Permanent annuity must be paid by law. Lifetime and permanent annuity: comparison

If the property is alienated for money, the payer can change the terms of the contract or terminate it.

If the property was transferred under an agreement permanent annuity for a fee, the payer has the right to demand termination of the obligation to pay annuity or change the terms of its payment, but at the same time the risk accidental death or accidental damage to property is borne by the rent payer. Question 75. ? Important Contents

• 1 Subject and essential terms of the agreement
• 2 Parties to the contract
• 3 Termination of the contract
  • 3.1 Rental redemption
• 4 Risks
• 5 Notes
• 6 Literature

Subject and essential terms of the agreement[edit | edit code] The subject of a permanent annuity agreement can be both movable and real estate.

The rights of the annuity recipient under a permanent annuity agreement may be transferred to the persons specified in paragraph 1 of this article, by assigning a claim and passing by inheritance or by way of succession during the reorganization of legal entities, unless otherwise provided by law or contract. Art. Article 589. Recipient of permanent rent Transfer of rights to an apartment in exchange for receiving a regular payment is formalized written agreement. It is essentially similar to a real estate purchase and sale transaction, but has some differences:

1. The rent is paid not in one go, but in installments over the period specified in the contract.
2. The rentee retains certain rights for an apartment, which is the key to receiving payment.
3. The payer receives ownership.
4. Rent can be free or paid.

Question 28.
permanent annuity agreement.

The video explains the nuances of the annuity agreement and talks about provided by law its forms. Explains the rights and obligations imposed on the parties of this agreement, in what cases it is beneficial to draw up such an agreement, what difficulties and problems may arise during the operation of the agreement life annuity. Permanent annuity contract Risk of accidental loss of property transferred for payment of permanent annuity Commentary on Article 595

1. The procedure for bearing the risk of accidental loss or accidental damage to property depends on the grounds for transferring property for rent.

If the property was transferred to the permanent annuity payer free of charge, then, since the permanent annuity payer did not incur any costs for the acquisition of this property, he is responsible and bears property losses in the event of its accidental destruction or accidental damage.

In order to strengthen the position of the annuity recipient, the law provides for a number of guarantees (the form of the agreement (Article 584 of the Civil Code), the encumbrance of rent is not movable property(Article 586 of the Civil Code), ensuring the payment of annuity (Article 587 of the Civil Code), etc.), extending their effect to relations generated by a life annuity agreement. 5. If the agreement stipulates that there will be several recipients of the annuity, then this means the appearance of a plurality of persons in the obligation on the creditor’s side. In accordance with the general rule established in Art.
321 of the Civil Code of the Russian Federation, if several creditors participate in an obligation, each of them can demand execution in equal share with others, since it does not follow otherwise from the law, other legal acts or terms of the obligation. When “tying” this general rule to the relationship of rent payment, it is in paragraph.

1.2 elements of an annuity agreement

• Rent agreement with lifelong residence
• Article 589. Recipient of permanent annuity
• Question 28. permanent annuity agreement.
• How to buy real estate using rent
• Permanent annuity agreement
• Question 75. Who can be the recipient of a permanent annuity under an annuity agreement?
• Constant annuity
• 46 who can be a recipient of permanent annuity under an agreement

An annuity agreement with lifelong residence Attention Recipients of a permanent annuity can only be citizens, as well as non-profit organizations, if this does not contradict the law and corresponds to the goals of their activities.2.

Article 596. Recipient of life annuity

• lifelong
• with lifelong maintenance and dependency
• constant.

The agreeing parties are:

• Rental lender (aka beneficiary).
• Rent debtor (aka payer).

The general essence in all three types of agreement:

• The rent payer receives the right to property subject to the payments made by him to the recipient regular payments for life or indefinitely.
• The recipient can be either individual, or not commercial organization.
• By law, a party to the contract can be not only the owner of the property being transferred for rent, but also any third party or group of persons.

