Authentic Deed
Official document drawn up by a notary that formalises the sale via life annuity and gives it enforceable status.
Full definition
The authentic deed is the legal document drawn up and certified by a notary that formalises the sale via life annuity. It gives the transaction a certain date, evidential force and enforceable status.
This deed contains all the essential elements of the sale: the identity of the parties, the description of the property, the market value, the amount of the bouquet, the amount and conditions of the annuity, the index-linking clause, the rights retained by the seller (right of use and habitation or usufruct), the rescission clause, and the guarantees (seller's lien, mortgage).
In Luxembourg, only a notary can establish an authentic deed for a property sale. The signature must take place at their office. The notary checks the legal compliance of the operation, informs the parties of their rights and obligations, and carries out the land registration formalities. The notary's fees are generally shared or borne by the buyer.
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Related terms
Life Annuity
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.
Rescission Clause
Contractual provision allowing automatic cancellation of the sale in the event of non-payment of the annuity by the buyer.
Seller's Lien
Legal guarantee giving the seller priority of payment over the property sold in the event of the buyer defaulting.
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