Section 255 Affidavit
(Mortgage Recording Tax Exemption) (NY)

Summary

This template is a Section 255 Affidavit, which is used in New York to confirm that the portion of debt secured by a consolidation, extension, and modification agreement (CEMA), for which mortgage recording tax has already been paid, is exempt from mortgage recording tax pursuant to NY CLS Tax § 255. This template includes practical guidance and drafting notes. Under Section 255, if an existing mortgage is assigned to a new lender and then consolidated with a new or “gap” mortgage made by the lender, mortgage recording tax is only due for the new debt. This Section 255 Affidavit can be used for a commercial or residential mortgage and must be submitted with the CEMA when it is recorded. For more information about real estate financing in New York, please see Commercial Real Estate Financing (NY).