[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]
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 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.
B.
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:
A.
If the parcel has been contracted for sale:
(1)
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
(2)
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.
B.
If the parcel has not been contracted for sale as of the time of
application for the building permit:
(1)
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.
