Lien priority is generally determined by the order of recording.
A subordination agreement is a legal document in which a lienholder voluntarily lowers its lien priority in favor of another lien.
It does not initiate foreclosure, pledge property, or assign rents.
Correct answer = A.
[Reference: NJ Real Estate Salesperson Study Guide, Chapter on Mortgages and Financing Instruments.]
Contribute your Thoughts:
Chosen Answer:
This is a voting comment (?). You can switch to a simple comment. It is better to Upvote an existing comment if you don't have anything to add.
Submit