Who can be the recipient of a permanent annuity under an annuity agreement

At the same time, there is no reason to limit the discretion of the participants in the relevant relations. Therefore, the law (paragraph 2, paragraph 2 of the article under comment) allows the contract to provide for other consequences of the death of one of the annuity recipients. Possible different variants. For example, reducing the size of a life annuity by an amount corresponding to the deceased’s share or part of the share, transferring a share to a specific annuity recipient from among the surviving recipients, or distributing the deceased’s share among surviving annuitants in a certain way, etc.

It is also possible that instead of the deceased, the right to receive a share will be acquired by a person who did not participate in the legal relationship, for example, by a person who is the heir of the deceased. (Although according to general rule the share of the deceased passes not to the heirs, but to other annuity recipients.) 7.

Search for laws by alternative names and review of Russian legislation

Suppose it is established that it is necessary to pay 15 thousand rubles per month, but it is not known how many months (or years) it will be necessary to pay, since the rent is established for the period of the citizen’s life. Accordingly, the final amount (the sum of all annuity payments) will become known only after the death of the annuity recipient. 4. By concluding a life annuity agreement, the entity receiving the property (the annuity payer) is at risk, since it is not clear what burden he is taking on.

And from an economic point of view, he is not always the winner. There are cases when the rent payer gives disproportionately more than what he received. Nevertheless weak side The relationship under consideration is the annuitant.
The property has already been transferred to the rent payer, and the recipient can only believe that the obligations will be fulfilled properly.

Who can be the recipient of a permanent annuity under an annuity agreement

By default, payments are made every quarter.

• Recipients - an individual or non-profit organization:

• rental properties are not intended for commercial activities.

• Permanent annuity can be transferred under an assignment agreement or by inheritance to other entities, but only under the conditions stipulated by the Civil Code:

• property can be inherited and is not escheatable (without right of inheritance)
• the successor is not a legal commercial entity.

• If the contract is entered into by the owner of the property for the benefit of an unrelated third party, then that person cannot transfer his or her right of transfer to anyone without the consent of the owner.
• The Agreement loses its force in the following cases:

• By agreement of the parties.
• When a debt is forgiven by the recipient.

Rent payers can be both individuals and legal entities. 3. The subject of a life annuity agreement can be any property (movable and immovable, consumable and non-consumable, etc.). In particular, money can be transferred for payment of rent and securities.

Items with limited negotiability can be the subject of rent subject to special rules, defining them legal regime. Things withdrawn from circulation cannot be the subject of a life annuity agreement (Article 129 of the Civil Code). The legal relationship generated by the annuity agreement also has a so-called equivalent object - those material goods, which the annuity payer must transfer to the annuity recipient.

Such benefits are money (see Article 597 of the Civil Code and the commentary thereto). The peculiarity of an equivalent object in rental relations is that it is relatively certain.

The annuity agreement is compensated. Sometimes, under the terms of the contract, in addition to the periodically paid annuity, an additional amount of money is transferred to the recipient. For example, for the payment of a life annuity it is transferred vehicle for a fee, and in accordance with the contract, except established by the parties monthly rent, the acquirer pays 15,000 rubles. two weeks after signing the contract. It's random in nature contractual term has serious significance in domestic civil legislation.

Depending on the the specified circumstance the rules on purchase and sale or on donation, which differ in their content (quality requirements, responsibility for the removal of an item), are subsidiarily applied to the transfer of property and payment (not to the annuity agreement in general). According to Art. 594, 595 of the Civil Code, “whether or not the transfer of property is paid or free of charge” affects the size of the redemption price of the annuity and the distribution of the risk of accidental death. Then, paragraph 2 of Art. 597 of the Civil Code takes this circumstance into account when determining lower limit amounts of rental payments and their indexation. And finally, paragraph 2 of Art. 599 of the Civil Code, depending on the specified circumstance, determines the rights of the recipient of a life annuity in the event of termination of the contract.

6. A rent agreement, regardless of its type and subject, is always subject to notarization. The transfer of ownership of real estate alienated for payment of rent is subject to state registration.

7. Protection of the interests of the annuity recipient. Most often, property is transferred for payment of rent by citizens in need of maintenance. Therefore, it is considered that the recipient of the rent is economically weak side. In this regard, the law provides additional guarantees for protecting the interests of the annuity recipient.

Real estate rent gives rise to an encumbrance on property rights, which is quite rare in civil law (Article 586 of the Civil Code).

