N Terms

Question 1

notice of default

Answer 1

A notice given under a trust deed that sets the statutory period for the trustor to pay obligations.

Question 2

nuncupative will

Answer 2

An oral deathbed will for personal property of low value. The witnesses must reduce it to writing. It is not valid in all states.

Question 3

nuisance

Answer 3

A use of property that interferes with the quiet enjoyment by others of their properties. An abatement action can be taken to stop (abate) the nuisance.

Question 4

novation

Answer 4

The substitution of one agreement for another, or the substitution of parties to the agreement.

Question 5

not-to-compete clause

Answer 5

A clause in an employment or a sales contract that prohibits competition by former employees or sellers within a reasonable distance, and for a reasonable time period. If a court determines that the restrictions are unreasonable, such a clause is not enforceable.

Question 6

notice of nonresponsibility

Answer 6

A notice filed by an owner to protect the property from liens for work authorized by another person; for example, a tenant.

Question 7

notice to quit

Answer 7

A statutory notice given by a landlord to a tenant to vacate the premises.

Question 8

net listing

Answer 8

A listing whereby the broker receives as a commission that portion of the sales price that exceeds the listing price. In some states, net listings are illegal.

Question 9

notice of completion

Answer 9

A notice filed by an owner that starts a statutory period in which mechanics’ liens must be filed.

Question 10

note

Answer 10

A signed instrument that acknowledges a debt, and agrees to pay it either on demand or at a set date in the future. The mortgage or trust deed secures the note in real estate transactions.

Question 11

nonrecourse loan

Answer 11

A loan for which the borrower is not personally liable (no deficiency judgment is possible).

Question 12

nonjudicial foreclosure

Answer 12

Foreclosure under the power-of-sale provision of a mortgage or trust deed.

Question 13

noninstitutional lender

Answer 13

A lender other than a bank, a savings and loan association, or an insurance company; for example, a pension fund or a private individual.

Question 14

net operating income (NOD)

Answer 14

Gross annual income less operational costs (does not deduct for debt service or depreciation).

Question 15

nonfreehold estate

Answer 15

A leasehold interest.

Question 16

nondisturbance clause

Answer 16

A mortgage condition by which the mortgagee agrees not to terminate the lease (if the lessee is in compliance with lease terms) in the event of mortgage foreclosure.

Question 17

noncumulative zoning

Answer 17

Zoning that allows only a specified category of use (not less restrictive uses).

Question 18

net profit

Answer 18

The profit after all expenses (excludes payment on the principal of loans and taxes on the profit).

Question 19

nonconforming use

Answer 19

A use existing before zoning that does not conform with the zoning.

Question 20

nonconforming loan

Answer 20

A loan that fails to meet the purchase requirements of Fannie Mae or Freddie Mac; usually held by the lender as a portfolio loan.

Question 21

nominal

Answer 21

(1) The rate stated in the instrument. (2) A minimum quantity.

Question 22

nominal damages

Answer 22

A token amount awarded by a court when no actual damages result from a wrongful act.

Question 23

net worth

Answer 23

The difference between total assets and total liabilities.

Question 24

naked title

Answer 24

Legal title only, without another right of ownership; for example, a trustee under a deed of trust.

Question 25

net lease

Answer 25

A lease under which the tenant pays all operational and maintenance expenses, and gives the lessor a net amount as rent.

Question 26

neighborhood

Answer 26

An area of social conformity.

Question 27

negotiable instrument

Answer 27

A written unconditional promise or order to pay a certain sum in money now or at a definite time in the future.

Question 28

negative fraud

Answer 28

Fraud resulting from failure to disclose rather than from an affirmative act.

Question 29

negative easement

Answer 29

An easement right that prohibits an owner from a use.

Question 30

negative declaration

Answer 30

A statement that a development will not have a significant adverse effect on the environment.

Question 31

narrative report

Answer 31

An appraisal written in a narrative form; the most comprehensive form of appraisal report.

Question 32

negative covenant

Answer 32

A promise not to do something; for example, a restrictive covenant that prohibits detached garages.

Question 33

negative cash flow

Answer 33

An investment or a business that requires a regular infusion of cash because the cash outlay exceeds the cash receipts.

Question 34

negative amortization

Answer 34

A loan whose monthly installments are not sufficient to pay the interest, so the principal increases.

Question 35

National Association of REALTORS® (NAR)

Answer 35

A trade organization dedicated to training real estate professionals and ensuring high ethical standards within the field.

Question 36

natural monument

Answer 36

A surveying point for metes-and-bounds descriptions that is natural, as opposed to manmade; for example, a tree, rock, or river bank.

Question 37

National Flood Insurance Act

Answer 37

Legislation that makes flood insurance available in communities that have developed a flood-protection plan.

Question 38

National Environmental Policy Act (NEPA)

Answer 38

Requires an environmental impact statement (EIS) on federal projects that can significantly affect the environment.

Question 39

National Do Not Call Registry

Answer 39

A Federal registry to protect residences from unwanted telephone solicitations.