DISCLAIMER: For informational and educational purposes only. Nothing here is legal advice, a title opinion, or a commitment to insure, and no attorney-client relationship is created. No one may rely on this content for any transaction or legal decision. Coverage is governed solely by the terms of an issued policy or commitment, and requirements vary by state and underwriter. Consult your own attorney and underwriter. Views are my own and not those of my employer.

Title in a Minute with Shawn Tidwell

State Library

New York

Mechanics' liens, recording formalities, future advances, subdivision rules, title premiums and recording taxes in New York, in plain English with statute cites. Last researched Oct 2026.

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Title in a Minute · www.titleinaminute.com/library/states/new-york · Printed reference copy.

DISCLAIMER: For informational and educational purposes only. Nothing here is legal advice, a title opinion, or a commitment to insure, and no attorney-client relationship is created. No one may rely on this content for any transaction or legal decision. Coverage is governed solely by the terms of an issued policy or commitment, and requirements vary by state and underwriter. Consult your own attorney and underwriter. Views are my own and not those of my employer.

Key quirkA lien takes effect only when the notice of lien is filed; 8 months to file (4 for a single-family home).

New York at a Glance

Topic New York answer Where it comes from
When a lien takes effect On filing of the notice of lien (no relation back to first work) N.Y. Lien Law § 3
Notice of lien deadline 8 months after completion; 4 months for a single-family dwelling Lien Law § 10
Service on owner 5 days before to 30 days after filing; proof of service filed within 35 days Lien Law § 11
Duration 1 year, unless foreclosure suit and notice of pendency are filed, or an extension is filed (not for single-family) Lien Law § 17
Bond to discharge 110% of the lien Lien Law § 19(4)
Building loans Building loan contract must be filed with the county clerk, and mortgages need the trust fund covenant Lien Law §§ 13, 22
Recording act Race-notice; acknowledgment required to record N.Y. Real Prop. Law §§ 291, 309-a
Electronic/remote notarization Yes, registered electronic notaries physically in New York N.Y. Exec. Law § 135-c
Deed transfer tax State $2 per $500 (0.4%), 0.65% for NYC residential at $3M+ and other NYC property at $2M+ (seller); 1% mansion tax at $1M+ residential (buyer), up to 3.9% in NYC; NYC RPTT 1% to 2.625% (seller) N.Y. Tax Law §§ 1402, 1402-a, 1402-b; NYC Admin. Code § 11-2102
Mortgage/indebtedness tax Mortgage recording tax: 0.75% to 1.30% outside NYC depending on county (1.80% in Yonkers); NYC 2.05% (under $500K) or 2.175% (1-3 family, $500K+), 2.8% other $500K+; lender pays 0.25% on 1-6 family; CEMA taxes only new money N.Y. Tax Law §§ 253, 253-b, 255
Future advances Credit line mortgage: advances within 30 years, up to the stated maximum, keep priority from recording N.Y. Real Prop. Law § 281
Title premium regulation — N.Y. Ins. Law § 6409; TIRSA
Inducements Rebates prohibited; DFS Regulation 208 limits marketing and ancillary charges Ins. Law § 6409(d); 11 NYCRR Part 228

1. Mechanics' Lien Rules

Plain English

New York is different from most states: a mechanic's lien exists from the time the notice of lien is filed with the county clerk, not from the day work started. That makes the record more reliable for title. The lienor has 8 months after its last work to file (4 months on a single-family home) and must serve the owner. A filed lien lasts one year. To keep it alive, the lienor must start a foreclosure and file a notice of pendency within that year, or (except for single-family homes) file an extension. Hewitt (2026) shows what happens when a lienor misses that step: the lien expires, and a bond posted after it expired gives the lienor nothing to sue on. Building loans have their own rules: the building loan contract must be filed, and the mortgage must contain the statutory trust fund covenant, or the lender can lose priority to lienors.

Key Rules

Creation (N.Y. Lien Law § 3). Contractors, subcontractors, laborers, materialmen, and others who improve real property with the owner's consent have a lien from the time of filing a notice of lien.

Filing deadline (§ 10). Notice of lien may be filed during the work or within 8 months after completion or the last item of work or materials, or 4 months for a single-family dwelling (with a carve-out for developer-owned lots in filed subdivisions). Retainage liens: within 90 days after retainage was due. Filed with the county clerk where the property lies.

Service (§ 11). Serve a copy on the owner within 5 days before or 30 days after filing. Failure to file proof of service within 35 days after filing terminates the lien.

