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NAR - See National
Association of REALTORS®. |
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National Association of REALTORS®
- Membership organization of business people engaged in professional real
estate activity or related fields. With headquarters in Chicago, the group was
established in 1908 for the betterment of the real estate industry. Members
pay annual dues and must adhere to certain standards of conduct in their real
estate activity. Not all real estate licensees belong to the organization, but only those
who do can use the word REALTOR®,
which is a registered trademark. Today, NAR accomplishes its mission using
three primary tools: (1) education of members and consumers, (2) enforcement
of its code of conduct, and (3) legislative and political action.
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Negative Amortization
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Gradual increase in
debt that occurs when scheduled installment payments are not large enough to cover the entire
loan principal plus interest. The shortfall is added to the remaining balance to create "negative" amortization.
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Net Lease - Agreement
requiring the tenant in a lease (the lessee) to pay some of the expenses of
the property in addition to regular lease payments; more commonly used with
commercial properties. An owner's loan payments (including principal and
interest) are not expenses of the property for purposes of defining a net
lease. Typical property expenses that may be required to be paid by the tenant
in a net lease are real property taxes, casualty insurance, liability
insurance and maintenance costs. A net lease may also be referred to as
"net net," "double net," "net net net," or "triple net,"
depending on the number of expenses paid by the tenant. See also, double
net lease and triple
net lease.
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Net Operating
Income - The income a property generates after deductions for expenses,
except those related to mortgage financing. Calculated by subtracting expenses
from gross operating income.
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No-Cash-Out Refinance
- Mortgage transaction in which the new loan is limited to the sum of the remaining balance of the existing first mortgage, closing costs
and the amount required to satisfy any other mortgage liens against the
property being refinanced. Also called a "no-cash refi."
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Nominal Rate - The named, or stated, rate of interest for repayment of a loan; does not take into account loan costs or fees and, thus, is a less accurate reflection of the cost of money borrowed. (Most rates quoted verbally by lenders are nominal rates.) See also, annual percentage rate and interest rate.
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Non-Conforming Loan - Real estate loan that does not meet the underwriting standards of the primary issuers of conventional mortgage-backed securities (Fannie Mae and Freddie Mac), usually because it exceeds their maximum loan limits. See also, jumbo loan.
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Non-Judicial Foreclosure - Foreclosure
that takes place without having to go through the courts; most common type of
foreclosure process used in Oregon. May be used where a "deed of
trust" is used to secure a real estate loan. In the deed of trust, the
borrower appoints a third-party trustee (usually a title company) to act on
behalf of the lender, known as the beneficiary, in the event that the borrower
defaults on the promises made in the loan document, or note. When notified of
a default, the trustee uses a process called advertisement and sale to
foreclose the owner's interest. The trustee must follow a strict process
spelled out in Oregon law. See also foreclosure and judicial
foreclosure.
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Non-Liquid Asset - Item of
value, or asset, that cannot easily be converted to cash.
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Note - Legal
document obligating a borrower to repay a loan at a specified time and terms.
Also called a "promissory note." The note spells out completely all
of the conditions that the borrower must meet in repaying the debt. |
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Note Rate -
Interest rate stated on the note for a loan. See also nominal rate. |
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Notice of Action
- Document recorded to show that specific real property may be subject to a
lien or title defect due to litigation; notice of a pending lawsuit. Sometimes
called a "lis pendens." |
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Notice of
Completion - Written document recorded with the county clerk or recorder
to show that a construction job has been completed; may affect the time
allowed for filing a mechanic's lien. |
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Notice of Default
- Formal written notice to a borrower that a default has occurred on a loan.
In addition to being sent to the borrower, the notice must also be filed with
the county clerk or recorder in the county where the property is located. |
