Term
Annuity agreement
An annuity agreement is a so-called aleatory contract, where an ongoing service or annuity is agreed for the lifetime of a specific individual as a result of a single rendered service. An example of a one-off service may be the transfer of property ownership. The length of the annuity agreement can be made to rely on the lifetime of the contractual parties or of a third person. Most frequently, the annuity agreement lasts for the lifetime of the recipient. Another form is the life estate, which is usually based on an agricultural interim contract and where the supply of the previous owner of the agricultural property is the focus. Both the annuity agreement and life estate can be registered as a land charge in the land register with an inclusive clause for value stability.