Priority (§ 13).

  • A lien has priority over conveyances, mortgages, and judgments not recorded when the notice of lien is filed, and over advances made after the lien is filed (§ 13(1)).
  • A building loan mortgage keeps priority for advances made before the lien is filed if it (or the building loan contract) contains the § 13(3) trust fund covenant and the building loan contract is filed under § 22 (§ 13(2)).
  • Every building loan mortgage, and every mortgage recorded after the improvement starts and before the § 10 filing period runs, must contain the covenant that the borrower will hold advances as a trust fund to pay the cost of improvement first (§ 13(3)).
  • A deed recorded after the improvement starts and before the § 10 filing period runs is not valid against liens filed within a matching period unless it contains the grantor's trust fund covenant. The short form "subject to the trust fund provisions of section thirteen of the lien law" is enough (§ 13(5)).
  • A deed recorded after the improvement starts and before the § 10 filing period runs is not valid against liens filed within a matching period unless it contains the grantor's trust fund covenant. The short form "subject to the trust fund provisions of section thirteen of the lien law" is enough (§ 13(5)).

Building loan contract (§ 22). Must be written, acknowledged, include a sworn statement of the net sum available for the improvement, and be filed with the county clerk on or before recording the building loan mortgage. If it isn't filed, each party's interest is subject to later-filed liens.

Duration (§ 17). A lien lasts one year after filing unless, within that year, (a) an action to foreclose is commenced and a notice of pendency is filed, or (b) for liens other than on single-family dwellings, an extension is filed (good for one more year). Further extension needs a court order.

Discharge (§ 19). By recorded satisfaction; by failure to sue or extend within the year; by court order; or by a bond or undertaking equal to 110% of the lien (§ 19(4)), among other methods.

Trust funds (Lien Law Article 3-A, § 70). Funds an owner receives for an improvement are trust assets for those who furnished it. These include building loan advances, advances under a mortgage recorded during the improvement, and the price paid under a deed recorded during the improvement or within 4 months after completion. Funds a contractor or subcontractor receives under its contract are trust assets too. The trust arises whether or not a trust fund covenant was signed (§ 70(4)).

Filed case notes

  • Hewitt Bldr. & Renovations, Inc. v. Tectonic Bldrs., Inc., 2026 NY Slip Op 02828 (App. Div. 2d Dep't May 6, 2026): the lienor sued within the year but filed no notice of pendency and got no extension, so the lien expired by operation of law one year after filing (Lien Law § 17). A discharge bond the owner obtained after that date did not let the lienor continue against the bond.

Practice Points

  1. Search the lien docket at the county clerk through closing. Because New York liens arise on filing, a clean search, a prompt closing, and an owner's affidavit about unpaid work carry real weight.
  2. Work in the last 8 months (4 months for single-family)? Get the owner's affidavit, payoffs, or waivers. Someone can still file after closing, and a lien filed before your deed or mortgage records can beat it.
  3. Expired liens. A lien more than a year old with no recorded notice of pendency or extension has terminated by law (§ 17). Confirm on the docket before omitting it, and check for court-ordered extensions.
  4. Building loans. Confirm the building loan contract was filed (§ 22) and the mortgage has the § 13(3) trust fund covenant. Missing either is a priority problem.
  5. Bonded liens. Make sure the lien was alive when the bond was filed (Hewitt).
  6. Deeds during construction. If a deed records while work is under way or within the lien-filing period, make sure it contains the § 13(5) trust fund covenant.
  7. Deeds during construction. If a deed records while work is under way or within the lien-filing period, make sure it contains the § 13(5) trust fund covenant.

Citations

2. Execution and Notarization Requirements for Recording

Plain English

New York deeds and mortgages must be acknowledged (or proved by a subscribing witness) to be recorded with the county clerk (or the City Register in New York City). New York is a race-notice state: an unrecorded conveyance is void against a later good-faith purchaser for value whose own deed is recorded first. New York requires statutory acknowledgment certificate forms. Since 2023, registered electronic notaries physically in New York can notarize remotely. Transfers carry a state transfer tax ($2 per $500), a 1% "mansion tax" paid by the buyer on residential sales of $1 million or more, and extra tiers for big deals in New York City. Mortgages carry a separate mortgage recording tax.

