Legal Alert - Real Estate Lien Priority Case - Effect of Subordination Agreement on Junior Liens


by David E. Leta

In a recent decision, the Utah Supreme Court addressed a matter of first impression in Utah, namely, whether a subordination agreement between two senior lenders, which reversed the priority of their respective liens against certain real property, improved the priority of a junior mechanic's lienholder who was not a party to the subordination agreement. VCS, Inc. v Countrywide Home Loans, Inc., (2015 UT 46, 784 Utah Adv. Rep. 33) decided April 14, 2015.

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