Archive for October, 2010
G.I. LOAN – See: Veteran’s Administration (V.A.) Loan.
GAA – See: General Accredited Appraiser.
GAAP – See: Generally Accepted Accounting Principles.
GABEL – Rent. A seldom used term.
GABLE – The exterior wall surface, triangular in shape, formed by the inclined edges of a ridged roof (gable roof).
GABLE ROOF – A ridged roof, having two sloping edges which, at the ends of the ridge, form a gable.
GAIN – Profit. Important for tax purposes when realized from the sale of a capital asset. See also: Capital Gain.
GALLERY – (1) A covered walkway, open on one side, running along an upper story of a building, either inside or outside. (2) The highest theater balcony, having the cheapest seats. (3) A building or portion of a building used for exhibits, such as an art gallery.
GALLON – A liquid measure of 231 cubic inches or 4 quarts. See also: Imperial Gallon.
GAMBREL ROOF – A ridged roof, each side having two slopes, the lower of which is more inclined.
GAP COMMITMENT – A commitment to loan the difference between the floor amount of a take out loan and the full amount. The commitment is issued to enable a construction lender to loan the full amount of a take out commitment, rather than only the floor amount. See also: Floor Loan; Take Out Loan.
GAP FINANCING – (1) Interim financing. (2) A loan between the floor amount and full amount of a take out loan. See: Gap Commitment.
GARAGE – A place to keep or repair motor vehicles; either a building adjacent or attached to a residence, or as a commercial enterprise.
GARBAGE DISPOSAL – A small tank with metal grinders, which is usually installed under the drain in a kitchen sink. The grinders pulverize discarded food into particles which may be washed into the sanitary sewer.
GARDEN – A small parcel of land used for growing fruits, vegetables, or flowers, which are usually not sold, but used by the grower.
GARDEN APARTMENTS – An apartment development consisting of two or more structures, surrounded by an abundance of lawns, plants, flowers, etc., giving a garden-like atmosphere.
GARN-ST. GERMAN ACT OF 1982 – An act which, among other things, provides that a lender may not enforce a due-on-sale clause when the property passes by will to a relative of the decedent who occupies the property.
GARNISH – To bring garnishment proceedings.
GARNISHEE – The person against whom a garnishment is issued. The party holding funds of the debtor and not the debtor.
GARNISHMENT – A legal proceeding under which a person’s money in control of another (such as salary) is taken for payment of a debt. The amount which may be taken is set by statute (usually as a percentage), and, in most states, a judgement is necessary before garnishment.
GARRET – See: Attic.
GAS STATION – See: Service Station.
GAZEBO – An open structure, usually in the garden of a “summer house” where one may sit and enjoy the view. Also called a belvedere.
GEM – See: Growing Equity Mortgage.
GENERAL ACCREDITED APPRAISER – A designation awarded by the NATIONAL ASSOCIATION OF REALTORS to a member who is a state certified General Appraiser and has the required additional experience and tested education.
GENERAL BENEFITS – In condemnation, benefits accruing to property not taken, but which benefits are caused by the taking.
GENERAL CONTRACTOR – One who contracts for the construction of an entire building or project, rather than for a portion of the work. The general contractor hires subcontractors, such as plumbing contractors, electrical contractors, etc., coordinates all work, and is responsible for payment to the said subcontractors.
GENERAL INDEX (G.I.) – A title insurance company term for the books used to find liens against individuals which may effect real property, but which are not recorded against the property being insured, such as liens against a buyer.
GENERAL LIEN – (1) A lien such as a tax lien or judgment lien which attaches to all property of the debtor rather than the lien of, for example, a trust deed, which attaches only to specific property. (2) The right of a creditor to hold, personal property of a debtor for payment of a debt not associated with the property being held. Must be done under an agreement since against general precepts of law.
GENERAL MORTGAGE – See: Blanket Mortgage.
GENERAL OVERHEAD COSTS – See: Indirect Construction Cost.
GENERAL PARTNER – A member of a partnership who has authority to bind the partnership and shares in the profits and losses. A partnership must have at least one general partner and may have more, as well as limited partners.
GENERAL PARTNERSHIP – A partnership made up of general partners, without special (limited) partners. See also: Limited Partnership; Partnership.
GENERAL PLAN – See: Master Play.
GENERAL PLAN RESTRICTIONS – Restrictions imposed on an entire subdivision, usually by the developer. Also called a declaration of restrictions.
