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Negative amortization
Amortization in which the payment made is insufficient to fund complete
repayment of the loan at its termination. Usually occurs when the
increase in the monthly payment is limited by a ceiling. The portion
of the payment which should be paid is added to the remaining balance
owed. The balance owed may increase, rather than decrease over the
life of the loan.
Net lease
A commercial real estate lease in which the tenant regularly pays
not only for the space (as he does with a gross lease) but for a portion
of the landlord’s operating costs as well. When all three of
the usual costs--taxes, maintenance and insurance--are passed on,
the arrangement is known as a "triple net lease." Because
these costs are variable and almost never decrease, a net lease favors
the landlord. Accordingly, it may be possible for a tenant to
bargain for a net lease with caps or ceilings, which limits the amount
of rent the tenant must pay. For example, a net lease with caps may
specify that an increase in taxes beyond a certain point (or any new
taxes) will be paid by the landlord. The same kind of protection can
be designed to cover increased insurance premiums and maintenance
expenses. Contrast with gross lease
Net listing
A price, which must be expressly agreed upon, below which the owner
will not sell the property and at which the broker will not receive
a commission; the broker receives the excess over and above the net
listing price as commission. The broker in this type of listing will
have a very hard time maintaining his fiduciary responsibilities to
his seller since his interests are potentially at odds with the interests
of the seller.
Non-escrowing loan
Typically, mortgage lenders require escrow accounts for property taxes,
hazard insurance, and sometimes, homeowner's association dues.
Monthly contributions to these accounts are rolled into a lender's
mortgage payment. In Texas, escrow accounts are non-interest
bearing, so many borrowers prefer the option of keeping the monies
for their hazard insurance and property taxes in their own interest
bearing accounts, until they become due. Most lenders only allow
non-escrowing loans on mortgages with an 80% or lower, loan-to-value
ratio.
Note
A written instrument of credit attesting to a debt and promise to
pay.
Nuisance
Something that interferes with the use of property by being irritating,
offensive, obstructive or dangerous. Nuisances include a wide range
of conditions, everything from a chemical plant's noxious odors to
a neighbor's dog barking. The former would be a "public nuisance,"
one affecting many people, while the other would be a "private
nuisance," limited to making your life difficult, unless the
dog was bothering others. Lawsuits may be brought to abate (remove
or reduce) a nuisance.
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