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- necessaries
Generally, a necessary is an article indispensable or proper and useful, for the sustenance of human life (i.e., food, drink, clothing, medical attention).
- negligence
A legal term for the failure to use such care as a reasonably prudent and careful person would use under similar circumstances; it is the doing of some act which a person of ordinary prudence would not have done under similar circumstances or failure to do what a person of ordinary prudence would have done under similar circumstances.
- negligent misrepresentation
A legal principle which provides that if, in the ordinary course of business, a person seeks information or advice from another who possesses special skills in circumstances in which a reasonable man would know that his special skills were being relied upon, and the person asked chooses to give the advice without clearly qualifying his answer so as to show that he does not accept responsibility if it is incorrect then he accepts a legal duty to exercise such care as the circumstances require. If he is incorrect he may be liable for his negligent misrepresentation.
- net income
The amount by which revenues exceed expenses in any given time period. Contrast to Net Loss.
- net lease
A Lease in which the tenant pays some or all of the operating expenses. See also Triple Net Lease. Contrast to Gross Lease.
- net loss
The amount by which expenses exceed revenues in any given time period. Contrast to Net Income.
- net operating income (in appraisal)
Gross Potential Revenue less Vacancy Allowance, Bad Debt Allowance, and total Operating Expenses. This amount is calculated excluding Income Tax, Mortgage Payments, and Depreciation Expense or Capital Cost Allowance.
- net proceeds
The face value of a loan less all brokerage fees, legal fees, appraisal costs and other charges.
- nominal rate of interest
An interest rate quoted as a rate per annum; it is equal to the interest rate per compounding period multiplied by the number of compounding periods. (For example, j2 = 10%; j4 = 12%; j12 = 11.5%).
- nominee
Under the now-repealed Real Estate Act, the nominee was the equivalent of the managing broker.
- noncurrent assets
Those assets that will not be sold within one year or the normal operation cycle of a business. Noncurrent Assets may include property, plant, and equipment. Compare to Current Assets.
- noncurrent liabilities
Those liabilities which are not expected to be paid within one year.
- novation
A novation refers to a creditor's acceptance of a 3rd party in place of the debtor so that the 3rd party becomes the debtor and the original debtor is released by the creditor from having to pay off the debt.
