What document is utilized to establish priority among liens on a property?

The subordination agreement is a crucial document that helps to establish the priority among liens on a property. In the context of real estate, liens represent a legal claim or interest that a lender or creditor has on the property, typically until the debt obligations associated with the lien are satisfied. When there are multiple liens on a property, the order in which they are prioritized is vital because it determines who gets paid first in the event of a foreclosure or sale of the property.

The subordination agreement allows one lienholder to agree that their lien will be placed behind another lien with respect to priority. For instance, if a second mortgage lender wishes to give a first mortgage lender priority over their own lien, they would enter into a subordination agreement. This document is significant as it formalizes the alteration of lien priority and protects the interests of both parties involved and ensures clarity in the hierarchy of claims against the property.

The other options, while relevant to real estate, do not specifically address the establishment of priority among liens. A liens report provides information on the existing liens against a property but does not establish priority. A loan agreement details the terms of a loan but does not affect the priority of liens. Similarly, a title deed pertains to ownership of the property and does