Escrow & Title
In Utah, a subordination clause in a deed of trust or mortgage allows:
AThe borrower to reduce their interest rate
BThe lien to be placed in a lower priority position relative to a new or existing lien✓ Correct
CThe lender to foreclose without court approval
DThe buyer to assume the mortgage without lender approval
Explanation
A subordination clause allows an existing lien holder to agree to be in a junior (lower priority) position to a new lien—often used when refinancing to allow a new first mortgage to take priority.
Related Utah Escrow & Title Questions
- In Utah, escrow is typically handled by:
- A Utah buyer takes title 'subject to' an existing mortgage. This means:
- An owner's extended title insurance policy (ALTA) in Utah provides protection not found in a standard policy, including coverage for:
- In Utah, the notice of trustee's sale in a non-judicial foreclosure must be published and mailed at least how many days before the sale?
- RESPA (Real Estate Settlement Procedures Act) requires that buyers receive a Closing Disclosure:
- TRID (TILA-RESPA Integrated Disclosure) rules require lenders to provide the buyer with a Loan Estimate within:
- A trustee's deed in Utah is typically used to convey property sold at:
- An action to quiet title in Utah is a legal proceeding used to:
Practice More Utah Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Utah Quiz →