GENERAL POWER – See: Power of Attorney (1).
GENERAL WARRANTY DEED – A conveyancing instrument under which the grantor assumes liability for defects of title. Not needed when title insurance is purchased.
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES – Accounting methods approved by the accounting profession and required in audits and reporting.
GEODETIC SYSTEM (THE UNITED STATES COAST AND GEODETIC SURVEY SYSTEM) – A network of bench marks (surveyor’s marks), located by longitude and latitude, covering the entire country. Originally, this system was used to locate federally owned land, and has since been extended nation-wide.
GEORGIAN ARCHITECTURE – A colonial style of architecture dating back to the eighteenth century. Characterized by first floor windows extending to the ground, its exterior placements (windows, doors, etc.) are simple and well balanced, yet formal in appearance.
GEORGIAN COLONIAL ARCHITECTURE – A more formal and elaborate form of Georgian Architecture.
GERRYMANDER – To divide an area into districts, against the obvious natural divisions, in order to accomplish an unlawful purpose. For example: To divide a school district to keep out certain people for reasons of race or religion; to divide a political voting district as to give power to a political party.
GIFT – A voluntary transfer of property without valuable consideration.
GIFT CAUSA MORTIS – A gift made in contemplation of death. The gift is conditioned upon the death of the donor and may be revoked before the donor’s death.
GIFT DEED – A deed for nominal consideration.
GIFT LETTER – A letter to HUD from the donor (giver) stating that a gift of money has been made to the buyer in order to purchase specific property. The relationship of the donor and donee is stated, as well as the amount of the gift.
GIFT TAX – A federal and sometimes a state tax on inter vivos transfers without consideration.
GINGERBREAD WORK – Use of ornamentation in architecture, especially residential, which adds to emotional appeal, rather than functional value.
GINNIE MAE – See: GNMA.
GIRDER – (1) One of the heavy beams supporting flooring joists. (2) A metal framing member of a series of heavy supports for a building, bridge, etc.
GIRT – A horizontal bracing member, running between columns or other vertical members to stiffen the framing.
GLASS – A usually transparent or translucent substance, formed by the fusion of some silica, such as sand. Glass is colored by the addition of metallic oxides, and comes in a great variety of shapes and sizes.
GLASS BLOCK – A building block of hollow glass, used as a decorative wall, but not usually a bearing wall.
GLASS-WOOL INSULATION – Insulation made in sheets from glass fibers, covered with water resistant or asphalt treated paper.
GLAZE – To finish with a glossy surface.
GLAZED BRICK – A brick having a glazed (glossy) surface.
GLUE LAMINATED BEAMS – Beams composed of layers of wood, pressed and glued together, and used to support roof rafters.
GNMA (GINNIE MAE) – Government National Mortgage Association. A federal association, working with F.H.A., which offers special assistance in obtaining mortgages, and purchases mortgages in a secondary capacity.
GNMA (GOVERNMENT NATIONAL MORTGAGE ASSOCIATION) OPTIONS – A method of purchasing GNMA securities through “puts” and “calls”. A GNMA Call Option is the right to buy GNMA securities at a specific yield for a specified time. A Put Option is the right to sell GNMA securities at a specific yield for a specified time. The buyer pays for the option and may exercise it, not exercise it, or sell it.
GNMA ISSUER – A mortgage lender qualified to participate in the Ginnie Mae Mortgage Backed Securities Program.
GNMA PASS-THROUGH CERTIFICATES – Mortgage-backed securities insured by the Government National Mortgage Association (GNMA). (See: Mortgage-backed Securities).
GOOD FAITH – Something done with good intentions, without knowledge of fraudulent circumstances, or reason to inquire further.
GOOD FAITH ESTIMATE – An estimate of all closing fees including pre-paid and escrow items as well as lender charges.
GOOD WILL – A salable asset of a business, based on its reputation rather than its physical assets.
GORE – A small parcel of land, usually triangular in shape, resulting from the failure of a legal description to join 2 tracts. (Also called: Hiatus).
GOVERNMENT LOTS – Irregularly shaped parcels of land, usually fronting on water, which could not practically be divided into sections under government survey.
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION – See: GNMA.
GOVERNMENT SURVEY – The survey from which our present system of townships, sections, etc., was developed.
GPM – See: Graduated Payment Mortgage.
