When used in this chapter, the following terms, unless the context
requires otherwise, shall have the following meaning:
DEFAULT
Occurs where title to the home is not transferred to the
vendee because of the failure of 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 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.
When a vendor undertakes to build or construct a home for a
vendee within the Village of Suffern and such vendee is required to
pay a deposit to such vendor, the vendor shall post with the Clerk
and Treasurer of the Village of Suffern 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 issued by an insurance company licensed
to do business in the State of New York and 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 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.