A person should not tolerate someone’s influence on a thing, as, for example, with, but is obliged to commit active actions(pay rent). The encumbrance follows the real estate, i.e. wears material character, the previous rent payer remains subsidiarily responsible for the payment of rent, unless joint liability is provided for by law or agreement.

The law additionally provides the annuity recipient with the right of pledge (clause 1 of Article 587 of the Civil Code), which enables the annuity recipient to satisfy its claims from the value of the encumbered immovable property primarily before other creditors of the annuity payer.

A movable thing, as a rule, is lost in circulation, depreciated, or can be easily destroyed. Therefore, material provision of the rental object will not always help here. The legislator has imperatively determined that an essential condition of an agreement providing for the transfer of a sum of money or other movable property for the payment of rent is a condition establishing the obligation of the rent payer to provide security for the fulfillment of his obligations (Article 329) or to insure in favor of the annuity recipient the risk of liability for non-fulfillment or improper execution these obligations (clause 2 of article 587 of the Civil Code). Other essential terms of the annuity agreement are the subject and amount of the annuity (not total, but per period of time).

Constant annuity

1. The constitutive feature of permanent annuity is that it is established forever. IN economic sense the payer receives a loan (recipient's property) and undertakes to pay a fee (rent) until the use of the loan ceases (repurchase of rent). As a consequence, the death of the parties to the contract does not terminate the annuity. Their heirs take their place.

2. Unless another payment period is provided for in the contract, the payer undertakes to pay quarterly determined by the parties rent in money, and in cases provided for by the contract, in kind (for example, transfer 200 kg of potatoes grown on a plot of land transferred for payment of rent). In a simplified form, economically literate parties determine the amount of permanent rent based on the cost of using capital or other property transferred for payment of rent. For example, a plot of land is transferred for payment of constant rent. Size rent regarding similar land plots is 20,000 rubles. per month. Therefore, we should expect that the amount of permanent rent will be about 60,000 rubles. per quarter. Or 1 million rubles are transferred to pay rent. Average rate bank interest equal to 10% per annum.

Therefore, we should expect that the amount of permanent rent will be about 25,000 rubles. per quarter.

The current edition of the Code determines that the amount of permanent annuity paid, established by a permanent annuity contract, per month must be no less than that established in accordance with the law of the constituent entity of the Russian Federation at the location of the property that is the subject of the permanent annuity contract, and if not in the relevant subject Russian Federation specified value- not less than the amount established in accordance with the law living wage per capita for the Russian Federation as a whole. The amount of permanent annuity established by the permanent annuity contract at the level of the specified value is subject to increase taking into account

Loss or damage to property does not relieve the payer from the obligation to pay rent, since the general rule applies - the risk of destruction of the property lies with the owner. However, in a situation where the loss occurred despite the payer exercising due care (the country house was destroyed forest fire, which arose as a result of the fact that one of the vacationers at a neighboring camp site threw a cigarette butt past the trash can), maintaining the obligation to pay rent would upset the balance of interests of the parties. IN similar cases the payer has the right to demand, accordingly, termination of the obligation to pay rent or change the terms of its payment. But according to paragraph 1 of Art. 595 of the Civil Code, this right does not arise if the property is transferred for payment free of charge.

3. The payer has the right to terminate the contract by purchasing the rent (Article 592 of the Civil Code). That is, in an economic sense, to return the loan received. The ransom amount may be determined by agreement. With absence specified condition redemption is carried out at a price corresponding to the annual amount of annuity payable, if the annuity agreement provided for additional fee for the transfer of property, or to the annual amount of rental payments, a sum of money is added, determined according to the rules provided for in paragraph 3 of Art. 424 of the Civil Code (market value of property transferred for rent payment at the time of redemption).

The clause in the contract prohibiting repurchase is too burdensome for the payer and is therefore considered void by law. But the agreement may limit the exercise of the right to redemption to the life of the first annuity recipient or to a period of time not exceeding 30 years from the date of conclusion of the agreement (the approximate period of generational change).

