The words in a deed that express the grantor's intent to convey the property.
Why Granting Clause matters on the exam
This term belongs to Transfer of Title. The questions below are real items from Freehold's bank that use it - each one cites its source.
Exam questions using Granting Clause
Every Freehold question shows why the right answer is right — and cites its source.
Acknowledgment (notarization) of a deed is generally required in order to:
Transfer title between the grantor and grantee
Make the deed eligible for recording
Completely satisfy the statute of frauds
Create the granting clause
Show answer & explanation
Make the deed eligible for recording — Acknowledgment before a notary or other authorized official is typically a prerequisite for recording a deed in the public records, though it is not what makes the deed valid between grantor and grantee.
Source: PSI National Real Estate Exam Content Outline §9 Transfer of Title
The clause in a deed that contains the actual words of conveyance, such as 'grant, bargain, and sell,' is known as the:
Granting clause
Habendum clause
Acknowledgment clause
Reversion clause
Show answer & explanation
Granting clause — The granting clause contains the operative words of conveyance that actually transfer the grantor's interest to the grantee, distinguishing the deed from a document that merely describes the property.
Source: PSI National Real Estate Exam Content Outline §9 Transfer of Title
The habendum clause in a deed, beginning with 'to have and to hold,' serves to:
Release the grantor from all future liability
Define and describe the exact estate or interest being granted
Completely establish the full legal description of the property
Set the closing date and the time of day for the whole transaction
Show answer & explanation
Define and describe the exact estate or interest being granted — The habendum clause follows the granting clause and defines the quantity and quality of the estate conveyed, such as a fee simple or life estate, further clarifying what interest the grantee receives.
Source: PSI National Real Estate Exam Content Outline §9 Transfer of Title
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