Real Estate Dictionary

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NAME CHANGE

In conveyancing, setting forth both the present name of the grantor and the name under which said grantor acquired title, if different. For example: Joan Doe, a married woman, who acquired title as (or also known as) Joan Smith.

NARRATIVE APPRAISAL

The most detailed of the appraisal reports in which conclusions are supported and explained. The requirements for reaching said conclusions, however, do not differ from the shorter letter report of any properly done appraisal.

NATIONAL APARTMENT ASSOCIATION (NAA)

Organization of apartment owners.

NATIONAL ASSOCIATION OF CORPORATE REAL ESTATE EXECUTIVES (NACORE)

Organization of business people involved in transactions dealing with property owned by corporations.

NATIONAL ASSOCIATION OF HOME BUILDERS (NAHB)

Organization of home builders.

NATIONAL ASSOCIATION OF INDEPENDENT FEE APPRAISERS (NAIFA)

Organization of real estate appraisers, offering professional designations to qualified persons.

NATIONAL ASSOCIATION OF MASTER APPRAISERS

Organization of real estate appraisers, offering the professional designation of "master appraiser".

NATIONAL ASSOCIATION OF REAL ESTATE BOARDS (NAREB)

A national trade association whose members include not only real estate brokers, but appraisers, property managers, and other affiliated groups.

NATIONAL ASSOCIATION OF REAL ESTATE BROKERS

An organization dedicated to the betterment of the real estate industry and specifically to the role of blacks in the real estate industry. It is composed primarily of black real estate brokers who have adopted the term "Realists". Originally founded in Miami in 1947, the association is now based in Washington, D.C.

NATIONAL ASSOCIATION OF REAL ESTATE LICENSE LAW OFFICIALS (NARELLO)

Organization of members of state real estate licensing agencies.

NATIONAL ASSOCIATION OF REALTORS (NAR)

An association of people engaged in the real estate business. Organized in 1908, it currently lists over half a million members. With headquarters in Chicago, it is dedicated to the betterment of the real estate industry through education, legislation, and high ethical standards for its members.

NATIONAL ASSOCIATION OF REVIEW APPRAISERS AND MORTGAGE UNDERWRITERS

Organization offering professional designations.

NATIONAL REALTY COMMITTEE

Government lobby group for large land owners and developers.

NATIONAL SOCIETY OF REAL ESTATE APPRAISERS

Organization of real estate appraisers, offering professional designations.

NATURAL DISASTER - See: Act of God.

NATURAL FINISH

A finish which retains the color and appearance of the surface covered, such as varnish over wood, rather than paint.

NATURAL PERSON

A human being rather than some type of business entity, such as a corporation, partnership, etc.

NATURAL RESOURCES

Resources of an area, such as minerals, oil, timber, water, etc. May also include people.

NATURALIZATION

Granting citizenship to an alien. In the United States, a naturalized citizen has the rights of a native citizen, with the exception that the naturalized citizen may not hold the office of president.

NATURAL VACANCY RATE

The normal, average or traditional percentage of rental properties in a community that are not leased or occupied.

NAVIGABLE

(1) Capable of carrying commercial shipping, or boats for travel. (2) Any waters put to a public use are "navigable" in some states, giving the word a legal meaning different from its normal meaning.

NAVIGABLE WATERS

A general term which legally differs in different jurisdictions. May mean a body of water capable of carrying a commercial vessel, or a body of water large enough to ebb and flow. In some areas, minor streams have been held to be navigable.

NEAP TIDE

The tide during the first and third quarters of the moon; not as high as in the second and fourth quarters.

NEGATIVE AMORTIZATION

A condition created when a loan payment is less than interest alone. Even though payments are made on time, the amount owing increases.

NEGATIVE AMORTIZATION CAP

A limit, expressed as a percentage of the principal, of the negative amortization allowed under a variable or adjustable rate mortgage.

NEGATIVE CASH FLOW

When the income from an investment property does not equal expenses. The owner must come up with cash each month to meet these expenses.See also: Cash Flow.

NEGATIVE EASEMENT

The servient estate or tenement. See: Easement Appurtenant.

NEGATIVE EQUITY LOAN

See: Title One Loan; Title One Look Alike Loan.

NEGATIVE LEVERAGE

A loss that occurs when the cost of borrowing exceeds the return on the investment. Example: A building with a six percent return if debt free would return less if a seven percent mortgage were placed on the property.

NEGOTIABLE

Capable of being transferred by negotiation (e.g. A negotiable instrument) rather than being assigned. A Transferee by negotiation may acquire greater rights than an assignee. (See: Holder In Due Course).

