Finance
In New York, which of the following describes a 'purchase money mortgage'?
AA mortgage obtained from a bank to finance the purchase of a property
BA mortgage given by the buyer directly to the seller as part of the purchase price (seller financing)✓ Correct
CA second mortgage taken after the first mortgage has been recorded
DA mortgage used to purchase investment property only
Explanation
A purchase money mortgage (PMM) in New York is a mortgage given by the buyer to the seller (or a third party) as part payment of the purchase price — essentially seller financing. PMMs have special priority rules in New York and are generally exempt from the mortgage recording tax in some situations.
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