Home Page - Kelowna Real Estate

NATURAL VACANCY RATE:
The normal, average or traditional percentage of rental properties in a community that are not leased or occupied.

NEGATIVE AMORTIZATION:
When the periodic payments on a loan are not sufficient to pay the interest which has accumulated during the previous period resulting in an increase rather than a decrease in the amount owing on the mortgage.

NEGATIVE AMORTIZATION CAP:
A limit, expressed as a percentage of the principal, of the negative amortization allowed under a variable or adjustable rate mortgage.

NEGATIVE CASH FLOW:
When a business or property generates less money in a given period than the cost of operating and maintaining it.

NEGOTIABLE INSTRUMENT:
A document which has a cash value which may be traded, given or sold.

NEGOTIABLE RATE MORTGAGE:
See adjustable rate mortgage or variable rate mortgage.

NEGOTIATION:
The act of discussing an issue between two or more parties with competing interests with an aim of coming to an agreement.

NEIGHBORHOOD LIFE CYCLE:
The pattern of development and change of a neighbourhood over a period of time.

NEIGHBORHOOD:
An area of a municipality which is identifiable by a common use, a common atmosphere or a common business area.

NET CASH FLOW:
The amount of money leftover from the income of a property after all costs and expenses of the property have been paid.

NET EFFECTIVE INCOME:
A person's gross pay minus federal taxes.

NET INCOME:
The amount of money left over after all costs and expenses have been paid.

NET LEASABLE AREA:
The area in a building which is available for rent to tenants (excludes common areas, wasted space, etc.).

NET LEASE:
A rental agreement wherein the tenant pays a portion of the expenses of the property in addition to the rent set out in the agreement; the landlord receives the full amount of the rent paid with no liability for expenses.

NET OPERATING INCOME (NOI):
The income from a property or business left over after the costs of operating the property or business have been paid.

NEW ENGLAND COLONIAL:
A two-and-a-half storey, early-American house which is generally symmetrical in shape with a shingle-covered gable roof, often made of clapboard siding.

NEW ENGLAND FARMHOUSE:
Another simple, symmetrical, early-American house, often with a steeply inclined roof and white siding.

NO CASH-OUT REFINANCE:
The replacement of a matured loan with a new loan where no additional principal is borrowed and added to the loan.

NO CHANGE SCENARIO:
A method of calculating the future payments required under a variable or adjustable rate mortgage on the assumption that the index (and therefore the interest chargeable on the mortgage) will not change.

NO MONEY DOWN:
Slang description of real estate purchase strategies which allow the purchaser to obtain title to a property while paying little or no money of her own.

NOMINAL LOAN RATE:
The interest rate stated on the loan agreement.

NON-ASSUMPTION CLAUSE:
A term of a mortgage contract that forbids the transfer of the mortgage to a new owner without prior consent of the lender.

NON-CONFORMING USE:
The occupation and use of a property in a fashion which is contrary to the zoning regulations for the property. A Legal Non-conforming Use is one where the non-conforming use predates the zoning by-law such that, as long as it is continued, it is legal.

NONDISTURBANCE CLAUSE:
A term of a mortgage which guarantees that leases regarding the subject property will be allowed to continue uninterrupted in the event of mortgage default.

NONEXCLUSIVE LISTING:
A real estate listing to which no one agent or broker has claim.

NON-RESIDENT OF CANADA:
A term of the Income Tax Act, a non-resident owner of a property in Canada faces certain tax consequences upon the sale of the property. Vendors are usually required to sign a certificate stating that they are not non-residents of Canada or provide a certificate from Revenue Canada either exempting the sale from tax or se