A title company subordination agreement is a necessary legal document that helps to clarify the order of priority when it comes to liens and interests attached to a property. It typically arises in situations where a property owner wants to refinance their mortgage or obtain a new loan, but there are existing liens or interests on the property that they need to keep in place.
A subordination agreement is an agreement between the property owner, the lender, and any other parties with an interest in the property, such as mechanics lien holders, that establishes a hierarchy of liens and interests. The subordination agreement essentially states that the parties with the lower priority liens or interests will allow the lender to move into a first position, while still retaining their own interests in the property.
Title companies play an important role in subordination agreements, as they are responsible for verifying the validity and priority of all liens and interests attached to the property. They will typically perform a title search and review all relevant legal documents, such as deeds, mortgages, and mechanics lien filings, to determine the order of priority.
Once the title company has established the priority of interests in the property, they will prepare the subordination agreement. This legal document will typically include a description of the property, the names of all parties involved, a list of all liens and interests attached to the property, and a statement of the order of priority.
It is important to note that subordination agreements can be complicated legal documents, and should only be prepared by a qualified legal professional. Additionally, all parties involved should carefully review the terms of the agreement before signing, to ensure that they fully understand their rights and obligations.
In conclusion, a title company subordination agreement is an important legal document that helps to clarify the order of priority when it comes to liens and interests attached to a property. It is a complicated process that requires the expertise of a qualified legal professional, and should be carefully reviewed by all parties involved. As a professional, it is important to include keywords such as “subordination agreement,” “title company,” and “property liens” to help ensure that this article appears in search results for those searching for information on this topic.