Immediate capital
The bouquet helps fund a project, transmit a gift, repay a loan or simply have capital available without waiting.
Bouquet - Fixed installments - No longevity uncertainty
Installment sale, the viager without the longevity bet
Sell or buy real estate with an initial capital at signing and monthly installments spread over a fixed period (10, 15 or 20 years). No duration uncertainty, no longevity risk, neither for the seller nor for the buyer.
The principle in two minutes
The installment sale is a real estate sale where the seller receives the price in staggered amounts over a fixed period. Unlike the viager, the number of installments is set at signing. If the seller dies before the term, their heirs continue to receive the installments until the last one. The total cost is known to everyone from the start.
Like the viager, the installment sale can be free (the buyer takes possession at signing) or occupied (the seller keeps a right of use and habitation). The contract is registered before the notary and benefits from the same protections: seller's privilege, resolutory clause in case of unpaid amounts.
It is a formula still little known but very well suited to two profiles. A seller aged 55 to 70 who does not yet benefit from the best viager tax allowance. A first-time buyer who cannot secure a bank loan in the current rate environment.
Installment sale vs viager: the difference at a glance
Payment duration
Installment sale
Fixed (10, 15, 20 years)
Viager
Uncertain (until death)
Uncertainty
Installment sale
None
Viager
Yes (longevity)
Seller's death before term
Installment sale
Installments paid to heirs
Viager
The annuity stops
Total cost known
Installment sale
Yes, from signing
Viager
No, depends on longevity
Seller taxation
Installment sale
Installments little/not taxed (price payment)
Viager
30 to 70% allowance on the annuity by age
Ideal seller profile
Installment sale
55-70, transmission, definite income
Viager
70+, lifetime retirement supplement
Ideal buyer profile
Installment sale
First-time buyer without a loan
Viager
Investor, longevity bet
How an installment sale unfolds
Four clear steps, framed by the notary, that secure both seller and buyer from the first meeting to the last installment.
Valuation and price agreement
We assess the market value of the property based on north Montpellier references. Seller and buyer agree on the total price, the bouquet (initial capital), the payment duration (most often 10, 15 or 20 years) and the free or occupied formula.
Compromise and notarial signing
The compromise sets the final terms: total price, installment schedule, possible indexation, resolutory clause in case of unpaid amounts, seller's privilege. The authentic deed is signed before the notary, who registers the privilege at the land registry.
Bouquet and installment payments
The bouquet is paid at signing, generally between 10 and 30% of the total price. Installments are debited monthly over the agreed period. They can be indexed on the INSEE consumer price index to preserve the seller's purchasing power.
Property transfer
In a free installment sale, the buyer takes possession at signing. In an occupied installment sale, the seller retains a right of use and habitation for the agreed duration (5, 10, 15 years), then the buyer recovers possession. Legal ownership is transferred at signing in both cases.
Calculate your installment sale
Indicative estimate of bouquet and installments based on price, duration and free or occupied formula. For a precise calculation tailored to your situation, ask us for a detailed simulation.
Simulation parameters
Adjust the sliders to visualize your structure in real time.
450 000€
100 000€1 500 000€
15 years
5 years25 years
20 %
The bouquet is the capital paid at signing. The balance is spread in fixed monthly installments over the agreed period.
Indicative estimate
Your installment sale structure
Bouquet at signing
90 000€
Paid in one go before the notary
Monthly installment
2 000€
Over 180 months
- Market value
- 450 000€
- Total agreed price
- 450 000€
- Capital to spread
- 360 000€
- Sum of installments
- 360 000€
Indicative estimate. The final price, discount and indexation are set by the notary after expert appraisal and personalized study. We provide a detailed simulation on request.
Request a detailed simulation
Installment sale
For sellers
The installment sale is primarily aimed at owners aged 55 to 70 who want to mobilize their assets without losing their home and without betting on longevity.
At this age, the classic viager is less attractive. The viager annuity tax allowance caps at 50% until age 69 and only reaches its maximum (70%) from 70 onwards. Selling in viager before this threshold means leaving a significant share of the tax advantage on the table.
The installment sale bypasses this cap. Installments are characterized as price payments, not income. They therefore do not enter the income tax base. For a 60-year-old seller, the tax gap with a viager can represent tens of thousands of euros over the contract.
