Annuity contract
An annuity contract: transfer of property against an obligation to make periodic payments — what the text should contain before you sign
An annuity contract ties the transfer of property to a duty to pay the annuity: permanent or for life. This is not “just a sale in installments” — an annuity has its own set of terms on security, indexation of payments, and buyout.
Disputes are most often about the amount and frequency of payments, what happens to the property if payments are late, and the scope of duties to maintain it. Before you sign, separate an annuity from a lease and from a sale with deferred payment.
Draft a text or check a finished annuity contract:
Structure of an annuity contract
- The parties: the annuity recipient and the payer
- Subject matter: which property is transferred
- The type of annuity: permanent or for life
- The amount, frequency, and method of payment
- Indexation and the rules for changing the amount
- Security for the payer’s obligations
- Maintenance of the property, utilities, and repairs
- Buyout of the annuity, termination, and registration of the transfer of title
Payments and security
- The payment amount and the date of each period
- What counts as delay, and what the consequences are
- A pledge, a suretyship, or other security
- Whether the duty to pay the annuity may be assigned
- The buyout procedure and the calculation formula
Dangerous wording:
- “The amount of the annuity will be determined separately”
- “The payer may change the payment procedure unilaterally”
- “No security is provided”
- “Maintenance of the property is at the annuity recipient’s expense” with no breakdown
For the recipient and for the payer
For the annuity recipient, the critical points are: the amount and frequency of payments, security, and protection if payments are late. For the payer: clear buyout rules, the scope of maintenance duties, and no hidden one-sided sanctions.
If the property is transferred for free, see a gift contract. If you need temporary access to the property for a fee, see a lease.
Draft or check
A draft — draft an annuity contract online. A finished file — check it for risks / with AI. Edits — compare the versions.
Common questions about an annuity contract
How does a permanent annuity differ from a life annuity?
A permanent annuity can be open-ended and pass to the recipient’s heirs; a life annuity is tied to the recipient’s life. The terms of payments and of buyout also differ.
Is registration required?
Transfer of title to real estate usually requires registration. The specific procedure depends on the property and the type of annuity.
Can the annuity be bought out?
Often yes, but the buyout formula and the moment of buyout should be in the text. Otherwise a dispute is almost inevitable.
How do you check an annuity contract online?
Upload a PDF or Word file: the review will show risks on payments, security, maintenance of the property, and exit from the deal.
An annuity contract online
Assemble a draft from a brief, or upload a file for a review: payments, security, buyout, registration.