Key Rules

  • Recording (N.Y. Real Prop. Law § 291). A conveyance, duly acknowledged or proved, may be recorded in the county where the land lies. An unrecorded conveyance is void as against a later good-faith purchaser for value whose conveyance is first duly recorded.
  • Acknowledgment forms (§ 309-a). Acknowledgments taken in New York must conform substantially to the uniform statutory form. Outside New York, the § 309-b form may be used but is not required (§ 309-b(1)). An acknowledgment taken in another state in that state's form needs a certificate of conformity (§ 299-a(1)). None is needed when a notary public, a judge or court clerk, or a New York commissioner of deeds took it (§§ 299(1)(a), (c), (d); 299-a(3), (4)).
  • Electronic notarization (N.Y. Exec. Law § 135-c). Registered electronic notaries, physically present in New York, may perform electronic notarial acts, including with remotely located signers using communication technology meeting Secretary of State standards. The Department of State opened registration for electronic notaries on February 1, 2023, and its rules are in 19 NYCRR Part 182 (effective January 25, 2023). The certificate must state that the signer appeared through communication technology (§ 135-c(5)(d)). A county clerk must accept for recording a paper copy of an electronic record certified by a notary (§ 135-c(6)(d)).
  • State transfer tax (N.Y. Tax Law § 1402). $2 per $500 of consideration. In a city of 1 million or more, an additional $1.25 per $500 applies to residential conveyances of $3 million+ and other conveyances of $2 million+.
  • Mansion tax (§ 1402-a). 1% on conveyances of residential property for $1 million or more, paid by the grantee.
  • Mortgage recording tax (N.Y. Tax Law Article 11, § 253 et seq.). Rates vary by county and are highest in New York City (see section 6). Consolidation, extension, and modification agreements (CEMAs) let borrowers pay tax only on new money (§ 255).
  • NYC Real Property Transfer Tax applies on top of the state tax (rates in section 6).

Practice Points

  1. Check the certificate form. A New York acknowledgment must substantially follow § 309-a. An out-of-state acknowledgment in that state's own form needs a certificate of conformity unless a notary, a judge or court clerk, or a New York commissioner of deeds took it (§ 299-a).
  2. Remote notarizations: confirm the notary's electronic registration and that the notary was in New York.
  3. Taxes are collected at closing. Calculate transfer tax, mansion tax (buyer), and mortgage tax correctly, and file the required returns: Form TP-584 (Form TP-584-NYC for New York City property), due within 15 days after the deed is delivered; Form MT-15 for mortgage tax; and the RP-5217 report with each deed.
  4. Fraud is real. Under New York law, a forged deed is void, while a deed procured by fraud is only voidable (Faison v. Lewis, 25 N.Y.3d 220 (2015)). A mortgage based on a forged deed is also void, and a claim to set aside a forged deed is not barred by the statute of limitations (Faison). Identity checks matter most on vacant or non-owner-occupied properties.

Citations

3. Securing Future Advances

Plain English

New York's tool is the credit line mortgage under Real Property Law § 281. If the mortgage states that it secures a credit line with a series of advances, payments, and readvances, and caps the amount outstanding at a stated maximum, then advances made within 30 years of recording, whether obligatory or optional, have the same priority as if made at recording. That holds even if the balance hits zero between advances. Mechanic's liens are the exception: advances made after a notice of lien is filed don't get that priority. Building loan mortgages are excluded from § 281 and follow the Lien Law instead (see section 1). The mortgage recording tax for credit line mortgages has its own rules (Tax Law § 253-b; see section 6).

Key Rules

  • Definition (N.Y. Real Prop. Law § 281(1)(a)). A mortgage (not a building loan mortgage) that secures indebtedness under a note or credit agreement contemplating a series of advances, payments, and readvances, and that limits the total outstanding at any time to a maximum amount stated in the mortgage.
  • Priority (§ 281(2)). It secures future advances made within 30 years from recording, obligatory or optional, with the same priority as if made at recording, even if nothing was outstanding at the time of an advance. The amount secured at any one time can't exceed the stated maximum plus interest and protective disbursements.
  • Mechanic's liens (§ 281(3)). Advances made after a notice of lien is filed under Lien Law Article 2 don't get priority over that lien.
  • Building loans follow Lien Law §§ 13 and 22.

