Effective July 1, 2025, real estate transactions in New York will face a major shift in how tax warrants are handled, and everyone from property owners to attorneys and title companies needs to prepare.
What's Changing?
Under current law, New York State tax warrants become liens against real property only if they’re filed with the county clerk where the property is located. As a result, searches for tax warrants have been limited to the specific county in which the property sits.
But beginning July 1, 2025, this will change significantly. A revised version of Section 6 of the Tax Law states that when the New York State Department of Taxation and Finance files a tax warrant with the NYS Secretary of State, it will automatically become a lien on all real property owned by the taxpayer anywhere in the state, regardless of county filing.
What This Means for Property Owners
For those who own real property in New York, this change means that a tax warrant filed only with the Department of State can now cloud title on all of your real estate holdings. Even if the warrant isn't filed in the county where your property is located, it can still affect your ability to sell or refinance.
What This Means for Real Estate Attorneys
Attorneys representing sellers, buyers, or lenders must take this new statewide lien exposure into account when preparing for closings. Failure to identify and address a statewide tax warrant could lead to:
- Delayed closings
- Title defects
- Client liability post-closing
Attorneys should ensure their due diligence includes state-level tax warrant searches, not just local county records.
What This Means for Title Companies
At Liberty Land Abstract, we are updating our practices to ensure full compliance with the new law. For any closing occurring on or after July 1, 2025, our searches will include New York State Department of State tax warrant records, and we will raise any tax warrants that could impact the title.
This change reinforces the critical role of comprehensive title work in protecting buyers and lenders from hidden liens.
Key Takeaways:
- Starting July 1, 2025, NYS tax warrants filed with the Secretary of State will create statewide real property liens.
- A lien can now impact property in any county, even when the lien is not filed in the county where the property is located.
- Title searches must include NYS Department of State records moving forward.
- Liberty Land Abstract is ready and fully equipped to manage this change, ensuring clean closings and peace of mind.
Questions about how this could affect your upcoming closing?
Contact Liberty Land Abstract — your trusted partner in navigating complex title issues across New York State.