Release or subordination of lien

If a tax warrant has been filed against you for past-due tax debt, you may have difficulty selling your real property, or obtaining a loan using your real property as collateral.

A tax warrant creates a lien on real and personal property, and this can block you from selling or transferring your property with a clear title (one free of any liens) to a potential new owner until the warrant is paid in full. See Pay a bill or notice for payment options. If you require a warrant payoff letter, see Tax warrants.

Under certain circumstances, New York State may grant you a release of lien or subordination of lien if you are unable to pay your warranted balance in full.

A release of lien is a document that releases New York State’s interest in a specific piece of property so it can be transferred to a new owner.
A subordination of lien is an agreement between New York State and a lender, where we agree to prioritize the lender's lien over ours.

We will only grant your request for a release of lien or subordination of lien if it is in the best interest of New York State.

Who may request

You may request a release of lien if you:

have a tax warrant filed against you,
are selling real or personal property, and
the proceeds from the sale will not be enough to pay your warranted balance in full.

You may request a subordination of lien if you:

have a tax warrant filed against you, and
are attempting to refinance or secure a loan using your property as collateral.

What to submit

If you are requesting a release of lien

a power of attorney for the legal representative (if applicable)
a letter requesting the release that includes:
- the circumstances of the sale
- the amount you will offer to New York State in exchange for the release
- a description of all additional real property you own, and the amount of equity in such property
- a proposed closing date
a pre-closing statement showing the total selling price and distribution of all money (to whom and for what purpose)
the payoff letters from the lienholder (on their letterhead) for all senior lienholders being paid at closing
the discharge letters for all senior lienholders who are not being paid at closing
a complete title search covering the last 10 years
a copy of the deed that includes a description of the property
a current appraisal with comparisons
a copy of the signed and dated contract for the sale of the property

If you are requesting a subordination of lien

a power of attorney for the legal representative (if applicable)
a letter requesting the subordination that includes:
- an explanation of your circumstances
- an explanation of how New York State will benefit from the transaction
- the amount of money you will offer New York State
- an explanation of how you will repay the balance
a copy of your most current mortgage statement
a copy of the new proposed loan agreement, including details identifying the new lender
a statement showing how any proposed proceeds will be disbursed
the payoff letters from all senior lienholders of secured debt
the subordination letters for any senior lienholders not being paid at closing
a complete title search covering the last 10 years
a copy of the deed

We will not consider your request until you submit all required documents.

To expedite the review process:

send all documents together, and
send only current documents dated within the last six months.

Where to send your request

Mail your request and all required documents to:

NYS TAX DEPARTMENT

CED COMPLIANCE ASSISTANCE TEAM

W A HARRIMAN CAMPUS

ALBANY NY 12227

If you are sending by private delivery service, mail to:

NYS TAX DEPARTMENT

CED COMPLIANCE ASSISTANCE TEAM

90 COHOES AVE

GREEN ISLAND NY 12183-1515

We will call you or your legal representative (if applicable) to acknowledge we have received your request. If needed, we will request additional documentation.

Updated: March 28, 2023