Subordination Agreement

Definition of "Subordination agreement"

Theresa  Ryan-D

Written by

Theresa Ryan-D'Amaroelite badge icon

Realty ONE Group Connect

An agreement by which a mortgage is made subject to a junior mortgage. For example, a loan on a vacant lot is made subject to a subsequent construction loan.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

Property deriving at least 75% of the income from personal residences. ...

Insurance contract providing coverage for risks primarily associated with negligence and acts of omission associated with third-party injuries or property losses. Property and casualty ...

A method of brick construction where the bricks are laid with their sides facing outward. ...

Right to property depends on some occurrence. ...

What a piece of property could be sold for on the market. ...

Clause in a percentage lease permitting the landlord to cancel a lease and recover the property if the tenant's sales fall below a specified level. Clause in a lease permitting the ...

Reduction in taxes payable to the IRS or local government. A tax credit is more beneficial to the taxpayer than an itemized deduction because it reduces taxes on a dollar-for-dollar basis. ...

The bonus depreciation definition refers to a tax incentive that allows a business to accelerate the depreciation deduction in the year when the asset is purchased and placed into use. The ...

When the return on borrowed funds exceed the after-tax interest cost. It is profitably using other people's money. ...

Popular Real Estate Questions