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habendum clause
That part of a deed beginning with the words “to have and to hold,” and then defines the ownership right received by the grantee
habitability
Fit for human habitation. (See implied warranty)
hacker
A person who illegally gains access to your computer system.
hacking
Unauthorized access to computer systems or networks.
Halo effect
Humans’ unconscious mind thinking that everything is good just because that person is attractive.
handicap
As defined in the fair housing act, a physical or mental impairment that substantially limits one or more major life activities (walking, seeing, learning, working) or a record of having such an impairment or being regarded as having such impairment. Handicap does not include current, illegal use or addiction to a controlled substance.
hard earned cash equity
Many people would term this “cash equity.” It is a buyer’s down payment, closing costs, and estimated rehabilitation costs to get the property into rentable shape. We use the term “hard earned cash equity” to remind you that it is difficult, takes many years and a lot of hard work to save money. There is no easy way other than to save your pennies, skip the get rich quick investor schemes, and when you are young and trying to save money for real estate, don’t do anything foolish like blow your savings on a fancy car or other depreciating value asset.
hard earned equity needed to close escrow
This is money you have in savings that you might use to buy real estate. It has probably taken you years, or decades, to save this money. Every time you write a check for property, you should think carefully whether or not you have reduced you risk, and hence increased the chances that you will earn, not diminish, your wealth.
hard money loan
A loan made in cash by a non-institutional lender.
hauled water area
A hauled water area refers to a geographic region where residents and businesses do not have access to a public water supply system or private wells. Instead, they rely on water that is transported and delivered by truck. This water is typically stored in large tanks on the property and used for drinking, cooking, bathing, and other household needs. Hauled water areas are often found in rural or remote locations where the infrastructure for a public water supply is not feasible or cost-effective. Residents in these areas may need to manage their water usage carefully and ensure regular deliveries to maintain an adequate supply.
hazard insurance
Hazard insurance policies are commonly referred to as fire insurance but actually include more perils, including liability.
hazardous waste
A subset of solid wastes that pose substantial or potential threats to public health or the environment and meet any of the following criteria:
- Is specifically listed as a hazardous waste by EPA;
- Exhibits one or more of the characteristics of hazardous waster (ignitability, corrosiveness, reactivity, and/or toxicity;
- Is generated by the treatment of hazardous waste or is contained in a hazardous waste.
Toxic waste materials jeopardizing the value of real estate. (See asbestos, Environmental Protection Agency, undergound storage tanks, urea-formaldehyde)
hazardous waste disclosure
California Health and Safety Code (§ 25359.7(a)) requires owners of nonresidential properties to disclose to prospective buyers or lessees the existence of hazardous substances on or beneath a property. Both residential and nonresidential tenants are required to notify landlords if hazardous substances have been released on a property.
header
In construction, a header is a framing member over an opening in a wall. The most common headers are those over windows and doorways which serve to transfer the load. (See construction terms)
heat absorbing glazings
A technology that uses heat-absorbing glazing with tinted coatings to absorb solar heat gain through windows. This approach does allow some light to pass through the tinted windows.
heat exchanger
Heat exchange is the method by which the unwanted heat is removed from a system. A heat exchanger is a device by which energy (in the form of heat) is transferred from one fluid or gas to another across a solid surface.
heir
A person who inherits under a will or a person who succeeds to property by the state laws of descent if the decedent dies intestate. (See intestate)
helping professionals
Professionals who may be able to help you network; such as minister, priest, rabbi, therapist, career practitioner, counselor, etc.
hereditaments
Property capable of being inherited.
