Legal Definitions - rente

Rente is a term primarily used in French law that refers to an annual income or payment. It encompasses several specific types of financial arrangements:

• A rente foncière is a perpetual payment made for the use of land, similar to what might be called a ground rent in other legal systems.
• A rente viagère is an annuity or a regular payment that continues for the lifetime of a specific person, often referred to as a life interest or life annuity.

Beyond these, "rente" can also refer to the annual interest payments made by the French government on its public debt, or to the government bonds and annuities themselves that generate such income.

Examples:

• Example 1 (Rente Foncière - Perpetual Land Payment):

  A developer purchases a historic plot of land in France for a new housing project. As part of the sale agreement, the original landowner's family retains a right to receive a fixed annual payment from the developer, and all subsequent owners, for the perpetual use of a specific portion of the land. This payment is legally binding and continues indefinitely, regardless of who owns the property.

  This annual, perpetual payment tied to the land's use by the developer and future owners constitutes a rente foncière, as it is a recurring charge linked directly to the property itself.

• Example 2 (Rente Viagère - Life Annuity):

  An elderly widow in Paris decides to sell her apartment to a younger couple. Instead of receiving a single lump sum for the property, she enters into an agreement where the couple pays her a smaller initial amount and then a guaranteed monthly sum for the remainder of her life. Upon her death, the payments cease, and the couple fully owns the apartment without further obligation.

  This arrangement is a rente viagère. The monthly payments provide the widow with a regular, guaranteed income stream that lasts for her lifetime, effectively converting her property's value into a life annuity.

• Example 3 (Government Investment):

  A French citizen invests a portion of their savings in a specific type of long-term government bond issued by the French Treasury. This bond promises to pay a fixed percentage of the invested capital back to the bondholder every year as interest, providing a steady, predictable income stream.

  These annual interest payments received from the French government on its public debt, or the government bond itself that generates this income, are commonly referred to as "rentes." They represent a form of guaranteed annual income derived from a government investment.