Habendum Clause

In depth

The habendum clause specifies the duration and limitations of the interest conveyed, traditionally beginning with "to have and to hold." Most modern deeds convey fee simple absolute, the largest estate, but life estates, defeasible fees, and other lesser interests are still possible. Misconception: the habendum is not optional; without it, courts must construe the granting language alone, which may produce ambiguity. Practically, in FSBO and seller-financed deals, sellers should ensure the habendum clause grants fee simple unless a lesser interest is intended. Reservations, restrictions, and conditions in the habendum become binding on future owners. Title companies review habendum language closely. Buyers should verify the deed conveys a fee simple absolute with marketable title.