Escrow & Title
A subordination agreement in Utah real estate allows:
AA senior lien to be moved to a junior position to allow new financing
BAn existing lien holder to voluntarily accept a lower priority position than a new lien✓ Correct
COnly government liens to take priority
DA buyer to subordinate their down payment to the seller's mortgage
Explanation
A subordination agreement allows an existing lien holder (with a senior position) to voluntarily agree to a junior (lower priority) position so that new financing can take first position. This is common when refinancing with a new first mortgage.
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