N.Y. General Business Law 783 – Disposition of security
§ 783. Disposition of security. 1. Upon transfer of title of the home to the vendee the bond posted pursuant to this article shall be released, and any funds held in escrow pursuant to the provisions of this article, together with interest accumulated thereon shall become the property of the vendor, unless otherwise agreed between the vendor and vendee.
Terms Used In N.Y. General Business Law 783
- Demand: means communication of an actual notice to the vendor of requests made therein. See N.Y. General Business Law 780
- Deposit: means 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 vendor undertook to build or construct a home for the vendee. See N.Y. General Business Law 780
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Home: means a new one or two family dwelling intended to be used primarily as a residence. See N.Y. General Business Law 780
- Vendee: means 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. See N.Y. General Business Law 780
- Vendor: means any person, firm, corporation, or association engaged in the business of erecting or constructing homes. See N.Y. General Business Law 780
2. Upon default by the vendor, the vendee may demand return of his deposit or deposits from the vendor. If the vendor has placed the deposit or deposits in an escrow account pursuant to the provisions of this article, he shall physically transfer the account to the vendee, or pay the balance of said account to the vendee within fourteen business days after the day on which the demand was made. If the vendor has posted a bond pursuant to the provisions of this article, the vendee may initiate action for payment thereon if his deposit or deposits have not been paid to such vendee by the vendor within fourteen business days after the day in which said demand was made.