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Real Estate Glossary

Letter N

Name ChangeIn conveyancing, setting forth both the present name of the grantor and the name under which said grantor acquired title, if different. For example: Joan Doe, a married woman, who acquired title as (or also known as) Joan Smith.

NAREB (National Association of Real Estate Brokers)A national trade association whose members include not only real estate brokers, but appraisers, property managers, and other affiliated groups.

NAR(National Association Of Realtors®)An association of people engaged in the real estate business. Organized in 1908, it currently lists over half a million members. With headquarters in Chicago, it is dedicated to the betterment of the real estate industry through education, legislation, and high ethical standards for its members.

Narrative AppraisalThe most detailed of the appraisal reports in which conclusions are supported and explained. The requirements for reaching said conclusions, however, do not differ from the shorter letter report of any properly done appraisal.

Narrative ReportA type of appraisal report that provides the most detailed analysis, as it allows the appraiser to comment fully on the opinions and conclusions of the appraisal.

National Association Of Real Estate BrokersAn organization dedicated to the betterment of the real estate industry and specifically to the role of blacks in the real estate industry. It is composed primarily of black real estate brokers who have adopted the term "Realists". Originally founded in Miami in 1947, the association is now based in Washington, D.C.

National Association Of Realtors® (NAR®)America's largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries, including brokers, salespeople,property managers, appraisers, and counselors.

National Priorities ListThe list of sites which the Environmental Protection Agency considers the most hazardous and are not being used (usually abandoned). The list relies on the Hazard Ranking System (see which).

Natural AttachmentsThings growing on a piece of land, such as trees, shrubs, or crops; considered part of real property while growing and personal property when removed. Compare: Fixture.

Natural DisasterSee: Act of God.

Natural FinishA finish which retains the color and appearance of the surface covered, such as varnish over wood, rather than paint.

NaturalizationGranting citizenship to an alien. In the United States, a naturalized citizen has the rights of a native citizen, with the exception that the naturalized citizen may not hold the office of president.

Natural PersonA human being rather than some type of business entity, such as a corporation, partnership, etc.

Natural ResourcesResources in an area, such as minerals, oil, timber, water, etc. May also include people.

Navigable(1) Capable of carrying commercial shipping or boats for travel. (2) Any waters put to public use are "navigable" in some states, giving the word a legal meaning different from its normal meaning.

Navigable WatersA general term which legally differs in different jurisdictions. May mean a body of water capable of carrying a commercial vessel, or a body of water large enough to ebb and flow. In some areas, minor streams have been held to be navigable.

Neap TideThe tide during the first and third quarters of the moon; not as high as in the second and fourth quarters.

Negative Amortization CapA limit on the amount of negative amortization that can occur with an adjustable rate mortgage.

Negative Cash FlowWhen the income from an investment property does not equal expenses. The owner must come up with cash each month to meet these expenses.See also: Cash Flow.

Negative EasementThe servient estate or tenement. See: Easement Appurtenant.

Negative Equity LoanSee: Title One Loan; Title One Look Alike Loan.

Negative LeverageA loss that occurs when the cost of borrowing exceeds the return on the investment. Example: A building with a six percent return if debt free would return less if a seven percent mortgage were placed on the property.

NegligenceCarelessness and inattentiveness resulting in violation of trust. Failure to do what is required.

NegotiableCapable of being transferred by negotiation (e.g. A negotiable instrument) rather than being assigned. A Transferee by negotiation may acquire greater rights than an assignee. (See: Holder In Due Course).

Negotiable InstrumentAs defined by the Uniform Commercial Code, article 3 - 104: "(1) Any writing to be a negotiable instrument within this article must (A) Be signed by the maker or drawer; and (B) Contain an unconditional promise or order to pay a sum certain in money and no other promise, order, obligation or power given by the maker or drawer except as authorized by this article; and (C) Be payable on demand or at a definite time; and (D) Be payable to order or to bearer". Instruments which may be negotiable are: a draft (bill of exchange), a check: a certificate of deposit; a note.

Negotiable Order Of Withdrawal Checking Account (Now Account)An interest bearing checking account which limits the amounts which may be withdrawn over a given period.

