You’ve found a buyer but haven’t secured your next home yet? Not a problem — signing a promise of sale or a forward sale agreement allows the seller to find a new home within the agreed timeframe. Another, less common option is a final sale with a fixed-term right of occupancy granted to the seller.
Are you nearing or past retirement age? You might also be interested in a life annuity sale (also known as a “viager”).
This arrangement allows a person to sell their property while continuing to live in it. The buyer (the debtor) pays the seller (the annuitant) a lump sum at the time of sale — called the bouquet — which is determined through negotiation. The buyer then pays the seller a life annuity until their death or until they move into a care facility. The annuity amount depends on factors such as the property’s value and the seller’s age.
This option can benefit both parties, but it’s essential that they fully understand the legal and financial implications to avoid any unpleasant surprises.
Excerpt from our guide: Selling Your Home in 42 Questions