Net Assets - Total assets less total liabilities on a market-value basis.
Net Cash Flow - Generally determined by net income plus depreciation less principal payments on long-term mortgages.
Net Leasable Area - In a building, the floor space that may be rented to tenants or the area upon which rental payments are based. Generally excludes common areas and space devoted to the heating, cooling, and other equipment of a building.
Net Lease - A lease whereby, in addition to the rent stipulates that the lessee (tenant) pays such expenses as taxes, insurance, and maintenance. The landlord's rent receipt is thereby "net" of those expenses.
Net Operating Income (NOI) - Income from property after all operating expenses and reserves have been deducted, except for income taxes and financing expenses (interest and principal payments).
Net Present Value (NPV) - Net present value usually is employed to evaluate the relative merits of two or more investment alternatives. It is calculated as the sum of the total present value of incremental future cash flows plus the present value of estimated proceeds from sale. Whenever the net present value is greater than zero, an investment opportunity generally is considered to have merit.
Nonconforming Use - A use that violates zoning regulations or codes but is allowed to continue because it began before the zoning restriction was enacted.
Non-Disturbance Agreement - The tenant signs this to prevent himself from being evicted if the property owner does not pay its mortgage to the bank.
Non-Compete Clause - A clause that can be inserted into a lease specifying that the business of the tenant is exclusive in the property and that no other tenant operating the same or similar type of business can occupy space in the building. This clause benefits service-oriented businesses desiring exclusive access to the building's population.
Non-recourse Loan - No personal liability of the Borrower. Upon default, a Lender may take the property pledged as collateral to satisfy a debt, but have no recourse to other assets of the borrower.
Note - A written document, (promise to pay), that sets forth the amount of the obligation and the terms of repayment.
Notice of Default - A written document that gives constructive notice of a trustor's failure to perform his obligation under a deed of trust. This document does not require the acknowledgment of a notary public and must be recorded.
Notice of Rescission - A written document that cancels or annuls the effect of a notice of default when a default has been cured (reinstated). This document does not require the acknowledgment of a notary public, but must be recorded with the county recorder in the county in which the property is located.
Notice of Trustee's Sale - A written document that sets forth the day, date and time of the trustee's sale, describes the property to be sold and gives an estimate of the unpaid debt as of the first publication debt. This document is prepared by the trustee and does not require the acknowledgment of a notary public and must be recorded with the county recorder in the county in which the property is located at least 14 days prior to the scheduled sale date. We must arrange for the notice of trustee's sale to be published in a qualified newspaper in the city (or judicial district), in which the property is located. This publication must appear for 3 consecutive weeks, with the first publication date being at least 20 days prior to the sale date.