Contracts
In South Carolina, what is a 'subordination clause' in a real estate contract or mortgage?
AA clause that requires the seller to be subordinate to the buyer
BA clause that allows a new lien to have priority over an existing lien✓ Correct
CA clause that reduces the sale price if conditions are not met
DA clause that subordinates the agent's commission to the sale proceeds
Explanation
A subordination clause allows a lien to be placed in a position inferior to another lien. For example, a landowner may subordinate their ownership to a construction lender to facilitate development financing — the lender's mortgage takes priority over the land seller's interest.
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