Real Estate Insurance Terms - N

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NAME CHANGE - In conveyancing, setting forth both the present name of the grantor and the name under which said grantor acquired title, if different. For example: Joan Doe, a married woman, who acquired title as (or also) Joan Smith.

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

NATURALIZATION - Granting citizenship to an alien. In the United States, a naturalized citizen has the rights of a native citizen, with the exception that the naturalized citizen may not hold the office of president.

NAVIGABLE - (1) Capable of carrying commercial shipping or boats for travel. (2) Any waters put to a public use are "navigable" in some states, giving the word a legal meaning different from its normal meaning.

NAVIGABLE WATERS - A general term which legally differs in different jurisdictions. May mean a body of water capable of carrying a commercial vessel or a body of water large enough to be navigable.

NEAP TIDE - The tide during the first and third quarters of the moon; not as high as in the second and fourth quarters.

NEGATIVE CASH FLOW - When the income from an investment property does not equal the usual expenses. The owner must come up with cash each month to meet these expenses.

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.

NEGOTIABLE INSTRUMENT - According to the Uniform Negotiable Instruments Act, an instrument is negotiable when it is in writing and signed, containing an unconditional promise of order to pay a certain amount of money, on demand, or at a definite future date, to the bearer, to order or to a named or certain drawee.

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

NEIGHBORHOOD SHOPPING CENTER - A group of retail stores, usually limited to food and convenience service stores (dry cleaner, barber, etc) serving a limited area (neighborhood), and having common parking and ownership or management.

NET ACRE - An acre which may be used for building of structures. For example: A builder buys ten acres of raw land on which to build houses. Three acres are used for streets, sidewalks, and other off-site improvements. The remaining seven acres are the net acres of the ten acre site.

NET INCOME - The difference between adjusted gross income and operating expenses. May or may not include depreciation.

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 multiplier is used.

NET LEASE - A lease requiring the tenant to pay, in addition to a fixed rental, the expenses of the property leased, such as taxes, insurance, maintenance, etc. In some states, the terms net, net, triple net and other such repetitions are 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.

NET LOSS - The excess of expense over income for a given period. May be more complicated in accounting procedures.

NET PROFIT - Remainder after deduction of all expenses from income for a given period. Generally classified as either net before taxes or net after taxes.

NET WORTH - The difference between total assets and liabilities of an individual, corporation, etc.

NEWEL - The post around which winds a circular stairway. In a non-circular stairway, the major post at the bottom of the stairway or at a landing.

"NO BONUS" CLAUSE - A clause under the eminent domain section of a lease, giving the lessee the right to recover only the value of his physical improvements in the event of a taking, and not the value of the leasehold interest (the difference between the fixed rent of the lease and current market rental value). Not applicable in all states.

NOMINAL CONSIDERATION - Consideration in name only and not related to the market value of the property. Still considered valuable consideration and the purchaser is considered a purchaser for value.

NOMINEE -- Most commonly used in a deed, such as to John Doe, or nominee, when the actual grantee is not revealed. Has no legal meaning, other than representative of another.

NONBEARING WALL - A wall used only to separate areas and which caries only its own weight.

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.

NON-FREEHOLD ESTATE - An estate other than a fee estate of life estate. Example: A lease.

NON-JUDICIAL FORECLOSURE SALE - Sale by a trustee under a deed of trust, or mortgagee under a power of sale of a mortgage. There is no court (judicial) proceeding.

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

NONRECURRING EXPENSE - An expense which does not usually repeat itself, such as a fire or other natural disaster.

NOTARY PUBLIC - One who is authorized by the state or federal government, to administer oaths and to attest to the authenticity of signatures. A federal authorization may extend the authority to attest to the authenticity of certain document, and to act as a notary in foreign countries.

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 a 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 a pending litigation. Notice of a pending suit. Also called "Lis Pendens".

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

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

NOTICE OF DEFAULT - A notice filed to show that the borrower under a mortgage or deed of trust is in default (behind on payments).

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

NOTICE OF RECISION - 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. There are two types: for nonpayment of rent or a second type for any other reason. Usually the notice for nonpayment allows less time to vacate.

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.

NULLA BONA - No goods. The name of the return made by the sheriff to a writ of eviction, when he has found no goods of the defendant on which to levy within the jurisdiction.

NULL AND VOID - Void. Not legally binding.

NUNC PRO TUNC - Now for then. Applied to acts or entries allowed to be done after they should have been done, with a retroactive effect.

NUNCUPATIVE WILL - A verbal "death bed" will. Not valid in all states and restricted to personal property of limited value.