National Association of REALTORS® (NAR)
The National Association of Realtors is North America's largest trade association, and works to promote ethics and standards within the real estate industry. It has a membership of over one million, consisting of residential and commercial real estate brokers and salespeople, as well as many other professionals engaged in all aspects of the real estate business. Interestingly, the word "REALTOR" (in all caps) is a registered trademark owned by the National Association of Realtors. |
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Negative Amortization
When monthly mortgage payments are insufficient to cover the cost of interest, the interest that isn't covered is added to the unpaid principal balance of the loan. This can happen when an Adjustable Rate Mortgage (ARM) is fitted with a payment cap feature, with the end result being that even after several payments, the borrower can find himself/herself owing more than he/she did at the beginning of the loan. |
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Negative Cash Flow
When a property produces insufficient income or profit to finance its own operation or maintenance, the owner must subsidize these expenses using other financial resources. |
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Negative Easement
A property owner may be compelled by law to refrain from what would normally be lawful uses of his or her property. This may happen if such actions or activities have been determined to negatively affect some aspect or aspects of the quality of adjacent or nearby properties. |
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Negotiable Instrument
A negotiable instrument is any transferable, signed document (such as a check, bill of exchange, or promissory note) that entitles the bearer to be paid a specific sum at a future date or on demand. |
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Net Income Multiplier
Typically used in reference to a rental property, the net income multiplier is a numerical factor that is derived by dividing the (current market) price of the asset by the income it generates over a given time period. The net income multiplier is useful to consider when determining if a property should be retained for its present use, put to some other use, or sold. |
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Nonconforming Loan
When a loan cannot be purchased by FNMA (the Federal National Mortgage Association, or "Fannie Mae") or FHLMC (the Federal Home Loan Mortgage Corporation, or "Freddie Mac"), either because it is too large, has too high an interest rate (typically a full percentage point or more higher than that of a standard "conforming" loan), or is in some other way outside of the acceptable standards set by those institutions, it is said to be "nonconforming". Private lenders are often willing to make such loans, but because they are less liquid, they are considered higher-risk, and are thus typically more expensive in terms of both interest rate and discount points. |
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Nonconforming Use
Under extraordinary circumstances, a property may be allowed to continue be used in such a way that is normally prohibited by zoning restrictions. This is typically the case when such an exception to the rules is "grandfathered", meaning that the use or activity in question existed prior to the establishment of the regulations prohibiting it. |
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Note (Promissory Note, or Note Payable)
In accounting and finance, the term "note" refers to something that functions as a written contract documenting the terms under which a specific sum is pledged to be transferred from one party (the lender) to another (the borrower). Details typically include principal, interest rate and maturity date, and when certain conditions are met, promissory notes can function as negotiable instruments that are used in combination with mortgages for purposes of financing real estate transactions. |
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Notorious Possession
In legal terms, "notorious possession" refers to the act of occupying real estate owned by another party without the actual permission of that party, all the while conveying the general public impression of being the actual owner (as is often the case with "squatters"). This is sometimes called "open and notorious" possession, because the offending party makes no attempt to conceal its presence, and thus there is nothing preventing the landlord from having full knowledge of the situation. |
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