HERS score
A number between 0-100 that is used to designate the energy efficiency of a home compared to guidelines established by the Home Energy Rating System Council. The higher the score (number), the greater the energy efficiency of the residence. (See Home Energy Rating System (HERS))
heterogenious
The quality or state of being heterogeneous; different in kind; unlike; diverse; incongruous. (See homogeneous)
hidden unemployment
The hidden unemployed are those unemployed or underemployed workers not reflected in official unemployment statistics because of the way they are compiled. Only those who have no work but are actively looking for work are counted as unemployed.
high-cost home loan
A high-cost home loan is a home loan in which the terms of the loan exceed one or more of the defined thresholds.
high-cost mortgage
A mortgage for your primary home, where the annual percentage rate (APR) or points and fees charged exceed certain threshold amounts.
highest and best use
In appraising real estate, the most profitable, physically possible, and legally permissible use for the property under consideration.
highrise developments
Sometimes called mixed-use developments (MUDs), these combine office space, stores, theaters and apartment units in a single vertical community. MUDs usually are self-contained and offer laundry facilities, restaurants, food stores, valet shops, beauty parlors, barbershops, swimming pools and other attractive and convenient features.
historic rent
Scheduled (or contract) rent paid in past years.
history
An list of websites that have been visited by a computer.
HIV
Human immunodeficiency virus. The virus that causes AIDS.
HOA assessments
Assessments are special payments required of unit owners to address some specific expense, such as a new roof. Assessments are structured like condo fees: Owners of larger units pay proportionately higher assessments than smaller units. The relative ownership shares are established by the developer prior to the sale of the units.
HOA certificate
The homeowners association certificate (HOA cert) provides a summary of the fundamental information (bylaws, articles of incorporation, and insurance policy) regarding the HOA. Completed by the homeowners association, the HOA cert is delivered to escrow.
HOA fees
In an homeowners association (HOA), the board decides upon a monthly fee that HOA unit owners need to pay in order to cover the costs of the community. There are two parts to an HOA fee; 1. the monthly cost of operating the community; and 2. Saving monies for long term reserves for capital repairs and capital replacements.
HOA reserve funds
Money saved by a homeowners association (HOA) and noted in the financial statements, for doing long term capital repairs and replacements at the property. It is typically much less than is needed as estimated by a reserve study.
hold-harmless clause
A contract provision whereby one party agrees to indemnify and protect the other party from any injuries or lawsuits arising out of the particular transaction. Such clauses are usually found in leases in which the lessee agrees to “indemnify, defend and hold harmless” the lessor from claims and suits of third persons for damage resulting from the lessee’s negligence on the leased premises.
holdback
Funds not released under a construction loan agreement due to a failure to lease to the required minimum.
Holden Credit Denial Act
A California state law imposing substantially the same requirements imposed by the Equal Credit Opportunity Act and Regulation B with respect to notice to an applicant of a lender’s decision to extend or deny credit. (See Equal Credit Opportunity Act)
holder in due course
The holder of a negotiable instrument (check or note) purchased for value when the instrument appears complete and regular on its face; is taken before its due date and without notice of previous dishonor; and the holder has no notice of any defects in title of the transferor.
holder of evidence of debt
The holder of evidence of debt is the person in actual possession of, or otherwise entitled to enforce an evidence of debt, but does not include a person acting as a nominee solely for the purpose of holding the evidence of debt or deed of trust as an electronic registry without any authority to enforce the evidence of debt or deed of trust.
holdover tenancy
A tenancy whereby a lessee retains possession of leased property after the lease has expired and the landlord, by continuing to accept rent, agrees to the tenant’s continued occupancy as defined by state law.
holds out to the public
Refers to advertising or otherwise informing the public that mortgage banking loans, commercial mortgage loans, or mortgage loans are made or negotiated at a location. “Holds out to the public” includes listing a location on business cards, stationery, brochures, rate lists, or other promotional items.
holographic will
A will that is written, dated and signed in the testator’s handwriting, but not witnessed. Some states consider a holographic will to be valid even though it was not witnessed, presumably on the theory that the handwriting can be analyzed to verify authenticity and demonstrate competency.
Home Affordable Foreclosure Alternatives (HAFA)
A program of the Departments of the Treasury & Housing and Urban Development (HUD) for home owners who can no longer afford their mortgage. HAFA provides two options for transitioning out of a mortgage: a short sale or a deed-in-lieu of foreclosure.
Home Affordable Modification Program (HAMP)
A program of the Departments of the Treasury & Housing and Urban Development (HUD) that provides foreclosure-prevention initiatives to help borrowers in or at risk of default avoid foreclosure by loan modification or principal reduction to lower their monthly mortgage payments.
