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Different forms of life annuity

The life annuity is a real estate sale contract signed before a notary, defined by article 1964 of the Civil Code.

It consists in selling a home to a person, the annuitant, in exchange for the payment of an annuity throughout the life of the seller, the annuitant.

The buyer pays for the property in the form of a life annuity , a monthly sum paid to the seller while the seller is alive. The contract may provide for the payment of an initial capital, called the bouquet . In this case, the calculation of the pension takes this into account.

The property becomes the property of the buyer as soon as the deed is signed. If the accommodation is occupied by the seller, he retains the use of it until his death.

The 3 different types of life annuity


There are several types of life contracts.

  • The occupied life annuity: the seller occupies his home until his death or his departure

  • The free life annuity: the buyer can live in the accommodation or rent it

  • The term life annuity: this is a real estate purchase for which the number of years of payment is determined in advance.



The seller signs a life contract with an investor, this is the most common form.

Selling your property on an occupied life annuity basis means:

  • touch a bouquet on the day of the sale,

  • receive monthly annuities for life, guaranteed income.

  • keep the right to use and live on the property sold, and to stay in your home.

Numerous financial advantages reduce current costs and expenses.

The seller no longer pays property taxes with the exception of the tax on household garbage.

The price sold is calculated according to the market value of the property, from which the occupancy value is deducted.
From this occupied value is calculated the bouquet and the life annuity.

The buyer becomes the annuitant, debtor of the annuity, and the seller annuitant, creditor of this annuity.


The purchaser disposes of the property, he can occupy it or rent it out.

The seller, through this type of sale, is freed from all charges and work, rental vacations, management of unpaid rents. He receives a monthly pension until his death.

In addition to this, you will need to know more about it.

For sellers, selling a free life annuity is:

  • collect a bouquet on the day the deed is signed,

  • receive a monthly annuity for life, guaranteed income.

In addition to this, you will need to know more about it.

For buyers, it is the possibility of living in the property or of renting it out. This makes it possible to pay the amount of the property by monthly installment, without resorting to a bank loan.


The buyer becomes the annuitant, annuitant debtor and the annuitant seller, annuity creditor.



Forward selling is a form of real estate transaction, free or occupied, which allows the purchase amount to be paid in monthly installments.

In addition to this, you will need to know more about it.

Its specificity lies in the setting from the sale of the due date for the payment of monthly payments.

The payment term is defined on the day of the sale.

In the event of death after the due date, the monthly payments still stop on the due date.

If the property is sold occupied, the seller retains a right of use and habitation or a reserve of usufruct until his death.

In the event of death prior to the due date, the heirs will receive the monthly payments until the due date.

If it was occupied, the good becomes free.

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