By Charlotte GAUCHON
15 June 2025
Sale with right of repurchase is an ancient legal mechanism, often misunderstood, which offers remarkable flexibility for certain asset or financial transactions. Although it has been governed by the Civil Code for more than two centuries, its exact nature and implications are often the subject of confusion, even though it clearly differs from other arrangements. Understanding its precise legal status is essential if you are to grasp its scope and use it safely. For an overall view, you can consult the complete guide to vente à réméré, which provides an overview of the transaction. Understanding the legal definition of sale with right of repurchase At the heart of the definition of sale with right of repurchase is article 1659 of the Civil Code. This founding text states that: "The option to repurchase is a pact by which the seller reserves the right to take back the thing sold, in return for restitution of the principal price and reimbursement...
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