N.R.I. (IND)
Non-Resident Indian. This refers to an Indian who is a citizens and resident of other countries. Non-Resident Indians often return to India on periodic visits because of family or business ties and are known to bring investments, skills and spending power which helps to foster India’s economic development.

negative amortization
A loan repayment schedule in which the outstanding principal balance of the loan increases, rather than amortizing, because the scheduled monthly payments do not cover the full amount required to amortize the loan. The unpaid interest is added to the outstanding principal, to be repaid later.

negative cash flow
A situation where income is less than expenses.

negligence
The omission to do something which a reasonable person would ordinarily do under the circumstances, or doing something which a reasonable person would ordinarily not do under the circumstances. The failure to take reasonable care given the circumstances.

negotiable
Capable of being negotiated; transferable by assignment or endorsement to another person; as a negotiable note or bill of exchange.

negotiable instrument
A promise to pay money, transferable from one person to another. A bill of exchange, check, promissory note, or other written contract for payment that may serve as a substitute for money. It is simple in form and easy to transfer.

negotiation
The deliberation which takes place between the parties prior to an agreement. That which transpires in the negotiation makes no part of the agreement, unless introduced into it.

neighborhood shopping center
A concentration of retail, service, and entertainment enterprises designed to serve the surrounding region (neighborhood) and having a common parking lot.

net absorption
Change in occupied real estate stock between two points in time.

net effective rate
The rent after allowing rent-free periods, rebates, incentives or concessions, if any.

net floor area
Refers to the useable floor area in a building. For example the net floor area of an office floor is the gross floor area less areas occupied by columns, walls, common passageways, lift lobbies and toilets.

Net Internal Area (NIA)
(Formerly sometimes referred to as “effective floor area.”) The usable space within a building measured to the internal finish of structural, external or party walls, but excluding toilets, lift and plant rooms, stairs and lift-wells, common entrance halls, lobbies and corridors, internal structural walls and car-parking areas.

Net Present Value method (NPV)
A method used in discounted cash flow analysis to find the sum of money representing the difference between the present value of all inflows and all outflows of cash associated with the project by discounting each at a target yield.

net rent
The stated rental on a net floor area basis, exclusive of outgoings.

net rentable area
The actual area for which rent can be charged.

nonbearing wall
A wall that does not provide any support to the structure in which it is located or the floors above it. It carries only its own weight and is used to separate an area.

nonconforming use
Property use, violating the current zoning ordinance.

nonexclusive listing
A listing given to a number of brokers without legal responsibility to compensate any except the one who first gets hold of a buyer who is ready, willing and able to meet the terms of the listing or secures the seller’s acceptance.

non-freehold estate
Property that is not owned by the occupant but is held under lease or license.

non-performing loan
A bank loan where the borrower has both ceased to make full interest payments, such that the lender has stopped earning interest and one where the borrower is likely to default on the principal.

nonrecourse loan
A type of loan where the lenders may take the property pledged as collateral to satisfy a debt but have no ability to take the other assets of the borrower.

normal wear and tear
Deterioration or decline in the value of a property due to use, physical damage, old age or environmental factors.

notice to quit
A certain and reasonable notice required by law, custom, special agreement or statute, enabling either the landlord or the tenant or the assignees or representatives of either of them, without the consent of the other, to determine a tenancy from year to year or other periodic tenancy.

notices
A legal notification required by law or agreement or imparted by operation of law as a result of some fact.

novation
Substitution of another borrower in place of the original borrower or lessee, releasing the latter from all obligations. This is done with the consent of the lender or landlord.

nuisance
A land use incompatible with surrounding land uses. Any activity by a property owner that annoys or seriously disturbs the neighborhood making it difficult for other property owners to use or enjoy their own property.

null and void
That which cannot be legally enforced or is not legally binding.