Life Annuity Glossary

Property sale where payment is made in the form of an annuity paid to the seller until their death, with or without an initial bouquet.

Sale via life annuity where the seller retains the right to live in the property (right of use and habitation or usufruct) until their death.

Sale via life annuity where the buyer can occupy or let the property immediately after the purchase.

Capital sum paid to the seller on the day the deed of sale via life annuity is signed, generally between 20% and 40% of the property's value.

Sum paid periodically (monthly or quarterly) to the seller until their death, calculated according to the value of the property and life expectancy.

The seller of the property under a life annuity, the person who receives the life annuity until their death.

The buyer of the property under a life annuity, the person who pays the bouquet and the life annuity to the seller.

Right allowing the seller to personally occupy the home sold via life annuity until their death, without being able to let it.

Right to use a property and receive its income (rents) without owning it, more extensive than the right of use and habitation.

Ownership right of a property without the right to enjoy it or receive its income, held by the buyer in an occupied life annuity.

Market price of a property if it were sold free of any occupancy, the basis for calculating the life annuity.

Value of the property in an occupied life annuity after deduction of the occupancy right (right of use and habitation or usufruct), the basis for calculating the bouquet and annuity.

Percentage discount applied to the market value according to the seller's age, to calculate the value of the occupancy right.

Statistical data on life expectancy by age and sex, used to calculate the life annuity.

Contractual provision allowing automatic cancellation of the sale in the event of non-payment of the annuity by the buyer.

Annual revision of the amount of the life annuity according to an index (generally the consumer price index).

Legal guarantee giving the seller priority of payment over the property sold in the event of the buyer defaulting.

Property guarantee registered on the property to secure payment of the life annuity to the seller.

Official document drawn up by a notary that formalises the sale via life annuity and gives it enforceable status.

Life annuity that continues to be paid to the surviving spouse after the death of the first annuitant.

Legal division of ownership between usufruct (right of use and income) and bare ownership (ownership without enjoyment).

Legal act by which a person transfers a property free of charge to another person during their lifetime.

Transfer of a deceased person's wealth to their heirs according to legal or testamentary rules.

Taxes levied by the State on the transfer of wealth on death, varying according to the family relationship.

Situation where several people own the same property together without their shares being physically divided.

Loan granted to senior homeowners, secured by their property, repayable only on death or sale.

Property sale with payment spread over a fixed, predetermined period, unlike the life annuity which depends on lifespan.

Sale with a repurchase option allowing the seller to recover their property within a set period, a solution to avoid seizure.