Real estate annuity for financing a property

Real estate annuity – If the buyer of a property cannot immediately or fully raise the financing, it can be agreed that the purchaser pays the seller an ongoing annuity. The purchaser’s payment obligation must be secured in rem in the land register, as the real estate annuity is long-term and the seller must protect himself against inflation of the money and the purchaser’s inability to pay. Due to the complexity of the legal matter and the details of the agreement, consultation with a notary is important.

Real estate annuity at a glance: The reverse mortgage

• To finance a property, instead of paying the purchase price
• Buyer pays the seller an annuity on an ongoing basis
• The buyer’s payment obligation must be secured in rem in the land register.
• Advice from a notary indispensable

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