Actualité - Everything You Need to Know About the Different Types of Life Annuitie

Article updated on 22/10/2026

Is a viager a worthwhile real estate solution?

In summary

A viager is a contract in which the seller transfers their property in exchange for a bouquet (lump-sum payment) paid at signing and a monthly annuity paid by the buyer until the seller's death, so the length of the commitment depends on the seller's life expectancy.
There are mainly three types of viager: the occupied viager, the most common, where the seller keeps their right of use and habitation; the vacant viager (viager libre), where the buyer immediately becomes the owner and can occupy or rent out the property; and the viager without annuity, less common, where only a lump sum is paid at signing.
The article also presents two related forms of sale: the sale of the bare ownership (nue-propriété), where the seller keeps the usufruct for life, and the term sale (vente à terme), where the buyer pays a lump sum followed by monthly payments until the end date set in the contract, regardless of the seller's life expectancy.
The viager offers the seller lifelong financial security, but carries risks: the seller may lose their annuity if the buyer stops paying it, which the resolutory clause (clause résolutoire) can remedy, while the buyer faces uncertainty over the duration and, in an occupied viager, must pay the property tax (taxe foncière) and major works costs without being able to use the property.

Update of Thursday 22 October:
According to the Viagimmo 2025 observatory: occupied viager 65% of transactions, vacant viager 14%, bare ownership 11%, occupied term sale 10%. Average annuity of €622 for occupied versus €1,207 for vacant. Source: Observatoire Viagimmo.

The viager is a particular form of real estate transaction that may seem complex at first. However, it offers interesting opportunities for both sellers and buyers.

What is a viager?

A viager is a contract in which a person sells their property to a buyer in exchange for an initial payment (called the bouquet) at the signing of the deed of sale, as well as a monthly annuity that the buyer must pay to the seller until the seller's death. The seller may continue to live in the property, or decide not to keep their right of use and habitation, which amounts to an immediately vacant viager. This transaction lasts until the seller's death, and this is the particular feature of the viager, because the length of the commitment depends on the seller's life expectancy.

There are mainly three types of viager, each with characteristics that meet the specific needs of the parties involved: the occupied viager, the vacant viager and the viager without annuity.

The different types of viager:

The occupied viager

The occupied viager is the most commonly used type of viager. In this case, the seller continues to occupy the property until their death. They keep the right of use and habitation, while receiving a lump sum called the "bouquet" and monthly annuity payments from the buyer. This solution is ideal for elderly people who wish to remain living in their property while improving their income. The occupied viager therefore allows the seller to maintain their living environment while securing a source of income until their death.

It also makes it possible to obtain funds quickly for personal projects, while offering the buyer the opportunity to make a long-term investment. However, this type of contract is mainly based on uncertainty (aléa); in other words, the buyer cannot know whether their investment will prove profitable until the seller's death.

A seller who has sold under an occupied viager benefits from a right of use and habitation over their property. This addresses, for example, the situation where the seller no longer has the financial means to maintain the property but wishes to continue living there.

The type of viager is chosen according to the sellers' wishes and needs. It also allows the buyer to plan for a long-term investment. The advantage of the occupied viager for the seller is that they can remain in their home until their death. However, if they wish to leave their home to move into a retirement home, for example, they may give up their right of use and habitation. In that case, the buyer can take possession of the property and will continue to pay the annuity until the seller's death.

The vacant viager

The vacant viager (viager libre) is a form of sale in viager where the seller transfers their property to the buyer in exchange for the payment of a lump sum called the "bouquet" at the signing of the deed and the payment of annuities for the rest of their life. In addition, the buyer immediately becomes the owner of the property, without the ownership being shared. They can therefore choose to occupy the property or rent it out, as they wish. The seller, for their part, continues to receive an annuity but gives up any right of use and habitation of the property.

This type of viager is therefore of interest to those who wish either to occupy the property directly or to rent it out to generate passive income. It is intended for people looking to make a rental investment or acquire a main residence. At the signing of the authentic deed (acte authentique), the seller permanently parts with their property, and the buyer becomes its full owner.