GRACE PERIOD – A period of time past the due date for a payment (mortgage, insurance, etc.) during which time a payment may be made and not considered delinquent.
GRADE – The degree of the slope of land.
GRADE SEPARATION – A structure, such as a cloverleaf of a highway, enabling roads to intersect one over the other, obviating the need for a traffic light or stop sign.
GRADED LEASE – See: Step-Up Lease.
GRADED TAX – A property tax designed to promote local development by increasing the tax rate on land and decreasing it on improvements.
GRADIENT – The degree of the slope of land.
GRADUATED LEASE – A lease calling for a varying rental, usually based on periodic appraisal or simply the passage of time.
GRADUATED PAYMENT ADJUSTABLE MORTGAGE LOAN – A combination of a graduated payment mortgage and an adjustable mortgage. Monthly payments begin at less than the amount necessary to amortize the loan and increase over a maximum 10 year period. The payment increase is not predetermined but varies as the interest rate is adjusted based on the movement of a agreed upon index.
GRADUATED PAYMENT MORTGAGE – A mortgage or deed or trust calling for increasingly higher payments over the term of the loan. This allows the buyer low beginning payments. The payments then increase as (theoretically) the buyer’s earnings increase. See also:G.E.M.
GRAIN – (1) The direction, size and arrangement of the fibers of wood, leather, etc. (2) Seeds from cereal plants, such as wheat, oats, corn, etc. (3) A small particle, such as a grain of sand. (4) A unit of weight equal to 1/7000th of a pound.
GRAIN ELEVATOR – (1) A structure for the processing and storage of grain. (2) Modern farm machinery used for loading and unloading grain.
GRAND LIST – The term used for the tax roll or assessment list in the New England states.
GRANDFATHER CLAUSE – The clause in a law permitting the continuation of a use, business, etc., which, when established, was permissible but, because of a change in the law, is now not permissible. See also: Nonconforming Use.
GRANT – To transfer an interest in real property; either the fee or a lesser interest, such as an easement.
GRANT DEED – One of the many types of deeds used to transfer real property. Contains warranties against prior conveyances or encumbrances. When title insurance is purchased, warranties in a deed are of little practical significance.
GRANTEE – One to whom a grant is made. Generally, the buyer.
GRANTOR – One who grants property or property rights.
GRANTOR-GRANTEE INDEX – The record of the passing of title to all the properties in a country as kept by the county recorder’s office. Property is checked by tracing the names of the sellers and buyers (chain of title). Title companies usually have more efficient methods by keeping records according to property description, rather than people’s names.
GRAPH – A diagram representing statistical data by the use of dots and lines to show a relationship among things.
GRAVEL – Loose rock about two millimeters in diameter, found in great quantity, and used for roadbeds, as a surface or under paving.
GRAVEL PIT – An excavation from which gravel is removed. See also:Borrow Pit.
GRAVEYARD – See: Cemetery.
GRAVITY FURNACE – A hot air furnace which circulates by the different weights of hot and cold air, rather than by a fan.
GREEN LUMBER – Unseasoned lumber, having a higher content of moisture than that of seasoned or air-dried lumber.
GREENBELT – A landscaped area surrounding a development to separate and protect it from a neighboring incompatible use, such as separating office buildings from an industrial park.
GRID – (1) A network of pipes (as for the distribution of water or gas). (2) A network of uniformly spaced horizontal lines, as on a map or chart, used for locating points by coordinates. (3) A chart used by insurance companies and lenders for rating property, risk of the borrower, neighbor-hood, etc.
GRIDIRON PATTERN (GRIDIRON PLAN) – A layout of streets in a subdivision or city which resembles a gridiron.
GROIN – (1) In architecture, the curved point at which arched ceilings or roofs meet or intersect each other. (2) A structure, usually of pilings, used to resist shifting of coastal sands.
GROSS – Total, with no allowances or deductions, such as gross acre, gross lease, gross income, gross sales, etc.
GROSS ACRE – An acre (43,560 sq. ft.). Distinguished from a net (usable) acre.
GROSS AREA – In building measurement, the outside dimensions determine the gross area, irrespective of the area inside actually usable or rentable.
GROSS EFFECTIVE INCOME – See: Adjusted Gross Income.
GROSS INCOME – The scheduled (total) income, either actual or estimated, derived from a business or property.
GROSS INCOME MULTIPLIER – A figure which, when multiplied by the annual gross income, will theoretically determine the market value. A general rule of thumb which varies with specific properties and areas.
