[
Dictionary of Terms ]
 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
N
NAA
National Apartment Association.
NACORE
National Association of Corporate Real Estate Executives.
NAHB
National Association of Home Builders.
NAR
National Association of Realtor's
NAREB
National Association of Real Estate Brokers.
NARELLO
National Association of Real Estate License Law Officials.
NATIONAL
APARTMENT ASSOCIATION (NAA) an organization of apartment owners,
with local chapters in metropolitan areas, that provides information
and services for members concerning apartment rentals, lease
forms, occupancy rates, and other matters. Address: National
Apartment Association 1111 14th Street NW Washington, DC 20005
NATIONAL
ASSOCIATION OF CORPORATE REAL ESTATE EXECUTIVES (NACORE) membership
includes those active with purchasing, selling, and managing
real estate held by corporations. Address: National Association
of Corporate Real Estate Executives 471 Spencer Drive, S, Suite
8 West Palm Beach, FL 33409
NATIONAL
ASSOCIATION OF HOME BUILDERS (NAHB) an organization of home
builders, providing educational, political information and
research services. Publishes a monthly magazine, Builder. Address:
National Association of Home Builders 15th and M Street, NW
Washington, DC 20005
NATIONAL
ASSOCIATION OF INDEPENDENT FEE APPRAISERS (NAIFA) an organization
of real estate appraisers that offers these professional designations:
IFA-Member IFAS-Senior member IFAC-Appraiser-counselor Address:
National Association of Independent Fee Appraisers 7501 Murdoch
Avenue St. Louis, MO 63119
NATIONAL
ASSOCIATION OF MASTER APPRAISERS an association that offers
the Master Senior Appraiser (MSA) designation. Requires education
but little or no experience. Address: National Association
of Master Appraisers PO Box 12528 San Antonio, TX 78212 NATIONAL
ASSOCIATION OF REAL ESTATE BROKERS (NAREB) an organization
mostly of minority real estate salespersons and brokers who
are called Realtists. Address: National Association of Real
Estate Brokers 9th floor, Suite 900 1101 14th Street, NW Washington,
DC 20005
NATIONAL
ASSOCIATION OF REAL ESTATE LICENSE LAW OFFICIALS (NARELLO)
membership is composed Of commissioners from state real estate
licensing agencies. Address: National Association of Real Estate
License Law Officials 2580 South 90th Street Omaha, NE 68124
NATIONAL
ASSOCIATION OF REALTORSO (NAR) an organization of Realtors',
devoted to encouraging professionalism in real estate activities.
There are over 600,000 members of NAR, 50 state associations,
and several affiliates. Members are required to abide by the
Code of Ethics of the NAR. Address: National Association of
Realtors(& 430 North Michigan Avenue Chicago, IL 6061 1
NATIONAL
ASSOCIATION OF REVIEW APPRAISERS AND MORTGAGE UNDERWRITERS
an organization that awards the Certified Review Appraiser
(CRA) designation. Address: National Association of Review
Appraisers and Mortgage Underwriters 8715 Via de Commercio
Scottsdale, AZ 85285
NATIONAL
REALTY COMMITTEE a group whose membership is primarily composed
of large, high-profile owners and developers. Their paramount
concern is the legislative arena, especially the government's
policy toward real estate finance, taxation, and investment.
Address: National Realty Committee 1250 Connecticut Avenue,
Suite 630 Washington, DC 20036
NATIONAL
SOCIETY OF REAL ESTATE APPRAISERS an affiliate of the National
Association of Real Estate Brokers that offers the professional
designations RA, CRA, MREA. Address: National Society of Real
Estate Appraisers 1265 East 105th Street Cleveland, OH 44108
NATURAL
VACANCY RATE the average vacancy rate for a rental property
market that would result if supply and demand were in balance.
The level to which vacancy rates adjust over the long term.
A benchmark by which current vacancy rates in the market are
considered high or low
NEGATIVE
AMORTIZATION an increase in the outstanding balance of a loan
resulting from the failure of periodic debt service payments
to cover required interest charged on the loan. Generally occurs
under indexed loans for which the applicable interest rate
may be changed without affecting the monthly payments. Negative
amortization will occur if the indexed interest rate is increased.
NEGATIVE
CASH FLOW situation in which a property owner must make an
outlay of funds to operate a property.
NEGATIVE
LEVERAGE same as reverse leverage.
NEGOTIABLE
INSTRUMENT a promise to pay money, transferable from one person
to another.
