Dictionary – Named Perils – Nuncupative Will

NAMED PERILS – Coverage in a PROPERTY policy that provides protection against LOSS from only the perils specifically listed in the POLICY such as windstorm, fire, smoke and theft – rather than protection from physical LOSS.

NATIONAL APARTMENT ASSOCIATION (NAA) – An organization of apartment owners, with local chapters in metropolitan areas, hat provides information and services for members concerning apartment RENTALS, OCCUPANCY RATES,  LEASE forms and other matters.

NATIONAL ASSOCIATION OF CORPORATE REAL ESTATE EXECUTIVES (NACORE) –  Members includes those active with selling, purchasing and managing REAL ESTATE held by CORPORATIONS.

NATIONAL ASSOCIATION OF HOME BUILDERS (NAHB) – An organization of homebuilders providing educational and political information as well as research services and publishes a monthly magazine, Builder.


NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS (NAIC) – Formed to promote national uniformity in the regulation of INSURANCE, the membership is comprised of members of INSURANCE COMMISSIONERS of various states.


Mater Senior Appraiser (MSA) designation. Requires education but little or no experience.

NATIONAL ASSOCIATION OF REAL ESTATE BROKERS (NAREB) –  An organization whose membership is primarily made up of  minority REAL ESTATE SALESPERSONS and BROKERS who are called REALTISTS.

NATIONAL ASSOCIATION OF REAL ESTATE INVESTMENT TRUST (NAREIT)  A trade association that serves REITS which collects data on the performance of REITS and prepares definitions to be used for the industry, including FFO and CAD.


NATIONAL ASSOCIATION OF REALTORS (NAR) – A professional REAL ESTATE organization whose members subscribe to a CODE OF ETHICS.


(CRA) designation.


Sorted by geographic areas, the organization collects historical data on various institutionalgrade PROPERTY types and publishes data on INCOME and VALUE changes.

NATIONAL REAL ESTATE INDEX – Data provider for many types of PROPERTY in more than fifty cities.

NATIONAL REALTY COMMITTEE – A group whose membership is primarily composed of large, high -profile owners and DEVELOPERS whose primary concern is the legislative arena, especially the government’s policy toward REAL ESTATE taxation, investment and finance.

NATIONAL RETAIL MERCHANTS ASSOCIATION – Publishes the Department Store Lease Study, which includes data on RENTAL RATES for retail PROPERTY.

NATIONAL SOCIETY OF REAL ESTATE APPRAISERS – An affiliate of the NATIONAL ASSOCIATION OF REAL ESTATE BROKERS that offers the professional designations of RA, CRA and MREA.

NATIONAL TENANTLESSEE with a presence in most of the United States. These are better known and typically have better credit than local TENANTS.

NATURAL PERSON – A human being.

NATURAL VACANCY RATE – 1) The average VACANCY RATE for a rental PROPERTY market that would result if SUPPLY AND DEMAND were in balance; 2) a BENCHMARK by which current VACANCY RATES in the market are considered high or low; 3) the level to which VACANCY RATES adjust over the long term.

NEGATIVE AMORTIZATION – An increase in the OUTSTANDING BALANCE of a LOAN resulting from the failure of periodic DEBT SERVICE payments to cover required INTEREST charged on the LOAN.  Negative amortization will occur if the indexed INTEREST RATE is increased, which generally occurs under INDEXED LOANS for which the applicable INTEREST RATE may be changed without affecting the monthly payments.

NEGATIVE CASH FLOW – Situation in which PROPERTY owner must make an outlay of funds to operate a PROPERTY.

NEGATIVE LEASEHOLD – A situation in which the ECONOMIC RENT is less than the CONTRACT RENT being paid which results in a disadvantage for the LESSEE.

NEGLIGENCE – Failure to use the care that a reasonable and prudent person would have used under the same or similar circumstances.

NEGOTIABLE INSTRUMENT – A document whose ownership may be transferred by endorsement or delivery.

NEGOTIATION – The process of bargaining that precedes an arrangement; successful NEGOTIATION generally results in a CONTRACT between the parties.

NEIGHBORHOOD – A district or locality characterized by similar or compatible LAND uses. Neighborhoods are often identified by a place name and have boundaries composed of major streets, barriers or abrupt changes in LAND use.

NEIGHBORHOOD LIFE CYCLE – A generalized pattern that describes the physical and social changes that RESIDENTIAL areas experience over time.

NET INCOME – 1) In accounting the amount remaining after all expenses have been met; 2) in APPRAISAL, same as NET OPERATING INCOME:  used to CAPITALIZE the VALUE of the INVESTMENT, the effective GROSS INCOME, minus all OPERATING EXPENSES and RESERVES FOR REPLACEMENT.

NET INCOME MULTIPLIER – A factor that, when applied to a PROPERTY’S NET OPERATING INCOME, results in a PROPERTY VALUE estimate.


