An estate solution in the service of ageing well
A viager is far more than a property transaction: it is a genuine estate-planning solution.
It lets owners unlock the value of their property while keeping their quality of life. Against a background of an ageing population, longer life expectancy and falling purchasing power among pensioners, the viager answers major economic, social and human needs.
Contrary to a persistent misconception, selling in viager does not mean giving up your home. In the great majority of cases it is an occupied viager: the seller keeps the right to live in the property until their death, or until the death of the surviving partner where a couple sells.
A balance of rights and obligations
In law, ownership of the property passes to the buyer as soon as the notarial deed is signed. The seller, however, keeps their right of use and occupancy — or in some cases a usufruct — allowing them to go on living in the property undisturbed.
In return, the buyer generally pays a bouquet at the time of sale, then a life annuity until the death of the seller or sellers. Where a couple owns the property, the annuity is most often 100 % reversionary to the surviving spouse, so that the income continues.
A viager rests on a balance between each party’s rights and obligations:
- The crédirentier (the seller) undertakes in particular to deliver the property in accordance with the deed of sale, to warrant the buyer against hidden defects and, on the terms set out in the contract, to carry out routine maintenance for as long as they enjoy the property.
- The débirentier (the buyer) undertakes to pay the bouquet and then the annuity on the agreed dates. They also take on the obligations that fall to an owner, as set out in the notarial deed and in the split of charges agreed between the parties.
Four structures, four objectives
A viager is not a single product. The structure is chosen according to what you want to keep and what you want to receive.
Occupied viager
You stay in your home, and receive a bouquet then a lifetime annuity.
Free viager
You leave the property: bouquet and annuity are both higher.
Instalment sale
Payment is spread over a term fixed in advance: no uncertainty.
Bare-ownership sale
A substantial capital sum straight away, with no annuity to manage.
Solidarity between generations, in practice
Beyond its legal form, a viager is a responsible property investment. It allows an older person to improve their standard of living immediately, while giving the buyer the chance to build up quality property assets over time.
Long burdened with a poor reputation, the viager is now recognised as a modern instrument of solidarity between generations. It creates value, it supports older people staying in their own homes, and it gives an investment real meaning.
Investing in a viager means investing in bricks and mortar while taking part in something useful and durable — saving, and building property wealth over time.
Do I have to leave my home?
No — not in an occupied viager, which is the great majority of sales. You keep a right of use and occupancy, or a usufruct, until your death. You leave only if you choose to, and the deed can then provide for the annuity to be increased in return for releasing the property early.
Who are the crédirentier and the débirentier?
The crédirentier is the seller: they are owed the annuity. The débirentier is the buyer: they owe it. The two terms recur throughout the notarial deed, and that is all they mean.
What happens if the buyer stops paying the annuity?
The notarial deed contains a termination clause: if payment fails, the sale can be rescinded and the property returns to the seller, who in principle keeps the bouquet and the annuity payments already received by way of compensation. A vendor’s lien is also registered. It is precisely so that these guarantees never have to be used that we check a buyer’s solvency beforehand.
Can a viager be set up on two lives?
Yes, and for a couple it is the commonest arrangement. The annuity is then calculated on two lives and made reversionary, usually at 100 %, to the survivor: the death of the first spouse reduces neither the income nor the other’s right to live in the property.
Can my children object to the sale?
No. You are free to dispose of your own property during your lifetime. That said, a viager that has been explained is a viager that is accepted: we always offer to involve your children in the study, and in practice opposition almost always comes down to not knowing how the mechanism works.
No questions in this category.