Dictionary – Habendum Clause – Hypothecate

HABENDUM CLAUSE – The “to have and to hold” clause found in DEED which states the extent of ownership which the GRANTOR is conveying.

HALF BATH – 1) A room in a RESIDENCE that contains a toilet and washbasin but no bathing facilities, such as a bathtub or shower stall; 2) a three quarter bath contains a shower but not a bathtub.

HALF TIMBER STYLEAlso known as ELIZABETHAN STYLE – An English style, two or two and a half story house, often with part of the second story overhanging the first. It has less stonework and is less fort-like than the TUDOR. Stone and stucco walls with half timbers are most common.

HAND MONEY – Also known as DEPOSIT, EARNEST DEPOSIT, and EARNEST MONEY. The money given by a purchaser with an offer to show sincerity or GOOD FAITH.

HANDYMAN’S SPECIAL – In REAL ESTATE classified advertising, generally refers to a house, selling at a relatively low price, that requires extensive repair and remodeling,.

HANGOUT – The remaining balance of a LOAN when the TERM of the LOAN is beyond the TERM of a LEASE.

HARD MARKET Usually associated with a sharp decline in CAPACITY, that part of the INSURANCE sales cycle in which competitive pricing is at a minimum as companies charge the PREMIUMS necessary to meet their UNDERWRITING LOSSES in order to avoid INSOLVENCY and boost CAPACITY. See SOFT MARKET.

HAZARD – Condition that creates or increases the chance of LOSS.

HAZARD INSURANCE – A form of INSURANCE that protects against certain RISKS, such as from storms or fires.

HEADER – The horizontal beam between the STUDS to support the vertical weight in an opening in the wall for a door or window.

HEALTH INSURANCE – 1) INSURANCE against financial LOSSES resulting from sickness or accidental bodily injury; 2) protection which provides payment of BENEFITS for covered sickness or injury. Included under this heading are various types of insurance such as ACCIDENT INSURANCE, DISABILITY INCOME INSURANCE, MEDICAL EXPENSE INSURANCE, and ACCIDENTAL DEATH and DISMEMBERMENT INSURANCE.

HEALTH MAINTENANCE ORGANIZATION (HMO) – An organization that provides a wide range of comprehensive health care services for a specified group at a fixed periodic PAYMENT. The HMO can be sponsored by the government, hospitals, medical schools, employers, consumer groups, labor unions, insurance companies and hospital-medical plans.

HEARING – A formal procedure, with issues of fact or law to be tried, in which parties have a right to be heard. Similar to a trial and may result in a final order.

HEAT, VENTILATION, AND AIR-CONDITIONING (HVAC) – Refers to the climate control system in buildings.

HECTARE – A metric land measurement equal to about 2,471 ACRES or about 107,637 square feet.

HEDGING – Technique for transferring the RISK of unfavorable price fluctuations to a SPECULATOR by purchasing and selling OPTIONS and futures contracts on an organized exchange.

HEIR – One who inherits PROPERTY

HEIRS AND ASSIGNS A term often found in DEEDS and WILLS to grant a FEE SIMPLE ESTATE.


HIGHEST AND BEST USE – The APPRAISAL principle which maintains that the highest and best use of a PROPERTY is the use, which, at the time of the APPRAISAL, results in the greatest present value for that property. The use must be physically possible, legally permissible, appropriately supported and financially feasible.

HIGH-RISE – Generally a building that exceeds six stories in height and is equipped with elevators.

HIGH-RISK AUTOMOBILE INSURER – Company that specializes in insuring motorists who have poor driving records or have been canceled or refused INSURANCE.

HIGH VICTORIAN ITALIANATE – A nineteenth century style house with three different kinds of window arches, the primary distinguishing characteristic of this style. The arches are straight sided, flat-topped and rectangular.

HIP ROOF – A pitched roof with sloping sides and ends.

HISTORIC DISTRICT – A designated area where the buildings are considered to have some significant historic character. Such designation makes the area eligible for certain federal assistance programs and protects the area from clearance in conjunction with federally sponsored programs.

