Habendum clause

A habendum clause is a clause in a deed or lease 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." 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 in paying quantities."