[Added 12-16-1975 by L.L. No. 11-1975]
This Article is applicable to the construction
of new one- and two-family dwellings pursuant to the authority granted
in Article 37 of the General Business Law, as amended by Chapter 643
of the Laws of 1975.
When used in this Article, the following terms,
unless the context requires otherwise, shall have the following meanings:
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 vendor and vendee
wherein 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.
The Town Clerk of the Town of Niskayuna.
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 Town Clerk 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
Article, the vendor shall place the 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 Article shall be released, and any
funds held in escrow pursuant to the provisions of this Article, 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 Article, 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 Article,
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 Article 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.
[Amended 11-19-1991 by L.L. No. 13-1991]
B.
Nothing in this Article 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.
C.
Nothing in this Article shall impose upon the Town
of Niskayuna any liability for the performance of any party or the
lack thereof, and in any instance where the right to the deposit is
contested in court, the Town shall hold said moneys in escrow until
directions for disbursement thereof have been made by court order.
The Building Inspector of the Town of Niskayuna
may make such rules and regulations, approved by the Town Board, as
may be necessary to effectively administer the provisions of this
Article.
