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Legal Terms & Definitions

What is a "Subordination Clause"?

A

A clause allowing a later mortgage to take priority over an existing mortgage.

B

A clause requiring two subscribing witnesses for every deed.

C

A clause fixing venue in a county clerk's office.

D

A clause prohibiting Sunday notarizations.

Correct Answer

A. A clause allowing a later mortgage to take priority over an existing mortgage.

AI Explanation

This is a straightforward defined term. In the booklet’s "Definitions and General Terms," a subordination clause permits the placing of a mortgage at a later date that takes priority over an existing mortgage. Unlike venue or proof language, it concerns lien priority rather than notarial procedure.

Legal Terms & Definitions Question #115
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