Real Estate Glossary

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NAME CHANGE - In conveyance, setting forth both the present name of the grantor and the name under which said grantor acquired title, if different.  For example; Jane Doe, a married woman who acquired title as Jane Smith prior to her marriage.

NATIONAL ASSOCIATION OF REALTORS (NARA) - An association of people engaged in the real estate business.  Organized in 1908, it currently lists over half a million members.  NARA is dedicated to the betterment of the real estate industry thro9ugh education, legislation, and high ethical standards for its members.

NATIONAL ASSOCIATION OF REAL ESTATE BOARDS (NAREB) - A national trade association whose members include not only real estate brokers, but appraisers, property managers, and other affiliated groups.

NATIONAL ASSOCIATION OF REAL ESTATE BROKERS - An organization dedicated to the betterment of the real estate industry and specifically to the roll of African Americans in the real estate industry.  It is comprised of African American real estate brokers who have adopted the term "realists".  Founded in 1947.

NEGATIVE AMORTIZATION - A loan schedule in which the principal increases due to a payment that does not cover all of the interest.

NEGOTIABLE - Capable of being negotiated.  Commonly used to mean assignable or transferable in the ordinary course of business, such as negotiable bonds, securities, notes, etc.  Many charges on home loans are negotiable as is the price of buyer is willing to pay.

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

NET ACRE - An acre which may be used for building.  Assume a builder or developer purchases a 20 acre tract and uses 3 acres for roads, sidewalks and other off-site improvements.  The remaining 17 acres are the net acres of the 20 acre tract.

NET INCOME MULTIPLIER - The 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 LISTING - A listing under which a real estate agent receives any amount over a given net amount to the seller.  Illegal in some states.

NONEXCLUSIVE LISTING - A 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.

NONRECOURSE LOAN - A loan not allowing for a deficiency judgment.  The lenders only recourse in the event of a default is the security (property) and the borrower is not personally liable.

NOTE - A unilateral agreement containing an express and absolute promise of the signer to pay to a named person, or order, or bearer, a definite sum of money at specified date or on demand.  Usually provides for interest and, concerning real property, is secured by a mortgage or trust deed.

NOTICE OF ACTION - A recorded notice that property may be subject to a lien, or even that the title is defective due to pending litigation.

NOTICE OF CESSATION - A notice stating that work has stopped on a construction project.  Done to accelerate the period for filing a mechanic's lean.

NOTICE OF COMPLETION - A notice, recorded to show that a construction job is finished.  The length of time in which mechanic's liens can be filed depends upon when and if a notice of completion is recorded.

NOTICE OF DEFAULT - Written notice to a borrower showing default on a mortgage.

NOTICE OF RESPONSIBILITY - A notice filed by an owner of property to show that work being done has not been contracted by said owner.  If properly done, mechanic's liens will not attach to the property.  Often done when a tenant contract for work on a property.

NOTICE OF PRECISION - A recorded notice to rescind a notice of default of a mortgage or deed of trust.

NOTICE TO QUIT - A notice by a landlord to a tenant to vacate rented property.

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

NOVATION - Substitution of a new contract, debt, or obligation, for an existing one, between the same or different parties.

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

NULL AND VOID - Void.  Not legally binding.

NUNC PRO TUNC - Now for then is a phrase which theoretically applies to acts that are allowed to be done after the time when they should have been done with a retroactive effect.

NUNCUPATIVE WILL - An oral will, usually in a deathbed situation, before witnesses who later testify to its authenticity.