Austin, TX RWC Warranty Manual

10 YEAR WRITTEN WARRANTY FOR NEW HOMES THE LIMITED WARRANTY

10 Year New Home Warranties

This Limited Warranty does not cover consequential or incidental damages. The Warrantor’s total aggregate liability of this Limited Warranty is limited to the Final Sales Price listed on the Application For Warranty form. The Builder makes no housing merchant implied warranty or any other warranties, express or implied, in connection with the attached sales contract or the warranted Home, and all such warranties are excluded, except as expressly provided in this Limited Warranty. There are no warranties which extend beyond the face of this Limited Warranty. Some states do not allow the exclusion or limitation of incidental or consequential damages by the Builder so all of the limitations or exclusions of this Limited Warranty may not apply to you.

Warranty Confirmation Your validated Warranty consists of your Application for Warranty, the Limited Warranty book, and your Warranty Confirmation. You can confirm your warranty has been validated by RWC, and obtain your Warranty Confirmation, AFTER 60 days from your closing at confirm.rwcwarranty. com. If you do not have access to the Internet, please contact RWC to obtain your Limited Warranty book and Warranty Confirmation.

For your Limited Warranty to be in effect, you should receive the following documentation: Limited Warranty #319 • Application For Warranty form #316 (Refer to I.B.3. for applicability) • Warranty Confirmation

Insurer: Western Pacific Mutual Insurance Company, A Risk Retention Group

RESIDENTIAL WARRANTY COMPANY, LLC

Dear Home Buyer, Congratulations on the purchase of your new Home. This is probably one of the largest, most important investments you’ve ever made and we wish you many years of enjoyment. You’ve chosen a Home built by a leading Builder which includes the RWC Limited Warranty, assurance that your investment is well pro- tected. This book explains the Limited Warranty in its entirety, and we encourage you to take time to READ IT CAREFULLY. This Limited Warranty provides you with protection in accordance with this warranty book for ten full years of Home ownership. During the first two years, your Builder is responsible for specified warranty obliga - tions. In the unlikely event your Builder is unable or unwilling to perform, the Warranty is provided subject to the conditions, terms and exclusions listed. For the remaining eight years, your Warranty applies to Major Structural Defects as defined in this book. This is not a warranty service contract, but a written ten year limited warranty which your Builder has elected to provide with your Home. Take time now to read this book. Familiarize yourself with the Warranty and its limitations. Contact your Builder regarding specific construction standards and how they apply to your Home. Again, congratulations and enjoy your new Home! Very truly yours, Residential Warranty Company, LLC

TABLE OF CONTENTS

Section I. Definitions............................................. 1

Section II. The Limited Warranty........................... 3

Section III. Warranty Standards.............................. 8

Section IV. Requesting Warranty Performance..... 21

Section V. Addenda.............................................. 24 A. Newark, Delaware B. State of New York C. State of Indiana D. Maryland Addendum

Residential Warranty Company, LLC 5300 Derry Street, Harrisburg, PA 17111 717-561-4480

page i

DEFINITIONS

8. Defect

A. Introduction To help you better understand your Limited War- ranty, refer to the following list of definitions which apply in this book.

A condition of any item warranted by this Limited Warranty which exceeds the al- lowable tolerance specified in this Limited Warranty. Failure to complete construction of the Home or any portion of the Home, in whole or in part, is not considered a Defect. The date coverage begins as specified on the Application for Warranty form or on your Warranty Confirmation if your Builder is participating in the electronic enrollment process.

B. Definitions

9. Effective Date Of Warranty

1. Administrator

I. SECTION

Residential Warranty Company, LLC (RWC) is the Administrator of this Limited Warranty. RWC is neither Warrantor nor Insurer. 2. Appliances and Items of Equipment, in - cluding Attachments and Appurtenances Water heaters, pumps, stoves, refrigerators, compactors, garbage disposals, ranges, dishwashers, washers and dryers, bathtubs, sinks, commodes, faucets, light fixtures, switches, outlets, thermostats, furnaces and oil tanks, humidifiers, oil purifiers, air conditioning materials, in-house sprinkler systems and similar items. The form signed at closing by you, the Pur- chaser, and your Builder which identifies the location, the Effective Date Of Warranty and the Final Sales Price of the enrolled Home. If the Builder is participating in the RWC electronic enrollment process, the Applica- tion for Warranty form is eliminated. This information will be included on your War- ranty Confirmation. 3. Application For Warranty The person appointed by the independent arbitration service to resolve an Unresolved Warranty Issue. The person, corporation, partnership or other entity which participates in the RWC Limited Warranty Program and has ob- tained this Limited Warranty for you. 4. Arbitrator 5. Builder All consequential damages including, but not limited to, damage to the Home that is caused by a warranted Defect but is not itself a warranted Defect and costs of shel- ter, transportation, food, moving, storage or other incidental expenses related to reloca- tion during repairs. 7. Cooling, Ventilating and Heating Systems All ductwork, refrigerant lines, steam and water pipes, registers, convectors and dampers. 6. Consequential Damages

10. Electrical Systems

All wiring, electrical boxes and connec- tions up to the house side of the meter base.

