Title is the starting point
Review whether ownership passed to the payer and what the register records.
The encumbrance matters
Civil Code Article 586 makes the transferred property subject to the annuity.
The recipient has security
Article 587 grants statutory security over transferred real estate.
Does the property enter the estate?
| Situation | Legal question | Review |
|---|---|---|
| Title registered to payer | Property is reviewed as payer property subject to exclusions and encumbrances | Land-register extract and registration date |
| Transfer not registered | Valid title and agreement performance must be established | Agreement, handover and filing |
| Recipient seeks return | The court reviews the remedy and timing | Breaches, notices and claim |
| Property offered for sale | Encumbrance, recipient rights and sale terms require review | Sale rules and lot card |
Recipient workflow
Obtain a current register extract
Verify owner, annuity encumbrance, security, arrests and later entries.
Document performance
Collect payments, care records, correspondence and evidence of material breaches.
Select the remedy
Separate arrears, future payments, redemption, termination and property return.
File in the bankruptcy case
Check publication, deadlines, creditor register and disputes before sale.
If the property is sold
- lot terms should disclose material features and registered rights;
- Civil Code Article 586 addresses transfer of annuity obligations with the encumbered property;
- the original payer may retain statutory liability together with the new owner;
- the recipient’s security requires separate bankruptcy treatment;
- distribution cannot be determined from the auction notice alone;
- a bidder should review the agreement and case file before participating.
Intent boundary
| Question | Guide |
|---|---|
| Property and payments in payer bankruptcy | This page |
| General bankruptcy effects on either party and lifetime maintenance | annuity-agreement guide |
| Avoidance of the agreement as a debtor transaction | transaction-avoidance guide |
FAQ
Do annuity payments stop?
Not automatically. Existing and future obligations, the annuity type and case orders require classification.
Can the recipient recover the property?
The Civil Code provides special remedies for material breach of life-annuity and lifetime-maintenance duties. A separate supported claim is required.
What happens to recipient security?
Article 587 creates security when real estate is transferred. Its existence and registration must be disclosed and considered.
Can a buyer be unaware?
A buyer should review the land register, agreement, lot card and court file. Failure to check creates significant risk.
Official sources
Related guides: lifetime maintenance, sole residence and personal bankruptcy auctions.
Need to classify property and an annuity claim?
Initial consultation