What does subordinate mean in real estate?

A mortgage is a loan given to a person or business by a lender to purchase or refinance a property. A mortgage can be held by either the owner of the property or a bank or other financial institution. When a mortgage is held by a bank, it is often referred to as a home mortgage.

What does subordinate mean in real estate terms?

A subordinate mortgage is a type of home loan that a borrower takes out once they’ve purchased a property. For example, if you get a conventional mortgage on a home you just purchased, that mortgage will be primary. If you take out a second mortgage on the same property, then that mortgage would be subordinate as a second mortgage.

What does subordinate mean in real estate parlance?

A subordinate mortgage is a mortgage loan that is placed against the value of the property you already own. Typically, you can purchase a property with an existing mortgage, and the lender will require you to take out a second mortgage on the property as a way to help secure the loan.

What does subordinate mean in real estate industry terms?

A subordinate tenancy is a situation in which two tenants share a single tenancy agreement in a multi-tenant building. Often, one of the tenants is a corporate tenant and the other is a personal tenant, such as a family living in a condo. In other situations, one tenant is a landlord and the other is a tenant.

What does subordinate mean in real estate agent terms?

A subordinate listing is one in which the owner of the property grants the listing agent the authority to sell it on their behalf. In exchange, the agent promises to pay the owner a commission when a buyer signs a purchase agreement. Typically, this type of listing is not exclusive, meaning the owner can also sell the property directly to a buyer using other agents.