[HISTORY: Adopted by the Town Board of the Town of Blooming Grove 12-8-1975
by L.L. No. 4-1975 as Ch. 119 of the 1975 Code. Amendments
noted where applicable.]
When used in this chapter, the following terms, unless the context requires
otherwise, shall have the following meanings:
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 vendor undertook to build
or construct a home for the vendee, or where the vendor becomes insolvent.
Communication of an actual notice to the vendor of requests made
therein.
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 vendee and vendor wherein the vendor undertook
to build or construct a home for the vendee.
A new one- or two-family dwelling intended to be used primarily as
a residence.
Any town, village or city.
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.
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 and
such vendee is required to pay a deposit to such vendor, the vendor shall
post with the Chief Fiscal Officer of the municipality wherein such home is
to be erected or constructed, 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 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.
A.
Upon transfer of title of the home to the vendee, the
bond posted pursuant to this chapter shall be released, and any funds held
in escrow pursuant to the provisions of this chapter, 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 chapter,
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 chapter, 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 chapter 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 chapter shall be deemed a misdemeanor.
C.
Nothing in this chapter 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.