Home Affordable Refinance Program (HARP)
A program of the Departments of the Treasury & Housing and Urban Development (HUD) for mortgage borrowers who are current on their payments but having trouble refinancing because the value of their home has declined.
Home Energy Rating System (HERS)
Program of the California Energy Commission that certifies home energy rating services and is intended to provide reliable information to differentiate the energy efficiency levels among California homes and to guide investment in cost-effective home energy efficiency measures; found at www.energy.ca.gov/HERS.
Home equity conversion mortgage
Home equity conversion mortgage, also known as a reverse mortgage, is a loan where no monthly payments are due. The loan is repaid when you cease to occupy your home as a principal residence. The amount owed can never exceed the value of your home. If the home is sold and sales proceeds exceed the amount owed on the reverse mortgage, the excess money goes to you or your estate.
home equity loan
A loan (sometimes called a line of credit) under which a property owner uses his or her residence as collateral and can then draw funds up to a prearranged amount against the property. (See line of credit)
home equity sales contract
Agreement to sell a homeowner’s equity in the home; regulated by the California Civil Code, which requires specific notice, including right of cancellation, to the homeowner.
home expense-to-income ratio
A ratio expressed as a percentage that is used by the mortgage industry to determine a borrower’s qualification for a loan. It is calculated by dividing the borrower’s total monthly housing expenses by his or her gross monthly income.
home improvement loan
A classification requirement for loans not secured by a lien on a dwelling. Institutions classify a loan as a “home improvement loan” if the loan is entered on its books as a home improvement loan, or has otherwise been coded or identified as a home improvement loan, for example, by color-coding loan files.
Home inspection report
home loan
A home loan is a loan in which the debt is incurred by the homeowner primarily for personal, family, or household purposes, and the loan is secured by a mortgage or deed of trust on property upon which is located, or there is to be located, a structure or structures intended principally for occupancy of one to four families that is or will be occupied by the homeowner as the homeowner’s principal dwelling.
Home Mortgage Disclosure Act (HMDA)
Enacted by Congress in 1975 and implemented by the Federal Reserve Board’s Regulation C, a federal law that requires lenders with federally related loans to disclose to the Federal Reserve the number of loan applications and loans made in different parts of their service areas; designed to eliminate the discriminatory practice of redlining. (See Federal Reserve, redlining) Home Mortgage Disclosure Act Website
Home Valuation Code of Conduct (Code)
Legislation passed in 2009 to regulate appraisals, stating Freddie Mac would not purchase mortgages from lenders who did adopt the code for single-family properties; prohibited lenders and third parties from influencing or attempting to influence the development, result, or review of an appraisal report.
home warranty insurance policy
An insurance policy that insures against plumbing, electrical, heating, and major appliance problems for the term of the policy.
HomeFirst Down Payment Assistance Program
The HomeFirst Down Payment Assistance Program provides qualified homebuyers with up to $25,000 toward the down payment or closing costs on a one- to four-family home, a condominium, or a cooperative in one of the five boroughs of New York City.
homeostasis
The state of an organism in physiological equilibrium maintained by the coordinated functioning of the entire body. (See equilibrium)
Homeowner
A law enacted after the 2003 Southern California wildfires to clarify the rights of homeowners under homeowner insurance policies.
homeowner
A homeowner is a natural person who owns a building that is intended as a dwelling.
Homeowner Assistance Program
A California program for senior citizens and blind or disabled citizens of any age, providing a property tax rebate for low-income taxpayers.
homeowner instructions
Instructions given to a property owner by a listing broker that advise the owner of cleaning and repairs that will improve the appearance and increase the value of a listed property.
homeowner’s association
A nonprofit association of homeowners organized pursuant to a declaration of restrictions or protective covenants for a subdivision, PUD or condominium.
homeowner’s association (HOA) board of directors
A group of individuals, usually unit owners, who are elected to make decisions for the community members – like hiring a property manager, setting homeowners association (HOA) fees, and making repair decisions. (See BOD meeting minutes and notes)
Homeowner’s Bill of Rights of 2004
Law enacted after 2003 Southern California wildfires to clarify rights of homeowners under homeowner insurance policies.
homeowner’s exemption
An amount of property value of owner-occupied residence excluded from property taxation.
