NCEES Principles and Practice of Surveying Practice Exam

What is the purpose of the habendum clause in a deed?

1. To outline property improvements

2. To define the extent of ownership conveyed by the grantor

3. To indicate the property's market value

4. To describe zoning restrictions

The correct answer is: To define the extent of ownership conveyed by the grantor

The habendum clause in a deed serves the fundamental purpose of defining the extent of ownership being conveyed by the grantor to the grantee. It typically follows the granting clause in a deed and uses phrases such as "to have and to hold," which clarifies what rights the buyer will receive—whether it is a fee simple, life estate, or other interest in the property. Essentially, this clause outlines the specifics about the nature of the property interest being transferred, including any limitations on that interest. This understanding is critical in real estate transactions, as it establishes clear legal rights and protections for both the buyer and the seller. The wording and details provided in the habendum clause can influence how the property may be used and what rights the new owner has, thereby providing clarity and certainty in property ownership.