Opinion ID: 1981972
Heading Depth: 1
Heading Rank: 1

Heading: The Granting Clause v. The Habendum Clause

Text: It is not disputed that the granting clause and the habendum are not harmonious and cannot be reconciled. Ordinarily, we have abided by the general rule that where the granting clause and the habendum clause are in conflict, the granting clause will prevail. Adams v. Parater, 206 Md. 224, 236, 111 A.2d 590 (1955); Literski v. Literski, 166 Md. 641, 644, 171 A. 874 (1934); Marden v. Leimbach, 115 Md. 206, 209, 80 A. 958 (1911); Pritchett v. Jackson, 103 Md. 696, 698, 63 A. 965 (1906); Winter v. Gorsuch, 51 Md. 180, 184-185 (1879). The traditional reasoning behind this result is that such an habendum clause is considered repugnant to the granting clause. More broadly, the repugnancy doctrine states that as between any two clauses, if the second is repugnant to the first, the former controls. No consideration is given to the overall intention of the parties to the deed. This doctrine operates as a matter of law and not as a principle of construction. 6A Powell on Real Property, ¶ 901 [1][a] (1949, 1989 rev. ed.). 4 Tiffany on Real Property, § 979 (3d ed. 1920, 1975 rev. ed.) at 99 explains: In case of a clear repugnancy between two clauses of the conveyance, the earlier clause should, it is said, prevail over the later clause.... [This rule] will be applied, however, it is said, to prevent the revocation by implication, by a later clause, of an earlier provision made in clear, explicit and unambiguous words, such a revocation being required to be in terms no less clear and explicit than those of the earlier provision. (footnotes omitted). The general rule may be tempered, however, in certain circumstances. Tiffany continues: But inharmonious provisions should be reconciled and effect given to all of them so far as that is possible by reasonable interpretation. Otherwise, provisions repugnant to what is determined to be the intention of the parties should be rejected. Id. (footnotes omitted). In Hammond v. Hammond, 159 Md. 563, 152 A. 107 (1930), the circumstances before the Court were that [a]n owner in fee simple of certain real estate in Baltimore conveyed it to one who immediately reconveyed it to the first grantor by a deed purporting in the granting clause to transfer a fee simple title, but containing an habendum clause, which defined the regranted estate as being vested in the grantee for his life only, with power of disposition by sale, lease, or mortgage, and with remainder to three of his children, as joint tenants, if the reserved powers were not exercised. Subsequently the original owner, and grantor in the first deed, executed a will bequeathing in trust a pecuniary legacy, for the payment of which his personal estate, at the time of his death, six years later, was insufficient. The trustee under the will, invoking the rule that an habendum repugnant to the granting clause in a deed is inoperative, ... advanced the theory that the reconveyance to the first grantor effected no change in the fee simple title with which he was previously invested, and that, not having disposed of the property in his lifetime, it passed as his absolute estate under the residuary clause of his will, subject to the charge of the pecuniary legacy to the extent of the deficiency resulting from the inadequacy of his remaining estate. Id. at 564, 152 A. 107. We held that the habendum controlled. We explained that the provisions of the habendum clause represent the sole object for which the two deeds were executed and recorded is perfectly clear from the method of conveyance and re-transfer thus employed. Unless the habendum is given effect, the execution of the deeds was wholly futile. It was obviously intended that they should accomplish a change of title. If the habendum should be ignored as technically repugnant to the granting clause in the second deed, the title would be in precisely the same tenure as though neither of the deeds had been executed. Therefore, to hold the habendum nugatory would be to defeat the manifest design of the two formal conveyances. Id. at 564-565, 152 A. 107. We continued: Ordinarily, the rule which prefers the granting clause to an inconsistent habendum is applied when a deed must be construed with exclusive reference to its own terms. It is the purpose of the rule to determine which of the two conflicting provisions in the deed shall prevail when the deed itself does not solve the problem. But when the real and specific intention is evident from the process of conveyance of which the particular deed forms a part, there is no occasion to utilize the conventional rule of construction just mentioned. The deed containing the habendum under inquiry must be construed in connection with the preceding grant, in immediate pursuance of which it was executed and delivered. The only actual consideration for either deed was the patent purpose of the first grantor to invest himself with a different title from that which he already held. That purpose is as plainly demonstrated by the coincident execution of the two deeds, as if it had been definitely stated in both instruments. The application of the rule invoked in this case is not required by any uncertainty arising from conflicting expressions of intention in a deed which must be separately considered, but it would frustrate the palpable design of dual and interdependent conveyances and render them entirely meaningless and useless. Id. at 565, 152 A. 107. The Court distinguished the cases in which it applied the rule that the habendum, if repugnant, must yield to the granting clause. Those cases, the Court observed, were not concerned with interrelated deeds, but with the interpretation in each instance of an individual deed and with the question of preference as between its two irreconcilable descriptions of the title to be conveyed. Id. at 565-566, 152 A. 107 (citations omitted). The Court opined: Under the special conveyancing conditions presented in this case it is permissible and proper to apply the cardinal rule that a deed should be so construed as to effectuate the intention of the parties, if that result is possible without violation of any principle of law. Id. at 566, 152 A. 107 (emphasis added). The conveyancing circumstances in the case at hand were comparable to those in Hammond and it may serve as a paradigm. Furthermore, as in Hammond, the record discloses independent circumstances tending to confirm the purpose which the habendum clause indicates. Mr. Knell's will, duly admitted to probate, declared that all of the furniture, furnishings and household effects which are in my home on Rock Hall Avenue, Rock Hall, Maryland, are the property of my friend, Annabelle Price. Any of such household items which were originally mine have been given by me to the said Annabelle Price during my life time and are now her sole and exclusive property. The will gave, devised, and bequeathed [a]ll the rest, residue and remainder of my estate, of whatsoever kind or nature, and wheresoever situated, whether real or personal, ... to Annabelle Price. The will nominated and appointed Miss Price executrix ... to serve without bond, and she was appointed personal representative of the estate by administrative probate order of the Register of Wills. There is no doubt that Mr. Knell intended that the property in question pass to Miss Price if he owned it at the time of his death. He obviously desired that all of his assets go to her on his decease. We hold that, in the circumstances here, the habendum prevailed over the granting clause to effectuate Mr. Knell's intention. The question then is whether a rule of law or construction prevents the recognition and fulfillment of the clear and only purpose to which the deeds in this case were directed.