Escrow & Title
A Vermont subordination agreement in a real estate transaction means:
AThe buyer agrees to pay a higher price
BA lienholder agrees to take a lower priority position relative to another lien✓ Correct
CThe seller subordinates their interest to the buyer's
DThe agent defers their commission
Explanation
A subordination agreement is a contract where one lienholder agrees to accept a lower priority position (subordinate lien) relative to another, typically used when a new first mortgage needs to take priority over an existing lien.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Math Concepts
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