spreading agreement

spreading agreement

A separate agreement spreading the reach of a mortgage to other properties and sometimes even to other borrowers or lenders.It was once common in New York,in particular, to use spreading agreements rather than executing new mortgages because of the ability to thereby avoid paying large mortgage recordation fees. Such loopholes have largely been closed, however.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.