’s office.

Any real estate, whether it is a castle, a mansion or a private hotel, an apartment or a villa, a loft or an architect’s house, can be sold in life annuity. This type of sale has many advantages, as long as certain rules are respected.

The sale in life annuity

The distribution between the seller and the buyer of the payment of the expenses of the sold good differs according to the type of life annuity or the clauses of the sale contract. A supplement of income for the one, the progressive constitution of a real estate patrimony for the other.

Two types : the free or occupied

Concerning the free life annuity, as soon as the sale is signed, the purchaser is free to occupy or rent the property and receive the rent.

In the case of the occupied life annuity, the seller keeps the usufruct forever. The usufruct allows him to live in the property or to rent it and receive the rents. A right of use allows him to keep the personal use of the property by living there without being able to rent it. The property may be occupied by the purchaser after the death of the seller. Otherwise, if the contract concerns several people, it will be the last survivor.

Discover his history

This term literally means “life time”. It is a concept that has been practiced since the Roman Empire and only resurfaced in the Middle Ages, where it has endured over time. It is therefore an extremely old concept. Its practice in France dates back to 876. Today, this type of sale is booming, although it constitutes only 1% of the current real estate market. More and more seniors are opting for this type of real estate sale with many advantages.

Life annuity explained by Mercure Forbes Global Properties staff

Also, our experts are available to explain this real estate sale. To do this, simply contact them to find out the ins and outs of the process. Buyers wishing to build up their assets without having to pay the full value of the property can find all the answers to their questions with them. In conclusion, our expertise is based on more than a hundred life annuity sales.