Homeowner’s Guide to Earthquake Safety
A document produced by the State of California Seismic Safety Commission intended to help inform homeowners on earthquake safety issues in homes.
homeowner’s insurance policy
A standardized package insurance policy that covers a residential real estate owner against financial loss from fire, theft, public liability and other common risks. (See basic form homeowner’s policy and broad form homeowner’s policy)
Homeowner’s Protection Act of 1998 (HPA)
Federal law requiring that lenders or servicers provide certain disclosures and notifications concerning private mortgage insurance (PMI) on residential mortgage transactions completed on or after July 29, 1999.
Homeownership Education Classes
Classes that stress the need to develop a strong credit history and offer information about how to get a mortgage approved, qualify for a loan, choose an affordable home, go through financing and closing processes, and avoid mortgage problems that cause people to lose their homes.
homeownership education classes
Classes that stress the need to develop a strong credit history and offer information about how to get a mortgage approved, qualify for a loan, choose an affordable home, go through financing and closing processes, and avoid mortgage problems that cause people to lose their homes.
homestead
A statutory exemption of real property used as a shield from the claims of certain creditors and judgments up to a specified amount; requires a declaration of homestead be completed and filed with the county recorder’s office.
homestead (AZ)
A statutory exemption of real property used as a shield from the claims of certain creditors and judgments. No declaration of homestead is required. The homestead rights become effective upon a person taking title and moving into a property as the primary residence.
homestead exemption
The amount of the homestead exemption is the greater of the following:
- The countywide median sale price for a single-family home in the calendar year prior to the calendar year in which the judgment debtor claims the exemption, not to exceed six hundred thousand dollars ($600,000).
- Three hundred thousand dollars ($300,000).
The amounts specified shall adjust annually for inflation, beginning on January 1, 2022, based on the change in the annual California Consumer Price Index for All Urban Consumers for the prior fiscal year, published by the Department of Industrial Relations.
homogeneous
Composed of parts all of the same kind or of the same kind or nature; essentially alike. (See heterogeneous)
horizontal growth
Horizontal growth is a business strategy based on replicating a standardized retail model in new geographic areas.
Horn effect
Humans’ unconscious NEGATIVE categorizing of someone because of a single trait that we consider unattractive, such as: “Those buyers have bad breath from all of those exotic spices they eat! I don’t trust them to tell me the truth about their income.”
hotelling
Hotelling is the short-term provision of office space to a temporary worker. It is a reservation system (though without a fee). With a phone call, e-mail, or website calendar, the salesperson can reserve a workstation for the desired time or in another office site that has availability.
House Price Index (HPI)
The HPI is an indicator of house price trends in various regions of the United States, developed by the Federal Housing Finance Agency (FHFA).
household
A household is a social unit consisting of all the people who live together in a housing unit.
household waste (also referred to as domestic waste)
Solid waste, composed of garbage and rubbish, which normally originates from residential, private households, or apartment buildings. Domestic waste may contain a significant amount of toxic or hazardous waste from improperly discarded pesticides, paints, batteries, and cleaners.
housing accommodation
Housing accommodations are any improved or unimproved real property, or portion thereof, used as the home, residence, or sleeping place of one or more human beings. It does not include accommodations operated by non-profit religious, fraternal, or charitable associations or corporations, provided that such accommodations are used in the furtherance of the primary purposes for which the association or corporation was formed.
housing affordability index
A measure of the percentage of the United States population who can afford to purchase a home; based on average income and average home price.
Housing and Community Development Act
Under the Housing and Community Development Act, no person in the United States shall on the ground of race, color, national origin, religion, or sex be subjected to housing discrimination. Housing discrimination on the basis of age was added under the Age Discrimination Act of 1975 or with respect to an otherwise qualified handicapped individual.
Housing and Economic Recovery Act of 2008 (HERA)
Intended to help the housing market, HERA provided new guarantees for owners of subprime mortgages, provided funding for Fannie Mae and Freddie Mac and placed both organizations in conservatorship, and created the Federal Housing Finance Agency.
