Libro Quinto Título XVIII. De la renta vitalicia

By the aleatory contract of life annuity, one person conveys ownership of certain property to another who undertakes, in exchange, to pay periodically a pension during the life of the annuitant.

The annuitant may be the one who transfers ownership of the property or a third party designated by him in the contract.

The life annuity may also be constituted by gratuitous title.

For the validity of the contract, its execution in a public deed is required, which shall contain the specification and value of the property transferred, the identification of the annuitant if he is a third party and the pension or annuity to be paid to him, the purpose of the annuity, the guarantee securing its payment and the conditions that the parties deem convenient.

If immovable property is involved, the requirements necessary for its registration shall also be observed.

The annuitant may be a legal person, but in such case, the annuity shall terminate with the life of the person establishing it or with the life of the person designated by him upon execution of the contract.

The contract is void if the person on whose life it is constituted has died before its execution or within the time limit specified by the contract, which may not be less than three months.

If, upon constituting the annuity in favor of several persons, the share to be enjoyed by each one is not expressed, it is understood to be in equal parts. The death of any of them does not accrue to the share of those who survive, save provision to the contrary.

Whoever is obligated to pay maintenance may not make a transfer of property for rent without previously guaranteeing the right of the persons entitled to maintenance.

If the annuity has been designated for maintenance, or if owing to circumstances supervening with respect to the annuitant it is to be designated for that purpose, that corresponding to the period currently running, nor future ones, shall be neither compensable nor attachable.

The life-annuity debtor must provide sufficient security in favor of the annuitant. If he fails to comply with this obligation, the creditor may seek termination of the contract and restitution of the property if it has already been delivered.

If the guarantee furnished shall have diminished or become insufficient, the annuitant may request its increase, and if the obligor should not agree, it shall be for the judge to assess such circumstances. If the debtor should fail to increase it in conformity with the judicial determination, rescission of the contract may be requested.

The life annuity is extinguished upon the death of the person on whose life it was constituted.

If the debtor dies, the obligation to pay the annuity passes to their heirs, in joint and several form, except as established in the contract.

Failure to pay the annuity only gives the annuitant the right to demand payment of those that are past due and security for future ones.

The annuity corresponding to the period in which the person enjoying it dies shall be paid in proportion to the days that he lived; but if it was payable in advance installments, the amount of the installment that had begun to run during the annuitant's lifetime shall be paid.

If the annuity by gratuitous title must begin to be paid from the death of the institutor and the beneficiary should die before without the former having designated a substitute, the annuity shall correspond to the heirs of the person who instituted it. But if the annuity shall have been established in compensation for services or obligations, it shall pass to the heirs of the beneficiary.

In the annuity instituted to be paid upon the death of the institutor, if the annuitant does not accept the pension, it shall pass to the heirs of the person who instituted it, the beneficiary being excluded if he should also be an heir.

A third-party annuitant by gratuitous title may not alienate or encumber their right to the annuity unless expressly authorized by the person who established it, and if they do so by virtue of being so authorized, the annuity shall always terminate on the date on which it was to terminate for the annuitant who alienated their right.

If the debtor is criminally liable for the death of the annuitant or of the person on whose life the annuity was constituted, he shall return the capital to the grantor or to his heirs, without deduction of what he has paid.