Legal Definitions - fee-farm rent

Fee-farm rent is a type of rent that is reserved when a fee farm is granted. It is usually one-fourth or one-third of the land's value. It can also be a rent charge that comes from a fee estate or a perpetual rent on a conveyance in fee simple.

Example 1: John owns a piece of land worth $100,000. He grants a fee farm to Sarah and reserves a fee-farm rent of $25,000 (one-fourth of the land's value). Sarah must pay this rent to John every year.

Example 2: Mary owns a fee estate worth $500,000. She charges a fee-farm rent of $10,000 to Tom, who wants to use the land for farming. Tom must pay this rent to Mary every year.

These examples illustrate how fee-farm rent works. In both cases, the owner of the land reserves a certain amount of rent that the tenant must pay every year. This rent can be a percentage of the land's value or a fixed amount. The tenant must pay this rent as long as they use the land.