[Added 11-10-1975 by L.L. No. 3-1975 (Ch. 23 of the 1971 Code)]
When used in this article, 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 the vendee
wherein the 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 the vendee
wherein the vendor undertook to build or construct a home for the
vendee, and which moneys are not deposited in an attorney's escrow
account pursuant to an escrow agreement.
[Amended 3-14-1988 by L.L. No. 2-1988]
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, and such individual
or individuals are not represented by an attorney.
[Amended 3-14-1988 by L.L. No. 2-1988]
Any person, firm, corporation or association engaged in the
business of erecting or constructing homes.
[Amended 12-18-2012 by L.L. No. 2-2012]
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 Treasurer of the City
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 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 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 pursuant to the provisions of Subsection B of this section.
B.
Failure of the vendor to comply with any of the provisions
of this article shall be deemed a misdemeanor.
C.
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.
