What does the life annuity contract stipulate in the event of non-payment, death, or death close to the date of sale?

A life annuity sale is formalized by a notarial deed, which must be drawn up by a notary. The seller (the annuitant) can include clauses in the deed to secure the payment of their annuity: indexation, termination clause, penalty clause. Upon the seller's death, the life annuity ends, and the buyer (the debtor) takes possession of the property. If the seller dies within 20 days of signing the deed, the sale is invalid, and their heirs can petition the court for its annulment.

This page is intentionally incomplete. It describes what service-public.gouv.fr (fact sheet F2762, verified on August 18, 2025) and economie.gouv.fr (page written on October 17, 2024) say about the contract. It does not address the procedure for invoking the termination clause, the number of unpaid annuities that triggers it, the time limits, or the fate of annuities already paid. The consulted pages do not provide this information, and the relevant section of the Civil Code concerning life annuity contracts is not included here.

The authentic deed, drawn up by a notary

Service-public.gouv.fr states that "an authentic deed of sale must be drawn up by a notary." Economie.gouv.fr concurs: "It is essential to be assisted by a notary in order to sell or acquire a property under a life annuity agreement." The signing of the deed takes place in the notary's presence.

The notary also handles the annuity payments. "The notary calculates the annuity amount according to a set scale," the information sheet states, and the amount is fixed in the deed of sale. These scales are not listed on the pages consulted. For the general mechanism (occupied or vacant property, initial payment, annuity, discount), see our page on occupied or vacant life annuities.

The clauses that secure the annuity

Service-public.gouv.fr specifies: "To ensure the security of annuity payments, the annuitant can, in particular, include three clauses in the sales agreement." These clauses are presented as an option available to the seller.

The pages consulted do not specify the number of unpaid annuities required to trigger the termination clause (the document states "several"), nor the required formalities. The document presents these three clauses as clauses that the annuitant can include in the deed of sale.

If the debtor no longer pays

Regarding non-payment, the two pages are limited to these two clauses. The termination clause allows the annuitant to reclaim their property. The penalty clause allows them to keep the initial payment if it has already been made and the contract is terminated.

What the pages consulted do not say:

• the procedure to establish the non-payment and to invoke the clause; ;
• the time allowed to the debtor; ;
• what happens to the annuities already paid; ;
• possible remedies and guarantees.

The relevant section of the Civil Code concerning life annuity contracts (articles 1968 to 1983, which the document cites) is the starting point for these questions. It is not reproduced here and should be verified with the notary before signing.

Upon the seller's death

Service-public.gouv.fr is clear: "Upon the death of the annuitant, the life annuity ceases and the debtor takes possession of the property without any further action." Economie.gouv.fr links the date of death to the principle of chance: neither the seller nor the buyer knows, at the time of signing, the price for which the property will be acquired, since this amount depends on the date of the seller's death.

When the annuity is paid to several sellers and one dies, the document outlines two options: the annuity is "either paid in full to the survivor (reversible annuity), or reduced proportionally (reducible annuity)." The choice should be verified before signing.

Death within 20 days of signing

Service-public.gouv.fr states: "If the seller dies within 20 days of signing the deed of sale," then "the event is considered foreseeable and the sale is invalid." The heirs of the annuitant can request its annulment "before the court.".

Economie.gouv.fr presents the same scenario as the absence of risk: "A life annuity sale in which risk is absent can be cancelled." The page states: "This is notably the case if the seller, ill at the time of signing the deed of sale, dies within 20 days"; the sick seller is thus given as an example. Service-public.gouv.fr states that the sale "is not valid," while economie.gouv.fr states that it "can be cancelled." The method for calculating the 20 days is not specified on these pages: this page therefore does not calculate any deadline.

Life annuity sale through a notary: a numerical example (fictitious profile)

Situation. Michel is selling his apartment as a life annuity with vacant possession. The total value stated in the deed is €240,000. The initial payment is set at 30% of this value, and the monthly annuity at €800. The deed contains an indexation clause, a termination clause, and a penalty clause (hypothetical scenario).

Issue. What do the sums covered by these clauses represent, and what difference does the date of a possible death make?

Strategy. Locate the lump sum payment to which the penalty clause applies, annualize the annuity, then compare two dates of death with the 20-day window.

Result.

If the sale is cancelled, the penalty clause allows Michel to keep the initial payment: €72,000 in this example. If the buyer stops making several payments, the termination clause allows them to reclaim the property. The page doesn't specify what happens to payments already made.

Regarding death: Michel's death on the 12th day after signing falls within the 20-day window described in the information sheet; his death on the 45th day falls outside this window. The page does not describe the consequences for this second scenario. Michel is a fictional profile. The figures illustrate the calculation and do not predict your situation.

Life annuity sale with a notary: what changes depending on your case

• The clauses written in the deed : indexation, resolution, criminal, or none of them.
• The number of sellers, with a reversible or reducible annuity.
• The date of death in relation to the signature, and the state of health of the seller at that time, which is mentioned on economie.gouv.fr.
• The amount of the bouquet, on which the penalty clause applies.
• The text of the civil code regarding the consequences of non-payment, to be examined with the notary.

The rule depends on your situation. No results are guaranteed.