Life annuity contract . One, it seems to be an easy way to get ownership of housing. Others see this agreement as an opportunity to live old age with dignity. Still others use it only with selfish, often
criminal intentions. Separately, we note that not only an apartment or a house can act as a transferred property. However, other objects very rarely appear in agreements of this kind. What difficulties can one encounter when concluding a life annuity contract, what are the rights and obligations of each of the parties?
Let's start with the key points. Today there are two varieties of such an agreement. One of them involves the transfer of ownership of residential property, with the proviso that a monthly fixed amount will be paid in exchange for the owner, until his death. This, in fact, will be a contract of life annuity. The second type of such an agreement involves slightly different conditions. The owner also transfers the right to housing to another person, but, in addition to monthly payments, he is also provided with additional assistance (medical care,
purchase of medicines, etc.). Such a contract is called a “Contract for Life Support with Dependence”. These transactions differ from each other not only in the obligations and rights of the parties. The conditions for their registration and certification are also different.
In order to facilitate further narration, we define how the parties are named in such agreements. The owner of a dwelling, transferring the rights to it to another person is a renter. A person who has assumed the responsibility for its maintenance in exchange for housing is a landlord.
A rent with a lifelong maintenance must be certified by a notary, otherwise such a paper will not have full legal force. The ownership of the premises is transferred to the lessor. This fact is subject to mandatory state registration. After this, the landlord is obliged to monthly transfer money to the receiver, the amount of which cannot be less than 2 minimum wages. In the event of a change in law, this figure should be indexed. Note that the transfer of ownership can occur both for free and for an additional fee.
Having ceased to be considered the owner of the housing, the renter does not lose the right to reside in this area. This item must be present in the document. Moreover, it will not be superfluous to envisage obtaining the consent of the former owner for any transactions with housing that previously belonged to him.
As for transactions involving not only cash payments, but also the provision of
additional services, they are concluded much less frequently than a life annuity contract. The low popularity of agreements of this kind is explained by the fact that it is difficult to determine their exact list, and the amount of additional requirements by the dependent is difficult to predict. Therefore, rentees can set difficult requirements that the renter will not be able to fulfill. Such a fact, in turn, can serve as a basis for termination of the transaction.
A life annuity contract can only be terminated if the landlord does not perform his duties properly: he does not transfer the funds on time.