Habendum Clause
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A habendum clause is a clause in a
deed A deed is a legal document that is signed and delivered, especially concerning the ownership of property or legal rights. Specifically, in common law, a deed is any legal instrument in writing which passes, affirms or confirms an interest, right ...
or
lease A lease is a contractual arrangement calling for the user (referred to as the ''lessee'') to pay the owner (referred to as the ''lessor'') for the use of an asset. Property, buildings and vehicles are common assets that are leased. Industrial ...
that 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". This phrase is the translation of the
Latin Latin ( or ) is a classical language belonging to the Italic languages, Italic branch of the Indo-European languages. Latin was originally spoken by the Latins (Italic tribe), Latins in Latium (now known as Lazio), the lower Tiber area aroun ...
that historically commenced these clauses in deeds. Technically speaking, the "to have" () is separate from the "to hold" (), such that the tenendum clause is sometimes considered a separate concept. Historically, the habendum clause dealt with "the quantity of interest or estate which the grantee was to have in the property granted", while the tenendum clause addressed "the tenure upon or under which it was to be held". Put differently, the habendum deals with the relationship between the possessor and the land—how the land is to be had—while the tenendum deals with the relationship between the possessor and his immediately superior lord—how the land is to be held. The obsolescence of
land tenure In Common law#History, common law systems, land tenure, from the French verb "" means "to hold", is the legal regime in which land "owned" by an individual is possessed by someone else who is said to "hold" the land, based on an agreement betw ...
, however, renders this distinction mostly historical and academic. The provisions of the habendum clause must agree with those stated in the granting clause. For example, if the grantor conveys a
time share A timeshare (sometimes called a vacation ownership or vacation club) is a property with a divided form of ownership or use rights. These properties are typically resort condominium units, in which multiple parties hold rights to use the proper ...
interest or an interest less than
fee simple In English law, a fee simple or fee simple absolute is an estate in land, a form of freehold ownership. A "fee" is a vested, inheritable, present possessory interest in land. A "fee simple" is real property held without limit of time (i.e., pe ...
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 or deeds registry 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 ove ...
. Habendum clauses are also found in leases, particularly
oil An oil is any nonpolar chemical substance that is composed primarily of hydrocarbons and is hydrophobic (does not mix with water) and lipophilic (mixes with other oils). Oils are usually flammable and surface active. Most oils are unsaturate ...
and
gas Gas is a state of matter that has neither a fixed volume nor a fixed shape and is a compressible fluid. A ''pure gas'' is made up of individual atoms (e.g. a noble gas like neon) or molecules of either a single type of atom ( elements such as ...
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.Oil and Gas Lease Terms Defined
/ref> 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 in paying quantities."


References

Oil and gas law Real property law Leasing {{realestate-stub