The law provides for an open list of cases of actual or probable violation by the payer of its obligations, in which the right to demand ransom arises from the recipient. These include: delay in rent payment for more than one year, unless otherwise provided by the contract; violation of the obligation to ensure payment of rent; bankruptcy of the payer or the occurrence of circumstances clearly indicating that the contract will not be performed properly; receipt of real estate transferred for payment of rent into common ownership or division of such real estate; other cases provided for in the contract.

Life annuity

1. The constitutive feature of this type of annuity contract is the establishment of annuity payment for the life of the recipient. Economically, the rent payer receives a loan (the recipient's property), and overall size payments, including repayment of the principal debt (rent), depend on how long the other party to the contract lives.

The recipient of the rent usually enters into an agreement himself or through a representative and transfers the property for payment of rent. However, there are situations when an agreement is concluded in favor of another person indicated as the recipient of the annuity (agreement in favor of a third party). For example, a citizen wants to provide for his loved ones, but does not give them a sum of money, fearing wasteful behavior, but transfers this money for the payment of a life annuity in their favor.

There may be a plurality of persons on the annuity recipient side. For example, older spouses transfer shared apartment for payment of rent. The specificity of annuity is that the death of one of the recipients entails an increase in shares, but the contract may provide for a partial termination of the obligation.

2. Unless a different payment period is provided for by the contract, the payer undertakes to pay monthly the rent determined by the parties in cash. In a simplified form, economically literate parties determine the size of the life annuity based on market value the property transferred for rent payment, the recipient's expected life expectancy and the interest rate on the loan.

For example, a plot of land is transferred for the payment of a life annuity. The age of the man entering into the annuity agreement is 45 years. The cost of a similar land plot is 3 million rubles. The average life expectancy is 65 years. The bank interest rate at the time of conclusion of the agreement is 10% per annum. Using the formula for calculating the annuity payment allows us to assume that the size of the life annuity will be about 29,000 rubles. per month. If the recipient dies before the forecast period, the payer will receive additional profit; if he lives longer, then a loss. Therefore, a life annuity contract is called aleatory (risky).

The amount of life annuity established by an agreement providing for the alienation of property free of charge, per month, must be no less than the minimum subsistence level per capita established in accordance with the law in the relevant constituent entity of the Russian Federation at the location of the property that is the subject of the life annuity agreement, and in the absence in the corresponding subject of the Russian Federation of the specified value - no less than the minimum subsistence level per capita established in accordance with the law for the Russian Federation as a whole. The amount of life annuity established by the life annuity contract at the level of the subsistence minimum per capita is subject to increase taking into account the increase in the corresponding subsistence minimum per capita.

Let’s say the cost of living is set at 7,000 rubles. per month. The size of the monthly life annuity is determined by the parties in the amount of 10,000 rubles. Until the cost of living has reached the annuity amount, indexation is not carried out. As soon as the cost of living exceeds the amount of rent, the amount of rent payments increases to the value of the cost of living. If the property is transferred for the payment of rent for a fee, for example, for 1000 rubles paid at the conclusion of the contract, then the Civil Code does not provide for a lower threshold for rent and rules for indexation.

Any loss or damage to alienated property does not relieve the payer from the obligation to pay rent (Article 600 of the Civil Code).

3. The obligation to pay annuity ends with the death of the recipient.

However, the right to demand late payments does not cease, indicated amounts subject to succession.

In the event of a significant violation of the life annuity contract, the recipient has the right to demand the redemption of the annuity according to the rules on the redemption of a permanent annuity or termination of the contract and compensation for losses.

It is important to note that, based on common sense, the size of a permanent annuity should always be lower than the size of a life annuity if we're talking about about the same property. Therefore, the rule of paragraph 3 of Art. 424 of the Civil Code when redeeming permanent and lifelong annuities should be applied differently (taking into account the deduction of the so-called redemption component)1.

The question of the methodology for calculating losses is also interesting. No one knows for sure how long the annuity recipient will live. Consequently, the amount of annuity received in the case of proper execution agreement. Modern judicial practice recognizes the admissibility of recovering approximate and estimated damages. Thus, it seems acceptable to present a calculation of losses drawn up according to the rules for determining the capitalized amount of payments for payments to compensate for damage to health during the liquidation of a legal entity (Article 64 of the Civil Code).

