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In France, the sale of a life annuity investment property is based on the following principle: the property's price is computed and determined as with any normal real estate transaction. This price is then paid in part immediately in what is referred to as "the bouquet", and the unpaid portion is converted into a life annuity. The annuity amount is calculated using mortality rates tables and thus is dependent on the age of the seller.
from: http://ezinearticles.com/?Life-Annuity-Investment-Property&id=6640334
