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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