Once a City property mortgage is paid in full, the lending bank or mortgage company will give the property owner a document called a Satisfaction of Mortgage. At that same time, the lender must also notify the Department of Finance (DOF) that the mortgage has been satisfied so DOF can update its records.
If the mortgage lender has also been paying City property taxes for the owner, DOF will start billing the owner for the taxes they are responsible for paying based upon the mortgage payoff date.The owner will start to receive a property tax bill, also called a Statement of Account, for that property either quarterly or semi-annually.
If your lender has already contacted DOF, but you are not getting your property tax bills or the mailing address or billing name is incorrect, you can email DOF.
Contact the Department of Finance.
You can request to find out if a mortgage has been removed after the mortgage satisfaction has been filed.
Quarterly and Semi-Annual Property Tax Bills
- Properties that have an assessed value of UNDER $250,000 receive property tax bills quarterly, or four times a year.
- Properties that have an assessed value of OVER $250,000 receive property tax bills semi-annually, or two times a year.
Property owners should contact their lending bank or mortgage company for proof that their mortgage has been paid in full.
Mortgage Recording Tax
When a mortgage is issued and recorded for a City property, the property owner must pay both City and State Mortgage Recording Taxes. You can get information about the mortgage recording tax.
Property owners must provide the relevant mortgage recording tax information when the mortgage documents are recorded. If the person recording the mortgage claims an exemption from the tax, the appropriate affidavit must be filed with the mortgage documents.
When refinancing, a property owner may be able to avoid paying the recording tax if the original lender agrees to assign or transfer the remaining balance on the old mortgage to the new lender. The old mortgage will not be satisfied but simply assigned. Since no new mortgage debt has been created, no mortgage recording tax will be due, although most lenders do charge an "Assignment Fee."
Learn more about the mortgage recording tax, including tax rates.