Escrow & TitleAdvancedAlaska Exam

A subordination agreement in Alaska allows:

AA junior lien to gain priority over a senior lien
BAn existing lender to agree that a new lien will take priority over theirs
CA tenant to subordinate their lease to a new mortgage
DBoth B and CCorrect

Why Both B and C Is Correct

Answer D: Both B and C

A subordination agreement allows a lienholder to agree that another lien will have priority over their interest. Landlords often sign subordination agreements so lenders financing the building have a first lien, even if the lease preceded the mortgage.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

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