Escrow & Title
In Virginia, a 'subordination agreement' in real estate lending allows:
AA senior lien to be paid off before a junior lien
BA lender to voluntarily lower the priority of their lien to allow a new loan to take first-lien position✓ Correct
CA borrower to subordinate their rights to the lender
DA buyer to take on a seller's existing mortgage
Explanation
A subordination agreement is a document where a lienholder (e.g.
People Also Study
Related Virginia Questions
- Under Virginia's priority rules, which lien generally has first priority?Escrow & Title
- A Virginia borrower is refinancing their home. The right of rescission under TILA allows them to cancel within:Finance
- A Virginia buyer makes an offer contingent on the sale of their current home. The seller accepts with a 48-hour kick-out provision. A second buyer makes an offer. The seller notifies the first buyer. The first buyer has 48 hours to:Contracts
- A Virginia real estate salesperson who fails to complete the required 30-hour post-license education within one year of first licensure will have their license:Virginia License Law
- A Virginia buyer obtains a $300,000 mortgage at a 6% annual interest rate. What is the interest due for the first month?Finance
- A Virginia property owner discovers an abandoned heating oil tank (UST) in their yard. Their first step should be to:Environmental
- An assumable mortgage in Virginia allows a qualified buyer to:Finance
- In Virginia, the right of first refusal in a real estate contract gives the holder the right to:Contracts
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.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Study This Topic
Practice More Virginia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Virginia Quiz →