NEGOTIABLE INSTRUMENT

As defined by the Uniform Commercial Code, article 3 - 104: "(1) Any writing to be a negotiable instrument within this article must (A) Be signed by the maker or drawer; and (B) Contain an unconditional promise or order to pay a sum certain in money and no other promise, order, obligation or power given by the maker or drawer except as authorized by this article; and (C) Be payable on demand or at a definite time; and (D) Be payable to order or to bearer". Instruments which may be negotiable are: a draft (bill of exchange); a check: a certificate of deposit; a note.

NEGOTIABLE ORDER OF WITHDRAWAL CHECKING ACCOUNT (NOW ACCOUNT)

An interest bearing checking account which limits the amounts which may be withdrawn over a given period.

NEGOTIABLE RATE MORTGAGE

See adjustable rate mortgage or variable rate mortgage.

NEGOTIATION

The act of discussing an issue between two or more parties with competing interests with an aim of coming to an agreement.

NEIGHBORHOOD

An area of a municipality which is identifiable by a common use, a common atmosphere or a common business area. Since the development of tract housing, the term is not as applicable as it used to be.

NEIGHBORHOOD LIFE CYCLE

The pattern of development and change of a neighborhood over a period of time.

NEIGHBORHOOD SHOPPING CENTER

A group of retail stores, usually limited to food and convenience service stores (dry cleaner, barber, etc.) serving a limited area (neighborhood), and having common parking and ownership or management.

NET ACRE

An acre which may be used for building of structures. For example: A builder buys ten acres of raw land on which to build houses. Three acres are used for streets, sidewalks, and other off-site improvements. The remaining seven acres are the net acres of the ten acre site.

NET AFTER TAXES

The net income from property after income tax is paid. See also: Net Before Taxes; Net Income.

NET BEFORE TAXES

Net income before payment of income tax, but after payment of property taxes. See also: Net After Taxes; Net Income.

NET CASH FLOW

The amount of money leftover from the income of a property after all costs and expenses of the property have been paid.

NET EARNINGS

See: Net Income.

NET EFFECTIVE INCOME

A person's gross pay minus federal taxes.

NET GROUND LEASE

A net lease of unimproved land.

NET INCOME

The difference between adjusted gross income and operating expenses. May or may not include depreciation.

NET INCOME MULTIPLIER

The number which, when multiplied by the net income, gives the selling price. Found by dividing the sales price by the net income. Usually, a gross income multiplier is used.

NET LEASABLE AREA

See: Rentable Area.

NET LEASE

A lease requiring the tenant to pay, in addition to a fixed rental, the expenses of the property leased, such as taxes, insurance, maintenance, etc. In some states the terms net net, net net net, triple net, and other such repetitions are used. See also: Gross Lease.

NET LISTING

A listing under which a real estate agent receives any amount over a given net amount to the seller. Illegal in some states.

NET LOSS

The excess of expense over income for a given period. May be more complicated in accounting procedures.

NET NET

See: Net Lease.

NET OPERATING INCOME (N.O.I.)

The difference between the effective (also called adjusted) gross income of a property, and the operating expenses (not including debt service and book depreciation).

NET PROFIT

Remainder after deduction of all expenses from income for a given period. Generally classified as either net before taxes, or net after taxes.

NET RENTABLE AREA

See: Rentable Area.

NET RENTAL

Rental over and above the expenses of the property.

NET SALES AREA

The area (usually expressed in square feet) in a retail store where products are displayed and sold.

NET USABLE ACRE

See: Net Acre.

NET WORTH

The difference between total assets and liabilities of an individual, corporation, etc.

NEWEL

The post around which winds a circular stairway. In a noncircular stairway, the major post at the bottom of the stairway or at a landing.

NEW ENGLAND COLONIAL

A two and a half storey, early-American house which is generally symmetrical in shape with a shingle-covered gable roof, often made of clapboard siding.

NEW ENGLAND FARMHOUSE

Another simple, symmetrical, early-American house, often with a steeply inclined roof and white siding.

NEW TOWN

A planned community in which a large, undeveloped parcel of land is designed and built as an independent community along a carefully structured plan.

NO BID

Where the VA chooses not to acquire a property in foreclosure upon default but instead to pay out on the amount it has guaranteed of the mortgage (generally 60% of the principal).

NO BONUS CLAUSE

A clause under the eminent domain section of a lease, giving the lessee the right to recover only the value of his physical improvements in the event of a taking, and not the value of the leasehold interest (the difference between the fixed rent of the lease and current market rental value). Not applicable in all states.

NO CASH-OUT REFINANCE

The replacement of a matured loan with a new loan where no additional principal is borrowed and added to the loan.

NO CHANGE SCENARIO

A method of calculating the future payments required under a variable or adjustable rate mortgage on the assumption that the index (and therefore the interest chargeable on the mortgage) will not change.

NOMINAL CONSIDERATION

Consideration in name only, and not related to the market value of the property. Still considered valuable consideration and the purchaser is considered a purchaser for value.

NO MONEY DOWN

Slang description of real estate purchase strategies which allow the purchaser to obtain title to a property while paying little or no money of her own.

