Compare Mortgage Quotes

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

Company Loan Type APR Est. Pmt.

Compare Refinance Mortgage Quotes

[b:8102d710aa]Habendum Clause[/b:8102d710aa] is a very common clause stated on deeds used to transfer ownership rights on property. The clause defines the nature of the estate granted to a person, the extent of the interest transferred and the rights and obligations on the property.
[b:8102d710aa]
What the clause implies[/b:8102d710aa]
The clause is written in the language - "To have and to hold the property herein granted to the party of the second part, the heirs and successors and assigns of the party of the second part, forever."

The statement implies that the owner of real property or the grantor also known as the "party of the first part" in the deed is transferring the property-title to the grantee or "the party of the second part."

[b:8102d710aa]Why the clause is included in a deed[/b:8102d710aa]
The clause is included in the deed in order to clarify that the grantor has transferred absolute title or ownership rights on the property to the grantee. This implies that the grantee receives title which is free of any lien or judgment.

For instance, in case of transfer of life estate, a grantee holds ownership rights on property and can use it only for his lifetime. Upon his death, the ownership rights are transferred back to the grantor. With such a title, the grantee holds ownership rights only for his/her lifetime and cannot pass on the rights to his heirs or beneficiaries. In order to clarify that the property transfer is free from such restrictions, a Habendum Clause is used.

[b:8102d710aa]How Habendum Clause differs from other Clause in a deed[/b:8102d710aa]
The Clause supplements the Granting Clause which is also a part of the deed. Unlike a Habendum Clause, the Granting Clause contains the words of the transfer of property to the grantee. These clauses help to determine the duration of the estate or other rights offered by the transfer in addition to the general rights of the parties involved in the transfer. In certain states like New York, a deed without a Habendum Clause creates an unmarketable title. Thus, both the Habendum and Granting Clauses make up a well drafted deed used to convey interest or title in the property.
Related Article:[list:8102d710aa][*:8102d710aa] Transferring Property Rights through Deed[/list:u:8102d710aa]Other Clauses in Mortgage[list:8102d710aa][*:8102d710aa] Demand clause allows lender to repayment the outstanding loan[*:8102d710aa] Assumption clause allow seller to transfer the mortgage [*:8102d710aa] 72 Hour Clause[/list:u:8102d710aa]

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I purchased a home in 1995, since then the mortgage lender/bank changed hands three times. I then filed bankruptcy ch 13 in 2002, in 2005 while out of state and attending college, I tried again to keep my home and refinanced online with a lender. My old loan was paid off in full and I received a loan satisfied certificate from the old lender, However, when I returned home, I began receiving letters from a totally different mortgage lender/loan processor. Ultimately the house was foreclosed on. How do I know if the deed of trust or chain of title is accurate or if it legally changed hands through all these transfers of lenders/processors?

Like | Dislike | Share | Posted: Fri, 08/28/2009 - 06:32 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Dave-Kim,

In my opinion, you should contact an attorney and take his opinion regarding the whole issue. If you had received a mortgage release certificate from your lender, then the other lender cannot foreclose the property. The attorney will be the right person to help you in this regard.

Like | Dislike | Share | Posted: Fri, 08/28/2009 - 23:13 | Post subject:

Page loaded in 0.123 seconds.