Escrow & Title
What is a 'subordination agreement' in Kansas real estate financing?
AA contract where a buyer agrees to accept inferior title
BAn agreement by which a lienholder agrees to lower their lien's priority relative to another lien, often used when refinancing or adding construction financing✓ Correct
CA contract requiring the buyer to subordinate to the seller's wishes
DA lease clause requiring tenants to accept foreclosure
Explanation
A subordination agreement changes the priority of liens by having a senior lienholder agree to give up their superior position to a new lien. It is used when refinancing (old lender steps back to allow new first mortgage) or in construction financing.
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