Feu and Feu-duty, in Scots law. A feu may be described as a right to the use and enjoyment of lands, houses, or other heritable subjects, in perpetuity, in consideration of an annual payment in money, grain, cattle, or services, called feu-duty, and certain other contingent burdens called casualties of superiority (see CASUALTIES). Though the term feu was used by feudalists to express any relation of superior and vassal, in Scots law it was opposed to ward or military holding, and to blench or nominal holding. A feu, in short, was a perpetual lease—a feu-farm, as it was often called—by which the tenant became bound to pay a substantial consideration, and his rights under which he might forfeit as the penalty of non-payment. In the present day the disposal of land in feu is practically a sale for a stipulated annual payment, equivalent to chief rent. The system of feuing property for building purposes has several advantages over that of the long building-leases common in England. From its perpetual character it gives to the holder a greater interest in the property, and usually leads him to erect more enduring structures than he would do under a lease. For as time runs on the feu often increases in value, while the reverse must always be the case with the interest of the tenant in leasehold property. Hence the movement for leasehold enfranchisement in England, which is scarcely intelligible in Scotland. Neither does feuing interfere with the letting of property on lease or otherwise. Almost all the houses in Edinburgh and the other towns of Scotland which are let, either on leases or from year to year, are held by their proprietors in feu. Modern feu-duties are in general paid in money. When the stipulation is for a duty in grain the quantity is valued by fair prices (see FIARS), and paid in money accordingly. Since 1874 the feu-duty, whether of money or grain, must be of fixed amount—i.e. not contingent. The original deed transferring the land in feu from the superior to the vassal is called a feu-charter or feu-contract, which is now a very simple and intelligible document. Registration has now the effect of sasine in making the vassal's right real; and, unless otherwise stipulated, the vassal is now perfectly free to transfer his property to any one without fine or composition, what were called 'charters by progress' having been abolished.
Usually the feu-charter reserves to the superior all minerals in the ground, and stipulates that the vassal shall build his house either in a particular style or of a certain value. By the Scottish statute 1597, chap. 246, it is declared that all vassals by feu-farm failing to pay their feu-duty for two years together shall lose their right; but the superior is bound to accept payment of arrears before declaring an 'irritancy'—i.e. forfeiture. For the most part, land proprietors near towns and manufacturing villages are anxious to add to their annual rental by feuing grounds for building purposes. The rate of feu varies widely, from as low as £8 to as high as £500 per acre per annum; a common rate is from £20 to £40 per acre. Whatever be the amount, it is payable by the feuar—not the tenant to whom the feuar may have let the property. When a building consists of several floors forming distinct dwellings, the feu-duty is allocated in certain proportions among the respective proprietors; the feuar to whom the lower floor belongs usually paying most. In properties of this kind each is responsible only for his own share. In the same way, when a property is sold subject to a cumulo feu-duty, it is necessary, with the consent of the superior, to allocate this feu-duty on the different portions of the subject. Occasionally feuduties are offered for sale; and, as a safe investment, bring from twenty-five to thirty years' purchase. In such cases the vassal has an opportunity of extinguishing his feudal tenure, and becoming the superior. It is not unusual in feuing building-lands for the superior to make the roads and drains, the vassals being, of course, bound to contribute relatively to the first expense, or at least the subsequent maintenance of both. In large centres of population the feu-contract is largely superseded by the contract of ground-annual.