When used in this chapter, the following terms, unless the context requires
otherwise, shall have the following meanings:
DEFAULT
Occurs 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
Any moneys given as down payment 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 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.
When a vendor undertakes to build or construct a home for a vendee,
and such vendee is required to pay a deposit to such vendor, the vendor shall
post with the Village Treasurer of the Village of Larchmont, the municipality
wherein such home is to be erected or constructed, a bond in the amount of
such deposit or deposits. Such bond shall be posted within five business days
after receipt of said deposit or deposits, by the vendor, and shall secure
the payment of said deposit to the vendee upon the vendor's default. Such
bond shall be in such form as required by the Superintendent of Insurance.
In lieu of posting a bond, as provided in this chapter, the vendor shall
place the deposit or deposits paid to him/her by the vendee in an interest-bearing
escrow account, with a bank as defined in the Banking Law, within five business
days after receipt of such deposit or deposits. Such deposit or deposits,
together with interest accumulated thereon, shall remain the property of the
vendee, except as otherwise provided herein.