Legal Definitions - annuus reditus

Annuus reditus is a Latin legal term that translates directly to yearly rent or annual return. It refers to any payment, income, or revenue that is due or received on an annual basis, typically in exchange for the use of property or as a regular income stream from an investment or endowment.

Here are some examples illustrating the concept of annuus reditus:

• Long-Term Land Lease: Imagine a situation where a private university leases a large parcel of land from a city for 99 years to build a new campus. The lease agreement specifies that the university must pay the city $100,000 on January 1st of each year for the duration of the lease. This recurring annual payment for the use of the land is an example of annuus reditus, as it represents a yearly rent.

• Charitable Endowment Payouts: Consider a philanthropic foundation that establishes an endowment fund for a local art museum. The terms of the endowment stipulate that the museum will receive a fixed sum of $50,000 from the fund's investment earnings every year to support its educational programs. This consistent annual distribution of income to the museum is a form of annuus reditus, representing a yearly return from the endowment.

• Historical Feudal Payments (Ground Rent): In some historical property systems, or even in modern contexts with certain types of ground leases, a homeowner might own the building but lease the land it stands on from a separate landowner. If the homeowner is required to pay a fixed amount, say $300, to the landowner every year for the right to occupy that land, this annual payment for the use of the ground would be considered annuus reditus.