The habendum clause is a section of a deed or lease agreement defining the interest and rights to be enjoyed by the grantee or lessee. It typically starts with the words 'to have and to hold,' followed by particular conditions or limitations to the estate granted.
The term 'habitable' refers to the condition of a property being suitable for human habitation, meaning it is safe, sanitary, and appropriate for occupancy.
A half bath, also known as a guest or powder bath, is a room in a residence that contains a toilet and a washbasin (sink) but lacks bathing facilities such as a bathtub or shower stall.
The Home Affordable Modification Program (HAMP) is a U.S. government initiative introduced in 2009 under the Making Home Affordable (MHA) program, designed to help financially struggling homeowners avoid foreclosure by modifying their mortgage loans to a more affordable level.
Handicapped Access refers to the design, modification, or provision of facilities ensuring that they are usable by individuals with disabilities, complying with legal standards and offering equal opportunity and access.
A handyman’s special is a term used in real estate classified advertising, which generally refers to a house needing extensive repairs and remodeling, sold at a relatively low price. It offers potential for profit if the buyer can perform the necessary upgrades.
The remaining balance of a loan when the term of the loan exceeds the term of a lease.
Hard sell refers to aggressive sales practices aimed at pressuring a customer into completing a transaction quickly. This approach often creates a sense of urgency or scarcity in the customer's mind to expedite the sales process.
HARP, launched by the Federal Housing Finance Agency (FHFA) in March 2009, aims to assist homeowners who are underwater on their mortgages with refinancing options to obtain more favorable loan terms.
The Homeowners Affordability and Stability Plan (HASP) was a governmental initiative designed to provide mortgage assistance to millions of homeowners struggling with their mortgage payments.
A form of insurance that provides protection against specific perils such as fires, storms, or other hazards, though it does not cover flood damage. It is often required by mortgage lenders to protect their financial interest in the property.
Hazardous substances refer to a wide array of contaminants that are regulated under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). These substances include hazardous waste and chemical contaminants but exclude petroleum products due to a specific exemption.
Hazardous waste is a type of solid waste that poses a substantial or potential threat to human health or the environment due to its quantity, concentration, or characteristics. Proper identification, management, and disposal of hazardous waste are crucial for ensuring safety and compliance with regulatory standards.
A hearing is a formal procedure where issues of fact or law are tried, and parties involved have a right to be heard. It serves a similar function as a trial and can result in a final order.
The Heat Island Effect is the phenomenon where urban areas experience higher ambient temperatures compared to their rural surroundings, primarily due to human activities and alterations to land surfaces.
A HECM (Home Equity Conversion Mortgage) is a type of reverse mortgage that allows homeowners aged 62 and older to convert part of the equity in their homes into cash without having to sell the home or making monthly mortgage payments.
A hectare is a metric unit of area measurement used in the real estate industry, equivalent to 10,000 square meters or approximately 2.471 acres. It is commonly used for larger plots of land in agricultural, forestry, and urban planning contexts.
A Hedge Fund is an unregulated pool of investment money, sometimes invested in real estate. By operating outside of financial regulatory requirements applicable to banks or mutual funds, hedge funds may gain investment opportunities that are superior to regulated entities. Annual fees for hedge fund managers are generous, typically 2% of assets plus 20% of profits.
An heir is an individual legally entitled to inherit some or all of the estate of another person who has died, either by the terms of a will or by the rules of inheritance if no valid will exists.
Heirs and Assigns is a term often found in deeds and wills, used to grant a fee simple estate, indicating the intention that the recipient and their successors have full rights to the property.
A 'Hell or High Water' lease is a provision in certain lease agreements that requires the lessee to continue making rent payments despite any circumstances affecting the lessee or the property involved. This assurance often includes a parent company guarantee to the lessor.
A Home Equity Line of Credit (HELOC) is a revolving line of credit that allows homeowners to borrow against the equity of their home, typically used for major expenses, home improvements, or paying off high-interest debts.
Hereditaments encompass any property, whether real or personal, tangible or intangible, that may be inherited.
A hidden defect in real estate refers to any title defect that is not apparent from an examination of public records. These defects can significantly impact the rights of property ownership.
A high loan-to-value (LTV) loan covers more than 100% of the market value of the home. Typically, the coverage can go up to 125% of the property's value. These loans are mainly used for refinancing, making them a form of home equity loan, and are generally reserved for the lowest-risk borrowers.
