N.Y. GOB. LAW § 5-1311 : NY Code - Section 5-1311: Uniform vendor and purchaser risk act

1. Any contract for
  the purchase and sale or exchange of realty shall be interpreted, unless
  the contract expressly provides otherwise,  as  including  an  agreement
  that the parties shall have the following rights and duties:
    a.  When  neither  the  legal  title nor the possession of the subject
  matter of the contract has been transferred to the purchaser: (1) if all
  or a material part thereof is destroyed without fault of  the  purchaser
  or  is  taken by eminent domain, the vendor cannot enforce the contract,
  and the purchaser is entitled to recover any portion of the  price  that
  he has paid; but nothing herein contained shall be deemed to deprive the
  vendor  of  any  right  to recover damages against the purchaser for any
  breach of contract by the purchaser prior to the destruction or  taking;
  (2)  if  an  immaterial  part  thereof is destroyed without fault of the
  purchaser or is taken by eminent domain,  neither  the  vendor  nor  the
  purchaser  is thereby deprived of the right to enforce the contract; but
  there shall be, to the extent of the destruction or taking, an abatement
  of the purchase price.
    b. When either the legal title or the possession of the subject matter
  of the contract has been transferred to the purchaser,  if  all  or  any
  part  thereof  is  destroyed  without fault of the vendor or is taken by
  eminent domain, the purchaser is not thereby relieved from a duty to pay
  the price, nor is he thereby entitled to  recover  any  portion  thereof
  that  he  has  paid;  but  nothing  herein  contained shall be deemed to
  deprive the purchaser of any right to recover damages against the vendor
  for any breach of contract by the vendor prior  to  the  destruction  or
  taking.
    2. This section shall be so interpreted and construed as to effectuate
  its  general purpose to make uniform the law of those states which enact
  it.
    3. This section may be cited as the uniform vendor and purchaser  risk
  act.