HANDYMAN'S SPECIAL

A descriptive term for a property which requires significant work to bring it up to normal standards of condition and repair. It is often offered for sale at a lesser price.

HARBOR LINE

A boundary set by local authorities marking the extent of the area allowed for development along the sides of a navigable river or other body of water.

HARD SELL

A description of a style of salespersonship in which the potential purchaser is placed under extreme pressure and bombarded with information and sales pitches.

HAZARD INSURANCE

A type of insurance designed to cover damage caused by a peril specified in the policy of insurance (i.e. fire, flood, etc.). See also homeowner's insurance .

HOLD HARMLESS CLAUSE

Also known as "save harmless clause". A clause in a contract in which one party releases another party for legal liability for a stated risk.

HOLDBACK

A percentage of a contract price which is retained by a contractor or lender until the project is complete and all bills for that project are paid. The percentage may be set by custom or by statute.

HOME EQUITY LINE OF CREDIT

A special kind of loan (also known as a "revolving loan") which is secured against a property and allows the owner to borrow and repay money at her leisure. Periodic payments of at least accumulated interest are required but the loan is fully open: may be paid out in whole or in part at any time and, if there is still money available under the loan ceiling, the borrower may take more money for her use.

HOME IMPROVEMENT LOAN

A loan made for the purposes of making improvements to a property.

HOME INSPECTION

A thorough inspection that evaluates the structural and mechanical condition of a property. A satisfactory home inspection is often included as a contingency by the purchaser. Contrast with appraisal.

HOME INSPECTION (REPORT)

The written statement of the results of the inspection of a given property by a professional home inspector. Will show problems and potential problems with the property not always visible to an average purchaser (i.e. a deteriorating roof, an ancient furnace, termites, wood rot, basement seepage). Many purchasers make their offer to purchase conditional upon obtaining a satisfactory Home Inspection report.

HOME INSPECTOR

A person who offers a service of making a physical inspection of homes. Qualifications may vary.

HOMEOWNER'S INSURANCE

Insurance coverage that compensates for physical damage to a property from fire, wind, vandalism, or other hazards. The policy typically combines personal liability insurance and property hazard insurance coverage for a dwelling and its contents. Also known as Hazard Insurance.

HOMEOWNER'S ( HOMESTEAD ) TAX EXEMPTION

A tax break for home owners offered in certain jurisdictions which sees property tax assessments reduced by a certain percentage as a result of the fact that the taxpayer resides in the property. May require evidence of the status of ownership to be filed periodically with taxing authority.

HOMEOWNERS' ASSOCIATION

A nonprofit association that manages the common areas of a planned unit development (PUD) or Condominium project. In a condominium project, it has no ownership interest in the common elements. In a PUD project, it holds title to the common elements. See also Master Associa tion.

HOMEOWNER'S WARRANTY (HOW)

A type of insurance that covers repairs to specified parts of a house for a specific period of time. It may be provided by the builder or property seller as a condition of the sale but homeowners can also purchase it.

HOUSING EXPENSE RATIO

The percentage of gross monthly income that goes toward paying housing expenses.

HOUSING AND URBAN DEVELOPMENT (HUD)

Federal Agency charged with the duty of overseeing a number of enactments relating to housing in America .

HUD MEDIAN INCOME

Median family income for a particular county or metropolitan statistical area (MSA), as estimated by the Department of Housing and Urban Development (HUD).

HUD-1 SETTLEMENT STATEMENT

A document that provides an itemized listing of the funds that are payable at closing. Items that appear on the statement include real estate commissions, loan fees, points, and initial escrow amounts. Each item on the statement is represented by a separate number within a standardized numbering system. The totals at the bottom of the HUD-1 statement define the seller's net proceeds and the buyer's net payment at closing. The blank form for the statement is published by the Department of Housing and Urban Development (HUD). The HUD-1 statement is also known as the "closing statement" or "settlement sheet."