Can't turn mod_rewrite off in subdomain folder

This is a apache/cpanel server.

Subdomains are created in WHM, not in cpanel.

I have scripts installed in the accounts root and a .htaccess with mod rewrite rules in the roots as well. I need to install another script in a folder. On my regular domains I create a folder like this: and add a .htaccess file inside the folder with RewriteEngine Off. Now everything works great and the roots mod rewrite rules are off for the /folder/.

Now I create and add a .htaccess just like above. It doesn't work. The mod rewrite rules from the roots htaccess is not turned off for the folder.

Why is there a difference between the sub and the TLD and how do I fix this from the folders .htaccess?
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NopiusConnect With a Mentor Commented:
I guess, that your subdomain's root .htaccess/<virtual>/<directory>/<location> section in httpd.conf has 'AllowOverride none' or 'AllowOverride -FileInfo' restriction.

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