Escrow & Title
In Tennessee, a 'subordinate financing disclosure' is required when:
AThe buyer uses only a primary mortgage
BThe buyer obtains a second mortgage or other subordinate financing in connection with the purchase✓ Correct
CThe seller carries back financing only
DThe property is a duplex
Explanation
When a buyer obtains subordinate (second or junior) financing in addition to a first mortgage, lenders typically require disclosure so they can assess the combined debt load and ensure the transaction complies with their guidelines.
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