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National Association of Realtors (NAR)

          Only brokers who are members of local real estate boards are entitled to use the trademark name                 “REALTOR”, salespeople are called “REALTOR-ASSOCIATES.”

Navigable Waters

          Those bodies of water which are capable of being used for public transportation

Negotiable Instrument

          A written instrument signed by its maker or drawer, containing an unconditional promise to pay a                   certain sum of money; can be passed freely from one person to another.

Negative Amortization

          Some adjustable rate mortgages allow the interest rate to fluctuate independently of a required                       minimum payment. If a borrower makes the minimum payment it may not cover all of the interest that           would normally be due at the current interest rate. In essence, the borrower is deferring the interest               payment, which is why this is called "deferred interest." The deferred interest is added to the balance             of the loan and the loan balance grows larger instead of smaller, which is called negative amortization.

Negotiate

          To transact business; to arrange terms of a contract.

Net Income

          With reference to property, the sum derived after a vacancy allowance and expenses have been                   deducted from the gross income; generally described as net income before depreciation, and usually             defining the income a property will earn in a normal year’s operation (net operating income).

Net Lease

          A lease in which the tenant pays rent from occupancy, plus maintenance and operation expenses, and           usually including taxes and insurance.

Net Listing

          A listing which provides that the agent may retain all sums received  over and above a net price to the           owner as compensation for his services.

No Cash-out Refinance

          A refinance transaction which is not intended to put cash in the hand of the borrower. Instead, the new           balance is calculated to cover the balance due on the current loan and any costs associated with                   obtaining the new mortgage. Often referred to as a "rate and term refinance."

No-cost Loan

          Many lenders offer loans that you can obtain at "no cost." You should inquire whether this means                 there are no "lender" costs associated with the loan, or if it also covers the other costs you would                 normally have in a purchase or refinance transactions, such as title insurance, escrow fees,                         settlement fees, appraisal, recording fees, notary fees, and others. These are fees and costs which               may be associated with buying a home or obtaining a loan, but not charged directly by the lender.                 Keep in mind that, like a "no-point" loan, the interest rate will be higher than if you obtain a loan that               has costs associated with it.

Nominal Consideration

          One bearing no relation to the real value of the contract. An example is a property which is deeded for           10.00.

Nonconforming Use

          A use which is contrary to zoning laws, but which is permitted because the use was not allowed                   before the zoning law came into effect; a grandfather clause.

Note

          A written instrument acknowledging a debt and promising payment.

Note Rate

          The interest rate stated on a mortgage note.

No-points Loan

          Almost all lenders offer loans at "no points." You will find the interest rate on a "no points" loan is                 approximately a quarter percent higher than  on a loan where you pay one point.

Notice of Default

          A formal written notice to a borrower that a default has occurred and that legal action may be taken.

Notice to Quit

          Notice to a tenant to vacate.

Novation

          The substituting of a new obligation for an old one

 Obsolescence

          Functional obsolescence or lack of desirability in terms of layout, style and design as compared with             that of a new property serving the same function; economic obsolescence or a loss in value from                   causes in the neighborhood, but outside the property itself.

Offer

          A promise by one party to act in a certain manner provided the other  party will act in the manner                   requested.  In a real estate sales contract, the offer to purchase realty according to certain stipulated             terms and conditions.

Ohana Zoning

          Amends the Comprehensive Zoning Code by permitting a second  dwelling unit on certain residentially           zoned lots, thus providing immediate and less expensive housing alternatives.

Open-End Mortgage

          A mortgage containing a clause, which permits the mortgagor to borrow additional money up to the                 original amount of the loan after the loan, has been reduced, without rewriting the mortgage.  Not to               confuse with open mortgage, which is any mortgage with no payment penalty.

Open Listing

          A listing given to any number of agents without liability to compensate any except the one who first               procures a buyer ready, willing and able to meet the terms of the listing.

Option

          A right given for consideration to purchase or lease a property upon specified terms within a specified           time.  The purchaser is the optionee.

Ordinance

          A legislative enactment of a city or county, such as zoning.

Original Principal Balance

          The total amount of principal owed on a mortgage before any payments are made.

Origination Fee

          On a government loan the loan origination fee is one percent of the loan amount, but additional points             may be charged which are called "discount points." One point equals one percent of the loan amount.           On a conventional loan, the loan origination fee refers to the total number of points a borrower pays.

Owner Financing

          A property purchase transaction in which the property seller provides all or part of the financing.

Over Improvement

          An improvement which is not the highest and best use for the site on  which it is placed, usually by               reason of excess size or cost.

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15-2714 Pahoa Village Rd. #I-2​
​Pahoa, HI 96778
Phone: (808) 965-9903
​Fax: (808) 965-9916

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