Real Estate
Glossary
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HABENDUM CLAUSE:
A clause or series of clauses in an
instrument of conveyance (i.e. a Deed) which defines the extent of title
(i.e. fee simple or such other title) being transferred to the new owner
of land. From Latin "habendum et tenendum", meaning "to have and to hold".
HABITABLE:
A description of a dwelling or property that is
appropriate for human occupancy.
HALF-SECTION:
320 acres of land, 72 half-sections make up a
township.
HAMLET:
1. A tragic prince of Denmark
2. A small
community, smaller than a village.
HANDYMAN'S SPECIAL:
A descriptive term for a property which
requires significant work to bring it up to normal standards of condition
and repair. Often marketed at a lesser price.
HARBOR LINE:
A boundary set by local authorities marking the
extent of the area allowed for development along the sides of a navigable
river or other body of water.
HARD SELL:
A description of a style of salespersonship in
which the potential purchaser is placed under extreme pressure and
bombarded with information and sales pitches.
HAZARD INSURANCE:
A type of insurance designed to cover
damage caused by a peril specified in the policy of insurance (i.e. fire,
flood, etc.).
HEAVY HITTER:
Slang term for any person with substantial
resources.
HEIGHT ZONING:
The establishment of local by-laws or
ordinances which restrict the height of buildings in a certain area. May
be used in areas near airports (for safety reasons) or natural attractions
(to maintain the view) or simply to allow the flow of air or sunlight.
HEIR:
A person who is entitled by law to the property,
rights, privileges or position of another person if that other person dies
without a will (intestate).
HEREDITAMENT:
A descriptive term for any property that one is
able to inherit.
HIATUS:
A break or gap. In discussions of land, an area of
land that lies between two parcels of land but appears from legal
descriptions and public records not to be a part of either.
HIDDEN AMENITIES:
Qualities of a property which may not be
immediately noticeable but add to the value of the property, such as high
quality materials used in construction.
HIGH RATIO MORTGAGE:
A mortgage in which the amount of money
borrowed is equal to or greater than 75% of the purchase price/appraised
value of the property against which it is secured. Will require some sort
of insurance, usually provided by a government agency.
HIGH RISE:
A descriptive term for any building that has
enough floors to make an elevator a necessity.
HIGH WATER LINE OR MARK:
The highest point on the shoreline
to which water in a lake, river, stream or other body of water will rise
under normal weather conditions.
HIGHEST AND BEST USE STUDY:
An analysis of a property which
is aimed at discovering the most profitable way to develop the property.
HIGHWAY:
In common parlance, a road which offers higher speed
limits than a normal urban street. In legal parlance, any road which is
available to use by the public.
HISTORIC DISTRICT:
A classification (whether under zoning,
heritage or other authority) of a specific area of a community in which
the buildings and improvements have a historical value or significance
which may not be reflected in their market value. Designation as such a
district may also involve strict rules regarding the way the buildings and
properties are dealt with.
HISTORICAL COST:
A term describing the original cost of a
project, stated in dollars of the time in which the project was completed,
with no adjustment for inflation.
HISTORICAL SCENARIO:
An attempt to predict the interest rate
fluctuations of a Variable or Adjustable Rate
Mortgage on the basis of the behaviour of interest rates in a previous
period.
HOLD HARMLESS CLAUSE:
Also known as "save harmless clause". A
clause in a contract in which one party releases another party for legal
liability for a stated risk.
HOLDBACK:
A percentage of a contract price which is retained
by a contractor or lender until the project is complete and all bills for
that project are paid. The percentage may be set by custom or by statute.
HOLDER IN GOOD FAITH:
A person who takes title to a property
without being notified of a defect on title or a competing claim.
HOLDING PERIOD:
The span of time in which a particular party
holds title to a property. May be expressed as the total time (i.e. five
years) or as a specific period (May, 1999 to July, 2004).
HOLDING OVER:
Also known as "overholding", the term used to
describe the action of a tenant who retains possession of a premises after
the lease has expired.
HOLOGRAPHIC WILL:
A testamentary document which is written
entirely in the hand of the testator (the person making the will). Is a
valid will in many jurisdictions despite the fact that it may not be
properly witnessed, so long as it shows an intention on the part of the
writer that the document be her will, it deals with the person's assets
and there are no concerns with regard to fraud, coercion or lack of
capacity. Originally recognized to aid soldiers in the field who, in the
face of death, wished to settle their estate.
HOME EQUITY CONVERSION MORTGAGE (HECM):
Also known as a
"reverse mortgage", a loan designed specifically for people without income
but with a great deal of equity in their home (i.e. retired people). The
loan may require periodic payments or may simply accumulate interest on
the original principal until the property is sold (by the borrower or
after the death of the borrower).