GROSS LEASE – A lease which obligates the lessor to pay all or part of the expenses of the leased property, such as taxes, insurance, maintenance, utilities, etc.
GROSS NATIONAL PRODUCT (GNP) – The money value of all goods and services produced by a nation’s economy for a given period of time.
GROSS PROFIT – The total profit before deductions. A general term which varies, depending upon accounting procedures.
GROSS RENT MULTIPLIER – The quotient of the sale price divided by the gross rent. Generally expressed as the monthly gross rent in a single family residential property and the yearly gross rent in multifamily units and commercial, office, or industrial property.
GROSS SALES – The total sales for a given time, before deductions for refunds, allowances, etc.
GROUND BEAM – A horizontal beam, very heavy and strong, installed at ground level to support and distribute the weight of that part of the building above the foundation.
GROUND FLOOR – See: Ground Level.
GROUND LEASE – A lease of vacant land, or land exclusive of any building on it. Usually a net lease.
GROUND LEVEL – Being at the level of the surrounding land, such as the ground floor of a building.
GROUND RENT – Rent paid for vacant land. If the property is improved, ground rent is that portion attributable to the land only.
GROUND WATER – Water in the subsoil or of a spring or shallow well.
GROUNDS – (1) The area surrounding a building which goes with and is of the same ownership as the building. The word would be used if the area were substantial, as opposed to a yard. (2) Strips of wood placed over the lath, to which molding is nailed.
GROUT – (1) Thin mortar used in masonry work to fill joints between bricks, blocks, tiles, etc. (2) A variety of plaster used to finish ceilings of superior quality.
GROWING CROP – A crop is considered “growing” from the time the seed is planted. It then stops being personal property and becomes part of the land passing with the fee unless specifically excepted.
GROWING EQUITY MORTGAGE (G.E.M.) – A fixed rate, graduated payment loan allowing low beginning payments and a shorter term because of higher payments as the loan progresses. Based on the theory of increasing income by the buyer and, therefore, ability to make higher future payments. When state law applies, usury laws in some states may not presently allow such loans when less than interest only payments create interest on interest.
GROYNE – See: Groin.
GUARANTEED MORTGAGE – See: Insured Mortgage.
GUARANTOR – One who makes a guaranty.
GUARANTY – Agreement to pay the debt or perform the obligation of another in the event the debt is not paid or obligation not performed. Differs from a surety agreement in that there must be a failure to pay or perform before the guaranty can be in effect.
GUARDIAN – One who is court appointed to manage the affairs of a minor or incompetent.
GUIDE MERIDIAN – See: Meridian.
GULLY EROSION – The formation of a gully by continued erosion through the soft topsoil (rill erosion) into the subsoil, where a more permanent channel is cut, separating areas and preventing the movement of animals, machinery, etc.
GUTTER – (1) A channel along the eaves to direct rainwater to a downspout. (2) The channel formed by the meeting of the street and curb, where rainwater runs to a sewer.
GYPSUM – An ingredient of plaster or cement; it is hydrated calcium sulphate.
GYPSUM BLOCKS – Building material used in non load-bearing walls and partitions, composed of a plaster type material.
GYPSUM PLASTER – A coarse plaster used as a basecoat, or for some exterior uses.
GYPSUM SHEATHING BOARDS – See: Gypsum Wallboard.
GYPSUM WALLBOARD – Commonly known as dry wall. A wallboard or gypsum (plaster) covered with a paper which can be painted or wallpapered.
Posted in H-BEAM – A beam, the cross-section of which is the shape of a capital H.
HABENDUM – The clause in a deed, following the granting clause, which defines the extent of the estate of the grantee.
HABITABLE ROOM – A room used for living area, such as a kitchen, bedroom, dining room, etc., as opposed to bathrooms, closets, hallways, and similar spaces. Generally, habitable rooms are the only ones counted in the number of rooms in a house; bathrooms are counted separately.
HABITANCY – A legal term meaning the place which a person inhabits (lives). The layman’s meaning of a place where someone “lives” is probably the closest definition.
HACIENDA – An estate, farm, or, commonly, even a house. Originally, the royal estate.
HACK STAND – An area where taxicabs may park to solicit fares.
HALF SECTION – One half of a section of land, divided either North and South, or East and West.See also: Section.
