Can a viager be resold, and what happens to the annuity if the buyer dies?

Reselling a property bought en viager is possible

The buyer is the full owner: they may resell the property during the annuitant's lifetime, without in principle needing their consent. The property is sold as it stands, that is, encumbered by the original seller's right of use and habitation, enforceable against the new purchaser because it is published at the French land registry, and most often with the burden of the annuity.

This resale market for viagers exists: it involves buyers who want out of the transaction, for instance because the annuity has become too heavy or the seller is living longer than expected.

What happens to the annuity on resale

The resale does not automatically release the first buyer. If the new purchaser undertakes to pay the annuity, the arrangement qualifies as a delegation (Article 1336 of the French Civil Code): the annuitant gains a second debtor, but the original buyer remains liable until the annuitant releases them, and that release must appear expressly in the deed (Article 1337 of the French Civil Code).

The annuitant also keeps all their security over the property: the seller's statutory mortgage (Article 2402 of the French Civil Code) and the published termination clause, both enforceable against the new purchaser. If payments stop, they can therefore act against the property, whoever owns it.

Death of the buyer: the debt passes to the heirs

The life annuity does not end when the buyer dies: it ends when the seller dies. The buyer's heirs who accept the estate receive the property but also answer for the annuity debt, without limit if they accept outright (Article 785 of the French Civil Code). Three main options are open to them: keep up the payments, resell the property subject to the annuity, or renounce the estate as a whole (Articles 769 and 804 of the French Civil Code, the succession option being indivisible), since the renunciation cannot cover the annuity alone.

To cover this risk, the buyer can take out death insurance guaranteeing that the annuity will keep being paid; it is optional and its cost should be factored into the overall calculation.

Death of the annuitant: the annuity ends

When the seller dies, the annuity ends and the right of use and habitation disappears: the buyer, or their heirs, recovers full enjoyment of the property without compensation. If the deed provided for a reversible annuity, for example in favor of the surviving spouse, it continues to be paid to the named beneficiary until their own death. Payments are due only in proportion to the days the annuitant lived, unless the deed provides for payment in advance (Article 1980 of the French Civil Code).