AREA – 1) Floor space that may be rented to TENANTS in a building or project; 2) the area upon which RENTAL payments are based. Generally excludes COMMON AREAS and space devoted to the cooling,  heating and other equipment of a building.

NET LEASE – A LEASE under which the LESSOR receives a net RENT or a NET INCOME from the LESSEE and the LESSEE is responsible for the payment of the PROPERTY CHARGES.

NET LISTING – Illegal in some states, a LISTING in which the BROKER’S COMMISSION is the excess of the sale price over an agreed-upon price to the SELLER.


NET PREMIUM – The portion of the PREMIUM rate which is designed to cover BENEFITS of the POLICY, but not contingencies, EXPENSES or profit. The term is also used to describe the portion of the PREMIUM remitted to the home office by an AGENT after deduction of the


NET PRESENT VALUE (NPV) – A method of determining whether expected performance of a proposed INVESTMENT promises to be adequate.


– 1) Floor space that may be rented to TENANTS in a building or project; 2) the area upon which RENTAL payments are based. Generally excludes COMMON AREAS and space devoted to the cooling,  heating and other equipment of a building.

NET SPENDABLE INCOME – Also known as AFTER-TAX CASH FLOW and AFTERTAX INCOMECASH FLOW from INCOME producing PROPERTY, less income taxes, if any, attributable to the property’s income. If there is a tax loss that can provide a tax saving from the shelter of INCOME earned outside the PROPERTY, that savings is added to the CASH FLOW that is earned by the PROPERTY.

NET WORTH – 1) The amount of EQUITY; 2) the excess of ASSETS over LIABILITIES.

NET WRITTEN PREMIUMSPREMIUM INCOME retained by INSURANCE companies after payments made for REINSURANCE, either directly or through REINSURANCE,.

NET YIELD – The return on an INVESTMENT after subtracting all EXPENSES.

NEW ENGLAND COLONIAL – An early American style, two and a half story box-like house that is generally square, rectangular or symmetrical with side or rear wings traditionally made of narrow clapboard siding.

NEW ENGLAND FARMHOUSE – An early American style house that is simple and box-

shaped. The traditional material for the exterior siding is white clapboard with a steep pitched roof to shed heavy snow.

NEW LISTING – Discouraged in some jurisdictions and specifically prohibited in others because of ethical and legal considerations, an employment CONTRACT in which the seller specifies a net amount to be paid to him or her with the balance of the purchase price retained by the LISTING BROKER as COMMISSION.

NEW TOWN – Used by some European and South American countries to attract population into less developed regions, a large mixed-use development designed to provide RESIDENCES, services, general shopping and employment and constructs a community in a previously undeveloped area under a central plan to avoid unplanned development.

NO BID – Decision by the VETERANS ADMINISTRATION to pay the guarantee amount to the lender instead of acquiring a PROPERTY in FORECLOSURE when a LOAN it has guaranteed goes into DEFAULT frequently resulting in the lender obtaining the PROPERTY at the sale. The VA guarantees 60% of the LOAN amount or a fixed amount, whichever is lower.

NO-FAULT – A type of AUTOMOBILE INSURANCE mechanism whereby the right to sue another party for DAMAGES caused by NEGLIGENCE is limited in exchange for which expanded first party benefits are offered.

NO-FAULT AUTOMOBILE INSURANCE – A form of INSURANCE by which a person’s financial LOSSES resulting from an automobile accident are paid by his or her own INSURER regardless of who was at FAULT.

NOMINEE – One who, in a limited sense, acts for or represents another.

NO MONEY DOWN – A method of achieving maximum profits from REAL ESTATE investments, a general term referring to REAL ESTATE acquisition strategies based on existing LOAN assumption and/or seller-provided financing and minimal use of cash down payments.

NON-ADMITTED INSURANCE COMPANY – An INSURANCE company not licensed to do business in a particular state though such a company may sell excess and surplus INSURANCE in that state if admitted INSURERS lack the capacity or expertise.

NON-AMORTIZING LOAN – Also known as TERM, STRAIGHT or BULLET LOAN – A LOAN which calls for the payment of INTEREST only with the entire PRINCIPAL balance becoming due at the final payment.

NON-CANCELLABLE – A CONTRACT that the INSURED has the right to continue in force by the timely payments of PREMIUMS set forth in the CONTRACT (1) until at least age fifty; (2) in the case of a POLICY issued after age forty-four, for at least five years from its date of issue, during which period the INSURER has no right to unilaterally make any change in any provision of the CONTRACT while the CONTRACT is in force.

NON-CANCELLABLE GUARANTEED RENEWABLE POLICY An individual policy which the INSURED person has the right to continue to force until a specified age, such as to age sixty-five, by the timely payment of PREMIUMS. During this period, the insurer has no right to unilaterally make any changes in any provision of the POLICY while it is in force.

NON-CONFINING SICKNESS – A sickness that disables the INSURED person but does not confine him to a hospital or his home.

