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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: