This chapter shall be cited and may be referred
to hereinafter as the "Home Buyers Protection Law" of the Town of
Ramapo.
This chapter shall apply to any person, firm
or corporation building any form of residence for resale within the
unincorporated area of the Town of Ramapo.
[Amended 10-12-1977 by L.L. No. 6-1977]
A. Any sums of money paid prior to the closing of title
of real property, regardless of how characterized or labeled, be it
as down payments, extras or otherwise, for the sale of real property
and appurtenances thereto intended to be improved by a residence dwelling
on property situate within the unincorporated area of the Town of
Ramapo and which improvement is to be made by the seller of the property
or his agent or general contractor shall be held in escrow by the
seller or buyer's attorney or lending institution or such other agent
as the parties shall agree. The sum of money so held shall not be
released or delivered to the seller unless and until the Building
Inspector shall have issued a certificate of occupancy.
B. In lieu of the escrow account referred to in Subsection
A, the seller or his agent may deliver to the purchaser a deposit guaranty bond written on a solvent surety or insurance company licensed to do business in the State of New York whereby such bond shall provide that if the seller shall deliver the deed pursuant to the written contract, the obligation of the surety will become void, but otherwise to be firmly bound to the purchaser for the repayment of any sums paid to the seller. Said bond shall be unequivocal and provide for no exceptions except the default of the purchaser and be in a form and content satisfactory to the Town Attorney's office.
Upon application for a building permit to construct
any residence within the Town of Ramapo, the applicant shall furnish
to the Building Inspector, in addition to all other requirements of
the law:
A. A copy of the contract of sale if one exists; and
B. A copy of the escrow agreement in conformity with
this chapter, unless said agreement is incorporated within the contract;
or
C. In lieu of Subsections
A and
B hereof, a letter from the applicant indicating that the parcel has not yet been contracted for sale but, upon the entry into contract, the down payment will be held in escrow in conformity with this chapter.
This chapter shall not be construed to make
the Town or any agency or department of the Town a party to a contract
of sale of real property nor an arbiter or guarantor of the terms
of such a contract.
Each and every violation of any of the provisions
of this chapter shall be punishable by a fine not to exceed $500 or
by imprisonment for not more than six months, or by both.