Escrow & Title
What is a subordination agreement in real estate?
AAn agreement where a tenant agrees to a shorter lease
BAn agreement where a lienholder agrees to have their lien rank below another✓ Correct
CA rental subordination clause
DAn agreement limiting property use
Explanation
A subordination agreement allows a senior (first) lienholder to agree that their lien will be subordinate (junior) to another lien, often used when refinancing to ensure the new mortgage has first priority.
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