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Real Estate Glossary of Terms
Looking for the definition of a real estate
term? Click on a letter of the alphabet below to go to that letter's
corresponding page of terms.
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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.
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.
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.
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.
NET
WORTH - The value remaining after
deducting liabilities from assets.
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-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.
NON-CONFORMING 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.
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
- A document signed by the
borrower of a loan, stating the loan amount, the interest rate, the time and
method of repayment and the obligation to repay. The note is the evidence of
the debt. When secured by a mortgage, it is called a mortgage note.
NOTICE - (1) Legal notice is
notice which is required to be made by law, or notice which is imparted by
operation of law as a result of the possession of property or the recording
of documents. (2) Notice which is required by contract, for example, when
the parties agree to terminate a contract by the written notice of either
party 30 days prior to termination.
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 DEFAULT - A notice to a defaulting party that there has been a default, usually
providing a grace period in which to cure the default.
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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