Your Online Legal Resource Center for Property Management

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

NAR - (National Association of Realtors). An organization formed in 1908 consisting of individuals involved in the business of real estate, dedicated to the improvement or real estate training and ethics.

NAREB - National Association of Real Estate Boards. A trade organization which includes real estate brokers, appraisers, property managers, etc.

NATIONAL ASSOCIATION OF REAL ESTATE BROKERS - An organization of black real estate brokers who refer to themselves as "Realists."

NATURAL RESOURCES - Land, timber, water, people, minerals.

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 mortgages are susceptible.

NEGATIVE CASH FLOW - The amount of money owner's must use out of their own pockets to meet expenses when the income from a n investment is insufficient to cover them.

NEGATIVE-SLOPE DRIVEWAY - A driveway that drops from street level to the garage.

NEGOTIABLE INSTRUMENT - Legal instruments which may be assigned, transferred or sold, such as stocks, bonds, notes, mortgages.

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

NET ACRE - The amount of actual acreage that may be used for building lots after installation of streets, sidewalk, etc.

NET AFTER TAXES - The amount of money remaining after expenses before income taxes are paid, received from investment property.

NET BEFORE TAXES - The amount of money remaining after expenses and income taxes have been paid, received from investment property.

NET CASH FLOW - Investment property that generates income after expenses such as principal, interest, taxes and insurance are subtracted.

NET EARNINGS - The amount received for leasing raw land.

NET INCOME - See Net Earnings.

NET INCOME MULTIPLIER - The sales price divided by the net income equals that net income multiplier.

NET LEASE - In addition to a fixed rent, a lease which calls for payment of taxes, insurance, etc., by the lessee.

NET LISTING - A listing agreement in which the seller specifies a fixed net amount he wants to receive upon sale of property and the brokerage firm receives a sum in addition to that for services rendered. Not legal in some states.

NET LOSS - The difference between income received and expenses, when expenses are greater.

NET PROFIT - See After Net Taxes.

NET RENTAL - The amount received as rent over and above the expenses of the property.

NET WORTH - The worth of a person or company based on the difference between total assets and liabilities.

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-use buildings and housing clustered near commercial service areas.

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

"NO BONUS" CLAUSE - A clause in a lease that states a lessee may not be awarded more than the actual value of improvements he makes in the event of condemnation or taking through eminent domain.

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 the buyer's home will be will be constructed by a particular builder.

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

NO GROWTH ZONING - Zoning regulations which prohibit or restrict the fast commercial and residential growth of a city or town; generally a reflection of the attitude of people responsible for decision-making such as the city council.

NOMINAL CONSIDERATION - A reasonable amount of money or other valuable security, not necessarily a reflection of true market value.

NOMINEE - An unnamed representative of a grantee in a deed.

NON-ASSUMPTION CLAUSE - A loan provision that prohibits the transfer of a mortgage to another borrower without lender approval.

NON-CONFORMING USE - A property whose current use does not reflect current zoning regulations.

NON-JUDICIAL FORECLOSURE SALES - A real property sale by a trustee empowered under a deed of trust to foreclose without going through a court action.

NON-RECOURSE LOAN - A loan which cannot incur a deficiency judgment, the loan becomes a liability against the property and not the borrower.

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.

NON-RECURRING EXPENSE - Expenses created as a result of a natural disaster, etc., such as a flood, which are not likely to reoccur.

NOTARY PUBLIC - One who acts as an agent of the government to officially attest to the authenticity of signatures, and in some cases documents; also administer others.

NOTE - The legal document that requires a borrower to repay a mortgage at a certain interest rate over a specified period of time.

NOTE RATE - The interest rate specified in a mortgage note.

NOTICE OF ACTION - Lis Pendens. A recorded notice to interested parties that a particular property is subjected to upcoming or current litigation, a lien or defective title.

NOTICE OF COMPLETION - A legal notice posted on a completed building by a local building inspector stating that the property has been property completed according to code. When and if it is recorded will determine the validity of a mechanic's lien.

NOTICE OF DEFAULT - A lender's initial action when a mortgage payment is late and attempts to reconcile the issue out of court have failed.

NOTICE OF NON-RESPONSIBILITY - When work is requested or hired by a tenant, a mechanic's lien may not be attached to the property if the owner files a notice stating he did not contract for the services required to establish adverse possession.

NOTORIOUS POSSESSION - When an owner's property is being used without his permission, but with his knowledge, possession is said to be notorious; required to establish adverse possession.

NOVATION - Replacing old borrowers with new ones under the same obligation, such as an assumption, or replacing an old contract with a new one using the same borrowers.

NUNCUPATIVE WILL - A will given orally, just prior to a person's death, before witnesses; may not be legally binding.