High Victorian Italianate is a nineteenth-century architectural style characterized by its elaborate and ornate design, specifically featuring three different kinds of distinctive window arches: straight-sided, flat-topped, and rectangular.
A high-ratio mortgage is a loan that requires a smaller percentage of down payment, typically covering more than 80% of the property's value. Such loans often necessitate mortgage insurance to mitigate risk.
A high-rise is a building that generally exceeds six stories in height and is equipped with elevators. High-rises are commonly used for residential, commercial, or mixed-use purposes.
Highest and Best Use (HBU) is a real estate appraisal term that represents the legally, financially, and physically feasible use that, at the time of appraisal, is expected to produce the highest net return to the land and/or buildings over a given period of time. This concept can be applied whether the property is vacant or already developed.
A hip roof, also known as hipped roof, is a type of roof where all sides slope downwards to the walls, typically with a fairly gentle slope.
In real estate, historic cost refers to the original financial expenditures incurred during the construction or acquisition of a property. This term contrasts with the original cost, which represents the purchase price paid by the current owner.
A designated area where the buildings are considered to have significant historic character, which makes the area eligible for certain federal assistance programs and protects it from clearance in conjunction with federally sponsored projects.
Historic Preservation is an effort, often with government sponsorship, aimed at preventing the destruction of residential properties and commercial properties deemed of historical significance.
A historic structure is a building officially recognized for its historic significance, thereby receiving a special income tax status. This status encourages restoration and discourages demolition or significant alteration. Qualified rehabilitation expenses for certified historic structures are eligible for a 20% tax credit.
A Hold Harmless Clause in a contract is a provision by which one party agrees to protect another party from claims, lawsuits, or any legal liabilities arising from a specific situation or activity.
Holdback refers to money that is not paid until certain conditions or events have occurred, such as a floor loan of a loan commitment or retainage on a construction contract.
A Holder in Due Course (HDC) is a person or entity that acquires a negotiable instrument in good faith and for value, and thus has certain protections under the law, even if the instrument was previously subject to certain defenses or claims.
A holding company is a business entity created for the purpose of owning stock in other companies. Its role often involves controlling these subsidiaries and managing their policies and oversight without being directly involved in the operations.
Holding costs, also known as carrying costs, are the expenses incurred by owning and maintaining a property over a period of time until it is sold or put to productive use.
The holding period in real estate refers to the duration of time an investor retains ownership of a property. This interval plays a crucial role in determining the financial outcomes and strategies of the investment, such as potential tax implications, capital appreciation, and cash flow management.
In real estate, a holdout is a landowner in the path of an assemblage who seeks the highest possible price by refusing to sell in the early stages of the process. This often involves strategic negotiation to maximize land value, especially during large-scale property development projects.
A holdover clause is a provision in a lease that outlines the actions and conditions when a tenant remains in the property beyond the expiration of the lease term.
A holdover tenant is a tenant who remains in possession of leased property after the expiration of the lease term. Depending on the circumstances, the landlord may either evict the tenant or allow them to stay on a month-to-month basis.
The Home Affordable Modification Program (HAMP) is a U.S. government program designed to help homeowners reduce their monthly mortgage payments to make them more affordable, aiming to cap mortgage payments at 31% of a borrower’s verified monthly gross pretax income.
Launched in March 2009 by the Federal Housing Finance Agency, the Home Affordable Refinance Program (HARP) was designed to help underwater and near-underwater homeowners refinance their mortgages. Unlike the Home Affordable Modification Program (HAMP), which assists homeowners at risk of foreclosure, HARP targets homeowners who are current on mortgage payments but cannot refinance due to declining home prices.
A Home Equity Conversion Mortgage (HECM) allows older homeowners to access some of the equity in their homes, either in the form of monthly payments for life or a fixed term, or as a lump sum or line of credit. This reverse mortgage product is insured by the Federal Housing Administration (FHA).
A Home Equity Line of Credit (HELOC) is a type of home equity loan that provides an account from which the borrower can draw funds as needed, similar to a credit card. It allows for flexible borrowing based on the home's equity with interest accruing on the actual borrowed amount.
A Home Equity Loan is a type of loan in which the borrower uses the equity of their home as collateral. These loans are typically used to finance major expenses such as home repairs, medical bills, or education fees.
