Showing posts from August, 2018


Legal Line Question: Purchase CEMAs
Q: I am representing a buyer in an upcoming condominium purchase. I understand that a buyer and seller can save money by using a process called a "Purchase CEMA" and that many lenders are permitting this. What is a Purchase CEMA and how can it save the purchaser and seller money? A: A mortgage tax is imposed on a borrower and lender when a mortgage
is made and recorded in New York State. Under certain circumstances,
the mortgage tax can be reduced or avoided. A "CEMA" (which is
an acronym for Consolidation, Extension and Modification Agreement)
is the process by which the reduction of the mortgage tax is accomplished.
A Purchase CEMA permits a purchaser to avoid or reduce mortgage tax
in a purchase transaction when the seller’s lender assigns the seller’s
existing mortgage to the purchaser’s lender. For example, instead of paying
the mortgage tax on the purchaser’s full loan amount, with a Purchase
CEMA the purchaser only pays the …

Legal Line Question: Assistance Animals and Service Animals