Real Estate Terms
National Association of Realtors (NAR) - An association of real estate licensees organized for the betterment of the real estate industry through educational, legislation and the setting of higher standards for members
National Society of Appraisers - An organization promoting standards and professionalism within the members
Natural Vacancy Rate - The natural occurence of vacancy rates in a given area due to natural conditions
Navigable Waters - A body of water large enough to accomodate a commercial vessel and leading to a larger body of water
Negative Amoritization - Occurs when monthly payments fail to cover the interest cost. The interest that isn't covered is added to the unpaid principal balance, which means that even after several payments the borrowers could owe more that they did at the beginning of the loan. Negative amoritization can occur when an ARM has a payment cap that results in monthly payments that aren't high enough to cover the interest
Negative Cash Flow - A condition that occurs when the income from an investment property is not enough to cover the expenses.
Negotiable - Open for discussion
Neighborhood - A subsection of a municipality consisting of similar properties
Net Acre - The portion of an acre that may be used for building structures
Net Income - The amount left over after subtracting expenses from adjusted gross income. May or may not include depreciation
Net Income Multiplier - the factor which multipled by the net income to obtain the selling price
Net Lease - A lease whereby the tenant is obligated to pay the expenses of a property in addition to rent
Net Leasable Area - The space left over after subtracting common areas that can be rented out
Net Listing - A type of listing agreement (illegal in some states) whereby the listing agent receives compensation for any amount over a specified net amount to the seller.
Net Operating Income (NOI) The amount left over after subtracting the expenses from adjusted gross income not including debt service or depreciation
Net Worth - The difference between total assets and total liabilities
No-Cost Loan - A loan from a lender with no costs to obtain the loan
No-Point Loan - A loan with no points. Usually the interest rate will be slightly higher
Non Conforming Use - A property that does not conform or no longer coforms to zoning laws
Normal Wear and Tear - A term that describes the natural deteriation of a property through normal use
Note - An agreement that promises repayment from one person to another by a specified date
Notice of Action - A legal notice showing a lien on a property or a cloud on the title to a property
Notice of Default - A legal notice showing a borrower is in default
Null and Void - Not legally binding
Real Estate Terms beginning with M
Real Estate Terms beginning with O