The next clause, the habendum, commencing "To have and to hold," etc., describes the estate granted to the grantee. It should be consistent with the granting clause. Any variation in the statement of the estate granted in this and the granting clause is dangerous. This clause may define or explain the estate granted but cannot cut it down. If the estate to be conveyed be less than a fee simple it must be here stated and clearly described. For example: If a life estate, appropriate words should be used as "To have and to hold the above granted premises unto the said party of the second part for and during the term of his natural life."

It is usual if the property is being sold subject to encumbrances to set them forth following this clause. This applies usually to mortgages, rights of tenants and restrictions. The grantor is assumed to be conveying free and clear of all encumbrances except those specifically mentioned. Hence a careful enumeration should be made of each encumbrance preceded by the words "subject to" as, for example, "subject to a mortgage now a lien on said premises to secure the payment of $10,000; - to the rights of present tenants as monthly tenants and to all covenants and restrictions of record."

Often, particularly when an owner of a large plot is selling vacant lots for building purposes, he wants to restrict them for the benefit of the entire plot. He may believe that the property will be more valuable if houses of only certain types are erected. This purpose is usually accomplished by means of "restrictive covenants" which are inserted in the deed at this place. Examples of such covenants will be found in the appendix.