A home improvement loan, usually secured by a mortgage on the home, is used to pay for major remodeling, reconstruction, or additions to a residential property. It provides homeowners with the necessary funds to enhance and upgrade their living space.
A home inspector is a professional who evaluates the structural, mechanical, and various other conditions of a home prior to its sale, ensuring both the buyer and seller are aware of the home's condition.
A home loan, often synonymous with 'mortgage', is a type of loan specifically used for purchasing real estate property. The borrower is required to pay back the loan over time, typically with interest, and the property usually serves as collateral.
A portion of one’s home used for business purposes. This has become commonplace with the availability of affordable equipment (computers, fax machines, copiers, scanners, and the like) and electronic communication methods.
A deduction that allows taxpayers who use part of their home for business purposes to deduct certain expenses from their taxable income.
The Home Price Index (HPI) is a measure of the relative level of prices in a specific housing market at a specific time. The index values indicate change over time rather than an average or median price in dollars. They are typically pegged to a starting value and show the appreciation or depreciation in housing prices.
Home sale tax, governed under Section 121 of the Internal Revenue Code, involves tax exclusions for gains when selling a primary residence under specific conditions.
The Homeowners Affordability and Stability Plan (HASP), announced by the U.S. government on February 18, 2009, aims to assist up to 9 million homeowners in avoiding foreclosure through cost-sharing and incentives, funded largely by the Housing and Economic Recovery Act of 2008.
Homeowner Warranty Insurance, also known as a Homeowners' Warranty Program, provides protection against repair costs for certain elements of a home. This type of insurance typically covers structural defects and malfunctioning systems and appliances, ensuring peace of mind for homeowners.
A homeowner's insurance policy is a type of insurance specifically designed to protect homeowners from losses caused by various common disasters, hazards, theft, and liability. Coverage and costs can vary widely, and certain types of coverage like flood insurance may need to be purchased separately.
The Homeowners Protection Act of 1998 regulates private mortgage insurance requirements, aiming to protect homeowners from unnecessary continued insurance payments when their loan-to-value ratio reaches certain thresholds.
A Homeowners' Association (HOA) is an organization created by a real estate developer for the purpose of marketing, managing, and selling homes and lots in a residential subdivision. Most HOA structures include a volunteer board of directors elected by the members.
Homeowners' fees, also known as maintenance fees, are regular payments required by homeowner associations (HOAs) to cover the upkeep of common areas and amenities in a housing development.
A private insurance program that protects purchasers of newly constructed homes, offering coverage against structural and mechanical faults provided the builder participates in the program.
The Homeowners' Warranty Program (HOW) is a type of warranty designed to offer protection to buyers of newly built homes and provide coverage against deficiencies in construction quality, craftsmanship, and significant defects. This warranty aims to protect homeowners from unforeseen repair costs and ensure that builders adhere to high standards of construction.
Homeownership is the state of living in a structure that one owns. It is contrasted with being a renter or tenant in one’s home. Homeownership provides numerous benefits such as security, pride, and investment advantages but also introduces responsibilities.
Homeownership rate represents the percentage of owner-occupied dwellings compared to the total occupied dwellings in a specific area, providing insight into housing stability and economic activity.
Homestead status is a legal protection provided to a homeowner's principal residence by some state statutes, which protects the home against certain judgments up to specified amounts.
A Homestead Declaration is a legal statement signed by a property owner declaring the property as their principal residence. It can provide benefits such as tax advantages and protection against certain claims.
A homestead estate refers to a legal provision that helps to protect a primary residence from being used to settle debts with creditors, known as homestead laws. These laws offer homeowners a certain degree of financial security by exempting their property from forced sale under certain conditions.
A homestead exemption is a legal provision that helps reduce the amount of property taxes on domiciles owned by qualifying individuals. These exemptions can vary by jurisdiction and may provide additional benefits for certain groups such as seniors or disabled individuals.
In real estate, 'homogeneous' refers to properties that are uniform in style, characteristics, and quality within a specific area. This uniformity often leads to maximized property values, as low-valued or unusual properties can negatively impact the value of nearby higher-cost properties.
Horizontal Property Laws are state statutes that enable condominium ownership of property, adjusting traditional property laws to allow for individual ownership of units within a building while maintaining shared interest in common elements.
