What does the Habendum clause in a deed specify?

The Habendum clause in a deed is centered around defining the extent of ownership being conveyed from the grantor to the grantee. It typically follows the granting clause and clarifies the type of interest being transferred—whether it's a fee simple, life estate, or another type of ownership. This clause essentially outlines the rights the new owner will receive, providing crucial information about what use or control they have over the property.

For example, if the Habendum clause states "to have and to hold," this indicates that the grantee has full ownership rights to the property. Understanding this aspect is vital for both parties in a real estate transaction, as it delineates the actual rights and type of ownership being transferred, ensuring there is no ambiguity regarding what the grantee possesses.