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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