A GLOSSARY OF REAL ESTATE TERMS

N


National Association of Realtors (NAR)
The association of REALTORS dedicated to the protection and the preservation of the free enterprise system and the right of the individual to own real property as guaranteed by the Constitution of the United States of America. Each member of the NATIONAL ASSOCIATION OF REALTORS must adhere to a strict Code of Ethics and Standards of Practice designed to provide assurances to the public of the REALTORS integrity and professionalism.
Negative Amortization
An increase in principal balance which occurs when the monthly payments do not cover all of the interest cost. The interest cost which is not covered by the payment is added to the unpaid principal balance.
Net Cash Flow (IE)
Total income less operating expenses, adjustments, capital expenditures, tenant improvements and leasing commissions; does not include mortgage payments.
Net Effective Rent
Rental rate adjusted for lease concessions.
Net Listing
An arrangement whereby the Broker receives as commission all monies received above a minimum sales price agreed to by the owners and the Broker.
Net present value (NPV) is a standard method for financial evaluation of long-term projects.
Net Rental Area (NRA)
In a building, the floor space that may be rented to tenants or the area upon which rental payments are based. Generally excludes common areas and space devoted to the heating, cooling, other equipment of a building, hallways, lobbies, elevator shafts, etc.
Net Worth
Total assets minus total liabilities of an individual or company. For a company, also called owner’s equity or shareholders’ equity or net assets.
Net-Net Lease
Usually requires the tenant to pay for property taxes and insurance in addition to the rent; referred to as NN.
Net-Net-Net Lease
See Triple-Net Lease; referred to as NNN.
NNN Reimbursement Structure
A lease structure that requires the tenant to pay for property taxes, insurance and maintenance in addition to the rent (also referred to as "Triple Net Lease").
Total income less operating expenses, adjustments, etc., but before mortgage payments, tenant improvements and leasing commissions.
Non-conforming Loan
A property which does not conform to the zoning of an area.
Nonconforming Use
A property which does not conform to the zoning of an area.
A mortgage in which the lender will not pursue personal liability against the borrower. The lender’s security is the real estate being financed. Usually subject to standard carveouts including fraud and misrepresentation.
Note
A written promise to repay a certain sum of money on specified terms.
Notice of Default
To initiate a non-judicial foreclosure proceeding involving a public sale of the real property securing the deed of trust, the trustee under the deed of trust records a Notice of Default and Election to Sell the real property collateral in the public records.
Number of Buildings
Identifies the number of buildings on the property; including outbuildings.
Nursing Home
A Healthcare subtype; an entity that provides skilled nursing care and rehabilitation services to people with illnesses, injuries or functional disabilities. Most facilities serve the elderly. However, some facilities provide services to younger individuals with special needs such as the developmentally disabled, mentally ill, and those requiring drug and alcohol rehabilitation. Nursing homes are generally stand alone facilities, but some are operated within a hospital or retirement community.