A provision in a mortgage that requires a borrower to pay to the lender 1/12th of the taxes and 1/12 of the insurance premium with each mortgage payment is known as a habendum provision.

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The provision described is actually a provision for escrow or impound accounts. A habendum clause in a mortgage relates to the duration and terms of the borrower's ownership interest in the property.

A Provision in a Mortgage That Requires a Borrower to Pay