[HISTORY: Adopted by the Town Board of the Town of Haverstraw 7-8-1974
as L.L. No. 3-1974 (Ch. 21 of the 1966 Code); amended in
its entirety at time of adoption of Code; see Ch. 1, General Provisions, Art.
I. Subsequent amendments noted where applicable.]
The Town Board of the Town of Haverstraw, taking cognizance of the exposure
to loss, because of a builder's financial failure, of contract deposits
placed with a builder for the purchase of a home in the Town of Haverstraw,
and further taking cognizance of the desire on the part of all responsible
businessmen in the building and construction industry in the Town of Haverstraw
to preserve their reputations from the adverse effect of possible losses of
home-buyer deposits as above described, and taking notice that financially
irresponsible building can lead to torn and damaged land tracts that are eyesores
and may cause drainage problems from mud, may cause buildings to become vacant
or remain in various stages of construction so as to constitute a danger and
hazard to children and to be a source of fire and may prevent roads from being
completed and cause dirt roads to exist in the town which may then become
a town tax burden, hereby determines that the enactment of this chapter will
contribute to the public welfare and safety, to the orderly development of
the Town of Haverstraw and will reinforce public confidence in the financially
responsible builders and contractors in the Town of Haverstraw.
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 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 of Haverstraw.
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 indiviuals.
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 town 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 Town of Haverstraw.
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.Â
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.Â
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.Â
Failure of the vendor to comply with any of the provisions of this chapter is a misapropriation 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.Â
Failure of the vendor to comply with any of the provisions
of this chapter shall be deemed a misdemeanor.
C.Â
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.
Any agreement entered into by a vendee which waives, limits or disclaims
the rights or obligations set forth in this chapter shall be void as contrary
to public policy.
