Real Estate Glossary N

Nail pops - Nails in load bearing parts of new homes that pop out slightly because of settling of the structure.

National association of realtors - Formerly known as the National Association of Real Estate Boards (NAREB), it is the largest and most prestigious real estate organization in the world.

Needs-based pricing - A seller's asking price that is based on factors such as the required funds to pay off the mortgage, the cost of remodeling or the purchase of another house.  

Negative amortization - The situation occurs when a borrower's monthly payment is not large enough to cover both the principal and interest of a loan. As a result, the outstanding balance of the loan actually grows larger with each payment rather than smaller. Most fixed rate loans are not subject to negative amortization, but many adjustable rate loans are not subject to negative amortization, but many adjustable rate mortgages are susceptible.

Negative cash flow - The investment situation where cash expenditures to maintain an investment (taxes, mortgage payments, maintenance, etc.) exceed the cash income received from the investment.

Negative-slope driveway - A driveway that drops from street level to the garage.   A driveway that drops from street level to the garage.

Negotiable instrument - Any written instrument, which may be transferred by endorsement or delivery so as to vest legal title in the transferee.

Negotiation - The transaction of business aimed at reaching a meeting of minds among the parties; bargaining.

Neo-traditional planning - Planning of a community that favors the return of new home development with such traditional features as grid street patterns, prominent front porches, backyard garages, multi use buildings and housing clustered near commercial service areas.  

Net cash flow - Investment property that generates income after expenses such as principal, interest, taxes and insurance are subtracted.

Net income - The sum arrived at after deducting from gross income the expenses of a business or investment, including taxes and insurance, and allowances for vacancy and bad debts; what the property will earn in a given year's operation.

Net lease - A lease, usually commercial, whereby the lessee pays not only the rent for occupancy, but also pays maintenance and operating expenses such as tax, insurance, utilities and repairs. Thus the rent paid is "net" to the lessor.

New urbanism - A community design philosophy that favors the return of new home development with such traditional features as prominent front porches, backyard garages, multi home development with such traditional features as prominent front porches, backyard garages, multi use buildings and housing clustered near commercial service areas.

Niche - A small recessed area in a wall, traditionally arched at the top.

Nimby (not in my back yard) - The response sometimes given by neighborhoods and communities to proposed changes or development.

No cash-out refinance - The amount of the new mortgage covers the remaining balance of the first loan, closing costs, any liens and cash no more than 1 percent of the principal on the new loan.  

No-competition lots - A lot in which buyer's home will be constructed by a particular builder.  Normally residential developers arrange with specific builders to build homes on the developer’s lot.  

No-documentation loan - A loan application that does not require verification of income but typically is granted in cases of large down payments.

Nominal consideration - A consideration bearing no relation to the real value of the contract. A deed often recites a nominal consideration, such as "ten dollars and other valuable consideration."

Non-assumption clause - A loan provision that prohibits the transfer of a mortgage to another borrower without lender approval. 

Non-competition clause - A provision in a contract or lease prohibiting a person from operating or controlling a nearby business, which would compete with one of the parties to the contract. 

Nonconforming use - A permitted use which was lawfully established and maintained but which no longer conforms to the current use regulations because of a change in the zoning.

Non-disturbance clause - A clause inserted in a mortgage whereby the mortgagee agrees not to terminate the tenancies of lessees who pay their rent if the mortgagee forecloses on the mortgagor lessor's building.

Non-liquid asset - An asset such as a house that is not easily turned into cash.

Non-recurring closing costs - Costs that are one time only fees for such items as an appraisal, loan points, credit report, title insurance and a home inspection.

Normal wear and tear - That physical deterioration which occurs in the normal course of the use for which a property is intended, without negligence, carelessness, accident or abuse of the premises (or equipment or chattels) by the occupant, members of household, or their invitees or guests.

Note rate - The interest rate specified in a mortgage note.

Notice of completion - Document filed to give public notice that a construction job has been completed and that mechanics' liens must be filed within ,say, 45 days to be valid.

Notice of non-responsibility - A legal notice designed to relieve a property owner from responsibility for the cost of improvements ordered by another person.

Notice to quit - A written notice given by a landlord to his tenant, stating that the landlord intends to regain possession of the leased premises and that the tenant is required to quit and remove himself from the premises either at the end of the lease term or immediately if there is a breach of lease or if the tenancy is at will or by sufferance; sometimes refers to the notice given by the tenant to the landlord that he intends to give up possession on a stated day.

Novation - The substitution of a new obligation for an old one; substitution of new parties to an existing obligation, as where the parties to an agreement accept a new debtor in place of an old one.

Nuisance - Conduct or activity which results in an actual physical interference with another person's reasonable use or enjoyment of his property for any lawful purpose.

Null & void - Having no legal force or effect; of no worth; unenforceable; not binding.

 

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