Philippine Real Estate Glossary

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Hazard Insurance
Insurance coverage that compensates for physical damage to a property from fire, wind, vandalism, or other hazards.

Highest and Best Use Principle
The use which will bring the optimum or highest returns or advantage as a of a certain time.

Hold Over Clause
A provision in listing agreement which entitles the broker to commission even when he closed the sale after the period of the authority provided that the buyer was registered by him with the seller and with whom he has negotiated during the period of his authority.

Home Equity Conversion Mortgage
A special type of mortgage that enables older home owners to convert the equity they have in their homes into cash, using a variety of payment options to address their specific financial needs. Unlike traditional home equity loans, a borrower does not qualify on the basis of income but on the value of his or her home. In addition, the loan does not have to be repaid until the borrower no longer occupies the property. Sometimes called a reverse mortgage.

Home Equity Line of Credit
A mortgage loan, which is usually in a subordinate position, that allows the borrower to obtain multiple advances of the loan proceeds at his or her own discretion, up to an amount that represents a specified percentage of the borrower's equity in a property.

Homeowners Insurance
Homeowner's insurance -- also called "hazard insurance" -- should be equal to at least the replacement cost of the property you want to purchase. Replacement cost coverage ensures that your home will be fully rebuilt in case of a total loss.

Homeowner's Insurance for Reverse Mortgages
Homeowner's insurance (also called "hazard insurance") is required and should be equal to at least the replacement cost of the home you want to purchase. Replacement cost coverage ensures that your home will be fully rebuilt in case of a total loss.

Homeowner's 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.

Homeowner's Warranty
A type of insurance that covers repairs to specified parts of a house for a specific period of time. It is provided by the builder or property seller as a condition of the sale.

HomeStyle Construction-to-Permanent Mortgage
This mortgage gives you the financial power to build your own home -- you can borrow money to build a home from the ground up or to finish building a home that's currently under construction. This loan provides financing from the construction through the purchase phases of your new home.

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

Hypothecate
To give a thing as security without the necessity of giving up possession of it.