Are we required, in NYS, to record a discharge of mortgage if the loan does not fully amortize? I know that a law was recently passed saying that it is required to go into effect soon, and that we may charge for it, but I get payoffs from attorney's that say it is required now.

The new law, which takes effect on Nov. 9, 2005, requires the mortgagee to provide a Certificate of Discharge within 30 days or be fined. The Certificate of Discharge is due "when the full amount of principal and interest due on the mortgage is paid." (Real Property Law Section 275 - Subdivision 1)

But does it have to be recorded & paid for by the mortgagee? The wording is confusing. Says the financial liability applies to any mortgagee that makes five or more mortgage loans in a calendar year, but it also says a mortgagee may charge for recording the SAT.

We charge the customer for it.

I know this is an old topic, but does this apply to both residential and commercial mortgages? I would appreciate your comments!