11. Home

The single family dwelling, identified on the Application For Warranty form, which may be a townhome, condominium or du- plex. Western Pacific Mutual Insurance Com - pany, a Risk Retention Group (WPMIC), located at 9265 Madras Ct, Littleton, CO 80130, phone: 303-263-0311. (Refer to Section IV. for instructions on requesting warranty performance.)

12. Insurer

13. Limited Warranty

The terms and conditions contained in this book including any applicable addenda.

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DEFINITIONS

14. Major Structural Defects (MSD)

17. Purchaser

All of the following conditions must be met to constitute a Major Structural Defect: a. actual physical damage to one or more of the following specified load-bearing components of the Home; b. causing the failure of the specific major structural components; and c. which affects its load-bearing function to the degree that it materially affects the physical safety of the occupants of the Home. Load-bearing components of the Home deemed to have MSD potential: (1) roof framing members (rafters and trusses); (2) floor framing members (joists and trusses); (3) bearing walls; (4) columns; (5) lintels (other than lintels supporting veneers); (6) girders; (7) load-bearing beams; and (8) foundation systems and footings. Examples of non-load-bearing elements deemed not to have Major Structural Defect potential: (1) non-load-bearing partitions and walls; (4) flooring and subflooring material; (5) brick, stucco, stone, veneer, or exterior wall sheathing; (6) any type of exterior siding; (7) roof shingles, sheathing and tar paper; (8) Heating, Cooling, Ventilating, Plumbing, Electrical and mechanical systems; (9) Appliances, fixtures or Items of Equipment (10) doors, windows, trim, cabinets, hardware, insulation, paint and stains; and (11) drainage Systems located within or outside the Home. (2) wall tile or paper, etc.; (3) plaster, laths or drywall;

You. The Purchaser includes the first buyer of the warranted Home and any and all sub- sequent Owners who take title within the warranty period. 18. Residence See Home. 19. Sewage Disposal System (Private or Public) This system includes, but is not limited to, all waste, drainage, sewer pipes and lines, cleanouts, tanks, pumps, drainfields and seepage pits, outside and beyond the exte- rior wall of the Home. An integral part of the Home being structur- ally supported by footings, block walls or reinforced concrete and connected to the foundation of the Home. All requests for warranty performance, demands, disputes, controversies and dif- ferences that may arise between the parties to this Limited Warranty that cannot be resolved among the parties. An Unresolved Warranty Issue may be a disagreement re- garding: 20. Structurally Attached 21. Unresolved Warranty Issue a. the coverages in this Limited Warranty; b. an action performed or to be performed by any party pursuant to this Limited Warranty; c. the cost to repair or replace any item covered by this Limited Warranty. Your Builder in Years 1 and 2; the Insurer in Years 3 through 10 and in Years 1 and 2 if your Builder defaults. 22. Warrantor

I. SECTION

23. Warranty Confirmation

The document you obtain by going to confirm.rwcwarranty.com (or by contacting RWC if you do not have access to the Internet). It includes your Validation Number, Effective Date of Warranty, Term of Coverage, and any applicable Addenda . 24. Water Supply System (Private or Public) This system includes, but is not limited to, all supply and distribution pipes, fittings, valves, pumps and wells, outside the exte- rior wall of the Home, which supply water to the Home.

15. Owner

See Purchaser. 16. Plumbing Systems

All pipes located within the Home and their fittings, including gas supply lines and vent pipes.

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THE LIMITED WARRANTY

A. Introduction to the Limited Warranty 1. This book provides specific details, condi - tions and limitations of the Limited Warranty including procedures for requesting warranty performance and for binding arbitration, in accordance with the procedures of the Federal Arbitration Act. Additional information may be received by calling RWC at 717-561-4480. Read this document in its entirety to under- stand the protection it affords, the exclusions applicable to it, the Warranty Standards which determine its interpretations and operation and your responsibilities. 2. This is NOT an insurance policy, a mainte- nance agreement or a service contract. It is an explanation of what you, the Purchaser, can expect from this Limited Warranty. 3. Appliances and Equipment included in the Home are not warranted under this Lim- ited Warranty, but may be covered by separate warranties provided by the manufacturer or supplier. These warranties are passed on to you by your Builder at closing and are sepa- rate from this Limited Warranty. 4. You are responsible for maintenance of your new Home. General and preventative mainte- nance are required to prolong the life of your new Home. 5. This Limited Warranty is automatically transferred to subsequent Owners during the ten-year term of this Limited Warranty, except in the case of a foreclosure that voids the war- ranty as provided in Section II.A.6. 6. This Limited Warranty becomes void and all obligations on the part of Warrantor cease as of the date an Owner vacates the Home due to foreclosure proceedings. 7. This Limited Warranty is subject to changes required by various regulating bodies and some local agencies as indicated in the Ad- denda Section V of the Limited Warranty book. Notations throughout indicate where the Addenda apply. B. The Limited Warranty 1. Actions taken to cure Defects will NOT extend the periods of specified coverages in this Limited Warranty. 2. Only warranted elements which are specifi - cally designated in the Warranty Standards are covered by this Limited Warranty.

