Escrow & Title
In South Dakota, a 'subordination agreement' in real estate means:
AA new mortgage takes priority over an existing mortgage
BAn existing lien holder agrees to give priority to a new lien✓ Correct
CA lien is subordinated to property tax claims
DThe buyer agrees to subordinate their purchase price
Explanation
A subordination agreement is a document in which a lienholder agrees to give priority to a different lien. For example, a first mortgage lender might agree to subordinate their lien to a new construction loan, allowing the new loan to take first lien position.
Related South Dakota Escrow & Title Questions
- In South Dakota, 'recording' a deed in the county register of deeds office provides:
- In South Dakota, which document transfers ownership of real property from seller to buyer?
- South Dakota's 'race-notice' recording statute protects a subsequent purchaser who:
- In South Dakota, a preliminary title report or title commitment is issued by a title company to:
- In South Dakota, an owner's title insurance policy protects:
- Title insurance in South Dakota is typically purchased:
- In South Dakota, a property tax lien typically attaches:
- Which of the following is typically a buyer's closing cost in South Dakota?
Practice More South Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Dakota Quiz →