HALF-TIMBERED – Residential construction exposing the timber frame of the interior walls, the space between being lath and plaster. In simulated half- timbering, the attaching of boards (or a plastic which is treated to resemble a timber surface) to the surface of an interior wall. In simulated half-timbering, the boards are strictly decorative, and not load-bearing.
HALL – Originally, a large building used as a meeting place, such as a town hall. The term has also become synonymous with “hallway”, the latter being a relatively narrow passageway between rooms.
HAMLET – A small village or town.
HAND – A lineal measure equal to four inches, the approximate width of a man’s hand. Most commonly used to measure the height of a horse.
HARBOR – A natural or man made sheltered area for ships to anchor. May or may not have docks and other port facilities.
HARD COSTS – See: Direct Costs.
HARD FINISH – A smooth outer coat of varnish, plaster, or similar finish material.
HARD MONEY MORTGAGE – A mortgage given in return for cash, rather than to secure a portion of the purchase price, as with a purchase money mortgage.
HARDPAN – A compacted layer of soil, usually containing clay, through which it is difficult to drain or dig.
HARDWARE – In construction, the metal accessories, such as doorknobs, hinges, locks, etc.
HARDWOOD – Wood used for interior finish, such as oak, maple, and walnut. Although the term originally referred to the type of tree and not the hardness of the wood, modern usage usually refers to the hardness of the wood.
HARMONIOUS – Blending compatibly, as parts of buildings, buildings in a neighborhood or subdivision, etc.
HATCHWAY – Usually describes a door in the deck of a boat. A door in the ceiling or floor of a building, giving access to the attic or cellar.
HAZARD INSURANCE – Real estate insurance protecting against loss caused by fire, some natural causes, vandalism, etc., depending upon the terms of the policy.
HAZARD RANKING SYSTEM – Determining which sites are most in need of immediate Superfund money. The system was created by the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). The ranking considers such things as degree of toxicity, amount of toxicity, and danger to people.
HEAD – (1) The upper framing member of a door or window. Also called a header. (2) The beginning of a river or stream.
HEAD OF A FAMILY (HEAD OF HOUSEHOLD) – A term used in homestead exemptions to designate the person in charge of managing and supporting a family. It need not be a parent.
HEADER (LINTEL) – A horizontal beam over a wall opening, such as a doorway, fireplace, etc. The header is attached to vertical framing members, and spreads the weight from above to these members.
HEARTH – (1) The fireside. (2) The fireplace floor, of stone, brick, tile, etc.
HEARTWOOD – A dead portion of a tree, no longer producing sap. The wood from the center of the tree (pith) to the wood which produces sap (sapwood).
HEAT PUMP – A pump used in either heating or cooling.
HEATER – Connotes a device working by itself to heat a small area (space heater), rather than a heating system, composed of a central source of heat (furnace) and pipes and ducts which heat several spaces.
HEATING SYSTEM – A general term encompassing any system designed to heat a structure in its entirety, as opposed to a space heater.
HEAVY INDUSTRY – Any industry designated “heavy industry” under a zoning ordinance. Usually connected with some type of pollution, such as air, water, or noise pollution.
HEAVY STEEL FRAME – A building having steel beams, girders, or other framing members, which carry heavy floor loads.
HECTARE – A french unit of measurement, equaling 10,000 square meters (2.471 acres).
HEEL – That part of a vertical framing member which rests closest to the floor.
HEIGHT DENSITY – A zoning term referring to the regulation of maximum building heights for structures in given areas.
HEIR – One who by law, rather than by will, receives the estate of a deceased person.
HEIRS AND ASSIGNS – Words usually found in a deed, showing the interest the grantee is receiving. A deed to “A, his heirs and assigns”, would grant the property to A, with the right to assign said property or have it descend to A’s heirs upon A’s death. This would be considered a fee interest (estate). This would differ from, for example, a life estate granted to A, which would terminate upon A’s death and could not be inherited by A’s heirs.
HELP (HOMEBUYER EDUCATION LEARNING PROGRAM) – An educational program from the FHA that counsels people about the home buying process. Completion of the program may entitle the homebuyer to a reduced initial FHA mortgage insurance premium.
HEREDITAMENTS – (1) Anything which could be considered real property. (2) Anything which may be inherited.
HETEROGENEOUS – An appraisal term describing an area composed of buildings of varied styles or uses. Not as desirable as homogeneous property.
HIATUS – See: Gore.
