Escrow & Title
Under Massachusetts law, what is the purpose of a 'subordination agreement' in a mortgage transaction?
ATo subordinate the borrower's rights to the lender
BTo change the priority order of liens (making a senior lien subordinate to a junior lien)✓ Correct
CTo subordinate the closing attorney's authority
DTo allow a second mortgagee to foreclose ahead of the first
Explanation
A subordination agreement changes the normal lien priority, allowing a lender with a lower-priority (junior) lien to take priority over a higher-priority (senior) lien. For example, a first mortgage may be subordinated to a new construction lender.
Related Massachusetts Escrow & Title Questions
- In Massachusetts, when both the first and second mortgage holder have agreed to release their liens upon sale at a short sale price, the seller receives from the lenders:
- A buyer's title insurance policy (owner's policy) protects:
- In Massachusetts, deeds are recorded at:
- In Massachusetts, a 'confirmatory deed' is used to:
- At a Massachusetts residential closing, who typically prepares the deed?
- A Massachusetts 'mortgage inspection plan' differs from a full survey because it:
- A Massachusetts 'title exception' in a title insurance policy means:
- In Massachusetts, a 'mortgage discharge' that is never recorded creates what problem?
Practice More Massachusetts Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Massachusetts Quiz →