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What is the Reddendum Clause and Its Legal Significance?
Definition & Meaning
A reddendum clause is a provision in a deed where the grantor reserves specific rights or benefits from the property they are transferring. This clause outlines any exceptions or reservations the grantor wants to maintain, such as the right to collect rent or receive other benefits from the property. Essentially, it allows the grantor to retain certain interests in the property even after it has been sold or transferred to another party.
Table of content
Legal Use & context
Reddendum clauses are commonly used in real estate transactions. They are particularly relevant in property law, where a seller (grantor) may wish to retain certain rights after selling a property. This can include rights to income generated from the property, such as rental payments. Users can manage these situations effectively with legal templates available through services like US Legal Forms, which provide professionally drafted documents tailored to individual needs.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A property owner sells a piece of land but includes a reddendum clause that allows them to collect rent from a tenant residing on the property for the next 10 years. This means the new owner must pay rent to the former owner during that period.
Example 2: A grantor sells a commercial building but reserves the right to access the roof for maintenance of solar panels installed prior to the sale. This reservation is clearly stated in the reddendum clause of the deed.
State-by-state differences
Examples of state differences (not exhaustive):
State
Details
California
Reddendum clauses are commonly used, but must be explicitly stated to be enforceable.
New York
Similar to California, but also requires that the reserved rights do not conflict with local zoning laws.
Texas
Reddendum clauses are valid, but the rights reserved must be clearly defined to avoid disputes.
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Difference
Reservation Clause
A clause that allows the grantor to retain certain rights in the property.
Typically broader than a reddendum clause, which specifically refers to new rights reserved.
Habendum Clause
Defines the extent of ownership being granted.
Focuses on the rights being transferred, while a reddendum clause focuses on rights being retained.
Common misunderstandings
What to do if this term applies to you
If you are involved in a property transaction and considering a reddendum clause, it is essential to clearly define the rights you wish to reserve. You can explore US Legal Forms for templates that can help you draft this clause effectively. If your situation is complex or involves significant legal implications, consulting a legal professional is advisable to ensure your interests are protected.
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