[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.
A.
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.
B.
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.
A.
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.
B.
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.[1]
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:
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.