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FRANCE EXPLAINED

Can you really buy an ‘occupied’ property in France and then wait for the owner to die?

It's an unusual and - some might think - morbid arrangement, but France really does have a type of property sale that allows elderly people to sell their homes, while retaining the right to keep living there until their death. Here's how the 'viager' system works.

Published: 10 June 2024 11:07 CEST

Can you really buy an 'occupied' property in France and then wait for the owner to die?

It's common to see adverts for property sold 'en viager' in France, and some real estate agents even specialise in this type of purchase. Photo by THOMAS SAMSON / AFP

Viager is a type of real estate transaction in France, in which you buy a property, but can only move in once the vendor has died.

Though seemingly a bit morbid, it is quite popular in France, and has great potential benefits for both the buyer and the seller – as well as some pitfalls.

For the buyer there is the chance to snap up a bargain as houses or apartments sold en viager are usually priced well below their market value. For the sellers – who are usually elderly – it’s a chance to free up some of the value in their property, while being able to stay in their home for the rest of their life.

There are a few different types of viager arrangement, but in most cases the buyer pays an initial down-payment and then a monthly annuity to the occupier. If the seller dies soon after the arrangement then the buyer lands themselves a bargain – however if the seller lives for a long time it can rapidly become less of a good deal.

Explained: How France’s ‘viager’ system works for buyers and sellers

In 1965, a 90-year-old French lady called Jeanne Calment sold her home en viager to 47-year-old André-François Raffray. From then on, Raffray would pay her 2,500 francs a month, expecting to move in once the elderly woman inevitably passed away.

Calment died in 1997 at the age of 122, with the title of world’s oldest woman.

She also outlived Raffray – he died in 1995, never having had a chance to live in the home he had bought, and having paid more than double the house’s value over a thirty year period.

Such stories are exceptional – but illustrate the gamble of buying en viager. The buyer is not allowed to know anything about the state of health of the seller, only their age.

You can find a full explanation of how the different types of viager systems work HERE.

Despite the possible drawbacks, it remains popular in France and you will often see properties advertised as en viager if you are browsing the windows of French real estate agents.

It is often regarded as a good way to invest, particularly if you are not expecting to live in or make use of the property for an extended period of time. Additionally, notaire fees are typically reduced to only three percent.

As with any type of contract, however, it’s crucial to fully understand what you are signing.

Member comments

Anonymous - 10 June 2024 at 12:28 CEST

Do you have information about cooperatives that are set up to purchase property on viager ?

Become a Member to leave a comment.

Cohabitation

The far-right Rassemblement National of three-time presidential candidate Marine Le Pen and current party leader Jordan Bardella are tipped to be the party with most seats after the second round on July 7th.

If the RN and its allies did secure a majority in the Assemblée Nationale – and current polling suggests this is doubtful – Macron would find himself in a “cohabitation“, in which the president and government are from opposing parties.

Post-war France has experienced three such forced marriages. All were between the left and the centre-right with the last from 1997-2002 between President Jacques Chirac and Socialist premier Lionel Jospin.

Cohabitation: What happens in France’s political ‘forced marriages’?

A cohabition between the Macron and his far-right arch-enemies would likely be a much unhappier affair.

While the far-right would be able to implement part of its domestic programme, on, for example, curtailing immigration, only the president can call a referendum or trigger a vote on constitutional changes.

The president, who usually sets foreign and defence policy, could also find his hands tied if the RN appointed nationalist defence and foreign ministers opposed to his worldview.

Coalition

France has spurned coalitions since the post-war 4th Republic (1946-1958) when the country went through 22 governments in 12 years.

Since losing his parliamentary majority in 2022, Macron has sought to cobble together alliances in parliament on a vote-by-vote basis or to force through legislation without a vote rather than form a pact with another party.

The RN or the left could try do the same if they fall short of a majority but a minority government of the far-right or left would likely fail to pass a vote of no confidence.

Aware of the risks, RN leader Bardella has said he will refuse to become prime minister unless he wins an outright majority.

Macron’s camp hopes that in the event of a hung parliament it could form a coalition with moderates of the left and right.

As part of its outreach to possible allies, Macron’s party has not entered candidates in 67 constituencies where centre-right or centre-left candidates are running.

But Macron has limited his options by putting the hard-left La France Insoumise (LFI) — the dominant force in the NFP — on a par with the far-right in what he calls the country’s “extremes”. He accuses LFI of anti-Semitism, which it rejects.

Caretaker government

Another option would be for Macron to appoint a technocratic non-partisan government which all parties could get behind.

Camille Bedock, a political scientist at the Emile Durckheim centre in Bordeaux, cites the example of Italy, where respected former European Central Bank chief Mario Draghi formed a national unity government in 2021 when Italy was in turmoil. It lasted a year-and-a-half.

Bedock said Macron could also decide to leave the current government headed by his party’s Gabriel Attal in place in a caretaker capacity for a year. He could then call new elections.

This would have the benefit of ensuring continuity through the Olympic Games (July 26th – August 11th) when the country will be under intense global scrutiny.

Whether the far-right or left would support such a move, which would effectively buy Macron time to try turn around his presidency, is highly uncertain.

Macron resigns

The most dramatic scenario would see Macron resign if faced with the prospect of being neutered by the far right or the hard left.

Le Pen, who is expected to try succeed Macron in 2027 presidential polls, has warned that he “will have no choice but to resign” in the event of a “political crisis”.

Macron has vowed to remain on office until the end of his second term in 2027, whatever the outcome.

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