Escrow & Title
Subordination agreements in Iowa allow:
AA junior lien to maintain its higher priority over a senior lien
BA lien holder to voluntarily agree to lower the priority of their lien so another lien can take higher priority✓ Correct
CA buyer to subordinate their purchase rights to the seller
DThe title company to determine the priority of all liens
Explanation
A subordination agreement is a legal document in which a lienholder agrees to lower the priority of their lien so that another lien can move to a higher priority position. This is common when refinancing — the first mortgage holder may require the second mortgage holder to subordinate.
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