Real Estate Information

How to calculate the notary fees for the purchase of a life annuity ?

By Sammy Byron , on November 5, 2022 - 8 minutes to read
Calculer frais de notaire en viager

You want to sell your property real estate in life annuity, but you ask yourself questions about it? You do not know yet what it can bring you nor how to calculate the expenses of the notary at the time of your life sale? We tell you everything! The life annuity sale of your home will allow you to have a monthly income for the rest of your life. To know more about this real estate transaction, we have gathered the necessary information for you below.

What is the purchase of a life annuity and the role of the notary?

A life annuity allows you to buy a property without paying all the sums corresponding to this property on the day of its acquisition. You will be able to occupy this property as soon as its seller has died. If you are a life annuitant or a creditor, the life annuity sale will allow you to receive an annuity each month in return for the sale of your property until your death. The amount paid by the buyer at the beginning must not exceed 40% of the value of your property. The other part of the sum is an annuity. It is calculated according to your age (seller), the hypothetical rents that you could receive by renting your property, but also on the value of the property. In order to make a life annuity sale, the buyers should be unaware of everything concerning a potential death of the seller. His death should be unforeseeable. Therefore, if the buyer knows of a certain illness of the seller, the sale of the life annuity property will no longer be possible according to the law. Also, if the seller dies after 20 days from the signing of the deed of sale. In this case, the seller’s heirs may request the cancellation of the deed of sale before a court of law because, in this case, the death will be considered foreseeable. Let us now return to the role of the notary. As in any real estate sale, the role of the notary is to be the public officer who can carry out regulated acts. However, in the case of a life annuity sale, the notary is required to calculate the amount of the annuity, according to scales that only he has.

How to calculate the notary fees for a life annuity ?

Now that you know how and why to make a life annuity sale or purchase, as well as the role of the notary In the transactions of the latter, you surely want to know how to calculate the notary fees of a life annuity. These fees are part of the expenses that you must count when you choose to sell your property in viager. Indeed, the notary fees for the sale of a life annuity are done differently than for a classic real estate sale. The notary’s fees, in case you would have bought a property in a classic way, are paid when the deed of sale is signed. But when you sell an occupied life annuity, the notary’s fees will be independent of the amount of the bouquet but also of the life annuity, and the buyer will pay the notary’s fees only if the rights of the property have been transferred.

Calculate the notary fees for the purchase of a free/occupied life annuity.

In the case of a classic real estate sale of your property, the notary fees will be calculated according to the sale price of your property. Contrary to that, the sale in life annuity presents other specificities, and this, taking into account the type of life annuity. However, neither the life annuity nor the bouquet can impact the notary’s fees. The calculation is made according to whether :

The life annuity is free;

The life annuity is occupied.

If the life annuity is free, the buyer can take possession of your property directly. In this case, the notary’s fees will be calculated as in a classic sale and therefore on the sale price of your property. On the other hand, if the life annuity is occupied, its value is composed of the right of use and habitation DUH. This right will not be part of the notary fees. To determine this DUH, the notary will have to make a specific calculation which will then be written on your sale contract. For example, if we assume that the DUH is 50,000 euros, the notary fees will be calculated as follows 150,000€;.- 50,000€; = 100,000€;. The higher the share of the DUH, the more the notary fees will be reduced.

How to calculate the notary fees for the purchase of a life annuity ?

As you can imagine, if more and more people in France can resort to buying a life annuity nowadays, it is not by chance: it allows you to have many advantages, but however, it is not without costs. Although we have been able to present you with the main costs so far, you should know that the calculation of notary fees for the purchase of a life annuity should clearly not be taken lightly. Indeed, it is not every day that you will have the opportunity to make a purchase in the world of real estate, and even less in the world of life annuity which has its particularities.

Thus, by informing yourself beforehand on the subject, you will be able to put all the chances on your side to avoid paying notary fees that are not adapted to your situation. While some people do not hesitate to charge a high price to the future owners of an apartment or a house in life annuity, and although the prices are very regulated, this will allow you to take all the necessary precautions in the framework of your project. But to do things right, you must not neglect all the other expenses that are closely or remotely related to the notary fees, and this can be a real headache sometimes…

Fortunately, there are online tools that allow you to directly calculate notary feesspecifically in the context of a purchase in free or occupied life. For all those who are not necessarily familiar with numbers and calculations, this is a unique opportunity to save precious time in this project.

How to use an online tool to calculate notary fees for the purchase of a life annuity?

In order to save precious time in your real estate purchase, it is highly recommended to use an online tool that will allow you to easily, and in a few clicks, to calculate all your notary fees to buy a life annuity. These tools available online, which have already been tested and approved by many people, allow you to make calculations by filling in some information, such as :

  • the type of property you are buying: a house or an apartment
  • the address of the life annuity property you are buying
  • any other information that may be important to the notary in connection with this purchase
  • your precise contact details, so that we can contact you

What are the advantages of online tools to calculate the notary fees for a life annuity purchase?

You may be slightly reluctant about wanting to use an online solution for your life annuity property purchase, and this is completely understandable… Indeed, it can sometimes be very difficult to trust a solution and have the assurance of paying the fees that are mentioned on the online tool. Nevertheless, these tools have many advantages, apart from the fact that they will save you a lot of time… The main advantage of these online tools is undoubtedly that they will work equally well in the context of a life annuity purchase or a donation: it allows the future owners to be sure of the steps to be taken and the associated costs.

The second advantage of using an online solution for to carry out the estimate of the expenses of notary on line within the framework of a life is in the anticipation of the expenses. Indeed, for people who want to buy a property for the very first time, it is not uncommon that they sometimes forget certain expenses, and this can sometimes represent sums to several thousand euros.

On the other hand, although these online tools are very efficient and trustworthy, it is essential to call upon a real notary afterwards. Indeed, he will also be able to answer your needs, and he will especially allow you to give you the real price of the notary fees, and not only an estimate as these tools can propose.

Sammy Byron

After studying as a specialist in investigative journalism across Europe, I decided to start writing for my own community of Internet users. You can also find my most accurate studies and analyses on the latest trends in the United States. If you are interested in an analysis or a study in collaboration with our Experts, do not hesitate to use the dedicated contact form.


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