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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