New York Codes, Rules and Regulations
Title 20 - DEPARTMENT OF TAXATION AND FINANCE
Chapter IV - Sales And Use And Other Miscellaneous Taxes
Subchapter D - Mortgage Recording Taxes
Part 652 - Effect Of Nonpayment Of Taxes And Enforcement Procedures
Section 652.1 - Effect of nonpayment of taxes
Universal Citation: 20 NY Comp Codes Rules and Regs ยง 652.1
Current through Register Vol. 46, No. 12, March 20, 2024
Tax Law, § 258
(a)
(1) No
mortgage of real property shall be recorded by any recording officer unless the
appropriate taxes described in Part 642 of this Title are paid.
(2)
(i) No
mortgage of real property shall be released, discharged of record or assigned
unless the appropriate taxes described in Part 642 of this Title have been
paid.
(ii) For purposes of
subparagraph (i) of this paragraph a deed subject to a taxable executory
contract of sale is deemed an assignment of a mortgage and a deed pursuant to
such a contract is deemed a discharge of a mortgage.
(3) No agreement extending any mortgage of
real property shall be recorded unless the appropriate taxes described in Part
642 of this Title have been paid.
(4) A mortgage of real property subject to
taxes imposed by or pursuant to article 11 may not be received in evidence in
any action or proceeding in any court of this State and no judgement or final
order in any action or proceeding for the foreclosure or enforcement of such a
mortgage may be made unless the appropriate taxes described in Part 642 of this
Title have been paid.
(5)
(i) In the case of a mortgage of real
property under which the mortgagor is not liable for payment of the special
additional tax described in section
642.3
of this Title and such tax has not been paid, the mortgagor, any subsequent
owner of the mortgaged property or any subsequent owner of any part of such
property may obtain a release or discharge of record of the mortgage by paying
the special additional tax, plus the applicable penalties and
interest.
(ii) In cases where the
mortgagor, any subsequent owner of the mortgaged property or any subsequent
owner of any part of such property has paid the special additional tax and the
applicable penalties and interest, such mortgagor or subsequent owner may:
(a) where applicable, apply for the credit
allowable under article 9, 9A, 32 or 33 of the Tax Law; or
(b) maintain an action to recover the amounts
so paid against any person liable for payment of the tax or any subsequent
assignees or owners of the mortgage or consolidated mortgage of which such
mortgage is a part.
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