negative amortization
A gradual increase in mortgage debt that occurs when the monthly payment is not
large enough to cover the entire principal and interest due. The amount of the
shortfall is added to the remaining balance to create "negative" amortization.
|
net cash flow
The income that remains for an investment property after the monthly operating
income is reduced by the monthly housing expense, which includes principal, interest,
taxes, and insurance (PITI) for the mortgage, homeowners' association dues, leasehold
payments, and subordinate financing payments. |
net worth
The value of all of a person's assets, including cash, minus all liabilities.
|
non-conforming use
A use that was legal at one time, but whose use has later became illegal by reason
of a change to the Land Use Bylaw. |
non-liquid asset
An asset that cannot easily be converted into cash. |
notice of default
A formal written notice to a borrower that a default has occurred and that legal
action may be taken. |
|
| Glossary
of Real Estate Terms - O |
offer
The purchase price that the buyer suggests to the seller that he/she would be
willing to pay for a particular piece of property. The seller may accept, reject
or alter the buyer’s offer. |
original principal
balance
The total amount of principal owed on a mortgage before any payments are made.
|
owner financing
A property purchase transaction in which the property seller provides all or part
of the financing.
|
RECalgary Home