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The question of how charges and works are shared between a vendor with a right to a life annuity and a purchaser with a right to a life annuity only arises in the case of an occupied life annuity sale. In an unoccupied life annuity sale, the purchaser with the right to withdraw is the owner of the property and enjoys its use from the moment the deed of sale is signed; only the payment of the price is deferred by means of a life annuity. Thus, as in a sale under ordinary law, the debirentary, the new owner, must bear the charges and all repair and maintenance work relating to the property as soon as the deed of sale is signed.
The situation is different in an occupied life annuity sale.

Reservation of usufruct or right of use and habitation

In an occupied life annuity sale, the vendor/creditor will continue to occupy the property sold. To do this, he must sell it while reserving a right: he can choose between the right of usufruct or the right of use and habitation.


- reservation of usufruct:

The usufruct is a real right allowing its holder to use and enjoy the property until his death (except temporary usufruct). The vendor with the right of usufruct may then continue to use the property as he sees fit. They may, if they wish, occupy the property for the rest of their lives or rent it out to a third party.

- Reservation of the right to use and live in the property :

The right to use and live in the property is also a real right, but of a personal nature. The seller may continue to occupy the property until his death, but only for his personal needs and those of his family. Under no circumstances may he rent out the property.

Apportionment of charges and works between the seller with a creditor annuity and the purchaser with a debtor annuity

Regardless of whether the seller has reserved usufruct or a right of use and habitation, the distribution of charges and works is the same.

In the absence of an agreement to the contrary, the seller with a right of use and dwelling is obliged to bear the usufructuary charges, i.e. the current contributions and charges as well as property tax (unless a right of use and dwelling has been reserved, in which case property tax remains the responsibility of the purchaser with a right of use and dwelling). The parties remain free to agree a different allocation.

With regard to works, the seller with the right to use and occupy the property must pay for maintenance work, while the purchaser with the right to use and occupy the property must pay for major repairs.
Maintenance work includes, for example, work to maintain the garden, boiler, plumbing, renovate the facade, install blinds, replace shutters, etc.
According to article 606 of the French Civil Code, major repairs, which are the responsibility of the purchaser, "are those to the main walls and vaults, the restoration of beams and complete roofs. The dikes, retaining walls and fences must also be repaired in their entirety.
All other repairs are maintenance work". For example, major repairs include the replacement of various structural elements, re-roofing, etc.
However, if the purchaser refuses to carry out these major repairs, it is not possible to legally compel him to do so.
Here again, the parties are free to agree a different breakdown of the work. In particular, it is possible to make the seller on whom the annuity is payable responsible for all the work, including major repairs. In the event that the parties wish to retain the legal allocation, it is advisable to provide for the possibility of the seller under credit to be able to legally compel the purchaser under debit to carry out major repairs.