Viager Europe — Cabinet Daubry
Guide expert

Sale with deferred payment

Explore term sale: a risk-free sale with a fixed payment period and tax-free monthly payments. The secure alternative to viager.

3 min de lectureMis à jour le 7 juillet 20267 questions fréquentes

In the world of real estate sales with staggered payments, viager reigns supreme. Yet, another solution, more structured and entirely predictable, deserves to be known: term sale. It eliminates the main uncertainty factor of viager—the risk tied to lifespan—while offering a major tax advantage.

Ideal for sellers seeking security and clarity, and for buyers looking to invest without a bank loan, the term sale is a win-win strategy. This 2025 guide explains how it works, its benefits, and why it could be the perfect solution for your project.

What is a term sale? Definition and how it works

A term sale is a real estate sales contract where the buyer pays the price in installments over a predetermined period.

This contract is divided into two parts:

  • The upfront payment: a capital sum paid by the buyer on the day the deed of sale is signed. It is often larger than the bouquet in a viager.
  • The monthly payments: monthly installments whose total number is set in the contract (for example, 120 monthly payments over 10 years). At the end of this period, the property is fully paid for, no matter what.

There are two types of term sales:

  • Occupied term sale: the seller retains a Right of Use and Habitation (DUH) for a set period or for life.
  • Vacant term sale: the property is free of any occupancy, allowing the buyer to live in it or rent it out from the moment the contract is signed.

The strategic advantages of a term sale

A sale without risk and with a known duration

This is the fundamental advantage. Unlike viager, where the payment period is unknown, a term sale is set over a fixed period (10, 15, 20 years...). The seller knows exactly how much they will receive in total, and the buyer knows the final cost of their acquisition. This predictability reassures and secures both parties.

A highly advantageous tax regime for the seller

This is the best-kept secret of term sales. The monthly payments received are entirely exempt from income tax. They are not considered rental income (like rent) nor as an annuity (as in viager). This is a significant tax advantage that maximizes the seller’s net gain.

Term sale vs. occupied viager: the key difference

The choice between these two solutions depends on your attitude toward risk and your need for predictability.

An occupied viager is a gamble on life. It provides a potentially lifelong life annuity (rente viagère), which is a safeguard for those who live a very long time. The downside is the uncertainty it represents for the buyer and for the seller’s estate.

A term sale is a secure seller financing arrangement. It resembles a standard sale where payment is simply spread over a fixed period. Security and clarity take precedence over the viager aspect.

In conclusion, the term sale is the solution for peace of mind. By eliminating the uncertainty of viager and offering an extremely favorable tax framework, it allows for precise future planning, both for the seller and their heirs.

Étude personnalisée

Vous envisagez un viager ? Parlons-en.

Nos experts du Cabinet Daubry réalisent une étude confidentielle gratuite et sans engagement, adaptée à votre situation.

Estimer mon bien0800 230 200
FAQ

Vos questions, nos réponses

Tout ce qu'il faut savoir avant de se lancer.

01What happens if the buyer stops paying the monthly installments?
As with viager, you are protected by a "résolutoire clause" in the notarized deed of sale. In the event of non-payment, a judge may cancel the sale. You then regain full ownership of your property while keeping the bouquet and all life annuity (rente viagère) payments already received.
02What happens if I die before the end of the payment period?
This is a key difference from viager. Payments do not stop. The buyer continues to pay the remaining monthly installments to your heirs until the agreed term ends. A term sale thus allows you to pass on capital to your estate.
03How are the monthly payments determined?
The calculation is simple and transparent. We start with the property’s value, deduct the upfront bouquet amount, and divide the remaining balance by the number of months specified in the contract. There is no complex actuarial calculation.
04Are the monthly payments inflation-indexed?
Yes, to protect your purchasing power. Like with a life annuity (rente viagère), the forward sale contract includes an annual indexation clause for monthly payments based on an INSEE index (often the Construction Cost Index).
05Is a term sale advantageous for the buyer?
Very much so. It allows them to purchase a property without resorting to a bank loan, which is a major advantage in a context of high interest rates or strict borrowing conditions. The buyer benefits from a "zero-interest loan" granted by the seller.
06Who pays the charges in an occupied term sale?
The distribution is similar to that of a viager. As a seller-occupant, you pay the current expenses and the housing tax (if applicable). Major repairs and, in most cases, the property tax are the buyer’s responsibility.
07Can I sell on a term sale even if I'm young?
Yes! Unlike *viager*, which is statistically more advantageous for older sellers, a term sale does not depend on age. The property’s value and payment duration are what matter, making it a solution accessible to a broader range of owners.