[HISTORY: Adopted by the Town Board of the Town of Ramapo 11-13-1974 by L.L. No. 10-1974. Amendments noted where applicable.]
This chapter shall be cited and may be referred to hereinafter as the "Home Buyers Protection Law" of the Town of Ramapo.
A. 
The Town Board of the Town of Ramapo has concluded a series of public hearings held by a legislative subcommittee of said Town Board with respect to the recent Golan Heights failure. It is apparent that there is an inordinate 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 Town, which is more fully set out in the subcommittee's findings.
B. 
The Town of Ramapo hereby determines that the enacting of this chapter, pursuant to the powers granted by the Municipal Home Rule Law and the Town Law of the State of New York, will contribute to the public welfare and safety, to the orderly development of the Town of Ramapo and to the protection of future home buyers in the Town of Ramapo and reinforce public confidence in the financially responsible builders and controls constructing homes in the Town of Ramapo.
This chapter shall apply to any person, firm or corporation building any form of residence for resale within the unincorporated area of the Town of Ramapo.
[Amended 10-12-1977 by L.L. No. 6-1977]
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 situate within the unincorporated area of the Town of Ramapo 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 purchaser 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 Town Attorney's office.
Upon application for a building permit to construct any residence within the Town of Ramapo, the applicant shall furnish to the Building Inspector, in addition to all other requirements of the law:
A. 
A copy of the contract of sale if one exists; and
B. 
A copy of the escrow agreement in conformity with this chapter, unless said agreement is incorporated within the contract; or
C. 
In lieu of Subsections A and B hereof, a letter from the applicant indicating that the parcel has not yet been contracted for sale but, upon the entry into contract, the down payment will be held in escrow in conformity with this chapter.
This chapter shall not be construed to make the Town or any agency or department of the Town a party to a contract of sale of real property nor 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 $500 or by imprisonment for not more than six months, or by both.