In one sentence
An agreement that re-ranks priority between interests in the same property, putting one lien, lease, or payment right behind another.
The longer version
Common versions include subordinating a seller's or mezzanine piece to the senior mortgage, subordinating a property management agreement's fees, and the lease subordination inside an SNDA.
Priority is the lender's whole position, so these agreements get real scrutiny. Recording requirements vary: lien subordinations record; payment subordinations often do not.
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