Pursuant to the OTR Tax Notice 2023-04 “Notice Regarding the Taxation of Instruments Relating to Refinances and Modifications,” filers claiming full or partial exemption from recordation tax in case of commercial refinance and/or modification must supply to the Office of the Recorder of Deeds the following documentation:
1. Statement to the FP7. The statement at a minimum MUST contain the following information and the information MUST be presented in the given order below:
a. The principal face amount of the debt being refinanced or amended/modified;
b. Instrument number, date of recordation, amount of tax paid as indicated on the recording stamp, and if applicable the exemption claimed on the prior instrument(s);
c. Outstanding principal balance of the existing debt being refinanced or modified/amended;
d. In case of modification, amount of advances in the previous 12 months;
e. New loan amount;
f. Taxable amount, resulting from the difference between the new loan amount, plus the amount of advances in case of modifications, less the outstanding principal balance of the existing deed. Please enter the taxable amount in Line 3 Part H of the revised FP7;
g. Amount of recordation tax due. Please enter this amount in Line 6 Part I of the revised FP7;
h. For refinances, a statement as to whether the obligor of the debt being retired and grantor of the deed of trust securing it is the same as the obligor on the replacement debt and grantor of the deed of trust securing it;
i. For refinances, a statement as to whether the real property securing the debt being retired is the same as the real property securing the replacement debt.
2. Letter from lender stating the outstanding principal amount of the existing debt;
3. Copy of HUD 1;
4. Copies of previously recorded security instruments subject to the refinance or modification;
5. Original new security instrument containing a recital on its face as to the instrument number of the deed of trust being refinanced, modified or amended.