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A subordination agreement is a recorded document that allows the transfer of mortgage priority within public records, which are ordered by "first in time, first in right." For instance, if Bank of America holds a first mortgage with a small balance, and a homeowner wants to secure a larger mortgage from Wells Fargo, Bank of America must relinquish its priority. This is achieved through a subordination agreement, a one-page document executed by Bank of America. Once recorded, this agreement grants legal priority to the new Wells Fargo mortgage, moving Bank of America to second position.