This article is enacted pursuant to the authority
granted by Chapter 643, Laws of the State of New York, 1975, which
amended the General Business Law of the State of New York by adding
a new Article 37 thereto.
It is declared to be the public policy of the
Town of Yorktown to protect purchasers of new homes by providing security
for their deposits to vendors and to prevent violations of this article
by appropriate criminal penalties, in order to more completely serve
the general welfare and economic and social well-being of the residents
of the Town.
When used in this article, the following terms,
unless the context requires otherwise, shall have the following meanings:
DEFAULT
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 vendee wherein
the vendor undertook to build or construct a home for the vendee or
where the vendor becomes insolvent.
DEMAND
Communication of an actual notice to the vendor of requests
made therein.
DEPOSIT
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 vendee
wherein the vendor undertook to build or construct a home for the
vendee.
HOME
A new one- or two-family dwelling intended to be used primarily
as a residence.
VENDEE
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.
VENDOR
Any person, firm, corporation or association engaged in the
erection or construction of a home or homes in the Town of Yorktown.
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 Supervisor of the Town
of Yorktown 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. Notice of such deposit, including
the name and address of the bank where the funds were deposited, shall
be given, in writing, to the vendee within three days of such deposit
and a copy of such notice shall be filed with the Supervisor of the
Town of Yorktown.