Habendum clause
Encyclopedia
A habendum clause is a clause in a deed
or lease
which defines the type of interest and rights to be enjoyed by the grantee or lessee.
In a deed, a habendum clause usually begins with the words "to have and to hold." Its provisions must agree with those stated in the granting clause. For example, if the grantor conveys a time share interest or an interest less than fee simple
absolute, the habendum clause would specify the owner's rights as well as how those rights are limited (a specific time frame or certain prohibited activities, for instance). Many states, such as Pennsylvania, require a deed to have a habendum clause in order for the deed to be officially recorded and recognized by the Recorder of Deeds
.
Habendum clauses are also found in leases, particularly oil
and gas
leases. The habendum clause can define how long the interest granted will extend. Most oil and gas leases provide for a primary and secondary term. During the primary term the lessee can hold the lease without producing. The secondary term is usually "so long thereafter as oil and gas is produced."
Deed
A deed is any legal instrument in writing which passes, or affirms or confirms something which passes, an interest, right, or property and that is signed, attested, delivered, and in some jurisdictions sealed...
or lease
Lease
A lease is a contractual arrangement calling for the lessee to pay the lessor for use of an asset. A rental agreement is a lease in which the asset is tangible property...
which defines the type of interest and rights to be enjoyed by the grantee or lessee.
In a deed, a habendum clause usually begins with the words "to have and to hold." Its provisions must agree with those stated in the granting clause. For example, if the grantor conveys a time share interest or an interest less than fee simple
Fee simple
In English law, a fee simple is an estate in land, a form of freehold ownership. It is the most common way that real estate is owned in common law countries, and is ordinarily the most complete ownership interest that can be had in real property short of allodial title, which is often reserved...
absolute, the habendum clause would specify the owner's rights as well as how those rights are limited (a specific time frame or certain prohibited activities, for instance). Many states, such as Pennsylvania, require a deed to have a habendum clause in order for the deed to be officially recorded and recognized by the Recorder of Deeds
Recorder of deeds
Recorder of deeds is a government office tasked with maintaining public records and documents, especially records relating to real estate ownership that provide persons other than the owner of a property with real rights over that property.-Background:...
.
Habendum clauses are also found in leases, particularly oil
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
and gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
leases. The habendum clause can define how long the interest granted will extend. Most oil and gas leases provide for a primary and secondary term. During the primary term the lessee can hold the lease without producing. The secondary term is usually "so long thereafter as oil and gas is produced."