NEGOTIATION
the process of bargaining that precedes an agreement. Successful
negotiation generally results in a con. tract between the parties.
NEIGHBORHOOD
a district or locality characterized by similar or compatible
land uses. Neighborhoods are often identified by a place name
and have boundaries composed of major streets, barriers, or
abrupt changes in land use.
NEIGHBORHOOD
LIFE CYCLE a generalized pattern that describes the physical
and social changes that residential areas experience over time.
NET
INCOME 1. in accounting, the amount remaining after all expenses
have been met. 2. in appraisal, same as net operating income.
NET
INCOME MULTIPLIER a factor that, when applied by multiplication
to a property's net operating income, results in a property
value estimate.
NET
LEASABLE AREA in a building or project, floor space that may
be rented to tenants. The area upon which rental payments are
based. Generally excludes common areas and space devoted to
the heating, cooling, and other equipment of a building.
NET
LEASE a lease whereby, in addition to the rent stipulates the
lessee (tenant) pays such expenses as taxes, insurance, and
maintenance. The landlord's rent receipt is thereby "net" of
those expenses.
NET
LISTING a listing in which the broker's commission is the excess
of the sale price over an agreed-upon (net) price to the seller;
illegal in so -me states.
NET
OPERATING INCOME (NOI) income from property or business after
operating expenses have been deducted, but income taxes and
financing expenses (interest and principal payments).
NET
PRESENT VALUE a method of determining whether expected performance
of a proposed investment promises to be adequate.
NET
SPENDABLE INCOME same as after-tax cash flow.
NET
WORTH the excess of assets over liabilities. The amount of
equity. .
NET
YIELD the return on an investment after subtracting all expenses.
NEW
ENGLAND COLONIAL an early-American-style, 21/2 story boxlike
house that is generally symmetrical, square, or rectangular
with side or rear wings. The traditional material is narrow
clapboard siding. The roof is usually the gable type covered
with shingles.
NEW
ENGLAND FARMHOUSE an early-American-style house that is simple
and box-shaped. The traditional material for the exterior siding
is white clapboard. A steep pitched roof is used to shed heavy
snow
NEW
TOWN a large mixed-use development designed to provide residences,
general shopping, services, and employment The basic concept
of a new town is to construct a community in a previously undeveloped
area under a central plan, to avoid unplanned development.
NO
BID decision by the Veterans Administration, when a loan it
has guaranteed goes into default, to pay the guarantee amount
to the lender instead of acquiring the property in foreclosure.
The result is that often the lender obtains the property at
the sale. The VA guarantees 60% of the loan amount or a fixed
NOI
net operating income.
NOMINAL
LOAN RATE same as face interest rate.
NOMINEE
one who, in a limited sense, acts for or represents another.
NO
MONEY DOWN general term referring to real estate acquisition
strategies based on seller-provided financing and/or existing
loan assumption and minimal use of cash down payments. It is
a method of achieving maximum profits from real estate investments.
NONCONFORMING
USE a use that violates zoning regulations or codes but is
allowed to continue because it began before the zoning restriction
was enacted.
NONDISTURBANCE
CLAUSE 1. an agreement in mortgage contracts on income-producing
property that provides for the continuation of leases in the
event of loan foreclosure.
NONEXCLUSIVE
LISTING same as open listing.
NONRECOURSE
no personal liability. Lenders may take the property pledged
as collateral to satisfy a debt, but have no recourse to other
assets of the borrower.
NORMAL
WEAR AND TEAR physical depreciation arising from age and ordinary
use of the property.
NOTARIZE
to attest in one's capacity as a notary public, to the genuineness
of a signature.
NOTARY
PUBLIC an officer who is authorized to take acknowledgments
to certain types of documents, such as deeds, contracts, and
mortgages, and before whom affidavits may be swom.
NOTE
a written instrument that acknowledges a debt and promises
to pay.
NOTICE
official communication of a legal action or one's intent to
take an action.
NOTICE
OF DEFAULT a letter sent to a defaulting party as a reminder
of the default. May state a grace period and the penalties
for failing to cure the default.
NOTICE
TO QUIT a notice to a tenant to vacate property.
NOTORIOUS
POSSESSION generally acknowledged possession of real estate.
One of the requirements to gain ownership of real estate through
adverse possession.
NOVATION
a 3-party agreement whereby one party is re from a contract
and another party is substituted.
NPV
net present value.
NUISANCE
a land use whose associated activities are incompatible with
surrounding land uses.
NULL
AND VOID that which cannot be legally enforced, as with a contract
provision that is not in conformance with the law.
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