| Term | Definition |
|---|
| home warranty | A service contract that covers a major housing system--for example, plumbing or electrical wiring--for a set period of time from the date a house is sold. The warranty guarantees repairs to the covered system and is renewable. A basic, one year Buyer's warranty costs $295 to $350 with additional coverage available for garage door openers, spas, swimming pools, sprinkler system and other appliances. |
| homeowners' association (HOA) | An organization comprising neighbors concerned with managing the common areas of a subdivision or condominium complex. These associations take on issues such as maintaining common land and recreation areas, and collecting dues from residents. The homeowners' association is also responsible for enforcing any covenants, conditions & restrictions that apply to the property. Payment of dues and participation in the homeowner's association may be either voluntary or mandatory, depending on the neighborhood. |
| homeowners' insurance | A type of insurance policy designed to protect homeowners from financial losses related the ownership of real property. In addition to covering losses due to vandalism, fire, hail, etc.(hazard insurance), most policies also provide theft and liability coverage. Flood related damage requires a separate flood insurance policy or rider. |
| homestead | (1) The house in which a family lives, plus any adjoining land and other buildings on that land. (2) 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. Homestead protection will not stop foreclosures for deliquent mortgages, taxes or mandatory homeowner's association dues. |
| house closing | The final transfer of the ownership of a house from the seller to the buyer, which occurs after both have met all the terms of their contract and the deed has been recorded. Also known as just "closing". |
| Housing and Urban Development, Deparment of (HUD) | The U.S. Department of Housing and Urban Development. This is the agency responsible for enforcing the federal Fair Housing Act. |
| HUD | Acronym - Housing and Urban Development. |
| implied warranty of habitability | A legal doctrine that requires landlords to offer and maintain livable premises for their tenants. If a landlord fails to provide habitable housing, tenants in most states may legally withhold rent or take other measures, including hiring someone to fix the problem or moving out. See constructive eviction. |
| improvements | Valuable additions to the land, such as buildings, fences, roads, etc., which increase the value of the property. |
| incidents of ownership | Any control over property. If you give away property but keep an incident of ownership--for example, you give away an apartment building but retain the right to receive rent-- then legally, no gift has been made. This distinction can be important if you're making large gifts to reduce your eventual estate tax. |
