[Added 11-10-1975 by L.L. No. 3-1975 (Ch. 23 of the 1971 Code)]
When used in this article, 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 the 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 the vendee wherein the vendor undertook to build or construct a home for the vendee, and which moneys are not deposited in an attorney's escrow account pursuant to an escrow agreement.
[Amended 3-14-1988 by L.L. No. 2-1988]
HOME
A new one- or two-family dwelling intended to be used primarily as a residence.
MUNICIPALITY
Any town, village or city.
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, and such individual or individuals are not represented by an attorney.
[Amended 3-14-1988 by L.L. No. 2-1988]
VENDOR
Any person, firm, corporation or association engaged in the business of erecting or constructing homes.
[Amended 12-18-2012 by L.L. No. 2-2012]
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 Treasurer of the City 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 article, the vendor shall place the deposit or deposits paid to him 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.
A. 
Upon transfer of title of the home to the vendee, the bond posted pursuant to this article shall be released, and any funds held in escrow pursuant to the provisions of this article, together with interest accumulated thereon, shall become the property of the vendor, unless otherwise agreed between the vendor and vendee.
B. 
Upon default by the vendor, the vendee may demand return of his deposit or deposits from the vendor. If the vendor has placed the deposit or deposits in an escrow account pursuant to the provisions of this article, he 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 article, the vendee may initiate action for payment thereon if his deposit or deposits have not been paid to such vendee by the vendor within 14 business days after the day in which said demand was made.
A. 
Failure of the vendor to comply with any of the provisions of this article 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, such vendor shall be liable for criminal action pursuant to the provisions of Subsection B of this section.
B. 
Failure of the vendor to comply with any of the provisions of this article shall be deemed a misdemeanor.
C. 
Nothing in this article shall impair, limit or reduce the statutory, common law or contractual duties or liability of any vendor in the construction of a home, nor shall these provisions apply to any local law or ordinance which requires the posting of public improvement bonds.