N | RISMedia

NAR – See National Association of REALTORS®

Narrative appraisal report – brief form – A summary of all factual materials, techniques and appraisal methods used by an appraiser in setting forth his or her conclusion of value.

Narrative appraisal report – full form – A self contained in-depth report of all factual materials, techniques and appraisal methods used by the appraiser in setting forth his or her conclusion of value.

National Association of REALTORS®, NAR – A national trade group of real estate licensees.

National Flood Insurance Program – See Federal Emergency Management Agency the administrator of this program.

National Savings and Loan League – The national professional and trade association for individual savings and loan associations.

Natural person – A living person as distinguished from a legal person such as an organization or a corporation.

Natural vacancy rate – The resultant vacancy rate for a real property market if supply and demand were in balance and the level to which vacancy rates will return to over the long term. It is also a market benchmark by which current vacancy rates are considered to be too high or too low.

Necessaries – An economic term referring to the essentials such as food and shelter that are required to exist.

Negative amortization – A loan in which the outstanding principal balance goes up instead of down because the monthly payments are not large enough to cover the full amount of interest due and being insufficient the unpaid interest needs to be added to the principal amount.

Negative cash flow – A condition in which an owner must pay out funds in order to operate the property due to insufficient income or profit.

Negative easement – The right to compel a land owner to refrain from blocking ones right to light or air which would otherwise normally be a lawful use of land.

Negative fraud – The act of not disclosing a material fact which thereby induces him or her to enter into a contractual situation that causes him or her damage or loss.

Negotiable – The capablity of being assigned or transferred in the ordinary course of business.

Negotiable instrument – A written promise or order to pay a specific sum of money that may be transferred by endorsement or delivery which gives the receiving party the right to receive payment.

Negotiation – The bargaining process that precedes a successful contractual agreement and which generally creates a win-win situation for all of the parties.

Neighborhood – A smaller area of a larger community having similar type occupants, buildings and businesses.

Neighborhood shopping center – The smallest type of shopping center from about 30,000 to 100,000 square feet which provides for the sale of convenience goods such as drugs, and food, etc. and personal services that meet the daily needs of a surrounding neighborhood trade area and which a supermarket is the principal tenant.

Net income – The profit or money remaining after the expenses have been deducted from all income.

Net income multiplier – A numerical factor that give an estimate of the value of a property when the net operating income is multiplied by it.

Net lease – A lease in which the tenant pays specific agreed-upon property expenses in addition to the rent such as maintenance, insurance or taxes which the lessor normally pays.

Net listing – A listing that is illegal in most states which provides that the licensee may retain as compensation for the licensee’s services all sums received over and above a predetermined net price asked for by the owner.

Net operating income, NOI – The result arrived at by subtracting all of a business’ operating expenses except income taxes and financing expenses from its gross income.

Net profit – The result arrived at by subtracting all of a business’ operating expenses from its net operating income.

Net spendable income – The cash remaining from gross income after deducting operating expenses, principal and interest payments and income taxes. Also called Spendable income.

Net worth – The value of a business or a property that is remaining after all debts and obligations have been removed.

Neutral depository – An escrow or similar business conducted by someone who is a licensed escrow holder.

New England colonial – An early-American-style, 2 ½ story boxlike house that is generally symmetrical, square, or rectangular with side or rear wings with narrow clapboard siding and a gable type shingled roof.

New England farmhouse – An early-American-style house that is simple and box-shaped with white clapboard exterior siding and a steeply-pitched roof for shedding heavy snow.

New town – A large mixed-use development built in the early 1970s under financial assistance from the federal government in a previously undeveloped areas designed to avoid unplanned development as a live, shop and work community to attract population into less developed regions under a central plan and of which Columbia, Maryland and Reston, Virginia are excellent examples.

Nominal interest rate – The percentage of interest named or stated in the loan documents.

Nominal tax – The named income tax rate paid.

Nonbearing wall – A wall used as a divider that does not carry any weight load.

Noncompete clause – An agreement where one party promises not to offer to sell or produce similar goods or services close to another party.

Noncompetition clause – See Noncompete clause.

Nonconforming loan – A loan that does not meet the standards of or is too large to be purchased by FNMA or FHLMC and where the interest rate is at least ½ a percentage point higher than a conforming loan and/or more discount points.

Nonconforming use – A property use that is permitted to continue in a zoning area where such use is prohibited.

Nonhomogeneity – That which is lacking uniformity or similarity and is popular in real estate because no two parcels of land are exactly alike.

Non-institutional lender – A source of funds for real estate loans other than a bank or similar institution such as mortgage companies, pension funds, individuals and finance companies.

Nonrecourse – The broad meaning of having no personal liability and in real estate a type of note whereby a lender agrees that in the event of default, to take the pledged property as satisfaction for the debt and have no claim on any other assets of the borrower. See Liability.

Nonresident – A person who resides in another state.

Nonresidential – A type of property other than housing such as office buildings, shopping centers, industrial parks, churches, etc.

Nonzoning – A nonrestrictive use of the land by way of zoning regulations.

Normal wear and tear – The physical depreciation arising from ordinary use of the property and its age.

Notary public – A government-appointed officer having the authority to take the acknowledgments of persons executing or signing documents and a party who signs the certificate and affixes an official seal.

Note – A unilateral written agreement acknowledging a debt concerning real property that contains an express and absolute promise with the signer promising to pay according to the specified terms and conditions to a named person, or order, or bearer, a definite sum of money at a specified date or on demand and that usually provides for interest and which is secured by a mortgage or trust deed. Also called a promissory note

Note rate – A rate stated on an annual basis that determines the amount of interest charged to the borrower. Also called the accrual rate, contract rate or coupon rate.

Notice – An official communication of one party’s intent to take action of a legal nature. See Constructive notice, Notice of default, Notice of nonresponsibility, Notice to quit.

Notice of cessation – A notice filed by an owner after work has ceased on a construction project thereby limiting the time in which the original contractor and all other subcontractors can file a mechanic’s lien.

Notice of completion – A notice recorded by the party who ordered the work or improvements which places time limits for recording a mechanic’s lien.

Notice of default – A letter sent as a reminder to a borrower who has breached one or more of the loan covenants that may indicate a grace period and any penalties for failing to cure the default.

Notice of intention to sell – A document that is recorded and published prior to the sale of a business opportunity in order to give notice to the seller’s creditors. Also called Notice to creditors of bulk transfer.

Notice of nonresponsibility – A notice provided by law designed to relieve a property owner from the responsibility for the cost of unauthorized work done on the property or materials furnished therefore which must be verified, recorded and posted on the property.

Notice of trustee’s sale – A notice that is given by being published that indicates that a trustee’s sale is going to be held to sell a property to satisfy a debt.

Notice to quit – A notice to a tenant to vacate rented property.

Notorious possession – The generally-acknowledged possession of real estate which is one of the requirements for acquiring real estate ownership through adverse possession.

Novation – The substitution or exchange of a new obligation or contract for an old one by the mutual agreement of the parties such as where parties to an agreement accept a new debtor in the place of the previous one.

Nuisance – The conduct or activity by one party that does not involve entry or trespass onto the property but which results in the another party’s inability to reasonably use or enjoyment of his or her own property. See Trespass.

Null and void – Being of no legal validity or effect.

Nuncupative will – An oral will given by a testator at or near his or her death that was made before a witnesses(s) that subsequently was reduced to writing.

Real Estate Hot Topics

Profit Center: Real Estate Tips, Training & Events

RISMedia Solutions

RISMedia on the Go

Today's Featured Listing

N

Real Estate Magazine

Subscribe To Our Daily Newsletter!