The Forward Sale

The forward sale is defined as a seller credit or a life annuity limited in time. Its origin is concomitant with the appearance of the sale in the world. For example, during the time of the Romans, forward selling allowed both the payment of the price and the "thing" of the price to be postponed.

In France, the forward sale was very present as the credit had not made its advent. It was more or less forgotten later.

It is a variant of the life annuity system but with some differences:

• The "bouquet" (or sum lump) and monthly payments received are not taxable;
• The monthly payments remaining due after the death of the seller are transferable to the heirs;
• There is a term for this type of sale (comprised between 5 to 20 years);
• Like the life annuity, the forward sale can be occupied, vacant or semi-occupied;
• Guarantees for the seller are the same as in the life annuity (seller's privilege and termination clause) in case of non-payment.

This type of sale is used in many countries where credit is not yet democratized.