NON-CONFORMING LOAN LOAN that is too large to be purchased by or does not meet the standards of FNMA or FHLMC. The INTEREST RATE is at least half a percentage point higher than for a CONFORMING LOAN.

NON-CONFORMING USE – Also known as PRE-EXISTING USE –  The allocation of their proportionate share of INCOME and EXPENSES to the buyer and seller. The BANKING MONTH (thirty days) and the BANKING YEAR (360 days) are often used in PRORATIONS rather than the actual number of days in the month or year.

NON-CONTRIBUTORY – A term applied to employee BENEFIT plans under which the employer bears the full cost of the BENEFITS for the EMPLOYEES. One hundred percent of the ELIGIBLE EMPLOYEES must be INSURED.  See also CONTRIBUTORY.

NON-DISABLING INJURY – An injury which may require medical care but does not result in LOSS of working time or INCOME.

NON-DISABLING INJURY BENEFIT – A BENEFIT in some DISABILITY INCOME policies providing payment for MEDICAL EXPENSE due to injury when medical care is necessary but the INSURED is not TOTALLY DISABLED.

NON-DISTURBANCE CLAUSE – A clause in a LOAN on RENTAL PROPERTY which allows the lender to collect the RENT directly from the TENANTS in lieu of the MORTGAGE payment in the event of DEFAULT by the borrower while at the same time prohibiting the lender from EVICTING the TENANTS or in any way altering their LEASE agreements.

NON-EXCLUSIVE LISTING – Also known as OPEN and SIMPLE LISTING – The employment CONTRACT which is given to as many BROKERS as the seller desires, but with an obligation to pay the COMMISSION only to the BROKER who produces the buyer for the PROPERTY.

NON-FORFEITURE OPTION – One of the choices available if the POLICYHOLDER discontinues PREMIUM payments on a POLICY with a cash value. This may be taken in cash, as REDUCED PAID-UP INSURANCE or as EXTENDED TERM INSURANCE.

NON-MEDICAL LIMIT – The maximum FACE VALUE of a POLICY that a given company will issue without the applicant taking a MEDICAL EXAMINATION.

NON-OCCUPATIONAL POLICYCONTRACT which provides off-the-job coverage only. It does not cover DISABILITY resulting from sickness or injury arising out of or in the course of employment or covered by WORKERS’ COMPENSATION. GROUP accident and sickness policies are frequently non-occupational.


POLICYHOLDER is not entitled to share in the DIVIDEND distribution of the company.

NON-PARTICIPATING POLICY – A LIFE INSURANCE POLICY in which the company does not distribute to POLICYHOLDERS any part of its SURPLUS. PREMIUMS for NONPARTICIPATING POLICES are usually lower than for comparable PARTICIPATING POLICES and some NON-PARTICIPATING POLICES have both a current lower PREMIUM and a maximum PREMIUM. The current premium reflects anticipated experience that is more favorable than the company is willing to guarantee, and may be changed from time to time for the entire block of businesses to which the POLICY belongs. See also PARTICIPATING POLICY.

NON-PROFIT INSURERS – Persons organized under special state laws to provide medical, hospital or dental INSURANCE on a non-profit basis which EXEMPT them from certain types of taxes.

NON-RECOURSE No PERSONAL LIABILITY. Lenders may take the PROPERTY pledged as COLLATERAL to satisfy a DEBT, but have no access to other ASSETS of the borrower.

NORMAL WEAR AND TEAR – Physical DEPRECIATION arising from age and ordinary use of the PROPERTY.

NOTARIZE – To attest in one’s capacity as a NOTARY PUBLIC to the authenticity of a signature.

NOTARY PUBLIC – An officer who is authorized to take acknowledgements to certain types of documents -such as contracts,  deeds and mortgages – and before whom AFFIDAVITS may be sworn.

NOTE – A written promise to repay a DEBT.

NOTICE – Official communication of a legal action or one’s intent to take an action.

NOTICE OF DEFAULT – A letter sent to a DEFAULTING party as a reminder of the DEFAULT which may state a GRACE PERIOD and the PENALTIES for failing to cure the DEFAULT.

NOTICE TO QUIT – A written notice from the LESSOR to the LESSEE ordering the LESSEE to VACATE the PREMISES.

NOTORIOUS POSSESSION – Generally acknowledged possession of REAL ESTATE. One of the requirements to gain ownership of REAL ESTATE through ADVERSE POSSESSION.

NOVATION – The substitution of a new CONTRACT for an old CONTRACT or a new party to a CONTRACT for a former party.

NUISANCE – A LAND use whose associated activities are unsuited to surrounding LAND uses.

NULL AND VOID – That which cannot be legally enforced, as with a CONTRACT PROVISION that does not conform to the law.

NUNCUPATIVE WILL – Also known as DEATHBED WILL – Not valid in all states,  an oral WILL made in front of witnesses by one who is dying with the statements of the witnesses later reduced to writing.

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