Glossary - H

Habendum clause
In the context of real estate, the term habendum clause refers to a clause or a series of stipulations in a deed that specifies the degree to which a title or ownership, namely, fee simple or any such other title, that is being passed on to the new proprietor of a land. Derived from the Latin expression 'habendum et tenendum', the term denotes 'to have and to hold' and is usually a clause that is found often in deeds of the old. In addition, to the degree of the ownership of the land being transferred to the new owner, the habendum clause also specifies the restrictions related to the transfer of the title. Laws and guidelines regarding the provincial registry procedure have step by step brought about some sort of consistency in the variety of the habendum clause, which has now been downgraded to the category of implied covenants that are not required to be reiterated in each deed.
In legal matters, the term heir refers to a person who is authorized by the law to the rights, property or privileges of another person provided the other person dies without leaving a will or intestate behind. In other words, the term denotes a person who takes over or possesses the right to legally take over the property of another person following the latter's death. Usually, agreements or contracts pertaining to real estate incorporate a stipulation that signifies that the agreement or contract would be obligatory on all the individual heirs, successors, administrators, assigns and personal representatives.
Heritage Property
The term heritage property denotes all land and structures that are recognized as historically important and precious enough of being protected for being inherited for the future generations. The provincial laws usually specify modus operandi for classification and safeguard of properties that are important from the point of heritage. This also includes regions that are of specific significance and value historically, architecturally and culturally. Such properties are normally listed by means of the provincial registry systems and by the local municipalities. It may be mentioned here that properties that are identified as valuable from the heritage point of view usually come under laws related to external alterations. The provincial laws generally authorize suitable government departments and ministries to get hold of all real estate as well as personal property for conservation as heritage property.
High ratio mortgage
In simple words, holdback denotes a contractual stipulation whereby a specific amount of money, usually a percentage of the total agreement price is withheld till a particular even occurs. In terms of real estate, the money is withheld on contractual relating to construction or repairing any structure. Usually, the jargon as well as the procedure of withholding the money varies from on provincial jurisdiction to another.
Holding period
Holding period refers to the duration of time a real estate asset held or retained before it is disposed off for taxation reasons. In other words, holding period denotes the time between the date of purchase of a property and the date of its sale. The short-term or long-term gain or loss for tax purposes is actually dependent on the holding period. While a short-tem holding period is less than a year, the minimum long-term holding is one year and a day. On the other hand business practitioners, the holding period is also related to the estimated period of time that a real estate asset is retained with the objective of scrutinizing realty investments. In fact, the holding period presents the timing frame for studying the estimated operations and cash flows owing to sale proceeds with the objective of assessing income property, selecting investment alternatives and also enabling suitable decisions related to an investor.
Holdover provision
This is a stipulation in a contract left behind from the previous period. Basically, almost all listing arrangement used by real estate brokerages contain a holdover provision. As per this stipulation, the brokerage's power ceases on the expiry date of the listing, but in case the brokerage brings in any individual to the real estate asset during the period of the listing and that person causes a private sale with the property owner at some stage after the expiry or the listing, the owner is responsible for paying a commission to the particular brokerage. The precise phrasing and the maximum time of the holdover in a listing contract is likely to vary. In a number of cases, the time period of the listing holdover in not printed from before, but the space in the agreement is left vacant to be filled up by the brokerage or the real estate salesperson.
Home Equity Conversion
Home Equity Conversion mortgage, also known as reverse mortgage or reverse annuity mortgage, is basically an understanding or agreement whereby a home owner borrows against his or her equity in the property and receives a tax-free payment every month from the lender or mortgagee. In other words, this is a way by which a home owner is able to convert his or her equity in the property into cash without taking the trouble of either selling or renting the property.
Home equity loan
This is a procedural terminology used for a kind of second mortgage that enables a home owner to borrow against his or her equity in the property. It may also be defined as a loan secured by a primary residence or second home up to the limit of the surplus of the fair market value of the property over the liabilities incurred in purchasing it. If any home owner uses a home equity load prudently, it may enable him or her to clear non tax-free consumer loans obtained on a high rate of interest, fulfill his or her short-term requirements like meeting the expenses of remodeling a property, etc.
Home inspection
Home inspection is a procedure whereby a professional scrutinizes and assesses different sections of a residential building. This includes inspection of components, structural features, roofing system, exterior coverings, electrical, plumbing, heating, central air-conditioning, ventilation, insulation and interior construction, but is not confined to these aspects alone. A home inspection is planned to offer a prospective buyer with a comprehensive knowledge regarding the physical condition of a real estate asset as on the time of the check up. The ensuing report denotes a written synopsis of the visual assessment of the available aspects of the residential building listed for sale. It may be noted that home inspections are more or less an informal procedure as it has not been conventionally certified/ recorded or in any way controlled by any particular constitutional law associated with the subject of home inspection.
Hybrid loans
Any loan that blends characteristics of a fixed rate as well as adjustable rate mortgages is known as a hybrid loan. The opening interest rates of a hybrid loan may possibly be fixed at an identical rate for a period ranging between three to 10 years and later the interest rate is regulated or amended biannually or annually. The difference between a hybrid loan and a standard adjustable rate mortgage is that in the latter case the interest rate remains fixed only for six months to a year. It may be noted that in the instance of a hybrid loan, the longer period the interest rate remains same, the higher is the interest rate. In fact, hybrid loans are ideal for people intending to own their home for a brief period, usually less than ten years, and who usually do not prefer the instability or unpredictability of a characteristic adjustable rate mortgage.
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