Housing Element
This element shall consist of standards and programs for the elimination of substandard dwelling conditions, for the improvement of housing quality, variety, and affordability, and for provision of adequate sites for housing. This element shall contain an identification and analysis of existing and forecasted housing needs, and be designed to make equal provision for the housing needs of all segments of the community regardless of race, color, creed or economic level.
Housing Finance Board
Created by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) to supervise savings and loan associations. (See FIRREA)
Housing Financial Discrimination Act of 1977 (Holden Act)
The Act prohibits financial institutions (banks, savings & loans, or other financial institutions, including mortgage loan brokers, mortgage bankers and public agencies) from engaging in discriminatory loan practices.
Housing for Older Persons Act of 1995 (HOPA)
An act amending the Fair Housing Act to provide that housing intended for persons aged 55 or older no longer needs to have significant facilities and services designed for the elderly.
housing preservation
Housing preservation includes all of the programs that maintain and enhance New York state’s portfolio of existing housing.
housing starts
The beginning of construction of new housing; housing starts are an index of construction activity and, thus, an important economic indicator.
housing stock
Housing stock is comprised of the total dwelling units in a community, state or nation as a whole.
housing unit
A housing unit is a physical structure with a full range of living facilities in one or more rooms, within which an individual, group, or family may live privately, separated from people in other units.
hub
A common connection point for computers, printers and other devices on a local area network (LAN). A hub contains multiple ports to which devices are connected. Data travels in packets from one device to another through the hub. (See local area network, packet)
HUD-1 or HUD-1A Settlement Statement
The statement that is prescribed by the Secretary in this part for setting forth settlement charges in connection with either the purchase or the refinancing (or other subordinate lien transaction) of 1- to 4-family residential property.
HUD-1 settlement statement
At closing, in conformance with Real Estate Settlement Procedures Act (RESPA) regulations, the HUD-1 Real Estate Settlement Statement itemizes all charges imposed on the Borrower and the Seller by the loan originator and all sales commissions, whether to be paid at settlement or outside of settlement, and any other charges which either the Borrower or the Seller will pay at settlement. (See RESPA)
Human instinct
Human instincts are genetically hard-wired behaviors that enhance our ability to cope with vital environmental contingencies. Their purpose is to help people adapt to their environments. They are pre-programmed in the brain itself, and are a part of the unconscious mind. These instincts allow you to protect yourself and keep yourself alive.
HVAC
The acronym for Heating, Ventilation, and Air Conditioning.
hybrid financing (ARMs)
ARMs that are a mix, or hybrid, of a fixed-rate period and an adjustable-rate period. The interest rate is fixed for the first several years of the loan; after that period, the rate can adjust annually. (See convertible loan, participation mortgage)
hydraulic fracturing (fracking)
A natural gas production technique involving the injection of millions of gallons of water, chemicals and sand, underground at very high pressure in order to create fractures in the underlying geology to allow natural gas to escape.
hydrostatic pressure
Pressure exerted by standing water; the pressure exerted by a fluid at equilibrium due to the force of gravity. Hydrostatic pressure increases in proportion to depth from the surface due to increasing weight of fluid exerting downward force.
hygroscopic
Hygroscopic refers to the ability of a substance to absorb moisture from the air. Hygroscopic materials tend to attract and hold water molecules from their surrounding environment, often leading to changes in their physical properties. This characteristic is commonly seen in substances like salts, sugars, and certain polymers. Hygroscopic materials can become wet or sticky when exposed to humid conditions and are often used in applications where moisture control is important, such as in desiccants or humidity regulators.
hyper text markup language (HTML)
A programming format used to create webpages.
hyperlink
A selectable (clickable) connection from one word or object to another document or location in a document.
hypertrophy
Development of an organ or part; increase in size or bulk (as by thickening of muscle fibers).
hypothecation
To pledge real or personal property as security for a loan or other obligation without surrendering possession of the property. The borrower retains the rights of control and possession, and the lender secures an underlying equitable right in the pledged property.