It is also the simplest formula to explain to heirs. The total cost is known from signing. If the seller dies before the term, installments are paid to heirs until the last one. No uncertainty, no bet, no life expectancy calculation.
What an installment sale brings to the seller
Certain income
Installments are fixed and secured by the seller's privilege. No duration uncertainty, unlike the viager annuity.
Light taxation
Installments are not considered taxable income. The primary residence remains exempt from capital gains.
Stay at home
In an occupied installment sale, the seller keeps a right of use for a chosen duration. They stay home without paying rent.
Secured transmission
If the seller dies before the term, installments continue to the heirs. The contract does not stop with life.
Choice of buyer
The seller validates their buyer's profile. Often a first-time buyer or a local family, never an anonymous transaction.
Watch points for the seller
Buyer default. It is covered by the seller's privilege (possible seizure) and by the resolutory clause that cancels the sale. Installments already received remain with the seller as compensation.
Indexation of installments. Without INSEE indexation, the real value of the payment decreases with inflation over 15 or 20 years. Always include an indexation clause in the contract.
Choice of duration. Too long, it dilutes installments and weakens purchasing power. Too short, it raises the monthly cost for the buyer and shrinks the pool.
Installment sale
For buyers
The installment sale appeals to two dominant profiles: the first-time buyer who cannot secure a bank loan in the current rate environment, and the investor who seeks to acquire without going through the bank.
Buying through an installment sale means buying without a bank loan. No file to submit, no borrower insurance, no usury rate, no borrowing capacity to justify. The seller is the creditor, and the notary secures the operation.
The total cost is known at signing. No surprise on the contract duration. An installment sale at 400000€ with an 80000€ bouquet and 15 years of 1778€ installments is exactly what the buyer will pay, with no bank interest.
In an occupied installment sale, the property is discounted by 20 to 40% depending on the occupancy duration. This discount opens access to a property worth more than what a bank would have funded in classic credit. Possession is deferred but scheduled.
Three typical buyer profiles
First-time buyer
Couple or single person aged 30 to 45 whose bank borrowing capacity is limited by current rates. The free installment sale lets them buy their primary residence and pay in installments, without file fees or borrower insurance.
Patrimonial investor
Senior executive aged 40 to 55 building wealth in addition to their primary residence. The occupied installment sale allows acquiring a discounted property over the long term, with controlled cash flow and lighter taxation.
Local family
Family from north Montpellier who want to buy locally without going through credit. The installment sale fits a logic of transmission between generations or neighbors, common in villages such as Saint-Clément-de-Rivière or Combaillaux.
What an installment sale brings to the buyer
No bank loan
No bank file, no borrower insurance, no file fees. The notary fully secures the operation.
Frozen total cost
The cost is known to the euro from signing. No bank interest. No upward revision if rates rise.
Discount when occupied
In an occupied installment sale, the property is discounted by 20 to 40% versus its market value, in exchange for the occupancy reserved to the seller.
Reduced notary fees
Notary fees are computed on the occupied value, not the free value, in occupied formula. Saving of 15 to 35% on this item.
Controlled cash flow
Fixed installments known in advance. Perfect monthly budget visibility throughout the contract.
Calm acquisition
No bet on the seller's longevity. If the seller dies before the term, installments continue to the heirs without impact on the buyer.
Free or occupied installment sale: which to choose
Both formulas rely on the same principle: a bouquet at signing and fixed installments over an agreed duration. The difference lies in immediate or deferred possession of the property.
Possession of the property
Free installment sale
Buyer at signing
Occupied installment sale
Seller during the occupancy duration
Discount on value
Free installment sale
None
Occupied installment sale
20 to 40% depending on occupancy duration
Notary fees
Free installment sale
Computed on the free value
Occupied installment sale
Computed on the occupied value (reduced)
Buyer profile
Free installment sale
First-time buyer who wants to live there
Occupied installment sale
Long-horizon patrimonial investor
Seller profile
Free installment sale
Seller who wants to leave the property quickly
Occupied installment sale
Seller who wants to stay home
Current charges
Free installment sale
Buyer (property tax, charges)
Occupied installment sale
Split: major repairs to the buyer, current ones to the seller
Maintenance work
Free installment sale
Buyer
Occupied installment sale
Seller (article 605 of the Civil Code)
Gentler taxation than commonly thought
For sellers
For the seller, the installments of an installment sale are characterized as a payment of the price. They are not considered income and therefore escape income tax. Any capital gain is calculated on the total agreed price (bouquet plus the sum of the installments). If the property is the primary residence, the capital gain is exempt.
