| 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.
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.
NONDISTURBANCE 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
NONRESPONSIBILITY - 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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