Nullity of Property Sale: Death of the Seller within 20 Days

Imagine: you buy a house in Montargis, the seller pockets the price, and twenty days later, he dies. His heirs arrive and tell you that the sale is void. Impossible? Yet this is exactly what Bernard Y... experienced in a case decided by the Court of Cassation in 1992. The question every owner asks: does payment of the price prevent the sale from being annulled? The answer is no, as we shall see.

This decision, handed down on 10 November 1992 (appeal no. 90-21.417), recalls a little-known but formidable rule: Article 1975 of the Civil Code, which prohibits excessively short life annuities. When the seller (the annuitant) dies within 20 days of the sale, the law presumes that the contract is fraudulent and strikes it with nullity of public policy. It does not matter that the price has been paid: the heir can act.

For non-lawyers, remember this: if you buy a property with a life annuity, and the seller dies suddenly, you risk annulment. Even if you have already paid the first instalment. A sword of Damocles that deserves your full attention, whether you are in Pithiviers or elsewhere.

The Facts: A Story Like Any Other

In January 1987, Bernard Y..., a resident of Montargis, signed a preliminary sale agreement with a lady wishing to sell her house. The peculiarity? The sale was concluded in the form of a life annuity: the price was payable partly in cash, and the balance in the form of a monthly annuity. The notarial deed was signed on 29 January and 6 February 1987. But twenty days later, on 26 February, the seller died.

Her heirs, including her daughter, sued Bernard Y... for nullity of the sale. They invoked Article 1975 of the Civil Code, which provides that a life annuity constituted by an onerous contract is void if the annuitant (the person receiving the annuity) dies within 20 days of the date of the contract. The purpose of this provision? To avoid speculation on the imminent death of an elderly or sick person.

Bernard Y... defended himself: he had paid the cash portion of the price and the first instalment of the annuity, as agreed. According to him, this payment purged any nullity. The Orléans Court of Appeal ruled against him, and the Court of Cassation confirmed: payment does not erase the nullity of public policy. The heirs can therefore claim nullity, and Bernard Y... loses the house.

The Reasoning of the Court — Analysed

The heart of the dispute concerns the interpretation of Article 1975 of the Civil Code. This little-known provision states: "Any life annuity constituted by an onerous contract, whether by inter vivos gift or by will, is void if the person on whose head it was constituted dies within twenty days of the date of the contract." The Court of Cassation qualifies it as a "nullity of public policy", i.e., a nullity that the parties cannot waive by mutual agreement.

But Bernard Y... argued that payment of the price (cash and first instalment) constituted "voluntary performance" of the contract, which should have prevented the heirs from relying on the nullity. In other words, he invoked the maxim "no one may contradict themselves to the detriment of another" (estoppel in English law).

The High Court rejected this argument. It recalled that nullity of public policy may be invoked by any heir, even if the debtor (the person paying) has performed their obligations. Why? Because the law seeks to protect a vulnerable category (the heirs of an annuitant who died prematurely) and to deter fraudulent schemes. Accepting that payment prevents nullity would empty the law of its substance.

Another point: the Court of Appeal had noted that the preliminary sale agreement, signed before the notarial deed, was not the definitive sale. The sale took place upon signature of the notarial deed, i.e., on 29 January and 6 February 1987. The death having occurred less than 20 days later, nullity was incurred. A detail that matters: the starting point of the period is the date of the notarial deed, not the preliminary agreement.

What This Means for You — Practically

If you are a seller (annuitant) and you sign a life annuity sale, know that your heirs can annul it if you die within 20 days. Even if the buyer has already paid cash and the first annuity. For heirs, this is a weapon: they recover the property, but must repay the sums received.

For the buyer (debtor), the risk is immense. Take a concrete example: you buy a house in Pithiviers for €150,000, with a lump sum (cash) of €30,000 and an annuity of €500 per month. The seller, aged 85, dies 15 days after signing. You have paid €30,000 plus one month's annuity, i.e., €30,500. The sale is annulled: you lose the house and must recover your money... but the seller is dead, and his heirs may be slow to repay. Sometimes they do not have the funds.

If you are a buyer, check the seller's state of health and the date of his death. If in doubt, do not hesitate to consult a lawyer before signing. Nullity can be claimed up to 5 years after the sale (general limitation period).

Four Tips to Avoid This Type of Dispute

• Check the seller's state of health: if you buy a life annuity, ask for a recent medical certificate. A very old or ill seller increases the risk of death within 20 days.
• Have a deed drawn up specifying the effective date: if the preliminary agreement is signed well before the notarial deed, the 20-day period runs from the notarial deed. But to avoid any dispute, clearly indicate the date of the definitive sale.
• Require a guarantee clause: in the deed, provide that if the sale is annulled on the basis of Article 1975, the seller (or his heirs) must fully repay the sums paid, with interest.
• Consult a lawyer before signing: a professional can detect ambiguous clauses and advise you on the risks. In Montargis as in Pithiviers, a preventive consultation costs less than a trial.

Further Reading: Related Case Law and Developments

The 1992 decision is part of a consistent line of the Court of Cassation. Already in 1985 (appeal no. 83-16.456), the Court had held that the nullity under Article 1975 is of public policy and can be invoked by heirs, even if the contract has been partially performed. More recently, in 2018 (appeal no. 17-21.003), the Court specified that the 20-day period runs from the date of the notarial deed, not the promise to sell.

Trend of the courts: judges are strict in applying Article 1975. They consider any life annuity sale where the seller dies within 20 days as suspect, and they broadly grant nullity claims. In the future, it is likely that case law will remain unchanged, as the rule protects heirs and deters abuse.

Checklist Before Taking Action

1. Check the date of the notarial deed: did you sign the definitive sale? The 20-day period runs from this date.
2. Note the seller's death: did it occur within 20 days of signing? If so, nullity is incurred.
3. Identify the heirs: only an heir of the annuitant can act. If you are the buyer, await a possible action.
4. Keep proof of payment: in case of annulment, you will need to prove the sums paid to recover them.

In a similar situation? A first 30-minute consultation with Maître Zakine (€45) can save you months of proceedings — and often much more. Book an appointment →