NeighborhoodA general term describing a contiguous area of similar properties. Since the development of tract housing, the term is not as significant.

Neighborhood Shopping CenterA group of retail stores, usually limited to food and convenience service stores (dry cleaner, barber, etc.) serving a limited area (neighborhood), and having common parking and ownership or management.

Net AcreAn acre which may be used for building of structures. For example: A builder buys ten acres of raw land on which to build houses. Three acres are used for streets, sidewalks, and other off-site improvements. The remaining seven acres are the net acres of the ten acre site.

Net After TaxesThe net income from property after income tax is paid. See also: Net Before Taxes; Net Income.

Net Before TaxesNet income before payment of income tax, but after payment of property taxes. See also: Net After Taxes; Net Income.

Net Cash FlowThe amount of money an investor pockets after paying all expenses of a property, including operating and mortgage costs. See also: Net Income; Net Operating Income (NOI).

Net EarningsSee: Net Income.

Net Ground LeaseA net lease of unimproved land.

Net IncomeThe difference between adjusted gross income and operating expenses. May or may not include depreciation.

Net Income MultiplierThe number which, when multiplied by the net income, gives the selling price. Found by dividing the sales price by the net income. Usually, a gross income multiplier is used.

Net Leasable AreaSee: Rentable Area

Net LeaseA lease requiring the tenant to pay not only rent but also costs incurred in maintaining the property, including taxes, insurance, utilities, repairs. If the tenant pays for everything, it is referred to as a triple net lease.

Net ListingA listing under which a real estate agent receives any amount over a given net amount to the seller. Illegal in some states.

Net Listing AgreementA listing agreement inwhich the seller sets a net amount acceptable fora property; if the actual selling price exceeds thatamount, the broker is entitled to keep the excessas commission; illegal in New York.

Net LossThe excess of expense over income for a given period. May be more complicated in accounting procedures.

Net Net; Net Net NetSee: Net Lease.

Net Operating IncomeThe gross income of the property minus vacancy, collection losses, and operating expenses (not including debt service).

Net Operating Income (N.O.I)The difference between the effective (also called adjusted) gross income of a property, and the operating expenses (not including debt service and book depreciation).

Net Operating Income (NOI)Income left after all operating costs are paid.

Net ProfitRemainder after deduction of all expenses from income for a given period. Generally classified as either net before taxes, or net after taxes.

Net Rentable AreaSee: Rentable Area.

Net RentalRental over and above the expenses of the property.

Net Sales AreaThe area (usually expressed in square feet) in a retail store where products are displayed and sold.

Net To SellerAn estimate of the money a seller should receive from a real estate transaction, based on the selling price after all costs and expenses are paid.

Net Usable AcreSee: Net Acre.

Net WorthThe difference between total assets and liabilities of an individual, corporation, etc.

NewelThe post around which winds a circular stairway. In a noncircular stairway, the major post at the bottom of the stairway or at a landing.

New York State Association Of Realtors®All New York Real Estate boards fall under this stateboard; a member of the NAR®.

New York State Human Rights LawExtendsprotected classes beyond those covered in theFair Housing Act to include, age, creed, maritalstatus, military status, and sexual orientation

New York State Office Of Parks, Recreation, and Historic Preservation (OPRHP)Oversees public recreation areas and administers federal and state preservation projects.

New York State Uniform Fire Prevention And building CodeSets forth the construction,materials, safety, and sanitary standards for buildings in New York as well as standards for the condition, occupancy, maintenance,rehabilitation, and renewal of existing buildings.

No Bonus ClauseA clause under the eminent domain section of a lease, giving the lessee the right to recover only the value of his physical improvements in the event of a taking, and not the value of the leasehold interest (the difference between the fixed rent of the lease and current market rental value). Not applicable in all states.

No Cash Out RefinanceReplacing an existing mortgage or mortgages with a new mortgage in an amount that does not give the borrower money over and above the paying off of the existing liens and the cost of the new loan.

Nominal ConsiderationConsideration in name only, and not related to the market value of the property. Still considered valuable consideration and the purchaser is considered a purchaser for value.

