finance
Mortgage Recording Tax and CEMA (New York)
New York's mortgage recording tax (Tax Law Article 11) is due when a mortgage is recorded and is based on the amount of debt, not the price; rates vary by county. All-cash purchases and co-op share loans (perfected by UCC filing, not a recorded mortgage) owe no MRT. A Consolidation, Extension and Modification Agreement (CEMA) assigns the existing mortgage to the new lender and consolidates it with a new gap mortgage, so tax is owed only on the new money.
- Exam tip
- Co-op financing triggers no mortgage recording tax because no mortgage is recorded. CEMA saves tax by taxing only the gap amount.
- Example
- An owner refinances a $400,000 balance into a $450,000 loan using a CEMA; mortgage recording tax is due only on the $50,000 gap.
Related terms & state variants
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Last verified: 2026-10-23