For buyers
For the buyer, notary fees are calculated on the occupied value (in occupied installment sale) or on the free value (in free installment sale), as for a viager. The installments are not deductible from income. On the IFI side, the same rules apply as for the viager: bare ownership declared and remaining capital deductible.
Legal framework of the installment sale
The installment sale has no dedicated article in the Civil Code but relies on the common law of sale, the seller's privilege on real estate and the resolutory clause. Here are the texts that structure the operation.
Article 1582 of the Civil Code
Defines the sale as an agreement by which one party undertakes to deliver a thing and the other to pay for it. Foundation of the price-payment characterization applied to installments, distinguishing them from an annuity.
Articles 1650 and following
Frame the buyer's obligation to pay the price. The installment sale arranges this obligation by allowing staggered payment, provided the schedule is set in the authentic deed.
Article 2374 of the Civil Code
Grants the seller of real estate a privilege guaranteeing payment of the price. Registered at the land registry, this privilege allows seizure of the property in case of unpaid amounts, before any other creditor.
Resolutory clause (article 1224)
Allows automatic cancellation of the sale in case of payment default. Installments already received remain with the seller as occupancy compensation. A major guarantee that secures the contract.
The authentic deed before the notary is mandatory. It sets the total price, the installment schedule, possible indexation, the seller's privilege and the resolutory clause. Count about 7 to 8% of the occupied value for notary fees in occupied formula.
Frequently asked questions about the installment sale
What is the concrete difference between installment sale and viager?
The payment duration. In a viager, installments (the annuity) are paid until the seller's death, with no known end. In an installment sale, the duration is set at signing (10, 15 or 20 years) and installments stop at the last due date. If the seller dies before the term, installments continue to the heirs in an installment sale, while they stop in a viager.
What is the maximum duration of an installment sale?
There is no legal cap, but in practice we see durations from 5 to 25 years. Beyond 20 years, buyers become rare and cumulative indexation makes the total cost unpredictable. The 10 to 15 year range is the most common in our north Montpellier files.
What happens if the buyer stops paying their installments?
The resolutory clause set in the deed allows the seller to request cancellation of the sale. The property returns to the seller, and installments already received remain as occupancy compensation. The seller's privilege, registered before the notary, also guarantees seizure of the property before any other creditor.
Are installments indexed?
Yes, in almost all the contracts we draft. Indexation is based on the INSEE consumer price index. It protects the seller against monetary erosion and remains fair for the buyer, since it only reflects real inflation. Without indexation, over 15 years, the seller loses about 25% of purchasing power.
Is the installment sale suitable if I am still working?
Yes. It is even the most relevant formula for a seller aged 55 to 70, who does not yet benefit from the best viager allowance (70% beyond age 70). Many active sellers use the installment sale to anticipate retirement, mobilize a property that has become too large, or fund a project without going through credit.
Can I sell on installments with an existing loan?
Yes, provided the bouquet paid at signing settles the existing loan, or the bank accepts a partial release. The notary clears all existing privileges at signing so that the buyer acquires a property free of any mortgage.
How is capital gains taxation handled?
Any capital gain is calculated on the total agreed price (bouquet plus the sum of installments), not on the bouquet alone. If the property is the seller's primary residence, capital gains exemption applies. For a second home or rental investment, holding-period allowances apply as in a classic sale.
Who chooses the payment duration and the bouquet?
Seller and buyer agree upstream, with our mediation. The bouquet generally falls between 10 and 30% of the total price. Duration depends on the seller's profile (income need over 10, 15 or 20 years) and on the buyer's payment capacity. Our role is to find a structure that satisfies both parties and that the notary will validate.
Let's discuss your installment sale project
Seller or buyer, every case is different. A one-hour appointment is enough to outline the formula and decide whether it matches your situation.