What is a subordination agreement?

A subordination agreement is a legal document used in property law in Virginia that states that one party’s rights, interests, or claims to a property are subordinate to the rights of another party. This means that if there is a dispute between the two parties, the one with the superior rights will take precedence over the other. Subordination agreements are commonly used when a lender takes out a loan to purchase a property. In this case, the lender’s rights will be subordinated to the rights of the lender. The subordination agreement also clarifies how the lender’s interests will be treated in the case of default or insolvency. Subordination agreements are important in property law, as they provide clear guidelines for determining who has what rights to a property in case of dispute or litigation.

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What is a subordination agreement?

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