No Bid
Decision by the Veterans Administration, when a loan it has guaranteed goes into default, to pay the guarantee amount to the lender instead of acquiring the property in foreclosure. The result is that often the lender obtains the property at the sale. The VA guarantees 60% of the loan amount or a fixed amount (currently $27,500), whichever is lower.

No-Cash Out Refinance
A situation where a new mortgage will cover the remaining balance of the first loan, closing costs or any liens but does not yield more than one percent of the principal in cash.

No Deal, No Commission Clause
A clause placed in a listing agreement stating that no commission will be paid to the broker until the property title has actually been transferred. If not in the listing agreement, commission is payable once a ready, willing and able buyer, who agrees to the terms of the sale, is found.

Nodular Cast Iron
Commonly used for fittings, valves, pipe, etc., this iron has magnesium or cerium added while in a liquefied state, so that it can be formed into globular nodules. Also called ductile cast iron, it has good corrosion-resistant characteristic and is less brittle than gray cast iron.

Nogging
Paneled brickwork installed between house timbers. Vertical timbers are called posts; horizontal sections are called "nogging pieces".

No-Documentation Loan
Loan application where verification of income is not required and is typically granted in cases of large down payments.

No-hub Joint
A joint between cast iron drainage pipes consisting of stainless steel clamp and neoprene sleeve.

NOI
Net Operating Income. Income from property or business after operating expenses have been deducted, but before deducting income taxes and financing expenses (interest and principal payments).

Nominal
A close approximation of actual size (for example, 2x4 is a nominal designation for a section of lumber that actually measures approximately 1 1/2 x 3 1/2 inches).

Nominal Loan Rate
The loan rate stated on the face of the loan note, which is different from the effective interest rate. If points are charged, the effective rate will be higher.

Nominal Pipe Size
The approximate dimension of a given size of pipe. Does not always correspond to the outside diameter of the pipe (example - a 4 inch pipe has an outside diameter of 4 1/2 inches. see also nominal.

Nominee
A person or company in whose name real estate is transferred. One, who in a limited sense, acts for or represents another.

No Money Down
General term referring to real estate acquisition strategies based on seller-provided financing and/or existing loan assumption and minimal use of cash down payments. Using a maximum amount of leverage to achieve maximum profits from real estate investments.

Nonagon
A nine-sided polygon.

Non-alienation Clause
Clause in a document forbidding an individual from selling or transferring a subject property to another and is normally used in a trust where the grantor of the trust believes the designated beneficiary to be a spendthrift.

Non-assumption Clause
Loan provision prohibiting the transfer of a mortgage to another borrower without lender approval.

Non-bearing Partition or Wall
A wall that provides no support to the structure in which it is located and does not support any floors above it.

Non-centered Ridge
A roof ridge that is offset from the centerline of a structure.

Non-combustible
Material that is not flammable.

Non-conductor
A material that does not conduct significant electricity. An insulator.

Non-conforming Use
Property use, which is in violation of the current zoning ordinance, but had been in use prior to the zoning ordinance's enactment.

Non-conforming Loan
Any loan that doesn't meet the qualifications or is too large to be purchased by Freddie Mac or Fannie Mae. The current limit is $252,700.00.

Non-corrosive Flux
Flux that does not corrode the base metal.

Non-destructive Examination
Any type of inspection for quality or condition that does not damage the object in question. Visual inspection, X-rays, and ultrasound are examples.

Non-disturbance Clause
An agreement in mortgage contracts on income-producing property that provides for the continuation of leases in the event of loan foreclosure. Alternately, a clause in a sales contract, where the seller retains mineral rights, which provides that exploration of minerals will not interfere with surface development.

Nonexclusive Listing
Open Listing. A listing given to any number of brokers without liability to compensate any except the one who first secures a buyer who is ready, willing and able to meet the terms of the listing or secures the seller's acceptance of another offer. The sale of the property automatically terminates the open listing.

Non-ferrous
Not containing iron.

Non-judicial Foreclosure Sale
Foreclosure sale enabled in those states permitting the use of a power of sale clause to be inserted into a mortgage or deed of trust empowering the mortgagee to advertise and sell a property at a foreclosure sale upon the mortgagor's payment default. A non-judicial foreclosure sale enables a foreclosure action without a formal judicial action.

Non-liquid Asset
Any asset that is not easily turned into cash, such as real estate.

Non-loadbearing Wall
A wall that does not support the weight of a building or structure. A non-loadbearing wall can be removed without effect to a building's structural soundness.

Non-metal
A material containing no metal.

Non-metal Cable (NMC)
Most popular trade name of non-metallic cable.

Non-performance
Failure or refusal to perform a specified action; the failure to fulfill contractually agreed upon terms or actions. Non-performance creates a liability, which can enable a judicial damage action.

Non-recourse
No personal liability. Lenders may take the property pledged as collateral to satisfy a debt but have no ability to take the other assets of he borrower.

Non-recurring Closing Costs
One-time-only fees for items such as loan points, credit report, title insurance, home inspection, appraisal, etc.

Non-rigid
Flexible. Bendable.

Non Sequitur
Latin for it does not follow. The conclusion of a statement or phrase is illogical.

Non-volatile
1. Material resistant to vaporization.
2. The components of paint that do not evaporate as the paint dries.