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Subordination clause

A clause in which the holder of a mortgage permits a subsequent mortgage to take priority. Subordination is the act of yielding priority. For example, this clause provides that if a prior mortgage is paid off or renewed, the junior mortgage will continue in its subordinate or secondary position and will not automatically become primary mortgage.

See also:
  • Second Home
  • Second Mortgage
  • Secondary Mortgage Market
  • Seller financing
  • Seller take-back
  • Selling Agent
  • Settlement
  • Settlement Statement
  • Special assessment
  • Special Stipulations
  • Subject to
  • Subject to mortgage
  • Subordination clause
  • Subsidized Second Mortgage
  • Survey
  • Sweat Equity
  • Swing loan

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