Industry News

WARNING! EFFECTIVE NOVEMBER 7, 2005, MORTGAGEE WILL NOW HAVE 30 DAYS TO PRESENT A CERTIFICATE OF DISCHARGE FOR RECORDING OR FACE A FINE.
Posted Date: 11/9/2005

Governor Pataki recently signed into law an amended Subdivision 1, Section 275 of the Real Property Law, as amended by Chapter 748 of the laws of 1990 to provide for a fine against a mortgagee by the mortgagor after a mortgage upon real property was due and paid in full. 

 

The person signing the certificate of discharge now has thirty (30) days thereafter, to arrange to have the certificate presented for recording to the recording officer of the county where the mortgage is recorded.  Failure by a mortgagee to present the certificate for recording will result in the mortgagee being liable to the mortgagor in the amount of $500.00 if he or she fails to present such certificate within thirty (30) days.  Furthermore, failure by a mortgagee to present the certificate of discharge for recording within sixty (60) days shall result in the mortgagee being liable to the mortgagor in the amount of $1,000.00 and further, failure to present the certificate within ninety (90) days shall result in the mortgagee being liable to the mortgagor in the amount of $1,500.00.

 

However, this new law does not apply to mortgagees who are a person, partnership, association, corporation or other entity which makes less than five (5) mortgage loans in any calendar year or to any mortgage granted to or made by the state of New York, or any agency, instrumentality thereof or any political subdivision of the state or agency or instrumentality thereof. 

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