Real Estate Dictionary Terms - H

Handicap

Includes but is not limited to a physical or mental impairment that substantially limits one or more of a person's major life activities.


Hazard Insurance

Insurance coverage that in the event of physical damage to a property from fire, wind, vandalism, or other hazards.


Hazard Insurance

Insurance that protects the owner and lender against physical hazards to property such as fire and windstorm damage.


Header

A beam placed perpendicularly to joists and to which joists are nailed in the framing of openings such as windows, doors, and stairways.


Heirs

Persons who succeed to the estate of someone who dies intestate?(without a will). It sometimes indicates anyone who is entitled to inherit a decedent's property.


Hereditament

A term usually referring to real estate and all that goes with it as being incidental.



Highest And Best Use

An appraisal phrase that means that use of real property that is most likely to produce the greatest net return on land or buildings, or both, over a given period of time.



Hip Roof

A pitched roof with sloping sides and ends.



Holden Act

Specially states that "redlining" is illegal.



Holder In Due Course

One who has taken a negotiable note, check, or bill of exchange in due course. Before it was past due; in good faith; without knowledge that it has been previously dishonored and without notice of any defect at the time it was negotiated to him or her;4. for value. Someone who acquires a negotiable instrument in good faith and without any actual or constructive notice of defect. The acquisition must occur before the note's maturity. Such a holder takes the note free from any personal defenses (such as failure of consideration, fraud in the inducement) that may be available against the maker.


Holographic Will

A will that is entirely written, dated, and signed by the testator in the testator's handwriting. No witnesses are needed.



Home Equity Conversion Mortgage (HECM)

Usually referred to as a reverse annuity mortgage, what makes this type of mortgage unique is that instead of making payments to a lender, the lender makes payments to you. It enables older home owners to convert the equity they have in their homes into cash, usually in the form of monthly payments. Unlike traditional home equity loans, a borrower does not qualify on the basis of income but on the value of his or her home. In addition, the loan does not have to be repaid until the borrower no longer occupies the property.



Home Equity Line Of Credit

A mortgage loan, usually in second position, that allows the borrower to obtain cash drawn against the equity of his home, up to a predetermined amount.



Home Inspection

A thorough inspection by a professional that evaluates the structural and mechanical condition of a property. A satisfactory home inspection is often included as a contingency by the purchaser.



Homeowners' Association

A nonprofit association that manages the common areas of a planned unit development (PUD) or condominium project. In a condominium project, it has no ownership interest in the common elements. In a PUD project, it holds title to the common elements.



Homeowner's Exemption

An exemption or reduction in real property taxes available to those who reside on their property as of March 1. The current amount is $70 off the normal tax bill otherwise due.



Homeowner's Insurance

An insurance policy that combines personal liability insurance and hazard insurance coverage for a dwelling and its contents.



Homeowner's Warranty

A type of insurance often purchased by homebuyers that will cover repairs to certain items, such as heating or air conditioning, should they break down within the coverage period. The buyer often requests the seller to pay for this coverage as a condition of the sale, but either party can pay.



Homestead

A home upon which the owner or owners have recorded a Declaration of Homestead, as provided by Arizona statutes, that protects the home against judgments up to a specified amount. A probate homestead is a similarly protected home property set aside by a California probate court for a widow or minor children. A special, limited exemption against certain judgments available to qualified homeowners.



HUD Median Income

Median family income for a particular county or metropolitan statistical area (MSA), as estimated by the Department of Housing and Urban Development (HUD).



HUD-1 Settlement Statement

A document that provides an itemized listing of the funds that were paid at closing. Items that appear on the statement include real estate commissions, loan fees, points, and initial escrow (impound) amounts. Each type of expense goes on a specific numbered line on the sheet. The totals at the bottom of the HUD-1 statement define the seller's net proceeds and the buyer's net payment at closing. It is called a HUD1 because the form is printed by the Department of Housing and Urban Development (HUD). The HUD1 statement is also known as the "closing statement" or "settlement sheet."



Hundred Percent Location

A retail business location considered the best available for attracting business.