HIGH WATER LINE – The line on the shore to which high tide rises under normal weather conditions.
HIGH-RISE APARTMENT BUILDING – An apartment building considered “high” in the area where it is built. There is no national height standard.
HIGHEST AND BEST USE – The use of land which will result in its highest value. In appraisal this cannot be merely theoretical but must be realistic in that the use must be legal (proper zoning, etc.), physically achievable and financially feasible.
HIGHWAY – Technically, any public road, regardless of size. Most commonly, a paved road which carries traffic at high speeds.
HIGHWAY CAPACITY – The number of vehicles which may move along a highway at the same time. The number may vary as the type (size) of the vehicles vary, speed limit changes, access changes, etc.
HIGHWAY FRONTAGE – Technically, land which fronts on a highway. For purposes of determining value, land which fronts on and has access to a highway.
HIP – The convex angle at the exterior meeting of the sides of a hip roof.
HIP RAFTER – The rafter which forms the intersection of a convex roof angle.
HIP ROOF – A roof with four sloping sides which rise to a ridge. Usually found on garages or church steeples. Also called a pyramid roof.
HISTORICAL COST – The cost of a building when first constructed, as opposed to the original cost (cost to the present owner), although they may be the same.
HOGWALLOWS – Small depressions formed by heavy rains, resembling the depressions left after the wallowing of hogs.
HOLD HARMLESS AGREEMENT – See: Indemnity Agreement.
HOLD OVER TENANT – A tenant who retains possession after the expiration of a lease.
HOLDBACK – Portion of a loan held back by the lender until a contingency is net. In the sale of a home insured by V.A. or F.H.A., funds may be held back to make necessary improvements to bring the property to V.A. or F.H.A. standards. The money to make these repairs may not be available until closing. One and one half to double the estimated amount necessary is held back. If repairs are not made in the time allowed, these funds are used to make the repairs. In construction financing, funds are held back until, for example, a certain percentage of a subdivision has been sold, or a certain portion of a building has been completed.
HOLDER – One who rightfully acquires a negotiable instrument, such as a check or note. A holder has the same rights as an assignee, which are less than the rights of a holder in due course. See also: Holder In Due Course.
HOLDER IN DUE COURSE – The transferee of a negotiable instrument, such as a check or note, for value, in good faith and without knowledge that the instrument is in default or has been dishonored. A holder in due course has greater rights than a holder and may have greater rights than the original transferor.
HOLDING ESCROW – An open escrow for the life of a land contract, under which the escrow holder may be empowered to collect payments due under the contract and pay underlying encumbrances, and record a deed and purchase money mortgage, which are executed at the time of the inception of the land contract and held in the escrow, in the event of default by vendee. A cumbersome and costly method not used in all states, and in states where used, rapidly being replaced by the security (installment) land contract.
HOLDING PERIOD – The time period used by the IRS to determine a long or short term capital gain. The period during which the taxpayer owns the capital asset.
HOLDOVER TENANT – One who continues to occupy property after the lease expires.
HOLLOW WALL – See: Cavity Wall.
HOLLOW-NEWELL STAIR – A circular stairway having a hollow center. Usually the curve of the circle is severe.
HOLOGRAPH OR HOLOGRAPHIC WILL – A will written and executed entirely in the handwriting of the testator.
HOME EQUITY CONVERSION MORTGAGE (HECM) – The reverse mortgage program insured by the Federal Housing Administration, a federal government agency. See: Reverse Mortgage.
HOME EQUITY LINE OF CREDIT – See: Equity Line of Credit.
HOME FINANCING – A banking term for loans to construct or property of no more than 4 units.
HOME INSPECTION – A private company goes through the property being sold and writes a report detailing any structural and/or mechanical problems. If the inspection is a condition of purchase, the buyer may then cancel the purchase or offer a lower amount if defects are found.
HOME OWNERS’ ASSOCIATION – (1) An association of people who own homes in a given area, formed for the purpose of improving or maintaining the quality of the area. (2) An association formed by the builder of condominiums or planned developments, and required by statute in some states. The builder’s participation as well as the duties of the association are controlled by statute.
HOME OWNERSHIP – Ownership as opposed to a rental status. See also: Ownership.
HOME WARRANTY INSURANCE – Private insurance insuring a buyer against defects (usually in plumbing, heating, and electrical) in the home he has purchased. The period of insurance varies and both new and used homes may be insured.
