N.A.R. - The National Association of REALTORS. Only brokers who arc members of local real estate hoards are entitled Co use the trademark name “REALTOR”, salespeople are called “REALTOR-ASSOCIATES.”

Navigable Waters - Those bodies of water which are capable of being used for public transportation.

Negotiable Instrument A written instrument signed by its maker or drawer, containing an unconditional promise to pay a certain sum of money; can be passed freely from one person to another.

Negotiate - To transact business; to arrange terms of a contract.

NetIncome - With reference to property, the sum derived after a vacancy allowance and expenses have been deducted from the gross income; generally described as net income before depreciation, and usually defining the income a property will earn in a normal year’s operation (net operating income).

Net Lease - A lease in which the tenant pays rent for occupancy, plus maintenance and operation expenses, and usually including taxes and insurance.

NetListing - A listing which provides that the agent may retain all sums received over and above a net price to the owner as compensation for his services.

Nominal Consideration - One bearing no relation to the real value of the contract. An example is a property which is deeded for $10.00.

Nonconforming Use - A use which is contrary CO zoning laws, hut which is permitted because the use was allowed before the zoning law came into effect a grandfather clause.

Note - A written instrument acknowledging a debt and promising payment.

Notice Of Nonresponsibility - A notice provided by law designed to relieve a property owner from responsibility for the cost of work done on the property or materials furnished therein: usually applicable when a lessee contracts to have work performed. Not applicable in Hawaii.

Notice To Quit - Notice to a tenant to vacate.

Novation - The substituting of a new obligation for an old one (as in a VA Substitution).