IN judicial practice a situation often arose when the annuitant sued for termination of the contract due to its violation, but died before the end of the trial. Sometimes the courts terminated proceedings on the basis that the death of the recipient entails the termination of the life annuity agreement. The Supreme Court of the Russian Federation, in Resolution of the Plenum of May 29, 2012 No. 9, explained that in the event of the death of a annuity recipient who has applied to the court with a demand to terminate the annuity agreement, the court suspends the proceedings in the case, since the disputed legal relationship allows for legal succession.

4. Clause 2 of Art. 599 GK contains additional guarantee protection of the recipient’s interest: if an apartment, residential building or other property is alienated free of charge for the payment of a life annuity, the annuity recipient has the right to significant violation agreement by the rent payer to demand the return of this property with its value offset against the redemption price of the rent. A common, although not controversial, interpretation of this rule comes down to the fact that the transferred property is returned to the recipient and the relationship between the parties is terminated without any additional payments any of the parties. This approach is based on the fact that the sanction in the form of seizure of property is a punishment for a significant violation committed by the payer, who loses the right to compensation for rental payments paid before termination of the contract.

Lifetime maintenance with dependents

1. Of all the annuity contracts concluded in Russia since the 90s of the last century, the life annuity contract on the terms of maintenance is the most common. Based on the foregoing, the law, when formulating special rules on lifelong maintenance with dependents, takes into account the focus of the annuity on ensuring a decent existence for the recipient and the reduced level of aleatory nature of the transaction (as a rule, it is clear that the entire amount of maintenance will be lower than the value of the property transferred for the payment of annuity) .

2. According to paragraph 1 of Art. 602 of the Civil Code, the obligation of the rent payer to provide dependent maintenance may include providing for the needs for housing, food and clothing, and if required by the citizen’s health condition, also caring for him. Agreement lifelong maintenance with a dependent, payment of rent by the payer may also be provided funeral services. To avoid disputes,

Section VII. Obligations to transfer property into ownership, which are typical for relationships of this kind, it is desirable that the obligations of the rent payer are defined in detail in the concluded agreement. The foregoing does not mean that the payer can ignore provisions not specified in the contract, but necessary for the recipient’s decent existence. The norm of paragraph 3 of Art. 603 of the Civil Code that when resolving a dispute between the parties about the amount of content that is provided or should be provided to a citizen, the court must be guided by the principles of good faith and reasonableness, it should be understood in such a way that the degree of concern of the annuity payer for the recipient must be higher than the standard required from counterparties to other agreements.

Since the amount of the annuity is an essential condition, the life support agreement must determine the cost of the entire amount of maintenance for a period of time. For example, “purchasing food, clothing, medicine, weekly cleaning of the premises, washing clothes, providing other necessary maintenance for total amount not less than 20,000 rub. per month".

Taking care of the dignified existence of recipients, clause 2 of Art. 602 of the Civil Code doubles the lower limit of the amount of rent compared to general provisions about life annuity. However, the legislator, updating the wording of Art. 602 of the Civil Code, did not consider it necessary to extend this rule to contracts under which property was transferred for payment.

3. If the annuity payer significantly violates its obligations, the annuity recipient has the right to demand the return of the transferred real estate or payment of the redemption price to him on the terms and according to the rules for the redemption of permanent annuity. In this case, the rent payer has no right to demand compensation for expenses incurred in connection with the maintenance of the rent recipient.

This rule applies regardless of the transfer of property for payment of rent for a fee or free of charge. Based on the weakening of aleatority, the Civil Code directly establishes that when collecting the redemption price of rent or returning the transferred property, the paid rent is not taken into account.

In addition, in order to ensure the protection of the recipient’s interest, the annuity payer is obliged to accept necessary measures so that during the period of provision of lifelong maintenance with a dependent, the use of property does not lead to a decrease in its value.

