Escrow & Title
In Washington, a 'subordination agreement' in real estate means:
AThe senior lien agrees to take a lower priority position behind a new or different lien✓ Correct
BThe lender agrees to reduce the interest rate
CThe borrower agrees to sell the property within 5 years
DThe escrow company becomes subordinate to the title company
Explanation
A subordination agreement is a legal instrument where a senior lienholder agrees to allow their lien to be placed behind (subordinate to) a new lien. This is often done to allow a new first mortgage for refinancing while a junior lien (like seller carry-back) becomes senior.
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