HOME EQUITY LINE OF CREDIT:
A special kind of loan (also
known as a "revolving loan") which is secured against a property and
allows the owner to borrow and repay money at her leisure. Periodic
payments of at least accumulated interest are required but the loan is
fully open: may be paid out in whole or in part at any time and, if there
is still money available under the loan ceiling, the borrower may take
more money for her use.
HOME IMPROVEMENT LOAN:
A loan made for the purposes of making
improvements to a property.
HOME INSPECTION (REPORT):
The written statement of the
results of the inspection of a given property by a professional home
inspector. Will show problems and potential problems with the property not
always visible to an average purchaser (i.e. a deteriorating roof, an
ancient furnace, termites, wood rot, basement seepage). Many purchasers
make their offer to purchase conditional upon obtaining a satisfactory
Home Inspection report.
HOME INSPECTOR:
A person who offers a service of making a
physical inspection of homes. Qualifications may vary.
HOME KEEPER SM:
A form of Home Equity Conversion Mortgage
offered by Fannie Mae to older homeowners to allow them to use the equity
in their home to provide either a lump sum or periodic payments to
themselves.
HOME OWNER ASSOCIATION:
A cooperative effort by property
owners in a given neighborhood aimed at improving quality of life,
providing a unified political voice or combatting identified ills.
HOME OWNER'S INSURANCE:
Liability coverage for property
owners covering both loss/damage to property or dwelling and personal
liability.
HOME RULE:
Common name for the state's transferring of power
to the local governments to pass regulations regarding land use.
HOMEOWNER'S (HOMESTEAD) TAX EXEMPTION:
A tax break for home
owners offered in certain jurisdictions which sees property tax
assessments reduced by a certain percentage as a result of the fact that
the taxpayer resides in the property. May require evidence of the status
of ownership to be filed periodically with taxing authority.
HOMEOWNERS' ASSOCIATION:
The non-profit organization that
oversees the common elements in a planned unit development (PUD) or
condominium project.
HOMEOWNER'S ONCE-IN-A-LIFETIME TAX EXCLUSION:
A capital gain
exemption of the first $125,000.00 in gains earned from the sale of a
principal residence by a qualified taxpayer.
HOMEOWNER'S WARRANTY (HOW) PROGRAM:
A warranty program
offered by a division of the National Association of Home Builders through
certain builders. The program sets standards for construction and requires
warranties ranging from one to ten years in duration on everything from
minor defects in workmanship to major structural problems.
HOMESTEAD DEED:
A method of protecting some assets from
creditors by registering a declaration on title to the owner's homestead
property.
HOMESTYLE MORTGAGE LOAN:
A mortgage specifically designed to
allow owners to improve their existing homes.
HOUSE-POOR:
A description of the state of having very little
disposable income after paying the financing and carrying costs of one's
home.
HOUSING AFFORDABILITY INDEX:
National Association of Realtors
analysis, issued on a monthly basis, of the ability of the average family
to afford the average home with only 20% down.
HOUSING AND URBAN DEVELOPMENT (HUD):
Federal Agency charged
with the duty of overseeing a number of enactments relating to housing in
America.
HOUSING ASSISTANCE COUNCIL (HAC):
Funded by HUD, an agency
designed to support low-income housing development in rural areas.
HOUSING CODE:
Municipal rules setting minimum standards for
dwellings.
HOUSING EXPENSE RATIO:
A comparison of a family's monthly
gross income with the carrying costs of their home.
HOUSING FINANCE AGENCY:
State body whose function is to
provide loans to citizens who cannot obtain home ownership loans through
normal channels.
HOUSING STARTS:
An economic indicator, the number of dwelling
units (including apartments) on which construction is begun in a given
period of time.
HUD:
See "Housing and Urban Development".
HUD I SETTLEMENT STATEMENT:
The form in
which the costs of purchasing a home are itemized.
HUD MEDIAN INCOME:
Used in determining eligibility for
various HUD programs, the average income for a family in a specific area.
HUD-1 STATEMENT:
See "HUD I Settlement Statement".
HUNDRED PERCENT LOCATION:
The benchmark for comparisons, the
property location which provides the best rental income per square foot
for a particular type of building.
HYBRID MORTGAGE:
A form of mortgage in which the compensation
to the lender may include receiving income directly from the use of the
property.
HYPOTHECATE:
To pledge as security for a mortgage an asset of
which the pledgor retains possession (i.e. the dwelling upon which a
mortgage is registered).