Constant rent has its own specific signs, how it differs from other types of annuity.
Firstly, the subject composition. Recipients of permanent annuity can only be citizens, as well as non-profit organizations, if this does not contradict the law and corresponds to the goals of their activities. The rights of the annuity recipient under a permanent annuity agreement can be transferred to persons by assigning a claim and transferred by inheritance or by succession during the reorganization of legal entities (Article 589 of the Civil Code of the Russian Federation).
Secondly, permanent annuity is paid in money in the amount established by the contract. A permanent annuity agreement may provide for the payment of annuity by providing things, performing work or providing services corresponding in value to the monetary amount of the annuity. In this case, the amount of rent paid increases in proportion to the increase in the amount established by law. minimum size remuneration (Article 590 of the Civil Code of the Russian Federation).
Thirdly, rent redemption is possible. The payer of a permanent annuity has the right to refuse further payment of annuity by repurchasing it. Such a refusal is valid provided that it is declared by the rent payer in writing no later than three months before the termination of annuity payment or more long term provided for in a permanent annuity agreement. In this case, the obligation to pay rent does not terminate until the entire redemption amount is received by the annuity recipient, unless a different procedure for redemption is provided for in the contract. The provision of a permanent annuity agreement regarding the renunciation of the permanent annuity payer’s right to repurchase it is void. The agreement may provide that the right to repurchase a permanent annuity cannot be exercised during the life of the annuity recipient or for another period not exceeding thirty years from the date of conclusion of the agreement (Article 592 of the Civil Code of the Russian Federation).
The recipient of a permanent annuity has the right to demand redemption of the annuity by the payer in cases where:
1) the annuity payer is overdue for payment by more than one year, unless otherwise provided by the permanent annuity agreement;
2) the rent payer violated its obligations to ensure payment of rent;
3) the rent payer is declared insolvent or other circumstances have arisen that clearly indicate that the rent will not be paid to him in the amount and within the time limits established by the agreement;
4) the real estate transferred for payment of rent was received by common property or divided among several persons;
5) in other cases provided for by the agreement (Article 593 of the Civil Code of the Russian Federation).
The redemption of permanent annuity is carried out at a price determined by agreement permanent annuity. In the absence of a condition on the redemption price in a permanent annuity agreement, under which the property is transferred for a fee against the payment of a constant annuity, the redemption is carried out at a price corresponding to the annual amount of annuity payable. In the absence of a condition on the redemption price in a permanent annuity agreement, under which the property is transferred for payment of rent free of charge, the redemption price, along with the annual amount of rent payments, includes the price of the transferred property (Article 594 of the Civil Code of the Russian Federation).
18.3. Life annuity
Lifetime annuity can be established for the life of the citizen transferring property for payment of annuity, or for the life of another citizen specified by him. It is allowed to establish a life annuity in favor of several citizens, whose shares in the right to receive annuity are considered equal, unless otherwise provided by the life annuity agreement. In the event of the death of one of the annuity recipients, his share in the right to receive annuity passes to the surviving annuity recipients, unless otherwise provided by the life annuity agreement, and in the event of the death of the last annuity recipient, the obligation to pay the annuity is terminated. An agreement establishing a life annuity in favor of a citizen who has died at the time of conclusion of the agreement is void (Article 596 of the Civil Code of the Russian Federation).
A life annuity is defined in the contract as a sum of money paid periodically to the annuitant during his or her lifetime.
Life annuity is paid in the form of monetary form. The amount of the life annuity refers to the number essential conditions agreement and therefore must be stipulated in it. When determining the amount of rent, the parties, however, cannot violate the requirement of the law that per month it should not be less than the minimum wage established by law. At the same time, the amount of rent automatically increases simultaneously with the increase in the minimum wage established by law (Article 597 of the Civil Code of the Russian Federation).
The terms of payment of the annuity are determined by the contract; if there is no such condition in the contract, the life annuity is paid at the end of each calendar month.
The duration of the contract is determined by the life expectancy of the annuitant. During this entire period, the annuity payer is obliged to pay periodic payments to the annuitant. Unless otherwise provided by the contract, life annuity is paid at the end of each calendar month (Article 598 of the Civil Code of the Russian Federation).
The issue of cessation of rent requires special consideration. The basis for termination of the obligation to pay a permanent annuity is the death of its recipient. During the life of the annuity recipient, the contract can be terminated by agreement of the parties, including by providing compensation, by adding debt, and sometimes by unilateral initiative annuity recipient.
Termination of a life annuity agreement at the request of the annuity recipient is possible:
1) in the event of a significant violation of the life annuity agreement by the annuity payer, the annuity recipient has the right to demand that the annuity payer repurchase the annuity or terminate the agreement and compensate for losses;
2) if an apartment, residential building or other property is alienated free of charge for the payment of a lifelong annuity, the annuity recipient has the right, in the event of a significant violation of the contract by the annuity payer, to demand the return of this property with its value offset against the redemption price of the annuity (Article 599 of the Civil Code of the Russian Federation).
It should be emphasized that accidental destruction or accidental damage to property transferred for payment of life annuity does not relieve the annuity payer from the obligation to pay it on the terms stipulated by the contract. The rent payer does not use the right to redeem it (Article 600 of the Civil Code of the Russian Federation).

