Real Estate and Foreclosure Definitions N - R
Negotiable Capable of being negotiated; assignable or transferable in the ordinary course of business.
Net Listing A listing which provides that the agent may retain, as compensation for his services all sums received over and above a net price to the owner.
Net Worth Value remaining after subtracting the liabilities from the assets of a company or an individual.
Nonconforming Use A use that was lawfully established and maintained, but no longer conforms to the use regulations of the zone in which it is located because of a subsequent change in a zoning ordinance.
Notary Public An official authorized by law to witness or attest to an acknowledgment by a person who has executed an instrument.
Note A signed written instrument acknowledging a debt and promising payment.
Notice of Default A notice filed to show that the borrower under a mortgage or deed of trust is in default (behind on the payments).
Notice of Non-Responsibility A notice provided by law designed to relieve a property owner from responsibility for the cost of improvements ordered by another person
Notice of Rescission A recorded notice to rescind a notice of default of a mortgage or deed of trust.
Obsolescence Loss in value due to reduced desirability and usefulness of a structure because it has become old fashioned and not in keeping with modern needs or because of adverse social or economic influences.
Offer and Acceptance - A contract used in the sale of real property; a deposit receipt or exchange agreement.
Offer to Buy An agreement between owner and purchaser as to the price, terms, conditions and date of occupancy. Usually prepared by a Realtor or attorney.
Open-End Mortgage One which provides that the outstanding balance can be increased in order to advance additional loan funds to the borrower, up to the original sum of the note.
Open Listing An authorization given by a property owner to a real estate agent wherein said agent is given the non-exclusive right to secure a purchaser; open listings may be given to any number of agents without liability to compensate any except the one who first secures a buyer ready, willing and able to meet the terms of the listing, or secures the acceptance by the seller of a satisfactory offer.
Option A right given for a consideration to purchase or lease a property upon specified terms within a specified time.
Oral Contract A verbal agreement; one which is not reduced to writing.
Personal Property Any property which is not real property.
Planned Development Five or more individually owned lots where one or more other parcels are owned in common or there are reciprocal rights in one or more other parcels. A subdivision.
Plat A map or plan of a certain parcel of land.
Plat Book A book showing the lots and legal subdivisions of an area.
Pocket Listing A trade term. An open listing that a real estate salesperson "pockets" or keeps hidden from his/her associates.
Possessory Interest Right to possess.
Power of Attorney - An instrument authorizing a person to act as the agent of the person granting it.
Preliminary Title Report A report showing the condition of title before a sale or loan transaction. After completion of the transaction, a title insurance policy is issued.
Prepayment Penalty The percentage a lender may require to be paid in addition to the unpaid principal balance when a loan is paid off ahead of schedule.
Prescription Obtaining title to property by adverse possession by occupying it for the period determined by law to bar action for recovery.
Prima Facie Presumptive on its face; true, valid, or sufficient at first impression.
Principal The employer of an agent.
Promissory Note The document signed by the borrower promising repayment of the loan showing the amount of monthly payments, interest rate, first payment date, last payment date, and the late charge and prepayment provisions.
Proration of Taxes To divide or prorate the taxes equally or proportionately to time of use.
Puffing The sometimes exaggerated buildup a salesperson or the seller may give to property. It is recognized in law as an opinion and not necessarily representing the facts
Purchase Money Encumbrance (1) A trust deed or mortgage given by the buyer to the seller as part or all of the purchase price of the property. (2) A trust deed or mortgage given to a third party as security for the borrowing of money used to purchase less than five residential units, one of which is to be occupied by the purchaser.
Quitclaim Deed A deed used to remove clouds on title by relinquishing any right, title or interest that the grantor may have.
Real Estate Investment Trust A special arrangement under Federal and State law whereby investors may pool funds for investments in real estate and mortgages and yet escape corporation taxes; requires one hundred persons or more.
Realtor A real estate broker holding active membership in a real estate board affiliated with the National Association of Realtors.
Reconveyance The transfer of the title of land from one person to the immediately preceding owner. This instrument is commonly used in California when the performance or debt is satisfied under a deed of trust and the trustee conveys the title he has held back to the owner.
Redemption The buying back of one's property after it has been lost through foreclosure. Payment of delinquent taxes after sale to the State.
Refinance The process of taking out a new loan on a property already owned, paying off existing financing and possibly obtaining additional cash from the transaction.
Rescission of Contract The annulling, revocation or repealing of a contract by mutual consent of the parties to the contract or for cause by either party to the contract.
Restriction The term, as used in relation to real property, means that the owner of real property is restricted or prohibited from doing certain things relating to the property or using the property for certain purposes.
Reversion The right to future possession or enjoyment by the person or his heirs, creating the preceding estate.
Reversionary Interest A type of interest a person may have in lands or other property upon the termination of the preceding estate.
Right of Survivorship Right to acquire the interest of a deceased joint owner. Distinguishing characteristic of a Joint Tenancy Deed.
Right-of-Way A privilege operating as an easement upon land, whereby the owner does, by grant or by agreement, give to another the right to pass over his land.