§ 254-d. Fees by mortgagee for direct payment of real property taxes by mortgagor prohibited. No mortgagor on a loan secured primarily by an interest in real property shall be charged a fee by the mortgagee because the parties have agreed that the mortgagor shall pay real property taxes on such real property directly to the taxing authority or authorities and not in escrow to the mortgagee or the mortgagee's agent.

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Terms Used In N.Y. Real Property Law 254-D

  • Escrow: Money given to a third party to be held for payment until certain conditions are met.
  • interest in real property: include every such estate and interest, freehold or chattel, legal or equitable, present or future, vested or contingent. See N.Y. Real Property Law 240
  • 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.
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.