N.Y. Laws » CHAPTER Real Property / ARTICLE Conveyances and Mortgages
New York Consolidated Laws

N.Y. Real Property Law § 275 (2026)

Certificate of discharge of mortgage required

✓ text as retrieved May 2026 (this copy records no edition or section history)
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§ 275. Certificate of discharge of mortgage required. 1. Whenever a
mortgage upon real property is due and payable, and the full amount of
principal and interest due on the mortgage is paid, a certificate of
discharge of mortgage shall be given to the mortgagor or person
designated by him or her, signed by the person or persons specified in
section three hundred twenty-one of this chapter. The person signing the
certificate shall, within thirty days thereafter, 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
a certificate of discharge for recording shall result in the mortgagee
being liable to the mortgagor in the amount of five hundred dollars if
he or she fails to present such certificate within thirty days, shall
result in the mortgagee being liable to the mortgagor in the amount of
one thousand dollars if he or she fails to present a certificate of
discharge for recording within sixty days and shall result in the
mortgagee being liable to the mortgagor in the amount of one thousand
five hundred dollars if he or she fails to present a certificate of
discharge for recording within ninety days. For the purposes of such
liability under this subdivision, the term "mortgagee" shall not include
a person, partnership, association, corporation or other entity which
makes less than five mortgage loans in any calendar year. The provisions
of this section shall not apply to any mortgage granted to or made by
the state of New York, or any agency or instrumentality thereof or any
political subdivision of the state or any agency or instrumentality
thereof.
  * 2. For purposes of this section, the full amount of principal and
interest due on a mortgage shall not be considered to be paid whenever
such mortgage continues to secure a bona fide debt and an enforceable
lien continues to exist, such as may occur in the following situations:
  (a) the commercial practice of lenders trading or selling mortgages on
the secondary market;
  (b) the replacement of a construction loan with permanent financing;
  (c) the refinancing of an existing loan with a new lender, such as
where the original lender assigns a note and the mortgage securing its
payment to another lender in return for consideration and such mortgage
is consolidated with another mortgage which secures any funds advanced
by the new lender to the mortgagor;
  (d) the modification of the terms of a loan by a mortgagor and
mortgagee in order to avoid foreclosure; and
  (e) a refinancing that occurs in conjunction with the sale of property
such that the seller conveys property to the purchaser subject to the
lien of the mortgage and the original lender assigns its note and
mortgage on the property to the purchaser's lender.
  * NB Effective until June 10, 2026
  * 2. (a) For purposes of this section, the full amount of principal
and interest due on a mortgage shall not be considered to be paid
whenever such mortgage continues to secure a bona fide debt and an
enforceable lien continues to exist, such as may occur in the following
situations:
  (i) the commercial practice of lenders trading or selling mortgages on
the secondary market;
  (ii) the replacement of a construction loan with permanent financing;
  (iii) the refinancing of an existing loan with a new lender, such as
where the original lender assigns a note and the mortgage securing its
payment to another lender in return for consideration and such mortgage
is consolidated with another mortgage which secures any funds advanced
by the new lender to the mortgagor;
  (iv) the modification of the terms of a loan by a mortgagor and
mortgagee in order to avoid foreclosure; and
  (v) a refinancing that occurs in conjunction with the sale of property
such that the seller conveys property to the purchaser subject to the
lien of the mortgage and the original lender assigns its note and
mortgage on the property to the purchaser's lender.
  (b) No mortgagee shall return, destroy, or otherwise refuse to accept
a payment made pursuant to the terms of a payoff letter, including but
not limited to terms regarding the location and the manner of payment
specified by the mortgagee, even if such payment does not cover the full
amount of principal, interest, and any other amounts due and owing under
the mortgage, provided, however, if there is a defect with the payment
that prevents the mortgagee from identifying with reasonable diligence
the mortgage for which such payment is made, the mortgagee may refuse to
accept such payment and return the payment to the remitter. The
mortgagee shall apply such payment to the unpaid principal, interest or
any other amounts due under the mortgage, provided that a payment made
pursuant to a payoff statement shall not result in the issuance of a
certificate of discharge of mortgage pursuant to subdivision one of this
section or in the execution of a satisfaction of mortgage pursuant to
subdivision one of section nineteen hundred twenty-one of the real
property actions and proceedings law unless the payment covers the full
amount of principal, interest, and any other amounts due and owing under
the mortgage.
  * NB Effective June 10, 2026
  * 3. Except with respect to the assignment of a mortgage in connection
with a transaction described in paragraph (a) of subdivision two of this
section, in order to record an assignment of a mortgage there must be
set forth in the assignment document or attached thereto and recorded as
part thereof a statement under oath signed by the mortgagor or any other