For the seller, this type of life annuity sale (viager) makes it possible to quickly recover a lump sum, while also having a regular income and receiving a monthly annuity.

The viager without annuity

The viager without annuity is a less common type of viager. It takes the form of a real estate transaction in which the seller transfers the property in exchange for a lump sum paid at the signing of the notarised deed (acte authentique). Unlike a traditional viager, the buyer pays no monthly annuity to the seller.

This type of viager is suited to quick transactions, where the seller does not wish to receive a monthly income but prefers a cash payment. It allows the buyer to obtain a property at a discount linked to the seller's occupation, by paying the balance in a single payment at the signing of the notarised deed. The main advantage for the seller in this type of transaction is that they do not have to worry about non-payment of annuities, since they receive a lump sum immediately and can carry out their plans. For the buyer, the main advantage is that this type of transaction allows a safer investment, because even if the seller lives longer than their life expectancy, this will not affect the cost of the acquisition, unlike a traditional occupied viager or a vacant viager (viager libre).

Other forms of sale that fall under the viager

The sale of bare ownership

The sale of bare ownership (nue-propriété) allows the seller to keep the right of usufruct (usufruit) for life, while transferring the bare ownership to the buyer. The seller thus becomes the usufructuary, while the buyer becomes the bare owner.

For the buyer, this transaction is a long-term investment, acquired at a reduced price. They will be able to fully dispose of the property when the seller leaves it, which represents potential future appreciation, without paying an annuity or monthly instalments.

The term sale

The term sale (vente à terme) allows the buyer to acquire a property by paying a lump sum at the signing of the notarised deed, as well as monthly instalments until the end date set out in the contract.

For the buyer, this makes it possible to acquire a property at a set price with payment facilities. They know the amount of their investment in advance, because nothing is linked to the seller's life expectancy. The main purpose of this type of transaction is to allow the seller to receive a sum at signing as well as monthly instalments over a defined period. As for the buyer, it gives them a payment solution that avoids taking out a loan. Once the period has ended, the buyer becomes the full owner of the property. It is an attractive alternative for those who want a medium- or long-term investment.

What are the advantages of choosing a viager?

The viager offers considerable advantages for both sellers and buyers. For the seller, it provides lifelong financial security thanks to the annuity, as well as the possibility of continuing to live in the property depending on the type of viager chosen, while receiving an initial lump sum in the form of a bouquet. This can be an ideal solution for older people looking to improve their purchasing power or to finance personal projects.

What are the disadvantages of the viager?

The viager has some disadvantages for both parties. The main disadvantage for the seller concerns the life annuity. Indeed, if the buyer stops paying the annuity, the seller loses the additional income they were receiving. To prevent this risk, a resolutory clause (clause résolutoire) is included in all contracts and deeds, allowing the seller to take back the property if several annuity payments are not made by the buyer.

On the buyer's side, the main risk is uncertainty about the duration of the transaction, because the purchase depends on the seller's life expectancy. In addition, in an occupied viager, the buyer cannot use the property before the seller's death, but must pay the property tax (taxe foncière) as well as for major works.

Is the viager a solution that can be adapted to everyone's needs?

The viager is a complex mechanism, but one that can indeed be adapted to everyone's needs, for both the seller and the buyer, depending on their specific expectations. Whether it is an occupied viager, a vacant viager or a viager without annuity, each option has advantages to consider.

However, before embarking on such a transaction, it is essential to fully understand the legal and financial implications. It is recommended that you consult your real estate advisor to secure the investment and ensure a positive experience for all parties involved. If you would like to explore this solution, do not hesitate to contact us!

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To go further, watch our video "Parlons peu, Parlons biens" #8: Your best ally for building wealth.

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Author

Frédéric Rémy – Director of Sales Performance

A real estate professional with several years of experience within the Capifrance network, I would like to share essential advice with you to help you successfully complete your property project with our advisors.