[HISTORY: Adopted by the Board of Trustees of the Village of Wesley Hills 11-13-1984 by L.L. No. 12-1984. Amendments noted where applicable.]
It is the intent of this chapter to prevent the loss of contract deposits and other moneys placed with builders in connection with the construction and purchase of homes in the Village of Wesley Hills.
This chapter shall apply to any person, firm or corporation building any form of residence for resale within the Village of Wesley Hills.
[Amended 7-14-1987 by L.L. No. 7-1987]
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 Wesley Hills 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's 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 deposit referred to hereinabove, the seller or his agent may deliver to the purchaser either 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 the surety shall be firmly bound to the purchaser for the repayment of any such sums paid to the seller; or an irrevocable letter of credit in the amount of all such sums paid by the purchaser to the seller prior to the closing of title, from a bank having an office in Rockland County and having capital in the minimum amount of $50,000,000, which letter of credit shall authorize payment to the purchaser of the entire amount thereof upon a sight draft in the event that the seller shall fail to deliver the deed pursuant to the written contract. Said bond or letter of credit shall be unequivocal and shall provide for no exceptions except the default of the purchaser and shall be in a form and content satisfactory to the Village Attorney.
[Amended 12-9-1986 by L.L. No. 6-1986]
Upon application for a building permit to construct any residence for resale within the Village of Wesley Hills, the applicant shall furnish to the Building Inspector, in addition to all other requirements of law:
If the parcel has been contracted for sale:
A copy of the contract of sale, and a copy of the escrow agreement in conformity with this chapter, unless the said agreement is incorporated within the contract; or
A letter from the attorney for the applicant stating the amount of the down payment and indicating that he or she is holding the entire down payment in escrow, and will hold any and all other sums of money to be paid prior to the closing of title in escrow, in conformity with this chapter.
If the parcel has not been contracted for sale as of the time of application for the building permit:
A letter from the applicant or the attorney for the applicant indicating that the parcel has not yet been contracted for sale but that, 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 Village of Wesley Hills or any agency or department thereof a party to a contract of sale of real property nor an arbiter or guarantor of the terms of such a contract.
This chapter shall be enforced by the Building Inspector and the Code Inspector of the Village of Wesley Hills.
Each and every violation of any of the provisions of this chapter shall be punishable by a fine not to exceed $5,000 or imprisonment not to exceed 15 days, or both.