 |
| National Association of Realtors (NAR) | 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 Absorption | The square feet leased in a specific geographic area over a fixed period-of-time after deducting space vacated in the same area during the same period. See also “Gross Absorption”. |
|
| 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 Operating Income (NOI) | The income projected for an income-producing property after deducting losses for vacancy and collection and operating expenses. |
|
| Net Rentable Area | The floor area of a building that remains after the square footage represented by vertical penetrations, such as elevator shafts, etc., has been deducted. Common areas and mechanical rooms are included and there are no deductions made for necessary columns and projections of the building. (This is by the Building Owner and Manager Association - BOMA, Standard). |
|
| Net Square Footage (S.F.) | The space required for a function or staff position. Also see "Circulation Factor and "Usable Square Footage". |
|
| 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-Compete Clause | A clause that can be inserted into a lease specifying that the business of the tenant is exclusive in the property and that no other tenant operating the same or similar type of business can occupy space in the building. This clause benefits service-oriented businesses desiring exclusive access to the building’s population (i.e. travel agent, deli, etc.). |
|
| 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. |
|
| Non-Disturbance Agreement | The tenant signs this to prevent himself from being evicted if the property owner does not pay its mortgage to the bank. |
|
| Non-Recourse Loan | A loan which bars a lender from seeking a deficiency judgment against a borrower in the event of default. The borrower is not personally liable if the value of the collateral for the loan falls below the amount required to repay the loan. |
|
| 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. |
|
| Notary Public | A public officer who is authorized to witness and verify certain documents (e.g., contracts, deeds, mortgages). Also, an affidavit may be sworn before this public officer. |
|
| 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 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. |
|
