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The contract of sale or purchase in life, governed by articles 1968 and following of the Civil Code, allows one or more owners to transfer ownership of their property while enjoying the payment of a pension for life. Explanation.

Sell ​​or buy a life annuity

Sell ​​or buy a life annuity

What is the purchase or sale in life?

During a sale in life, the seller also called the annuitant sells the property of his real estate to the buyer, also called the débirentier, in consideration for the payment of a so-called life annuity until the death of the seller. The life annuity is a so-called random contract, namely whose value of the benefit depends on the date of death of the seller.
Lifetime sale, generally practiced by the elderly, is considered an effective and safe way to to earn additional income. On the other hand, income is often higher than rent. For the buyer, the life annuity is a way to place his savings while gradually becoming owner.

How is the value of the property determined?

So that the buyer becomes the owner, he must pay what is called a life annuity to the seller: a sum the amount of which is fixed by the parties at the time of signing the contract. The amount of the life annuity is usually determined by a notary in the presence of both parties. For his determination, are taken into account:

  • the real value of real estate
  • the payment or not of a bouquet, amount paid at the time of the signature which constitutes a part of the capital
  • the life expectancy of the seller, which is itself determined by his age and sex
  • the fact that the dwelling is occupied by the seller or not

For the determination of this amount, notaries have tables and scales defined by the National Provident Fund.

What are the different types of life?

When a seller sells the property of his property by a life annuity, he has two possibilities:

  • either he reserves a right to live and may continue to occupy the premises until his death, then we speak of a busy life,
  • either he frees the places to future owners and also frees them from any reserve of enjoyment, so we speak of free life,

In the event of a life annuity occupied, expenses related to the property such as taxes and rental charges are divided between annuitant and annuitant.

Would you like to become an owner? Read our article "Succeeding your first real estate purchase".

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