[HISTORY: Adopted by the Board of Trustees of the Village of Chestnut Ridge as indicated in article histories. Amendments noted where applicable.]
[Adopted 5-21-1987 by L.L. No. 9-1987]
It is the intent of this article to prevent the loss of contract deposits and other moneys placed with builders in connection with the construction and purchase of homes in the Village of Chestnut Ridge.
This article shall apply to any person, firm or corporation building any form of residence for resale within the Village of Chestnut Ridge.
A. 
Any sum 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 situated within the Village of Chestnut Ridge 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 hereinabove, 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 Village Attorney.
Upon application for a building permit to construct any residence within the Village of Chestnut Ridge, the applicant shall furnish to the Building Inspector, in addition to all other requirements of law:
A. 
A copy of the contract of sale if one exists; and
B. 
Deliver a copy of the escrow agreement in conformity with this article, unless the said agreement is incorporated within the contract.
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 article.
This article shall not be construed to make the Village or any agency or department thereof a party to a contract of sale of real property nor an arbiter or guarantor of the terms of such a contract.
This article shall be enforced by the Building Inspector and the Code Enforcement Officer of the Village of Chestnut Ridge.
Each and every violation of any of the provisions of this article shall be punishable by a fine not to exceed $5,000 or imprisonment not to exceed 15 days, or both.