[HISTORY: Adopted by the Board of Trustees of the Village of Montebello 4-25-1988 by L.L. No. 20-1988. Amendments noted where applicable.]
This chapter shall be cited and may be referred to hereinafter as the "Home Buyers Protection Law" of the Village of Montebello.
The Village Board of the Village of Montebello has concluded that it is necessary to prevent exposure to loss of contract deposits and other moneys placed with builders in connection with the construction and purchase of homes, because of the builder's financial failures. It is also apparent that such losses have an adverse effect on the residential building construction industry and the orderly development of the Village which is more fully set out in the subcommittee's findings.
The Village of Montebello hereby determines that the enacting of this chapter, pursuant to the powers granted by the Municipal Home Rule Law and the Village Law of the State of New York, will contribute to the public welfare and safety, to the orderly development of the Village of Montebello and to the protection of future home buyers in the Village of Montebello, and to reinforce public confidence in financially responsible builders and will control the constructing of homes in the Village of Montebello.
This chapter shall apply to any person, firm or corporation building any form of residence for resale within the Village of Montebello.
Any sums 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 Montebello; 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.
In lieu of the escrow account referred to in Subsection A, the seller or his agent may deliver to the Chief Fiscal Officer of the Village of Montebello 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 Montebello, the applicant shall furnish to the Building Inspector, in addition to all other requirements of the chapter:
A copy of the contract of sale if one exists; and
Deliver a copy of the escrow agreement in conformity with this chapter, unless the said agreement is incorporated within the contract.
This chapter shall not be construed to make the Village or any agency or department of the Village a party to a contract of sale of real property not an arbiter or guarantor of the terms of such a contract.
Each and every violation of any of the provisions of this chapter shall be punishable by a fine not to exceed $1,000 or by imprisonment for not more than one year, or by both.
This chapter supersedes, and is in derogation of, Chapter 19 of the Code of the Town of Ramapo, County of Rockland, State of New York. This chapter is enacted by authority of § 20, Subdivision 5, of the Municipal Home Rule Law and any other law referenced herein as authority herefor.