[HISTORY: Adopted by the Board of Trustees of the Village of New Hempstead as indicated in article histories. Amendments noted where applicable.]
[Adopted 8-2-1984 by L.L. No. 21-1984]
It is the intent of this article 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 New Hempstead.
This article shall apply to any person, firm or corporation building any form of residence for resale within the Village of New Hempstead.
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 New Hempstead 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 account referred to hereinabove, 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 Village Attorney.
Upon application for a building permit to construct any residence within the Village of New Hempstead, the applicant shall furnish to the Building Inspector, in addition to all other requirements of law:
In lieu of Subsection A(1) and (2) hereof, the applicant may submit a letter 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 article.
[Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I)]
This article shall not be construed to make the Village 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.
[Amended 5-22-2017 by L.L. No. 2-2017]
This article shall be enforced by the Building Inspector and the Code Inspector of the Village of New Hempstead.
Each and every violation of any of the provisions of this article shall be punishable by a fine not to exceed $5,000 or imprisonment not to exceed 15 days, or both.
The Building Inspector is hereby authorized to issue a certificate of occupancy for a single-family residence in advance of completion of all of the improvements required therefor whenever, in his opinion, the work remaining to be completed is minor and extenuating circumstances exist necessitating early occupancy for such residence by the prospective occupants, on the following conditions:
The developer shall pay the required fee for the issuance of a certificate of occupancy in advance of the completion of improvements as set forth in the Village of New Hempstead Fee Schedule.
The developer shall sign an escrow agreement promising completion of the unfinished improvements by a date to be selected by the Building Inspector and authorizing the Village of New Hempstead to complete such improvements at the developer's expense upon its failure to comply with the agreement.
The developer shall deliver the cash escrow deposit to the Village of New Hempstead in an amount equal to twice the cost of such unfinished improvements as estimated by the Building Inspector.
The prospective owner/occupants shall sign an indemnification agreement holding the Village of New Hempstead harmless for such issuance of a certificate of occupancy and authorizing the Village of New Hempstead or contractors selected by it to enter upon the subject property to complete such improvements in the event of the failure of the developer to do so.