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GLOSSARY of American & Mexican Real Estate Terms

H

Highest and Best Use

The legal use of a parcel of land, which when capitalized, will generate the greatest net present value of income. The first thing an appraiser should determine.

Home Inspection

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

Homeowner Association (HOA) – Asociacion de Conduenos

A group that governs a subdivision, condominium, or planned community. The association collects monthly fees from all owners to pay for common area maintenance, handle legal and safety issues, and enforce the covenants, conditions, and restrictions set by the developer.

Hypothecate

A process of pledging something (house) as security, but retaining possession of it.