NomineeMost commonly used in a deed, such as to John Doe or a nominee, when the actual grantee is not revealed. Has no legal meaning other than being representative of another.

Nonbearing WallA wall used only to separate areas, and which carries only its own weight.

Nonconforming LoansThose that do not meet Fannie Mae/Freddie Mac standards and, thus, cannot be sold on the secondary market.

Nonconforming UseA use of property that is permitted to continue after a zoning ordinance prohibiting it has been established for the area.

Nonexclusive ListingA listing under which the real estate broker has an exclusive listing as opposed to other agents, but the owner may sell the property without using an agent, and not be liable to pay a commission. Also called an agency agreement.

Non-Freehold EstateAn estate other than a fee estate or life estate. Example: A lease.

Non-HomesteadProperty that consists of industrial and commercial parcels as well as vacant land.

NonhomogeneityA lack of uniformity; dissimilarity. Because no two parcels of land are geographically alike, real estate is said to be nonhomogeneous, or heterogeneous.

Non-Judicial ForeclosureForeclosure by a trustee under the power of sale clause in a deed of trust without the involvement of a court; not used in all states.

Nonjudicial Foreclosure SaleSale by a trustee under a deed of trust, or mortgagee under a power of sale of a mortgage. There is no court (judicial) proceeding.

Non Liquid AssetsThose assets (things owned by a person) that cannot quickly be converted to cash. A home is an example. See also: Liquid Assets.

Non-Possessory InterestAn interest in property that does not include the right to possess and occupy the property; an encumbrance, such as alien or easement.

Nonprofit CorporationSee: Eleemosynary Corporation.

Nonrecourse LoanA loan that does not allow for a deficiency judgement. The lender's only recourse in the event of default is the security (property), and the borrower is not personally liable.

Nonrecurring ExpenseAn expense which does not usually repeat itself, such as a fire or other natural disaster.

Non-Solicitation OrderProhibits the solicitation of residential property listings, and applies to all real estate brokers and agents; ruled unconstitutional by the U.S. Court of Appeals.

Normal Wear And TearSee: Wear and Tear.

NosingThe edge of a step which projects over the riser below.

NotarizeTo certify or attest to a document, as by a notary public.

Notary PublicA public official authorized to certify and attest to documents, take affidavits, take acknowledgments, administer oaths, and perform other such acts.

NoticeSee types of notice: Actual; Constructive; Statutory.

Notice Of ActionA recorded notice that property may be subject to a lien, or even that the title is defective, due to pending litigation. Notice of a pending suit. Also called "Lis Pendens".

Notice Of CessationA notice stating that work has stopped on a construction project. Done to accelerate the period for filing a mechanic's lien.

Notice Of CompletionA notice, recorded to show that a construction job is finished. The length of time in which mechanic's liens may be filed depends upon when and if a notice of completion is recorded.

Notice Of NonresponsibilityA notice filed by an owner of property to show that work being done has not been contracted for by said owner. If properly done, mechanic's liens will not attach to the property. Often done when a tenant contracts for work on property.

Notice Of RecisionA recorded notice to rescind a notice of default of a mortgage or deed of trust.

Notice To QuitA notice by a landlord to a tenant to vacate rented property. There are two types; for nonpayment of rent or a second type for any reason. Usually the notice for nonpayment allows less time to vacate.

Notorious PossessionA requirement for adverse possession. Possession so open (notorious) that the owner is presumed to have notice of it and its extent.

NovationAcceptance by parties to an agreement to replace an old debtor with a new one. A novation releases liability.

NOWSee: Negotiable Order of Withdrawal.

NPLSee: National Priorities List.

NuisanceA use of property which interferes with the use and enjoyment of other property by excessive noise, odors, fumes, or other harmful or unpleasant emissions.

Nulla BonaNo goods. The name of the return made by the sheriff to a writ of execution, when he has found no goods of the defendant on which to levy within the jurisdiction.

Null And VoidVoid. Not legally binding. See also: Voidable.

Nunc Pro TuncNow for then. Applied to acts or entries allowed to be done after they should have been done, with a retroactive effect.

Nuncupative WillA verbal "death bed" will. Not valid in all states and restricted to personal property of limited value.

NutA slang term See: Overhead.