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Permanent annuity.

A permanent annuity agreement is an agreement that establishes the obligation of the annuity payer to pay the annuity indefinitely. The subjects of a permanent annuity contract are the annuity recipient and the annuity payer. Recipients of permanent annuities are primarily citizens, regardless of their age and ability to work. Most often, they themselves were the owners of the property that was alienated for the payment of rent. But permanent rent can be established in favor of citizens by other persons. In this case, we have before us an agreement in favor of a third party, which, after the said person expresses his intention to exercise his right under the agreement, cannot be terminated or changed without his consent.

Along with citizens, any non-profit organizations can be recipients of permanent annuity, unless this is contrary to the law and corresponds to the goals of their activities. Currently, the law does not prohibit any non-profit organizations from receiving rent. In particular, non-profit organizations such as institutions may receive rent, unless otherwise provided by their charters or regulations. The existing prohibition on the disposal of property acquired on an estimate does not serve as an obstacle to this, since the figures of the recipient of the rent and the person alienating the property for the payment of rent may not coincide. The exclusion of commercial organizations from the list of possible rent recipients can be explained, perhaps, only by the fact that, from the point of view of the legislator, this would contradict their main tasks, namely to exist and develop at the expense of income from entrepreneurial activity.

Subject composition recipients of permanent annuity may change. The very essence of this type of annuity—the unlimited obligation to pay it for any period of time—suggests that the right to receive annuity can be inherited, and if the recipient of the annuity is a non-profit organization, transferred by succession to newly formed legal entities. Of course, this may not happen if the successor, such as the state, or the successor to the reorganized legal entity, such as a commercial organization, cannot be the recipient of the annuity. The law allows the transfer of the right to receive rent to other persons by assigning a claim, although the contract may prohibit this or provide for the need for approval this issue with the rent payer. It seems that, within the meaning of the law, the recipient of the annuity cannot assign his rights under an agreement concluded in his favor by another person, without the consent of of this person.

The law does not contain any restrictions regarding rent payers. They can be both citizens and any legal entities, provided that their constituent documents do not prohibit them from engaging in such activities. In addition, it should be taken into account that in order to implement individual species commercial transactions, for example, transactions with residential premises, a special license is required. Like the rights of recipients of permanent annuity, the obligations of its payers can be transferred to other persons, which directly follows from the law (see Articles 586, 593 of the Civil Code).

The subject of a permanent annuity contract, as well as other types of annuity contracts, forms, on the one hand, the property that is alienated for the payment of rent, and on the other, the rent itself, which is paid to its recipient. In relation to property, the law does not establish any restrictions, although in practice this type rents most often burden land, enterprises, buildings, structures, residential buildings and other real estate objects. The predominant form of annuity payments is the amount of money paid to the annuity recipient. However, the contract may provide for the payment of rent by providing things, performing work or providing services corresponding in value to the monetary amount of the rent. It is not excluded that mixed form annuity that combines payment sums of money and provision of content in kind.

The term of the contract is determined by the essence of this type of annuity, which must be paid indefinitely, that is, without limiting it to any specific period. At the same time, in the contract the parties must agree on the frequency of payment of rent, which in principle can be any. If this issue is not resolved in the contract, permanent rent must be paid at the end of each calendar quarter, i.e. no later than on the first day of the next quarter.

