Viager is a real estate transaction type that is popular in France where the buyer makes an upfront payment and then regular payments to the seller. This type of real estate transaction is used most frequently by individuals or couples who have lost a spouse, allowing them to have a regular source of income after the death of their loved one.

When engaging in a viager transaction, the buyer will first pay a down payment to the seller, and then make a series of payments over a set period of time – usually until the seller passes away. It is important to understand that the buyer will not own the property in full until the last payment has been made, meaning that the buyer will not actually benefit from the purchase until the seller is deceased.

The advantage for the buyers of engaging in viager transactions is that the property can be purchased at a reduced rate. This allows buyers to enter the French housing market at an affordable rate without compromising on the quality or location of the home. The sellers, on the other hand, benefit by having a reliable source of income after the passing of their spouse.

In order to ensure that the terms of the viager transaction are fair to both parties, it is important to engage the services of a lawyer who is experienced in the field. It is also important to consider the risk of the seller outliving the agreed upon period of the real estate transaction. Another important factor to consider before entering a viager transaction is how any inheritance will be handled if the seller in fact does outlive their agreed upon term.

Overall, viager transactions can allow both buyers and sellers to benefit when the transaction is properly understood and agreed upon. They also offer an interesting alternative to the traditional real estate options available in France.

For anyone considering engaging in a viager transaction, it is important that both parties fully understand the terms of the agreement along with the different risks that may arise. Doing so can help ensure that all parties involved in the transaction are satisfied with the outcome.