Escrow & Title
What is a 'subordination agreement' in Delaware real estate?
AAn agreement where the tenant agrees to subordinate their interests to the landlord
BAn agreement where the holder of a senior lien agrees to allow a junior lien to take priority✓ Correct
CAn agreement between co-owners about property management
DA contract clause giving the buyer priority over the seller in selecting escrow agents
Explanation
A subordination agreement is a document in which the holder of a senior (earlier) lien agrees that their lien will be placed in a subordinate (lower) position relative to a newer lien. Lenders often require SNDAs (Subordination, Non-Disturbance, and Attornment agreements) in commercial transactions.
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