Sarah is purchasing a $400,000 home in Albany County, New York, and is obtaining a $320,000 mortgage. Who is responsible for paying the New York State mortgage recording tax?
Correct Answer
B) The borrower (buyer) pays the mortgage recording tax when recording the mortgage
Under New York Tax Law, the mortgage recording tax is paid by the borrower (mortgagor) when the mortgage is recorded in the county clerk's office. This is a state-mandated tax that applies to most mortgage recordings in New York State.
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Related Topics & Key Terms
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A comparison of the major mortgage loan types—conventional, FHA, VA, and USDA—covering their eligibility requirements, down payment amounts, mortgage insurance rules, and best use cases.
Predatory lending refers to unfair, deceptive, or abusive lending practices that impose unjustified terms on borrowers, often targeting vulnerable populations. It includes practices like excessive fees, inflated appraisals, and unnecessary refinancing.
RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
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