REAL ESTATE DICTIONARY

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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 BROKERS (NAREB):
Organization of real estate salespersons and brokers.

NATIONAL ASSOCIATION OF REAL ESTATE LICENSE LAW OFFICIALS (NARELLO):
Organization of members of state real estate licensing agencies.

NATIONAL ASSOCIATION OF REALTORS (NAR):
Organization of Realtors.

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

NEGATIVE AMORTIZATION:
When the periodic payments on a loan are not sufficient to pay the interest which has accumulated during the previous period resulting in an increase rather than a decrease in the amount owing on the mortgage.

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 a business or property generates less money in a given period than the cost of operating and maintaining it.

NEGOTIABLE INSTRUMENT:
A document which has a cash value which may be traded, given or sold.

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

NEIGHBORHOOD:
An area of a municipality which is identifiable by a common use, a common atmosphere or a common business area.

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 EFFECTIVE INCOME:
A person's gross pay minus federal taxes.

NET INCOME:
The amount of money left over after all costs and expenses have been paid.

NET LEASABLE AREA:
The area in a building which is available for rent to tenants (excludes common areas, wasted space, etc.).

NET LEASE:
A rental agreement wherein the tenant pays a portion of the expenses of the property in addition to the rent set out in the agreement; the landlord receives the full amount of the rent paid with no liability for expenses.

NET LISTING:
The marketing for sale of a property under an agreement between the agent and the owner in which the parties agree to a sale price (the net price). The vendor is guaranteed to receive the net price while the agent's commission is equal to the amount in excess of the net price for which the property actually sells. May not be legal in some jurisdictions.

NET OPERATING INCOME (NOI):
The income from a property or business left over after the costs of operating the property or business have been paid.

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 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.

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.

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.

NON-CONFORMING LOAN/MORTGAGE:
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 real estate listing to which no one agent or broker has claim.

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.

NORMAL WEAR AND TEAR:
Damage to the condition of an asset which results from use and the passage of time.

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.

NOTARY PUBLIC:
A designation authorized by law and administered by the government, allowing a designated person to verify and certify signatures and copies of documents.

NOTE:
A written instrument of indebtedness, promising to pay a certain person a particular sum of money upon stated terms.

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

NOTICE:
Written warning to another of a person's intention to do something or take some (legal) action.

NOTICE OF DEFAULT:
The written notice sent by a lender to a borrower stating that the borrower has not met his obligations under the loan contract and the lender may take legal action to enforce the agreement.

NOTICE TO QUIT:
A notice from a landlord to a tenant ordering the tenant to leave the property.

NOTORIOUS POSSESSION:
Occupation and control of a property which is obvious and accepted by the public. May lead to a claim of title under the rules of adverse possession if the possessor is not the owner of the property.

NOVATION:
The substitution of a new person for one of the parties to an agreement, on consent of all people involved.

NUISANCE:
A legal term referring to any use of land which interferes with the use and enjoyment of neighboring lands. A nuisance may be actionable by the injured party.

NULL AND VOID:
Unenforceable, no longer of any effect. A contract for which a condition precedent has failed is considered "null and void".