Subordination Agreement Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Subordination Agreement, written in plain English, along with examples of how it is used.
What is Subordination Agreement?
(n) A subordination agreement is a contract between the owner of the property and the lender who holds a claim, charge or mortgage on the property, whereby the charge or mortgage holder agrees to subordinate his claims on the property to the new claim, charge, mortgage etc. Such agreements by which a lender or charge holder relinquish his sole right must be acknowledged by a notary and recorded.