Definition - What does Habendum Clause mean?
Habendum Clause is a clause related to transfer of any type of property associated with oil and gas leases. As per this clause, the ownership of a section of property can be transferred without any restrictions and the new owner has the rights to drill, operate or sell it to other party or bequeath it to an heir and so on.
Petropedia explains Habendum Clause
A Habendum Clause is one of the important clauses in the real estate property and in oil and gas lease business. This clause defines the types of interests and the rights that a grantee or a lessee can enjoy on a piece of land. A habendum clause in a deed always begins with a particular phrase in which the word used always remains unchanged. The phrase with which this clause start is as: 'To have and to hold'. Because of such unchanged phrase that is used in all type of habendum clauses, this clause is often referred as 'To have and To hold Clause'.