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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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