HOMEKEEPER – A reverse mortgage loan from the Federal National Mortgage Association for persons 62 and older. The loan is used to purchase a home with a small down payment and no credit and income requirements. The loan is based on the number and age of the borrowers and the appraised value of the home.
HOMEOWNER’S INSURANCE – Includes the coverage of Hazard Insurance plus added coverage such as personal liability, theft away from the home (items stolen from the insured’s car), and other such coverage.
HOMESTEAD – The dwelling (house and contiguous land) of the head of a family. Some states grant statutory exemptions, protecting homestead property (usually to a set maximum amount) against the rights of creditors. Property tax exemptions (for all or part of the tax) are also available in some states. Statutory requirements to establish a homestead may include a formal declaration to be recorded.
HOMESTEAD EXEMPTION – See: Homestead.
HOMOGENEOUS – Similar or the same. In appraisal, an area having similar style properties or properties of similar use is considered more valuable than a heterogeneous area.
HOOD – A projecting canopy, as over a door or window. Any covering serving the protective purpose of a clothing hood.
HOPPER – A device used on the sides of hospital windows to prevent drafts.
HOPPER WINDOW – See: Hospital Window.
HORIZON – (1) The line where the sky and ground appear to meet, when viewed from a distance. (2) A layer of soil. (See specific A horizon, B horizon, C horizon, & D horizon).
HORIZONTAL – Parallel to the horizon. From side to side, rather than up or down.
HOSPITAL – An institution where care, nursing, and surgery are performed for the sick and injured. May be government or privately owned.
HOSPITAL WINDOW – A window that opens inwardly from bottom hinges and has hoppers (draft preventers) on its sides.
HOT AIR HEATING SYSTEM – See: Warm Air Heating System.
HOT WATER HEATER – A tank, usually glass lined, in which water is heated for household, commercial, or industrial use.
HOT WATER HEATING SYSTEM – A heating system using circulating hot water from a boiler through a series of pipes to the areas to be heated, and back to the boiler.
HOTEL – Originally, any place for travelers to spend the night. Any hotel built today would be a multi-storied structure having sleeping rooms with private bathrooms, suites, telephones in each rentable room, at least one restaurant, and many other amenities.
HOUR-INCH – A flow of one miner’s inch for one hour. The value of a miner’s inch is not standard, being 1/40th of a cubic foot per second in some areas, and 1/50th of a cubic foot per second in others.
HOUSE – Any building used as a residence. When in the phrase “the house of”, it is usually used to describe a commercial business (from the French “chez”).
HOUSE SEWER – The sewage system from the public sewer in the street to and in the house it serves.
HOUSING AND HOME FINANCE AGENCY – A federal agency created in 1947. A forerunner of HUD, having many of the same powers and duties.
HOUSING AND URBAN DEVELOPMENT (HUD), DEPARTMENT OF – The federal department responsible for the major housing programs in the United States, such as F.H.A.
HOUSING CODE – See: Building Code.
HOUSING COUNSELING AGENCY – A government agency that provides counseling and assistance to individuals on issues such as loan default, fair housing, and home buying.
HOUSING STARTS – Number of houses on which construction has begun. The figures are used to determine the availability of housing, need for real estate loans, need for labor and materials, etc.
HUD (U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT) – See: Housing and Urban Development (HUD), Department of.
HUD1 STATEMENT – Also known as a settlement sheet. It itemizes all closing costs; must be given to the borrower at or before closing.
HUMIDIFIER – A unit, usually part of a heating system, which raises the relative humidity in a room or building by the emission of water vapor into the air.
HUMMOCKS – Low mounds or conical knolls rising above the ground.
HUMUS – The organic portion of soil, formed by partially decomposed animal and vegetable matter.
HUNDRED PERCENT LOCATION – An appraisal term referring either to land of the highest value in an area, or land best suited to a specific use.
HURST – A wooded hill. A grove.
HUSBAND – A man legally married to a living woman.
HUTCH – (1) A hut or hovel used as a shelter by a person. (2) A house for rabbits.
HVAC – Heating, Ventilation and Air Conditioning.
HYDRAULIC CEMENT – A cement which resists moisture.
HYDROELECTRIC PLANT – A plant which generates electricity from flowing water, usually at a waterfall.
HYDROGRAPH – A device which records or charts the depth of water, as in a well, or flow, as in a stream.
HYPOTHECATE – To mortgage or pledge without delivery of the security to the lender.