The Town Board of the Town of Tuxedo, taking
cognizance of the exposure to loss, because of a builder's financial
failure, of contract deposits placed with a builder for the purchase
of a home in the Town of Tuxedo and further taking cognizance of the
desire on the part of all responsible businessmen in the building
and construction industry in the Town of Tuxedo to preserve their
reputations from the adverse effect of possible losses of home buyer
deposits as above described, hereby determines that the enactment
of this chapter pursuant to the general powers granted by § 10
of the Municipal Home Rule Law will contribute to the public welfare
and safety and to the orderly development of the Town of Tuxedo and
will reinforce public confidence in the financially responsible builders
and contractors in the Town of Tuxedo.
As used in this chapter, the following terms,
unless the context requires otherwise, shall have the meanings indicated:
DEFAULT
Where title to the home is not transferred to the vendee
because of the failure of the vendor to substantially perform those
provisions of the agreement between the vendor and vendee wherein
the vendor undertook to build or construct a home for the vendee or
where the vendor becomes insolvent.
DEMAND
Communication of an actual notice to the vendor of requests
made therein.
DEPOSIT
The ten percent down payment given by the vendee to the vendor
as required by the vendor prior to the commencement of the work to
be performed, pursuant to an agreement between the vendor and vendee
wherein the vendor undertook to build or construct a home for the
vendee.
HOME
A new one- or two-family dwelling intended to be used primarily
as a residence.
VENDEE
Any individual or individuals who have contracted with a
vendor for construction of a home on land not owned at the time of
such agreement by such individual or individuals.
VENDOR
Any person, firm, corporation or association engaged in the
business of erecting or constructing homes.
Upon transfer of title of the home to the vendee
and upon presentation of evidence that such transfer has occurred,
the posted bond or funds held in escrow, together with interest accumulated
thereon, shall become the property of the vendor, unless otherwise
agreed between the vendor and vendee.
In the event of a default by the vendor, the
vendee may demand return of his deposit or deposits from the vendor
or his attorney, and the vendor or his attorney shall physically transfer
the account to the vendee or pay the balance of said account to the
vendee within 14 business days after the day on which the demand was
made. If the vendor has posted a bond pursuant to the provisions of
this chapter, the vendee may initiate an action for the payment thereon
for the amount of the deposit or deposits.
[Amended 10-10-1979 by L.L. No. 7-1979]
Failure of the vendor to comply with any of
the provisions of this chapter is a misappropriation of funds, and
action may be brought by the vendee against the vendor for the return
of any moneys advanced. In addition, the failure of the vendor to
so comply with the provisions of this chapter shall be deemed a violation
pursuant to the Penal Law of the State of New York, punishable by
a fine not exceeding $250 or by imprisonment for not exceeding 15
days, or by both such fine and imprisonment.