This agreement allows one lien holder to subordinate its deed of trust to the lien of another lien holder. For valuable consideration, a particular deed of trust will at all times be prior and superior to the subordinate lien.
A Kansas Subordination Agreement of Deed of Trust is a legal document that establishes the priority of multiple loans or liens on a property. When there are multiple loans or liens associated with a property, the subordination agreement determines the order in which they will be paid in case of foreclosure or sale. This document is commonly used in real estate transactions and is essential to protect the interests of lenders and borrowers. In Kansas, there are several types of Subordination Agreements of Deed of Trust that are specifically designed to address different scenarios and parties involved. These include: 1. First Position Subordination Agreement: This agreement occurs when the existing first mortgage lender agrees to subordinate its lien position to a subsequent loan. The subsequent loan then takes priority over the first mortgage. This is typically seen when a borrower wants to refinance their property or obtain a home equity line of credit. 2. Second Position Subordination Agreement: In this case, the first mortgage holder allows a subsequent lien to take priority over their lien but remains second in line. The first mortgage holder agrees to subordinate their interest to the new loan or lien. This is commonly used when a borrower wants to take out a second mortgage or obtain additional financing. 3. Intercreditor Subordination Agreement: This agreement is used when multiple lenders are involved in a single transaction. It establishes the priority of their liens or loans relative to each other. It outlines the rights and obligations of each lender and specifies the order in which they will be paid in the event of foreclosure or sale. 4. Subordination Agreement for Tax Liens: This type of agreement is entered into when there is a tax lien on the property. The tax lien holder agrees to subordinate their interest to another loan, such as a mortgage. This allows the property owner to secure financing or refinance their property, ensuring that the new loan takes priority over the tax lien. In conclusion, a Kansas Subordination Agreement of Deed of Trust is a critical legal document that outlines the priority of various loans or liens on a property. Whether it involves a first or second mortgage, multiple lenders, or tax liens, such agreements are crucial in determining the order of payment and protecting the interests of all parties involved in a real estate transaction.
