Real Estate Glossary - N

NAR - National Association of Realtors

Narrative Report - A thorough appraisal report in which the appraiser summarizes the date and the appraisal methods used, to convince the reader of the soundness of the estimate; a more comprehensive presentation than a form report or an opinion letter.

Natural Person - A human being, an individual (as opposed to an artificial person, such as a corporation).

Navigable Waters - A body of water large enough so that watercraft can travel on it in the course of commerce.

Negligence - Conduct that falls below the standard of care that a reasonable person would exercise under the circumstances; carelessness or recklessness.

Negotiable Instrument - An instrument containing an unconditional promise to pay a certain sum of money, to order or to bearer, on demand or at a particular time. It can be a check, promissory note, bond, draft, or stock.

Neighborhood Analysis - The gathering of data on home sizes and styles, topography, features, and amenities in a neighborhood, as part of the appraisal or property management process.

NEPA - The National Environmental Policy Act; a federal law requiring the preparation of an environmental impact statement before any governmental action that would have a significant effect on the environment.

Net Worth - An individual's personal financial assets, minus his or her personal liabilities.

Nominal Interest Rate - The interest rate stated in a promissory notes. Also called the note rate or coupon rate. Compare: Annual Percentage Rate.

Non-agency - An arrangement in which a real estate licensee acts as a facilitator in a real estate transaction without assuming any agency duties.

Nonconforming Use - A property use that does not conform to current zoning requirements, but is allowed because of property was being used in that way before the present zoning ordinance was enacted.

Nonpossessory Interest - An interest in property that does not include the right to possess and occupy the property; and encumbrance, such as a lien or an easement.

Nonrecognition Transaction - A transaction for which a taxpayer is not required to pay taxes in the year the gain is realized.

Notarize - To have a document certified by a notary public.

Notary Public - Someone who is officially authorized to witness and certify the acknowledgment made by someone signing a legal document.

Note, Demand - A promissory note that is due whenever the holder of the note demands payment.

Note, Installment - A promissory note that calls for regular payments of principal and interest until the debt is fully paid.

Note, Joint - A promissory note signed by two or more persons with equal liability for payment.

Note, Promissory - A written promise to repay a debt; it may or may not be a negotiable instrument.

Note, Straight - A promissory note that calls for regular payments of interest only, so that the entire principal amount is due in one lump sum at the end of the loan term.

Notice, Actual - Actual knowledge of a fact, as opposed to knowledge imputed by law (constructive notice).

Notice, Constructive - Knowledge of a fact imputed to a person by law. A person is held to have constructive notice of something when he or she should have known it (because he or she could have learned it through reasonable diligence or an inspection of the public record), even if he or she did not actually know it.

Notice of Cessation - A notice recorded when work on a construction project has ceased (although the project is unfinished), to limit the time allowed for recording construction liens.

Notice of Completion - A notice recorded when a construction project has been completed, to limit the time allowed for recording construction liens.

Notice of Default - A notice sent by a secured creditor to the debtor, informing the debtor that he or she has breached the loan agreement.

Notice of Non-Responsibility - A notice that a property owner may record and post on the property to protect his or her title against construction liens, when someone other than the owner (such as a tenant) has ordered work on the property.

Notice of Sale - A notice stating that foreclosure proceedings have been commenced against a property.

Notice to Quit - A notice to a tenant, demanding that he or she vacate the leased property.

Notice to the World - Constructive notice of the contents of a document provided to the general public by recording the document.

Novation - 1. When on party to a contract withdraws and a new party is substituted, relieving the withdrawing party of liability. 2. The substitution of a new obligation for an old one.

Nuisance - A use of property that is offensive or annoying to neighboring landowners or to the community.

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