Habendum clause
   HOME

TheInfoList



OR:

A habendum clause is a clause in a
deed In common law, a deed is any legal instrument in writing which passes, affirms or confirms an interest, right, or property and that is signed, attested, delivered, and in some jurisdictions, sealed. It is commonly associated with transferrin ...
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 a dialect spoken in the lower Tiber area (then known as Latium) around present-day Rome, but through ...
that historically commenced these clauses in deeds. Technically speaking, the "to have" ( la, habendum, links=no) is separate from the "to hold" ( la, tenendum, links=no), 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 systems, land tenure, from the French verb "tenir" 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 between both individual ...
, 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 vacation ownership) 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 property, and each own ...
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 over ...
. 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) & lipophilic (mixes with other oils). Oils are usually flammable and surface active. Most oils are unsaturated ...
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.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