Practice Points

  1. Read the face of the mortgage. It must state the maximum amount and the credit line structure. A conventional mortgage with a future-advance clause is not automatically a § 281 credit line mortgage.
  2. Check the lien docket before relying on later advances. Advances after a notice of lien is filed are subordinate to it.
  3. Payoff and close. On a refinance of a HELOC, get the line frozen or closed with the payoff, and a satisfaction recorded.
  4. Mortgage tax. On a 1-6 family owner-occupied home, tax is paid once on the stated maximum, and later advances to the original borrowers are not taxed again (Tax Law § 253-b(1)). If the line stays open after a sale to an unrelated buyer, tax is due again.

Citations

4. Subdivision Statutes and Regulations

Plain English

New York regulates subdivisions in several layers. Real Property Law § 334 requires anyone who subdivides land into lots for sale to the public to file a map with the county clerk (and copies with the local clerk and tax map department) before offering lots for sale. The Public Health Law prohibits selling lots in a "realty subdivision" until the health department approves a plan for water supply and sewage (and, in Suffolk County, county environmental approval). Local planning boards approve plats when the town board, village board, or city legislative body authorizes them (Town Law § 276, Village Law § 7-728, General City Law § 32). Public offerings of co-op and condominium interests need an offering plan filed with the Attorney General under the Martin Act (Gen. Bus. Law § 352-e).

Key Rules

  • Map filing (N.Y. Real Prop. Law § 334). An owner or agent who subdivides into lots for sale to the public must file a surveyed map with a surveyor's certificate in the county clerk's (or register's) office before offering lots, with duplicates for the city, town, or village clerk and the county tax map department.
  • Health department approval (N.Y. Pub. Health Law § 1116). No subdivision or portion may be sold, offered, leased, or rented, and no permanent building erected, until a plan or map is filed with and approved by the health department with jurisdiction (and in Suffolk, the county environmental department), then filed with the county clerk. The plan must show adequate water supply.
  • Definition of realty subdivision (Pub. Health Law § 1115). A tract divided into five or more residential lots (lots of 5 acres or less; in Suffolk, business, commercial, and industrial lots count too). It becomes a subdivision when the fifth lot is sold, offered, or leased within any 3 consecutive years, and § 1116 then applies to every lot, including the first four.
  • Local plat approval (Town Law § 276; Village Law § 7-728; General City Law § 32). The local legislative body may authorize its planning board to approve preliminary and final subdivision plats.

Practice Points

  1. New subdivision lots: confirm the filed map number and local planning approval. Search for health department approval where required.
  2. "Lot" on a tax map is not a subdivision approval. Tax lots and filed-map lots differ. Check the legal description against the filed map.
  3. Condos and co-ops: confirm the offering plan was filed with the Attorney General (Gen. Bus. Law § 352-e), and review the condo declaration and by-laws, or the co-op proprietary lease, before insuring.

Citations

5. Title Premium Rates

Plain English

New York title rates are filed with and approved by DFS under Insurance Law Article 23. In practice, almost every title insurer in New York belongs to the Title Insurance Rate Service Association (TIRSA), a DFS-licensed rate service organization. New York also has strict anti-inducement rules: rebates are banned by statute, and DFS Insurance Regulation 208 limits what title companies can spend to get business and what ancillary fees they can charge. Every insurer must also offer an optional market value policy for owner-occupied 1-4 family homes.

Key Rules

  • Forms and rates (N.Y. Ins. Law § 6409(a), (b)). Title policy forms must be filed, and rates and rate filings are subject to Article 23.
  • Market value policy (§ 6409(c)). Every title insurer must offer, at or before closing, an optional owner's policy for owner-occupied 1-4 family homes that insures up to market value at the time a loss is discovered.
  • Rebates prohibited (§ 6409(d)). No rebate of any part of the premium or charge, and no payments to anyone acting for the applicant as inducement.
  • Regulation 208 (11 NYCRR Part 228). Prohibits inducements for future title business, governs expense reporting, caps ancillary or discretionary fees, and required rate filings removing past inducement costs (§ 228.3). On residential closings, § 228.5 caps ancillary fees: Patriot, bankruptcy, and municipal searches at 200% of out-of-pocket cost; recording service at $25 per document plus the clerk's fee; survey inspection at $75 plus cost; overnight mail at cost; and escrow at $50.

Practice Points

  1. Offer the market value policy on owner-occupied 1-4 family deals, and document that it was offered.
  2. No gifts, meals, or entertainment that cross Regulation 208 lines. When in doubt, ask compliance.

