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New York · Real Property Law §275, RPAPL §1921New York mortgage satisfaction after payoff: the 30-day recording rule and the escalating penalties

When a New York mortgage has been paid in full, the mortgagee must execute and acknowledge a satisfaction of mortgage and, within 30 days, arrange to have it presented for recording to the recording officer of the county where the mortgage is recorded – or, if the mortgagor asks, deliver it to the mortgagor or a designee (RPAPL §1921(1)(a); Real Prop. Law §275(1)). A mortgagee that doesn't present it for recording owes the mortgagor $500 after 30 days, $1,000 after 60 days and $1,500 after 90 days; this doesn't apply to lenders making fewer than five mortgage loans a year (RPAPL §1921(1)(a); RPL §275(1)). The mortgagee must also deliver the note and mortgage to the mortgagor or designee within 45 days (RPAPL §1921(1)(a)), and may not return, destroy or refuse a payment made according to its own payoff letter (§1921(1)(b)).

The rules

  1. 1. Satisfaction (§1921(1)(a))

    Executed, acknowledged and presented for recording within 30 days.

  2. 2. Penalties (§1921; RPL §275)

    $500 at 30 days, $1,000 at 60, $1,500 at 90 – not for lenders under 5 loans a year.

  3. 3. Note and mortgage

    Returned to the borrower or designee within 45 days.

  4. 4. Payoff letter (§1921(1)(b))

    A payment made per the payoff letter can't be refused.

What the TC can do

  • Calendar 30 days after the payoff for the recorded satisfaction.
  • Ask the title company or closing attorney to confirm the recording.
  • Keep the payoff letter and wire confirmation in the deal file.

Questions about New York mortgage satisfactions

How long does a New York lender have to record the mortgage satisfaction?

It must arrange to have the satisfaction presented for recording within 30 days after the payoff (RPAPL §1921(1)(a)).

What if a New York lender is late with the satisfaction?

It owes the borrower $500 after 30 days, $1,000 after 60 days and $1,500 after 90 days, unless it makes fewer than five mortgage loans a year (RPAPL §1921(1)(a); RPL §275(1)).

Related guides

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Source: New York RPAPL §1921 and Real Property Law §275 (nysenate.gov, read October 26, 2026).

General information, not legal advice. Ask the closing attorney about a specific deal. ClosingCode is software; it is not a law firm. This guide is not a substitute for the advice or services of an attorney.