Tennessee Real Estate License Exam Practice Question
A subordination agreement is used to
Correct Answer: A
Rationale: A subordination agreement specifically alters the priority of mortgages, allowing a junior lien to move ahead of a senior lien in terms of repayment priority. This is essential for refinancing or securing new loans. Option B, initiating foreclosure proceedings, is unrelated; foreclosure is a legal process that does not involve subordination. Option C describes a pledge of property without possession, which pertains to collateral agreements rather than subordination. Option D involves assigning rents, which is a separate arrangement that does not pertain to changing mortgage priorities.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now