HISTORIC STRUCTURE – A building that is officially recognized for its historic significance has special status under the 1976 Tax Reform Act, which encourages REHABILITATION and discourages DEMOLITION or substantial alteration of the structure.

HOLDBACK – Money not paid until certain events have occurred, such as a floor LOAN of a loan commitment or RETAINAGE on a construction CONTRACT.

HOLDER IN DUE COURSE – One who acquires a BEARER INSTRUMENT in GOOD FAITH and is eligible to keep it even though it may have been stolen.

HOLD HARMLESS CLAUSE – 1) In a CONTRACT, a clause whereby one party agrees to protect another party from CLAIMS.; 2) clause written into a contract by which one party agrees to release another party from all legal liability, such as a retailer who agrees to release the manufacturer from legal liability if the product injures someone.

HOLD OUT – A landowner in the path of an ASSEMBLAGE who attempts to realize the highest possible price by refusing to sell in the early stages of ASSEMBLAGE.

HOLDOVER TENANCY – Also known as TENANCY AT SUFFERENCE and ESTATE AT SUFFERANCE – A LEASEHOLD interest of possession only which exists after the expiration of any LEASEHOLD of fee ESTATE, should the TENANT not VACATE the REAL PROPERTY. The TENANT came to posses the property legally, either by LEASE or by ownership, but now remains on the property illegally.

HOLDOVER TENANT – A TENANT who remains in possession of the LEASED REAL PROPERTY after the expiration of the LEASE.

HOLOGRAPHIC WILL – A WILL that is composed, signed and dated entirely in the handwriting of the maker and needs no witnesses.

HOME EQUITY CONVERSION – The process of LIQUIDATING all or a portion of the EQUITY in one’s home.


PRINCIPAL RESIDENCE, generally to be used for some non-housing expenditure. Generally, two types are available: a LINE-OF-CREDIT HOME EQUITY LOAN establishes a credit line that can be drawn upon as needed; a traditional SECOND MORTGAGE provides lump sum proceeds at the time the LOAN is closed.

HOME IMPROVEMENTS LOAN – A LOAN, usually secured by a MORTGAGE on the home, used to pay for major REMODELING, reconstruction or additions to the home.

HOME INSPECTOR – A professional who evaluates the structural and mechanical condition of a home prior to its being sold. Some states require home inspectors to be BONDED or licensed.

HOMEOWNER’S ASSOCIATION – Generally for the purpose of enforcing DEED restrictions or managing the common elements of the development, an organization of the homeowners in a planned unit development, particular subdivision or condominium.

HOMEOWNERSHIP – The state of living in a structure that one owns. Contrasted with being a renter or tenant in one’s home.


UNITS to total occupied dwelling units in an area.

HOMEOWNER’S POLICY – An INSURANCE POLICY designed especially for HOMEOWNERS which usually protects the owner from LOSSES caused by theft, most common disasters and LIABILITY. Coverage and cost vary widely.

HOMEOWNER’S WARRANTY PROGRAM (HOW) – When the builder participates in the program, a private INSURANCE program that protects purchasers of newly constructed homes against structural and mechanical faults.

HOME SERVICE LIFE INSURANCEINDUSTRIAL LIFE INSURANCE and monthly DEBIT ordinary LIFE INSURANCE CONTRACTS that are serviced by AGENTS who call on the POLICYHOLDER at their homes to collect the PREMIUMS. The amount of LIFE INSURANCE per POLICY generally is larger than $1000.

HOMESTEAD – Status provided to a homeowner’s PRINCIPAL RESIDENCE by some state statutes that protects the home against judgments up to specified amounts.

HOMESTEAD EXEMPTION – An EXEMPTION allowed by law to a PROPERTY owner, which protects the EQUITY in a RESIDENCE from JUDGMENT LIENS, but usually does not protect against REAL ESTATE TAX LIENS, MORTGAGE indebtedness or MECHANIC’S LIENS. Laws on HOMESTEAD vary greatly from state to state.

