The purpose of this chapter is to effect and accomplish protection for
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.
As 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 the vendor undertook
to build or construct a home for the vendee.
HOME
A new one-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 in
the Town of Pound Ridge and such vendee is required to pay a deposit to such
vendor, the vendor shall post with the chief fiscal officer of the Town of
Pound Ridge 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 Attorney to the Town.
In lieu of posting a bond as provided in §
46-3, 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.