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, see Commercial Real Estate Financing (NY) and Commercial Real Estate Acquisition Loan Resource Kit (NY). For a gap mortgage template for use in New York, see Gap Mortgage (NY). For an explanation of the requirements for recording real estate documents in New York, see Recording Procedures (NY) and County Recording Offices (NY). For information on the process of buying and selling commercial real property in New York, see Purchasing and Selling Commercial Real Estate Resource Kit (NY). For information on the process of buying and selling residential real property in New York, see Residential Purchase and Sale Transactions Resource Kit (NY). For a detailed discussion of mortgage recording taxes in New York, see Mortgage Consolidations: Minimizing Mortgage Taxes (NY). For additional information on mortgage recording taxes, see Mortgage Recording Tax State Law Survey.