HOMOGENEOUS – Uniform, of like characteristics or quality. The VALUES of an area tend to be maximized when PROPERTIES are homogeneous, because low-valued or unusual PROPERTIES are likely to reduce the VALUE of other nearby PROPERTIES of higher cost.

HORIZONTAL PROPERTY LAW – State statutes that enable CONDOMINIUM ownership of PROPERTY. Though property laws generally recognize ownership rights to all space from the center of the earth to some distance in the air, CONDOMINIUM laws allow individual ownership to be split on a horizontal plane that generally limits the UNIT owner’s interest to the inside dimensions of the UNIT.

HOSPICE – Health care facility providing medical care and support services such as counseling to terminally ill persons.

HOSPITAL ADMISSIONS PROGRAM – An arrangement to facilitate admission of persons covered by HEALTH INSURANCE to hospitals and to assure the prompt payment of applicable INSURANCE BENEFITS to hospitals.

HOSPITAL AND SURGICAL EXPENSE POLICY – A POLICY also provides BENEFITS for surgical operations and for in-hospital doctor’s visits.

HOSPITAL EXPENSE INSURANCEHEALTH INSURANCE protection against the cost of hospital care resulting from the illness or injury of the INSURED person.

HOSPITAL EXPENSE INSURANCE – A form of HEALTH INSURANCE that provides specific BENEFITS for daily hospital room and board and hospital services during hospital confinement. Generally the POLICY also provides BENEFITS for surgical operations and for in-hospital doctor’s visits, in which case the policy is referred to as a HOSPITAL AND SURGICAL EXPENSE POLICY.

HOSPITAL INDEMNITY – A form of HEALTH INSURANCE which provides a stipulated daily, weekly or monthly INDEMNITY during hospital confinement. The INDEMNITY is payable on an unallocated basis without regard to the actual expense of hospital confinement.

HOSPITAL MEDICAL INSURANCE – A term used to indicate protection which provides BENEFITS for the cost of any or all of the numerous health care services normally covered under various HEALTH CARE PLANS.

HOSPITAL MISCELLANEOUS SERVICES – Services other than room and board and general nursing services provided by a hospital during hospital confinement. Included are such items as x-ray examinations, laboratory tests, medicines, surgical dressings, anesthetics (including the administration thereof) and use of operating room.


ROOF – The roof finish for flat or low-pitched roofs composed of asphalt felt and asphalt, which is then covered with decorative gravel.

HOUSING AFFORDABILITY INDEX – A statistical indicator of the ability of households in an area to purchase housing at prevailing prices with currently available financing. Most commonly used INDEXES compare the amount of INCOME of the typical house in the area.

HOUSING AND URBAN DEVELOPMENT DEPARTMENT (HUD) – A U.S. government agency established to implement certain federal housing and community development programs to assure safe, decent, and sanitary housing for all Americans and investigates complaints of DISCRIMINATION in housing.

HOUSING CODE – A local government ordinance that sets minimum standards of safety and sanitation for existing RESIDENTIAL buildings. Contrast to building codes, which pertain to new construction.

HOUSING STARTS – An estimate of the number of DWELLING UNITS on which construction has begun during a stated period.

HULL INSURANCE – (1) Class of ocean marine INSURANCE that covers physical damage to the ship or vessel insured. Typically written on an “all-risks” basis; (2) Physical damage INSURANCE on aircraft – similar to COLLISION INSURANCE in an automobile policy.

HUMAN LIFE VALUE – For purposes of LIFE INSURANCE, the present value of the family’s share of the deceased breadwinner’s future earnings.

HUNDRED PERCENT LOCATION – Also known as ONE-HUNDRED PERCENT LOCATIONONE HUNDRED PERCENT LOCATION – The most desirable possible location for a particular company’s business enterprise.

HURRICANE – A tropical storm marked by extremely low barometric pressure and circular winds with a velocity of seventy-five miles per hour or more.


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