NOMINAL LOAN RATE

The interest rate stated on the loan agreement.

NOMINEE

Most commonly used in a deed, such as to John Doe, or nominee, when the actual grantee is not revealed. Has no legal meaning, other than representative of another.

NON-ASSUMPTION CLAUSE

A term of a mortgage contract that forbids the transfer of the mortgage to a new owner without prior consent of the lender.

NONBEARING WALL

A mortgage or loan that is not eligible for Fannie Mae (FNMA) or Freddie Mac (FHLMC) programs.

NON-CONFORMING USE

The occupation and use of a property in a fashion which is contrary to the zoning regulations for the property. A Legal Non-conforming Use is one where the non-conforming use predates the zoning by-law such that, as long as it is continued, it is legal.

NONDISTURBANCE CLAUSE

A term of a mortgage which guarantees that leases regarding the subject property will be allowed to continue uninterrupted in the event of mortgage default.

NONEXCLUSIVE LISTING

A listing under which the real estate broker has an exclusive listing as opposed to other agents, but the owner may sell the property without using an agent, and not be liable to pay a commission. Also called an agency agreement.

NONJUDICIAL FORECLOSURE SALE

Sale by a trustee under a deed of trust, or mortgagee under a power of sale of a mortgage. There is no court (judicial) proceeding.

NON-PERMANENT RESIDENT ALIEN

A category of person who lives and works in the U.S. but is expected to return to her country of origin in the future. May face certain restrictions when it comes to qualifying for a mortgage.

NONPROFIT CORPORATION

See: Eleemosynary Corporation.

NONRECOURSE LOAN

A loan not allowing for a deficiency judgement. The lender's only recourse in the event of default is the security (property) and the borrower is not personally liable.

NONRECURRING EXPENSE

An expense which does not usually repeat itself, such as a fire or other natural disaster.

NOSING

The edge of a step which projects over the riser below.

NOTARY PUBLIC

One who is authorized by the state or federal government, to administer oaths, and to attest to the authenticity of signatures. A federal authorization may extend the authority to attest to the authenticity of certain documents, and to act as a notary in foreign countries.

NOTARIAL COPY

A facsimile of a document which has been examined by a Notary Public and certified to be an accurate reproduction of the original.

NOTARIZE

To confirm the signature of another in one's official capacity as a notary public.

NOTE

A unilateral agreement containing an express and absolute promise of the signer to pay a named person, or order, or bearer, a definite sum of money at a specified date or on demand. Usually provides for interest and, concerning real property, is secured by a mortgage or trust deed.

NOTE RATE

The interest rate as set out in the mortgage/loan contract.

NOTICE

See types of notice: Actual; Constructive; Statutory.

NOTICE OF ACTION

A recorded notice that property may be subject to a lien, or even that the title is defective, due to pending litigation. Notice of a pending suit. Also called "Lis Pendens".

NOTICE OF CESSATION

A notice stating that work has stopped on a construction project. Done to accelerate the period for filing a mechanic's lien.

NOTICE OF COMPLETION

A notice, recorded to show that a construction job is finished. The length of time in which mechanic's liens may be filed depends upon when and if a notice of completion is recorded.

NOTICE OF DEFAULT

A notice filed to show that the borrower under a mortgage or deed of trust is in default (behind on payments).

NOTICE OF NONRESPONSIBILITY

A notice filed by an owner of property to show that work being done has not been contracted for by said owner. If properly done, mechanic's liens will not attach to the property. Often done when a tenant contracts for work on property.

NOTICE OF RECISION

A recorded notice to rescind a notice of default of a mortgage or deed of trust.

NOTICE TO QUIT

A notice by a landlord to a tenant to vacate rented property. There are two types; for nonpayment of rent or a second type for any reason. Usually the notice for nonpayment allows less time to vacate.

NOTORIOUS POSSESSION

A requirement for adverse possession. Possession so open (notorious) that the owner is presumed to have notice of it and its extent.

NOVATION

A contract that releases the obligation of a party to an existing contract and substitutes another party. Differs from assignment or delegation in that all parties must agree and an assignor or delegator is not released of obligation.

NOW

See: Negotiable Order of Withdrawal.

NPL

See: National Priorities List.

NUISANCE

A use of property which interferes with the use and enjoyment of other property by excessive noise, odors, fumes, or other harmful or unpleasant emissions.

NULL AND VOID

Void. Not legally binding. See also: Voidable.

NULLA BONA

No goods. The name of the return made by the sheriff to a writ of execution, when he has found no goods of the defendant on which to levy within the jurisdiction.

NUNC PRO TUNC

Now for then. Applied to acts or entries allowed to be done after they should have been done, with a retroactive effect.

NUNCUPATIVE WILL

A verbal "death bed" will. Not valid in all states and restricted to personal property of limited value.

NUT

A slang term See: Overhead.

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