Habendum clause
National Real Estate Exam glossary · Transfer Of Title
Definition
The clause in a deed, beginning historically to have and to hold, that defines and limits the extent of the estate being granted—for instance, fee simple or a life estate. It must not contradict the granting clause.
Habendum clause in plain English
When someone hands you a deed to a property, the paperwork doesn't just say who gets it — it also spells out exactly WHAT they get, and the habendum clause is the part that does that. It settles whether you own the place outright and forever (fee simple) or only get to use it while you're alive (a life estate). Think of buying a concert ticket: one line says it's yours, and a second line says whether it's good for the whole tour or just tonight — the habendum is that second line. The one rule: it can't contradict the earlier part of the deed that names the buyer and hands the property over; the two must agree.
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