Property Ownership
In NC, a 'subordination agreement' in mortgage financing allows:
AA senior lien to become junior to a new lien✓ Correct
BThe borrower to skip monthly payments
CThe lender to foreclose without court action
DThe buyer to assume the seller's existing mortgage
Explanation
A subordination agreement allows a senior (first-priority) lien to voluntarily move to a junior (lower-priority) position — commonly used when refinancing to allow a new first mortgage to take priority over an existing lien.
Related North Carolina Property Ownership Questions
- An 'encroachment' occurs in NC when:
- A tenancy at sufferance occurs when:
- What is 'constructive notice' in NC property law?
- Which of the following is a government power affecting real property in North Carolina?
- In North Carolina, which of the following is a characteristic of tenancy in common?
- A life estate in North Carolina grants the life tenant the right to:
- The doctrine of 'prior appropriation' for water rights is used primarily in:
- In North Carolina, a real estate deed must contain all of the following to be valid EXCEPT:
Practice More North Carolina Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free North Carolina Quiz →