DEFINITION of ‘Habendum Clause’
A section in a real estate contract that transfers ownership of a property with no restrictions. The new owner has absolute ownership of the property and has the right to sell it, bequeath it to an heir, and so on. Because the clause begins with the phrase, “To have and to hold,” the habendum clause is sometimes called the “to have and to hold clause.”
BREAKING DOWN ‘Habendum Clause’
The type of property title transferred using a habendum clause is called “fee simple absolute.” A fee simple absolute grants complete ownership of a property, subject to government laws and powers.