What does the Habendum Clause in a deed define?

The Habendum Clause in a deed plays a crucial role in defining the extent of ownership being conveyed from the seller to the buyer. It typically follows the granting clause and serves to clarify the type of interest and rights the grantee is acquiring. For instance, it might specify whether the ownership is fee simple, life estate, or something else, thus determining what the buyer can do with the property.

The importance of the Habendum Clause lies in its ability to indicate limitations or conditions attached to the ownership. This can include rights related to property use, access, or exclusion from certain aspects, which is why understanding this clause is vital for both buyers and sellers in a real estate transaction.

Options like the total area of the property, sale price, or history of property ownership do not accurately represent the function of the Habendum Clause. Instead, they refer to different aspects of a real estate transaction that are not related to the specifics of ownership being conveyed.