party to the transaction having knowledge of the facts (provided such
other party asserts such knowledge), that the assignee is not acting as
a nominee of the mortgagor and that the mortgage continues to secure a
bona fide obligation. With respect to the assignment of a mortgage in
connection with a transaction described in paragraph (a) of subdivision
two of this section, such assignment shall contain the following
statement: "This assignment is not subject to the requirements of
section two hundred seventy-five of the Real Property Law because it is
an assignment within the secondary mortgage market."
  * NB Effective until June 10, 2026
  * 3. Except with respect to the assignment of a mortgage in connection
with a transaction described in subparagraph (i) of paragraph (a) of
subdivision two of this section, in order to record an assignment of a
mortgage there must be set forth in the assignment document or attached
thereto and recorded as part thereof a statement under oath signed by
the mortgagor or any other party to the transaction having knowledge of
the facts (provided such other party asserts such knowledge), that the
assignee is not acting as a nominee of the mortgagor and that the
mortgage continues to secure a bona fide obligation. With respect to the
assignment of a mortgage in connection with a transaction described in
subparagraph (i) of paragraph (a) of subdivision two of this section,
such assignment shall contain the following statement: "This assignment
is not subject to the requirements of section two hundred seventy-five
of the Real Property Law because it is an assignment within the
secondary mortgage market."
  * NB Effective June 10, 2026
Notes of Decisions
Cited in 20 cases, 1986–2017 · leading case: Deutsche Bank Nat'l Trust Co. v. Pietranico, 33 Misc. 3d 528 (N.Y. Sup. Ct. 2011).
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Deutsche Bank Nat'l Trust Co. v. Pietranico, 33 Misc. 3d 528 (N.Y. Sup. Ct. 2011). · cites it 2× “In fact, Real Property Law § 275 (2) (a) expressly recognizes the commercial practice of lenders selling mortgages in the secondary market, as well as the practice of designating “nominees” in such transactions (see Real Property Law § 275 [3]).”
Goldstein v. Soledad Place Corp., 157 Misc. 2d 801 (N.Y. Sup. Ct. 1993). · cites it 4× “) The right to an assignment was thereafter conferred by the enactment of Real Property Law § 275. Real Property Law § 275 was then amended.”
Chem. Bank v. Meltzer, 712 N.E.2d 656 (N.Y. 1999). “The Bank refused, but indicated that it would instead supply a satisfaction of the mortgage pursuant to Real Property Law § 275. 2 Meltzer declined the proposal and cross-moved to compel the Bank to honor his common-law right as subrogee by assigning the bond and first mortgage…”
Nautilus Capital, LLC v. Rama Realty Assocs., LLC, 148 A.D.3d 817 (N.Y. App. Div. 2d Dep't 2017). “), entered August 8, 2015, which granted the motion of the defendants Rama Realty Associates, LLC, and Payam Toobian to direct it to assign the underlying mortgage to a new lender upon full payment of the mortgage indebtedness pursuant to Real Property Law § 275. Motion by the…”
Acocella v. Bank of New York Mellon, 127 A.D.3d 891 (N.Y. App. Div. 2d Dep't 2015). “The plaintiffs also failed to establish any additional ground upon which they would be entitled to the relief requested, including, but not limited to, proof that they satisfied the mortgage (see Real Property Law § 275). The plaintiffs’ remaining contentions are without merit.”
767 Third Avenue LLC v. ORIX Capital Markets, LLC, 26 A.D.3d 216 (N.Y. App. Div. 1st Dep't 2006). “While such a right would save them hundreds of thousands of dollars in mortgage recording taxes—which are calculated based upon the new amount being loaned upon refinancing—no such right was granted by the terms of the mortgage and loan documents, nor is it provided by statute.”
Licalzi v. Wells Fargo Bank, N.A., 125 A.D.3d 942 (N.Y. App. Div. 2d Dep't 2015). “Wells Fargo established its prima facie entitlement to judgment as a matter of law dismissing that cause of action by demonstrating that the borrower had not paid the mortgage in full (see Real Property Law § 275 [1]; see also Emigrant Mtge.”
Bank of New York Mellon v. Morga, 56 Misc. 3d 256 (N.Y. Sup. Ct. 2017). “In fact, Real Property Law § 275 (2) (a) expressly recognizes the commercial practice of lenders selling mortgages in the secondary market.”
207 Realty Assocs. v. 210 Cent. Park North Realty Corp., 140 Misc. 2d 684 (N.Y. Sup. Ct. 1988). · cites it 3× “In consideration of the tender of this sum as aforesaid, movant demanded that the plaintiff execute an assignment of the consolidated mortgage to the movant pursuant to the authority of Real Property Law § 275. Plaintiff has failed and refused to comply with this demand and the…”
2301 Jerome Avenue Realty Corp. v. Di Paolo, 190 Misc. 2d 383 (N.Y. Sup. Ct. 2002). “Real Property Law § 275.) There are apparently junior liens on the real property, the residence of the mortgagor.”
Emigrant Mortg. Co. v. Karpinski, 76 A.D.2d 1044 (N.Y. App. Div. 2d Dep't 2010). · cites it 2× “In his first counterclaim, the defendant, Gregory Karpinski (hereinafter the appellant), sought to compel the plaintiff to issue him a satisfaction of mortgage (see Real Property Law § 275 [1]). The plaintiff argued that it was entitled to summary judgment dismissing the first…”
Emigrant Mortg. Co. v. Karpinski, 67 A.D.3d 958 (N.Y. App. Div. 2d Dep't 2009). · cites it 3× “In his first counterclaim, the defendant Gregory Karpinski sought to compel the plaintiff to issue him a satisfaction of mortgage (see Real Property Law § 275 [1]). The plaintiff argued that it was entitled to summary judgment dismissing the first counterclaim because Karpinski…”
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