Seller's Lien
Legal guarantee giving the seller priority of payment over the property sold in the event of the buyer defaulting.
Full definition
The seller's lien is a real security that guarantees the annuitant payment of their annuity. It gives the seller a priority right over the property sold, ahead of all the buyer's other creditors.
This guarantee is registered at the mortgage registry (Conservation des hypothèques) at the time of the sale. In the event of non-payment of the annuity and seizure of the property, the seller will be paid as a priority from the sale price, even ahead of mortgage creditors registered subsequently.
The seller's lien complements the rescission clause to offer double protection to the annuitant. While the rescission clause makes it possible to recover the property, the seller's lien ensures payment even in the event of a forced resale. These two combined guarantees effectively secure the transaction for the seller.
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Related terms
Rescission Clause
Contractual provision allowing automatic cancellation of the sale in the event of non-payment of the annuity by the buyer.
Mortgage
Property guarantee registered on the property to secure payment of the life annuity to the seller.
Annuitant (Seller)
The seller of the property under a life annuity, the person who receives the life annuity until their death.
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