Definition of Habendum Clause:
A habendum clause is a section of a contract that deals with property rights, interests, and other aspects of ownership being given to one of the parties to a deal. Consisting of basic legal language, it is usually included in property-related documents.
A section found in real estate contracts which grants transfer of property ownership with no restrictions. The owner of a property with such a clause is considered to have absolute ownership, and may therefore sell or bequeath the property as seen fit, subject only to government laws and powers. Also called to have and to hold clause.
Most people are have experience with it through real estate transfers, but it is also used in all manner of leases and deeds, especially in the oil and gas industry.
How to use Habendum Clause in a sentence?
- Usually included in property lease or transfer documents, a habendum clause is section of a contract that deals with rights, interests, and other aspects of ownership being given to one of the parties.
- In oil/gas contracts, the habendum clause sets out the primary term during which a company holds the mineral rights to the land but is not obligated to start exploration.
- In real estate purchase contracts, the habendum clauses deals with the transfer of ownership, usually (but not always) without restriction.
- In real estate leases, the habendum clause deals with the lessee's rights and interests.
Meaning of Habendum Clause & Habendum Clause Definition