Escrow & Title
What is a subordinate lien in Nevada real estate?
AA lien superior to all others
BA lien that ranks below a senior lien in priority, such as a second mortgage behind a first mortgage✓ Correct
CA lien placed by a government agency
DA voluntary lien created by the property owner
Explanation
A subordinate lien has lower priority than a senior lien. In Nevada foreclosures, junior (subordinate) liens are typically extinguished if the senior lien forecloses, leaving the junior lienholder with little or no recovery. Junior lienholders may be able to redeem the property before the sale.
Related Nevada Escrow & Title Questions
- What is a 'cloud on title' in Nevada real estate?
- What is a deed of trust versus a mortgage in Nevada's recording system?
- What is a notice of completion in Nevada real estate?
- Escrow instructions in a Nevada real estate transaction:
- What is a subordination agreement in Nevada real estate financing?
- What is a chain of title in Nevada?
- What is the difference between an owner's title policy and a lender's title policy in Nevada?
- What is the purpose of a preliminary title report in a Nevada real estate transaction?
Practice More Nevada Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nevada Quiz →