Real Estate Glossary - Letter N

Negative amortization

A gradual increase in mortgage debt because of insufficient payment made by the borrower to cover the amount due.

Negative cash flow

A financial situation in which expenses exceed income obtained from an existing investment.

Negative easement

An easement where a property owner is restricted from doing any improvements on personal property that will adversely affect the property of another.

Negotiable

The ability to be transferred.

Negotiable instrument

Any document that transfers the money of the signee on demand or at a specified time to another person whose name is usually indicated in the instrument; common examples are checks, drafts, promissory note.

Net income

The total revenue minus expenses, taxes and insurance.

Net lease

A lease in which the lessee pays taxes and insurances in addition to the rent.

Net listing

A type of listing in which the seller will only receive net price of the property and broker may retain all sums over and above the net price received.

Net operating income

The amount in cash that is left before deducting income tax and after deducting operational expenses.

Net profit

The total revenue or earnings after deducting operating expenses.

Net worth

The total value of a person or entity calculated by deducting all liabilities from all assets.

Nominal interest rate

The actual interest rate prevailing in the market.

Nominal tax

The government-imposed tax that is not adjusted for inflation.

Non-conforming loan

Any loan which does not follow the guidelines and standards imposed by federal agencies (FNMA/FHLMC); such as jumbo loans and subprime loans.

Non-residential

Any real property whose purpose is not for residing; examples are schools, churches, clubhouses, recreational buildings, government buildings and hotel rooms rented for 6 months or less.

Notary public

A person who is legally empowered to attest oaths and certify their validity by placing his official seal and signature.

Note

Any short-term instrument to secure debt.

Notice of cessation

A legal notice given to one or more individuals to prohibit them from continuing to perform a particular action.

Notice of completion

A legal notice to indicate and record the completion of a work done on a property; required for filing mechanic liens.

Notice of default

A notice filed in a court of law to inform that a borrower is late for payments.

Notice of intention to sell

A legal notice recorded and published before a property is sold for the purpose of informing the existing creditors of the seller.

Notice of non-responsibility

A legal notice designed to remove all the property owner’s responsibility or liability for any amount incurred on any unauthorized work done on the property.

Notice of trustee’s sale

A published notice indicating a trustee’s decision to sell a property for the satisfaction of a debt.

Notice to quit

A legal notice given to a tenant ordering him to vacate or leave the rented or leased property.

Null and void

No longer legally valid.