Real Estate Glossary - Letter H

Habitability

A legal term used to describe a place’s suitability for living in according to the Civil Code.

Hard costs

Any direct costs that include material, labor and equipment use.

Hard money

Money received as cash like from a loan instead of as extended credit.

Hard money loan

A type of loan similar to a foreclosure bailout loan usually applicable to commercial real estate property loans.

Hazard insurance

Insurance that covers all damages to property caused by hazards such as fire, vandalism, wind, etc.

Hedge against inflation

Any investment considered to be protected from any form of financial loss since its value never decreases below the present rate of inflation.

Heirs and assigns

A person who by law receives assets according to the terms and conditions of a will.

Highest and best use

Used in property appraisal to describe the highest possible appraised value of the property based on zoning classifications and how it can be used best to generate the greatest return.

Historical age

The age of a building since it was constructed.

Hold harmless clause

A specific provision in a contract that relieves the other party from any liability due to circumstances that were both agreed upon as valid reasons for not fulfilling contractual obligations.

Holder in due course

An individual who acquires a negotiable instrument for value, like a note, check or bill, in good faith during the course of a transaction.

Holding company

An entity that can have partial or complete control over a company; usually owns majority of voting stock.

Holding period

The real or expected length of time an entity holds an asset.

Holdout

A situation in which the owner refuses to sell a property at the highest possible price.

Home equity conversion mortgage

Any home loan which converts the homeowner’s equity into money.

Home equity loan

A loan in which the owner uses the equity in their homes as a form of collateral or guarantee to secure a loan.

Home inspection

Any investigation or examination of a property’s physical condition by a home inspector done before a purchase.

Home loan

A loan secured for the specific purpose of purchasing a residential property.

Homeowner’s insurance

An insurance that has liability, theft and hazard coverage effectively protecting the property from all forms of damages.

Homeowner’s insurance policy

A policy containing the homeowner’s insurance coverage.

Homeowner’s warranty

A special insurance provision that covers home repairs up to a certain period of time.

Homestead exemption

For tax purposes; real properties used as homes are usually taxed lower but only up to a certain amount or property value.

Housing and Urban Development

A federal department responsible for the administration and implementation of all government housing and urban development in the United States.

Housing discrimination

The legal term for denying a person’s right to buy or rent a home on the basis of religion, color, nationality, sex, disability or family status.

Housing code

Safety and sanitation standards set by the municipality or city council for existing residential properties.

Housing stock

The total number of residential properties available for rent, lease or purchase.