Citations

6. Recording Taxes & Fees on Deeds and Mortgages

Plain English

New York stacks taxes on both the deed and the mortgage. The seller pays the state transfer tax, and in New York City also the city's Real Property Transfer Tax. The buyer pays the mansion tax on homes of $1 million or more. The borrower pays the mortgage recording tax, which is large in NYC (about 1.8% to 2.8% of the loan). On a refinance, a CEMA (consolidation, extension and modification agreement) lets the borrower pay mortgage tax only on new money.

Key Rules

(a) Deed transfer, conveyance or excise tax

  • State transfer tax. $2 per $500 (0.4%) of consideration (Tax Law § 1402(a)). In NYC, 0.65% for residential (1-3 family, condo, co-op) at $3 million or more and for other property at $2 million or more (§ 1402(a)). The grantor (seller) pays; the grantee is liable if the grantor does not (§ 1404).
  • Mansion tax. 1% of the consideration on residential property of $1 million or more, paid by the grantee (§ 1402-a).
  • NYC supplemental mansion tax (§ 1402-b), on NYC residential property of $2 million or more: 0.25% ($2M to under $3M), 0.5% ($3M to under $5M), 1.25% ($5M to under $10M), 2.25% ($10M to under $15M), 2.5% ($15M to under $20M), 2.75% ($20M to under $25M), and 2.9% ($25M or more). With the 1% mansion tax, the combined rate runs from 1% to 3.9%.
  • NYC Real Property Transfer Tax (Admin. Code § 11-2102): residential 1% at $500,000 or less and 1.425% above; other property 1.425% at $500,000 or less and 2.625% above. The grantor pays.
  • Other local transfer taxes apply in some places, such as the towns of the Peconic Bay region on eastern Long Island (Tax Law Article 31-D). Check for a local tax before closing.
  • Entity transfers. The transfer or acquisition of a controlling interest (50% or more) in an entity owning New York real property is taxed (§ 1401(b)); NYC taxes these too.
  • Returns. Form TP-584 (Form TP-584-NYC for New York City property), due within 15 days after delivery of the deed. In NYC, also the RPT return, filed electronically through ACRIS.

(b) Mortgage, indebtedness or intangible tax

  • Structure (Tax Law § 253): basic tax 0.5%; additional tax 0.25% (0.30% in the Metropolitan Commuter Transportation District); special additional tax 0.25%, which the lender pays on 1-6 family residential mortgages (it does not apply on 1-6 unit property when the lender is an individual or a credit union) (§ 253(1-a)).
  • NYC totals: 2.05% under $500,000 and 2.175% at $500,000 or more on 1-3 family homes and condo units; the borrower's share is 1.80% or 1.925% after the lender's 0.25%. Other property at $500,000 or more is 2.8%. Co-op loans are secured by shares, not a recorded mortgage, so they pay no mortgage recording tax.
  • Outside NYC: 0.75% to 1.30% depending on county, and 1.80% in Yonkers (Tax Department Form MT-15 rate tables). Many counties are 1.00%; MCTD counties are 1.05%; counties with a local tax run 1.25% to 1.30%. Rates include the lender's 0.25% special additional tax on 1-6 family homes.
  • Credit-line mortgages (§ 253-b). On 1-6 family owner-occupied homes (and on other property when the mortgage is under $3 million), tax is paid on the maximum principal stated, and later advances or readvances to the original borrowers are not taxed again. An increase in the maximum is taxed on the increase. If the line stays open after a sale to someone not related to the borrower, tax is due again before the deed can be recorded.
  • CEMA savings (§ 255). When an existing mortgage is assigned to the new lender and consolidated, extended or modified, tax is owed only on the new money. Without an assignment, the full new loan is taxed.
  • Return. Form MT-15 (mortgage recording tax return).

(c) Other recording taxes and fees

  • RP-5217 real property transfer report with each deed, with a filing fee of $125 for qualifying residential or farm property and $250 for other property (Real Prop. Law § 333(3)). In New York City the fee is $100 for each city transfer tax form, unless an RP-5217 is also filed for the transfer.
  • County clerk recording fees are set by statute and vary by county and page count.

Practice Points

  1. NYC refinance example. A $1,000,000 refinance of an $800,000 balance: with a CEMA, tax is on $200,000 only.
  2. Mansion tax: count condos and co-ops; the buyer pays at $1 million or more.
  3. Entity deals: a controlling-interest transfer needs TP-584 and, in NYC, an RPT return even with no deed.
  4. Confirm the payer split: seller pays transfer taxes; buyer pays the mansion tax; borrower pays mortgage tax (lender pays its 0.25% on 1-6 family).

Citations

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