Real Estate Glossary

This list is provided for reference only. Each state has it's own real estate laws, terms and regulations for Realtors. In Arizona, your Realtor and Title Company handle most real estate transaction activities that involve attorneys in many other states. However, you have the right to seek the advice of an attorney or other professional counsel in any real estate transaction.

Habendum Clause - The "to have and hold" clause which defines or limits the quantity of the estate granted in the premises of the deed.

Hazard Insurance - A contract between purchaser and an insurer, to compensate the insured for loss of property due to hazards (fire, hail damage, etc.), for a premium. CAUTION: Does not cover damage caused by rising water (flood), earthquake, or hurricane. Insurance for these risks must be purchased seperately.

Heirs and Assigns - (1) An heir is one who receives property from someone who has died. While the traditional meaning includes only those who had a legal right to the deceased person's property, modern usage includes anyone who receives property from the estate of a deceased person. One who might inherit or succeed to an interest in a property under the rules of law applicipable when a property owner dies.
(2) Assigns A person or persons to whom a property right is transferred.

Hereditaments - Property, personal and real, capable of being inherited.

Highest and Best Use - The particular use of a real property which will produce the greatest financial return. The optimum use of a site as used in appraisal.

Holographic Will - Will written in the testator's handwriting and not witnessed.

Home Equity Loan - A fixed or adjustable rate loan obtained for a variety of purposes, secured by the equity in your home. Interest paid is usually tax-deductible. Often used for home improvement or freeing of equity for investment in other real estate or investment. Recommended by many to replace or substitute for consumer loans whose interest is not tax-deductible, such as auto or boat loans, credit card debt, medical debt, and education loans.

Home Owner Association - An association of people who own homes in a given area for the purpose of improving or maintaining the quality of the area.

Homeowner's or Maintenance Fees - Payments made by property owner(s) of a condominium or a unit in PUD (Planned Unit Development) to the homeowners' association for expenses incurred in upkeep of the common areas.

Homestead - (Not applicable in all states) Land, and the improvements thereon, designated by the owner as his homestead and, therefore, protected by state law from forced sale by certain creditors of the owner.

HUD 1 - Settlement statement - mandated by the US Department of Housing and Urban Development.