A form of office sharing used by firms whose professionals travel frequently, allowing them to utilize office space on an as-needed basis, similar to the way hotel guests are assigned rooms.
In real estate, a house refers to a residential structure containing a single dwelling unit. It often stands alone but can occasionally be part of a series of adjacent units called townhouses.
The term 'House Poor' refers to a situation where a homeowner spends a large portion of their income on owning a home, leaving very little for discretionary or other essential expenditures.
A household comprises one or more persons inhabiting a housing unit as their principal residence, distinct from group quarters residents, such as dormitories or institutional settings.
Housing refers to structures intended for residential use. It encompasses various types of dwellings from single-family detached houses to multi-unit apartments.
The Housing Affordability Index is a statistical indicator that measures the ability of households in a specific area to purchase housing at prevailing prices using currently available financing. It typically compares the median household income to the required monthly payment for a median-priced home in the same area.
The Housing and Economic Recovery Act of 2008 (HERA) was significant legislation enacted to alleviate the subprime mortgage crisis by reforming housing-related Government-Sponsored Enterprises (GSEs) like Fannie Mae, Freddie Mac, and the Federal Home Loan Banks. Additionally, it enhanced federal oversight and offered various provisions to support homeowners and stabilize the housing market.
The Housing and Urban Development (HUD) Department is a U.S. government agency devoted to ensuring decent, safe, and sanitary housing for all Americans, particularly focusing on urban development and housing discrimination issues.
"The Housing Code is a set of local government ordinances that establish minimum standards for safety and sanitation in existing residential buildings. These regulations ensure that living conditions in older buildings remain safe and habitable for tenants. Housing Codes typically address structural soundness, pest control, and basic living necessities like running water and heating, contrasting with Building Codes, which apply to new construction."
Housing completions refer to the number of new housing units that are completed and ready for occupancy. This metric is reported by the U.S. Census Bureau and reflects construction progress in the real estate market.
Housing counseling agencies provide educational, advisory, and credit counseling services to individuals attempting to obtain housing, especially targeting lower-income clients.
A Housing Finance Agency (HFA) is a governmental organization, typically state or local, designed to provide affordable housing assistance through various means, including the issuance of tax-free bonds and funding low-interest mortgages.
A Housing Permit is an authorization issued by a municipality that permits a builder to construct a house or apartment. This approval ensures that all local regulations and codes are adhered to, including safety, zoning, and infrastructure requirements.
Housing Starts are a vital economic indicator that measures the number of new residential construction projects that have begun within a specified period. This figure provides insights into economic conditions and trends within the housing market.
Housing stock refers to the total number of dwelling units available in a specific area, including both occupied and vacant units, but excluding specific types such as group quarters and congregate housing.
The United States Department of Housing and Urban Development (HUD) is a federal agency created to address national housing needs and to improve and develop the nation's communities by providing access to affordable housing opportunities and overseeing fair housing practices.
The HUD-1 Form, also known as the Uniform Settlement Statement, is used to itemize all charges imposed upon a borrower and seller for a real estate transaction, keeping them informed during the closing process.
HUD-Code Home is another term for a manufactured home, implying compliance with standards set forth by the U.S. Department of Housing and Urban Development (HUD), ensuring quality and safety of construction through rigorous inspections.
A hunting lease is an agreement between a landowner and a hunter that grants the hunter access to specific property for hunting purposes. This can range from a day to an entire season and might include limitations on the type of game that can be hunted.
HVAC stands for Heating, Ventilation, and Air Conditioning, which are the three essential functions that provide thermal comfort and acceptable indoor air quality within buildings.
A Hybrid Mortgage combines features of both a fixed-rate mortgage and an adjustable-rate mortgage, typically starting with a fixed interest rate for an initial period followed by an adjustable rate for the remaining period.
Hypothecating is the act of pledging an asset as collateral to secure a loan without transferring the title or the asset itself to the lender.
A hypothetical condition in real estate appraisal is an assumption made contrary to fact for the purpose of analysis. It allows valuation or analysis to occur in a different context than the actual current conditions or circumstances.
An inflation hedge is an investment that is expected to maintain or increase its value over time, even as the purchasing power of money declines due to inflation.
One-Hundred Percent Location refers to a premium commercial real estate zone with the highest foot traffic and visibility, making it the most desirable for retail businesses.
