Escrow & Title
In Montana, a 'subordination agreement' in real estate means that:
AA tenant agrees to be subordinate to new management
BA lien holder agrees to accept a lower priority position in favor of a different lien, such as allowing a new first mortgage to take priority over an existing second mortgage✓ Correct
CA buyer agrees to subordinate their offer to the seller's preferences
DA broker agrees to reduce their commission
Explanation
A subordination agreement is a written document where a creditor/lienholder agrees to take a lower priority position relative to another lien. This is commonly used when refinancing or adding a new construction loan that must be in first position.
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