N.Y. Real Property Law 274-A – Certificate of principal amount unpaid on mortgages of real property
§ 274-a. Certificate of principal amount unpaid on mortgages of real property. 1. The holder of a mortgage upon real property shall execute and deliver to the owner of the real property upon which such mortgage is a lien a written instrument setting forth the amount of the principal of said mortgage remaining unpaid, the date to which interest has been paid, and the amounts, if any, claimed to be unpaid upon said mortgage for principal and interest, itemizing the same, provided, however, that prior written demand by registered or certified mail has been made upon the holder of such mortgage by such owner of the real property and that such owner of the real property shall have executed and delivered to another a written contract to convey, or shall have received a written commitment to make a mortgage loan upon, the real property or an interest therein. The written instrument hereinbefore required of the holder of the mortgage shall be a certificate duly executed and acknowledged in the same manner as required by law to entitle a conveyance of real property to be recorded, except that a bank, savings bank, private banker, trust company, savings and loan association or any other banking organization, as defined in the banking law, a national bank or trust company or any other federally-chartered or federally-regulated savings and loan association or other banking institution and an insurance company duly organized or licensed to do business in this state under the insurance law of this state and the state of New York, or an agency thereof and a political subdivision of the state of New York or an agency thereof may, in lieu of the said certificate, furnish a letter signed by a duly authorized officer, or employee or agent, containing the information required to be set forth in such certificate. An owner of real property who shall have complied with the foregoing requirements and who shall not have received the written instrument from the holder of the mortgage thereon within twenty days after such compliance shall be entitled to petition a court of competent jurisdiction for an order requiring such holder of the mortgage to comply with this section.
Terms Used In N.Y. Real Property Law 274-A
- Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
- Contract: A legal written agreement that becomes binding when signed.
- conveyance: as used in this article , includes every instrument, in writing, except a will, by which any estate or interest in real property is created, transferred, assigned or surrendered. See N.Y. Real Property Law 240
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
- Mortgagee: The person to whom property is mortgaged and who has loaned the money.
- Mortgagor: The person who pledges property to a creditor as collateral for a loan and who receives the money.
- National Bank: A bank that is subject to the supervision of the Comptroller of the Currency. The Office of the Comptroller of the Currency is a bureau of the U.S. Treasury Department. A national bank can be recognized because it must have "national" or "national association" in its name. Source: OCC
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
2. (a) The mortgagee of an owner-occupied, one-to-six family residential structure or residential condominium unit, shall deliver within thirty days, any mortgage related documents to an authorized individual making a bona fide written demand for such documents. The mortgagee shall not charge for providing the mortgage-related documents, provided, however, the mortgagee may charge not more than twenty dollars, or such amount as may be fixed by the superintendent of financial services, for each subsequent payoff statement provided under this subdivision. If the mortgagee fails to deliver the mortgage-related documents, the mortgagee shall be liable for the actual damages to the mortgagor by reason of such failure. In computing actual damages the court may consider the actual rate of interest on the mortgage debt and current prevailing rate or rates of interest on comparable debts. However, actual damages do not include pain and suffering, mental or emotional distress or the like. The replacement costs of a lost abstract of title required to be delivered hereunder, may be deducted from the amount required to satisfy the mortgage.
(b) When used in this section:
(i) "Authorized individual" means the mortgagor, the mortgagor's attorney, or the attorney representing a banking organization which has agreed to make a loan secured by the same real property securing the mortgage for which the mortgage related documents have been requested.
(ii) "Mortgagee" means (1) the current holder of the mortgage of record or the current holder of the mortgage, (2) any person to whom payments are required to be made and (3) their personal representatives, successors and assigns.
(iii) "Bona fide written demand" means a written demand made by an authorized individual in connection with a sale or refinancing of the mortgaged property or some other event where the mortgage is reasonably expected to be paid off or assigned. Such demand shall either be delivered personally, or by registered or certified mail, postage prepaid, return receipt requested. The demand shall include the names of the mortgagor and mortgagee, the address of the mortgaged property, loan number, the date of the mortgage or the date it was recorded, the mortgage related documents demanded and the proposed payoff date or date of assignment of the mortgage, if applicable. If the demand includes a request for the abstract of title, the demand shall include the agreement by the mortgagor to pay for a replacement abstract of title, the cost of which may not exceed the actual replacement cost of such abstract of title, in the event that the mortgage is not paid off or the abstract of title is not returned within thirty days of the proposed payoff date. Such demand shall include the following in capital letters:
"THIS DEMAND IS MADE UNDER SECTION 274-a OF THE REAL PROPERTY LAW.
FAILURE TO COMPLY WITH THIS DEMAND MAY RESULT IN SEVERE PENALTIES."
(iv) "Mortgage-related documents" means:
(1) the abstract of title for the real property securing the mortgage if such document is in the possession and control of the mortgagee. In the event that the mortgage is not paid off, the authorized individual receiving the abstract of title shall within thirty days of the proposed payoff date return the abstract of title to the mortgagee or other person so designated by the mortgagee; upon a failure to so return the abstract of title, the mortgagee may obtain a replacement abstract of title, the cost of which may not exceed the actual replacement cost of such abstract of title and which shall be paid by the mortgagor;
(2) a payoff statement setting forth the balance of the mortgage, including principal, interest and other charges assessed pursuant to the loan documents, together with a per diem rate for interest accruing after the date to which the balance has been calculated. The payoff statement may, in the event that the statement reflects payments which may have not yet cleared, require the authorized individual to obtain from the mortgagee a day of payoff verification of the payoff statement. A payoff statement requiring day of payoff verification shall include, in addition to the address of the mortgagee, the telephone number of the mortgagee and, if a banking organization or corporation, the name or department, and its telephone number and facsimile phone number. Unless the payoff statement requires a day of payoff verification, a mortgagee furnishing a payoff statement shall be obligated to make its best effort to furnish a satisfaction of mortgage upon receipt of the amount set forth in such statement unless such person subsequently notifies the authorized individual of an error in the payoff statement. The payoff statement furnished by a mortgagee shall include a name or department in addition to the address of the banking organization or corporation for use in connection with preparation of an affidavit under subdivision five of § 1921 of the real property actions and proceedings law;
(3) if requested and if the title insurance policy is in the possession and control of the mortgagee, a copy of such policy or a statement setting forth the name of the insurer and the number of such policy.
(v) "Banking organization" shall have the same meaning as provided in subdivision eleven of § 2 of the banking law and shall include any institution chartered or licensed by the United States or any state.