The price of a permanent annuity contract, as well as the price of other annuity contracts, can only be spoken of conditionally due to its aleatory nature. The closest thing to this element of the contract is the redemption price of a permanent annuity. Along with the redemption price of the annuity, the contract must agree on the specific amount of permanent annuity paid to the annuity recipient at a frequency determined by the contract. Unlike other types of annuity, the amount of permanent annuity is established by the parties completely independently, in the absence of indications in the law on its possible minimum size. Having been determined in the contract, the amount of rent paid subsequently increases in proportion to the increase in the minimum wage established by law, unless the parties agree on a different procedure for indexing the rent or this indexation is expressly excluded.

The obligation to pay permanent annuity may be terminated by agreement of the parties to terminate the contract. Further, the annuity recipient may at any time refuse to further receive annuity payments, thereby terminating the obligation to forgive the debt (Article 415 of the Civil Code). If, however, a permanent annuity was established in his favor by another person, then if the recipient of the annuity renounces his rights, the person who established the annuity can use them. Finally, other methods of terminating the obligation to pay permanent annuity, provided for in Chapter 26 of the Civil Code, are also acceptable, except, perhaps, the most common of them, namely termination of the obligation by fulfillment (Article 408 of the Civil Code).

The obligation to pay a permanent annuity may also terminate as a result of accidental loss or accidental damage to the property transferred for payment of this type of annuity. However, this can only happen when, firstly, the property was transferred for the payment of rent for a fee, and, secondly, when the payer demands termination of the obligation to pay rent or a change in the terms of its payment (clause 2 of Article 595 of the Civil Code) . As for the risk of accidental death or accidental damage to property transferred for payment of rent free of charge, it is borne by the rent payer, who is still obliged to pay rent.

A special case termination of the annuity obligation in question is the repurchase of the permanent annuity. The essence of the annuity redemption is that the annuity payer, at a time or in another manner provided for in the contract or additionally agreed upon by the parties, pays the annuity recipient the amount at which the permanent annuity is estimated in advance or which is determined in the manner prescribed by law, and this leads to his release from obligations for further payment of rent. Redemption of rent should not be confused with termination of the contract by agreement of the parties. Such an agreement may also provide for the payment of compensation to the annuity recipient, in determining the amount of which the parties are not bound by any established by law or contract terms. In contrast, the redemption of an annuity is the termination of an obligation, which is carried out at the initiative of one of its parties. The law provides the right to redeem the annuity (the right to demand the redemption of the annuity) to both the annuity payer and its recipient.

The right of the payer to repurchase the annuity is unconditional and can only be limited by a special clause in the contract stating that the repurchase cannot be carried out during the life of the annuity recipient or for another period not exceeding thirty years from the date of conclusion of the contract (clause 3 of Art. 592 Civil Code). If the contract includes a condition on the permanent annuity payer’s refusal of the right to repurchase it, then it is recognized as void and, accordingly, does not prevent the repurchase of the annuity.

Unlike the annuity payer, the annuity recipient has the right to demand redemption of the annuity by the annuity payer only in cases specified in the law or in the contract (Article 593 of the Civil Code).

The purchase of permanent annuity is carried out at a price that is predetermined by the parties in the contract. When resolving this most difficult issue for the contract under consideration, the parties must take into account whole line circumstances, in particular the value of the property transferred for rent payment, the amount established by the agreement rent payments, the presence in the contract of a ban on the redemption of rent during certain period, natural wear and tear of property during its use, etc. However, despite the importance of this issue and the indisputable expediency of solving it in the contract, the condition on the redemption price is not considered to be significant in the contract under consideration. If the redemption price of permanent annuity is not established by the contract, it is determined according to the rules provided for in paragraphs. 2, 3 tbsp. 594 Civil Code. In the case where the property is transferred for the payment of rent for a fee, the redemption is carried out at a price corresponding to the annual amount of rent to be paid. When transferring property for payment of rent free of charge, the redemption price, along with the annual amount of rent payments, includes the price of the transferred property, determined in accordance with clause 3 of Art. 424 of the Civil Code, i.e., based on prices usually charged for similar property.