Annuity Debtor (Buyer)
The buyer of the property under a life annuity, the person who pays the bouquet and the life annuity to the seller.
Full definition
The annuity debtor is the legal term designating the buyer in a life annuity transaction. This is the person who acquires the property in exchange for the payment of a bouquet and a life annuity.
The annuity debtor has strict obligations: paying the annuity on the fixed due date, complying with the annual index-linking, and, in an occupied life annuity, not disturbing the annuitant's enjoyment of the property. In the event of default, they expose themselves to rescission of the sale (cancellation) through the rescission clause.
The annuity debtor becomes the bare owner in an occupied life annuity and the full owner in a vacant life annuity. They generally assume the major repairs (article 606 of the Code civil) while the occupying annuitant takes care of routine maintenance. Note: the annuity debtor may be a natural or legal person (company, institutional investor).
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Related terms
Annuitant (Seller)
The seller of the property under a life annuity, the person who receives the life annuity until their death.
Life Annuity (the pension)
Sum paid periodically (monthly or quarterly) to the seller until their death, calculated according to the value of the property and life expectancy.
Bare Ownership
Ownership right of a property without the right to enjoy it or receive its income, held by the buyer in an occupied life annuity.
Rescission Clause
Contractual provision allowing automatic cancellation of the sale in the event of non-payment of the annuity by the buyer.
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