subordination agreement
subordination agreement n: an agreement by which one party subordinates its claim to that of another

Merriam-Webster’s Dictionary of Law. . 1996.

subordination agreement
A written contract in which a lender who has secured a loan by a mortgage or deed of trust agrees with the property owner to subordinate its loan (accept a lower priority for the collection of its debt), thus giving the new loan priority in any foreclosure or payoff. The agreement must be acknowledged by a notary so that it can be recorded in the official county records. (See also: subordination)
Category: Real Estate & Rental Property → Homeowners

Nolo’s Plain-English Law Dictionary. . 2009.

subordination agreement
n.
   a written contract in which a lender who has secured a loan by a mortgage or deed of trust agrees with the property owner to subordinate the first loan to a new loan (thus giving the new loan priority in any foreclosure or payoff). The agreement must be acknowledged by a notary so it can be recorded in the official county records.
   See also: subordination

Law dictionary. . 2013.

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