N.Y. Comp. Codes R. & Regs. tit. 20 § 652.1

Current through Register Vol. 46, No. 51, December 18, 2024

Section 652.1 - Effect of nonpayment of taxes

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.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 652.1