Glossary of Terms
- H
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.
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).
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