Title and transfer
Subordination
An agreement letting a later lien take priority over an earlier one
Priority normally follows recording order, but a lienholder can agree in writing to step behind another. Construction lenders and refinancing lenders routinely require a subordination agreement from an existing second lienholder before closing.
How the exam asks about it
The examinable idea is that priority is alterable by agreement — it is not purely a function of the calendar.
Related terms
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