Helpful real estate terms, part 5

Here is another installment of a real estate glossary that will help you be familiar with terms and concepts you may encounter during a real estate transaction.

Hazard insurance  Typically required by a lender in a homeowner’s insurance policy, this insurance covers damage from flooding, fire, earthquakes, tornadoes, etc.

Hereditaments  Property than can be inherited.  Includes personal and real property.

Highest and best use  Simply refers to the use of a property that results in the most financial gain.  Factors affecting this can include other properties in the area, the location of the property and zoning and other regulations.

HOA  Stands for Homeowners Association.  An HOA manages a housing development and provides upkeep of common areas and other services.  Homeowners pay a fee to the HOA and normally have a set of regulations to follow in the use and upkeep of their homes.

Hold harmless  In a contract, this term is used when one party agrees to not hold the other party responsible if that second party acts in a way or ways that in some way damage the first party.

Home equity loan  A loan made against the equity in a home.  It can be either fixed-rate or adjustable-rate and is typically used for investment purposes and improvements to the home.

Home warranty  This is a service contract that covers the cost of repair or replacement of various systems within the home or on the property.  Examples are plumbing, electrical and heating and cooling systems.  The warranty guarantees  coverage for a specific period of time after the home is purchased.

Homestead  Three definitions include the home someone lives in along with connected land; land itself that the owner declares as his “homestead” and is protected by law from a forced sale; and land that is purchased from United States public lands.

Housing and Urban Development Department  Known commonly as HUD, this federal agency enforces the federal Fair Housing Act.

Take a look at some previous glossary posts.

Helpful real estate terms, part 4

Helpful real estate terms, part 3

More helpful real estate terms, part 2

Helpful real estate terms, part 1

Be informed.  Understand more.

Nick & Ellie