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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