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Glossary of Terms
From 'Abstract of Title' to 'Triple-Mint', the arcana of real estate explained.Browse alphabetically by choosing a letter from the list below. |
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| A B C D E F G H I J K L M N O P Q R S T U V W X Y Z |
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| N |
| Term |
Description |
| NEGATIVE PLEDGE |
A “Negative Pledge” co-op loan is a loan which exceeds the financing limit permitted or recognized by a co-op corporation. Because the co-op board does not approve or recognize any portion of the loan which exceeds the board’s financing limit, the lender’s rights, in the event of a default, are severely limited with respect to the unrecognized portion of the loan. Essentially, the bank’s rights against the stock and proprietary lease, in the event of a default, are subordinate to the co-op corporation’s rights to collect back maintenance and control the sale of the apartment. Consequently, only the most sophisticated banks are able to analyze and underwrite these negative pledge loans¿for very well qualified borrowers. |
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| New Windows: |
When a building replaces its windows. The monies for this type of capital expenditure comes from either the building's reserve fund, a building wide assessment or a maintenance increase. A building will change its windows for a variety of reasons. These include noise abatement, aesthetics, and the ability to keep out silt from the city traffic. |
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| No Board Approval: |
This terminology can refer to two situations: The first is when a prospective purchaser of an apartment does not have to go through the scrutiny of a board approval process when purchasing a co-operative apartment. The second situation is when a prospective renter does not have to go through the board approval process when renting an apartment from a co-operative owner. |
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