What happens if your title company neglect to record a CEMA even though they took the recording fee and now you cannot refinance without paying mortgage tax?

You should consult an attorney, but it sounds like the title company was negligent. You should demand they compensate you for it and if they don't, take them to small claims court (or higher level court depending on the amount allowed in your jurisdiction).

A CEMA mortgage is a very specific mortgage document. Was the original mortgage a CEMA mortgage and do you have an Owner's Policy issued by the title agency for that transaction?

I am assuming you used an attorney for your closing, so consult that attorney as to what can be done, since you PAID that attorney for legal advise in the transaction.

If the title agency collected a recording fee and did not use it to record a document (ANY document) that is a RESPA violation which can have very serious consequences for the title agency.

I would go to their UNDERWRITER with the complaint and see what happens from there. Typically the Underwriter will consult with their Agents so that claims are not filed. They may be able to compel them to perform accordingly.

If you had an Owner's Policy issued in the transaction, I'd immediately file a claim. If this was on a refinance transaction, you need to make sure that a CEMA mortgage was used by the lender.

In either case, you are entitled to remedy of the situation.