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Habendum clause – The to have and to hold clause in a deed that describes the extent of the interest conveyed, such as fee or life estate and which is no longer an essential part of a deed.

Habitability – The ability to live in according to the interpretations of the courts which is broader than tenantability which only means that it complies with state statutes.

Haec verbs – In the exact words.

Half bath – A room in a home that contains a toilet and sink but no facilities for bathing such as a bathtub or shower stall.

Half-timbering – A style of house construction using exposed timber wall framing over masonry or lath and plaster or with simulated half-timbering using boards on plaster walls as a type of decoration.

Handyman’s special – A classified real estate advertising term pointing to a home that requires extensive repair and or remodeling and which is selling at a relatively low price.

Hard Costs – The direct costs of construction.

Hard money – The cash including the cash proceeds from a loan used in a real estate transaction as distinguished from credit extended by a seller. See Soft money.

Hard money loan – A debt that is taken on in exchange for cash.

Hazard insurance – A form of real estate insurance that protects against certain risks such as from fires or windstorms, some natural causes, vandalism, etc. to which an owner often adds liability insurance and extended coverage for personal property.

Hazardous substance – A type of contaminant regulated under CERCLA.

Header – A beam which is placed perpendicular to floor or ceiling joists and to which studs are nailed when framing a window, doorway, stairway, chimney or other similar opening.

Hedge against inflation – An investment whose value increases at a rate equal to or greater than the present rate of inflation.

Height density – A zoning regulation designed to control the use or occupancy within a certain area by designating the maximum height of the structures.

Heir – A party who inherits property of a land owner who has died intestate or without a will.

Heirs and assigns – A term often found in deeds and wills granting a fee simple estate.

Hereditament – A larger and more comprehensive word than either land or tenements and meaning anything capable of being inherited, whether it be corporeal, incorporeal, real, personal or mixed.

Hidden defects – A title defect that is not apparent from an examination of the public records.

High loan-to-value loan – A home equity refinancing loan at 100% or more of the market value of a home which makes it inherently high-risk and reserved for only the lowest-risk borrowers since a portion of the loan is unsecured and where the lender is gambling on the borrower’s integrity.

Highest and best use – An appraisal principal that is the starting point for appraisal indicating the highest level of improvements that can be built according to the current zoning classifications and then indicating the best use to which the property can be put so it will produce the greatest net return to the land over a given period of time.

Highrise – An indefinite term used to describe the modern apartment building with an elevator and over five stories.

Hip roof – A pitched roof with sloping sides and ends that resemble a person’s hips.

Historic district – A designated area that is eligible for certain federal assistance programs, protection from clearance and where the buildings are considered to have some significant historic character.

Historic structure – A building officially recognized for its historic significance which encourages rehabilitation and discourages demolition or substantial alteration of the structure and so earns special income tax status or is eligible for a tax credit.

Historical age – The actual number of years since a building was constructed which means the same as chronological age. See Effective age.

HOA – See Home Owners Association.

Hold harmless clause – A contractual clause whereby one parry agrees to protect another party in the event of any claims.

Holder – A party to whom a promissory note is made payable

Holder in due course – A party who has taken a note, check or bill of exchange in the due course of a transaction, before it was overdue and in good faith and for value and without knowledge that it has been previously dishonored and without notice of any defect at the time it was negotiated to him or her.

Holding company – An entity that owns or controls another company(ies) which often allows more latitude for business practices than the operating company can achieve alone.

Holding period – The period of time during which a party owns a capital asset.

Holdout – An owner standing in the path of an assemblage who attempts to realize the highest possible price by refusing to sell during the early stages of assemblage.

Holdover tenant – A tenant remaining in possession of leased property after the leased term has expired.

Holographic will – A will written entirely by a testator with his own hand on a blank piece of paper.

Home – 1. A structure or space considered by its occupants to be their residence. 2. A term used especially by REALTORS® and builders pointing to a house.

Home equity loan – A loan sometimes called a line of credit where an owner uses his or her residence as collateral for a loan which permits the draw of funds up to a preset amount..

Home inspector – A professional who in some states must be bonded or licensed who evaluates the structural and mechanical condition of a home prior to title transfer.

Home loan – See Mortgage.

Home office – A portion of a home used for business purposes which has become common with the availability of affordable equipment such as computers, fax machines, copiers, scanners, etc. and electronic communication methods.

Home Owners Association, HOA – A collectivity of home owners into which monthly fees are paid in exchange for the ability to use common areas.

Homeowner’s insurance – A standardized insurance policy package that covers a residential real estate owner against financial loss from fire, theft, liability for property damage, personal liability and other common risks.

Homeowners association – An organized group of homeowners whose members regulate and enforce the rules and standards of their community.

Homeowners warranty program – See Builder warranty.

Homestead – 1. A dwelling with its land and buildings. 2. A statutory protection granted to owners which protects them from being able to lose their title by the occupation of real property by others.

Homestead exemption – A statutory protection on real property used as a home from the claims of certain creditors and judgments up to a specified amount.

Homogeneous – A group of properties having a uniform look or characteristics of like quality which tends to maximize property values versus whereas low-valued or unusual properties are likely to reduce the value of other nearby properties of higher cost.

Horizontal property acts – The laws enacted by states which permit the creation of the condominium form of real property ownership.

Hoskold Sinking Fund Method – A complex formula used in appraisal to estimate today’s value of a series of annual payments of one dollar after discounting for loss of interest on each dollar to the time of its collection which in its simplest form is a method that condominium associations can use today to determine their annual reserve contribution requirements.

House – A generally detached residential structure containing a single dwelling unit unlike an apartment building or townhouse.

Household – A housing unit occupied by one or more persons inhabiting it as their principal residence.

Housing and Urban Development, HUD – A department of the federal government created in 1965 which is responsible for the implementation and administration of the U.S. government Housing and Urban Development programs which include FNMA, FHA, Public Housing Urban Renewal and Community Facilities.

Housing code – A local government ordinance that sets minimum standards of safety and sanitation for existing residential buildings. See Building codes.

Housing starts – The number of newly constructed housing units which includes both single-family and multifamily domiciles.

Housing stock – The total inventory of dwelling units which includes forms both owned and rented.

HUD – See Housing and Urban Development.

HUD-1 Form – See Uniform settlement statement.

HVAC – An abbreviation for Heating, Ventilating, and Air-Conditioning which refers to the climate control system in a building.

Hypotenuse – The side of a right triangle that lies opposite the right angle.

Hypothecate – To pledge something as security without the necessity of giving up it’s possession.

Hypothesis of median location – A theory stating that there is the tendency for businesses and other entities to locate at their lowest time and cost point.

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Friday, March 19, 2010