3. The Warrantor has the choice to repair, replace or pay the reasonable cost to repair or replace warranted items which do not meet Warranty Standards and are not excluded in the Limited Warranty. 4. If a warranted MSD occurs during the ap- propriate coverage period, and is reported as required in Section IV., the Warrantor will repair, replace or pay you the reasonable cost to repair or replace the warranted MSD, limited to actions necessary to restore the MSD to its load-bearing capacity.

II. SECTION

C. Warranty Coverage 1. ONE YEAR COVERAGE: Your Builder warrants that for a period of one (1) year after the Effective Date Of Warranty, warranted items will function and operate as presented in the Warranty Standards of Year 1, Section III.A. Coverage is ONLY available where spe- cific Standards and Actions are represented in this Limited Warranty. 2. TWO YEAR COVERAGE: Your Builder warrants that for a period of two (2) years from the Effective Date Of Warranty, specified portions of the Heating, Cooling, Ventilating, Electrical and Plumbing Systems, as defined in this Limited Warranty, will function and oper- ate as presented in the Warranty Standards of Years 1 and 2 only, Section III.B. ‡ 3. TEN YEAR COVERAGE: Major Structural Defects (MSD) are warranted for ten (10) years from the Effective Date Of Warranty. Your Builder is the Warrantor during Years 1 and 2 of this Limited Warranty and the Insurer is the Warrantor in Years 3 through 10. 4. CONDOMINIUM COVERAGE : This Limited Warranty shall only apply to warranted common elements. Warranted common elements are those portions of the defined Electrical, Heating, Ventilating, Cooling, Plumbing and structural Systems

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‡ Homeowners in Indiana, refer to State of Indiana Addendum, Section V.C.

THE LIMITED WARRANTY

5. This Limited Warranty cannot be modified, altered or amended in any way except by a formal written instrument signed by you, your Builder and the Administrator. 6. If any provision of this Limited Warranty is determined by a court of competent jurisdiction to be unenforceable, that determination will not affect the validity of the remaining provisions. 7. All notices required under this Limited War- ranty must be in writing and sent by email or certified mail, return receipt requested. If you send your written notice by email, your written notice must be sent to warranty.resolution@ rwcwarranty.com. The written notice will not be considered received without a valid confirma - tion of receipt number. If you do not receive a confirmation of receipt number within 48 hours of emailing your written notice, contact RWC by calling 717-561-4480 and request to speak with the Warranty Resolution Department's Customer Service. If sending your written no- tice by certified mail, return receipt requested, it must be postage prepaid, to the recipient's address shown on the Application for Warranty form, or to whatever address the recipient may designate in writing. 8. If actions by the Warrantor on any obligations under this Limited Warranty are delayed by an event beyond its control, such performance will be excused until the delaying effects of the event are remedied. Such events include, but are not limited to, acts of God, acts of the common enemy, war, riot, civil commotion or sovereign conduct, or acts or omissions by you or any other person not a party of this Limited Warranty. 9. If your Builder fails to complete any part of the Home that is reasonably foreseeable to cause damage to the Home, then it is your responsibil- ity to complete such parts of the Home to avoid the damage. If you fail to complete the work, then any resulting damage is not covered under this Limited Warranty. The warranty period for any item completed after the Effective Date of Warranty shall be deemed to have commenced on the Effective Date of Warranty. 10. Costs incurred for unauthorized repairs to warranted items are not reimbursable. Written authorization prior to incurring expenses must be obtained from the Administrator.

which serve two (2) or more residential units, and are contained wholly within a residential structure. Warranty coverage for common elements shall be for the same periods and to the same extent as similar or comparable items in individual residential units. Examples of common elements which are covered by this Limited Warranty are hallways, meeting rooms and other spaces wholly within the residential structure des- ignated for the use of two (2) or more units. Examples of common elements which are not covered under this Limited Warranty are club houses, recreational buildings and facilities, exterior structures, exterior walk- ways, decks, balconies, arches or any other non-residential structure which is part of the condominium.

II. SECTION

D. Conditions 1. This Limited Warranty provides coverage only in excess of coverage provided by other warran- ties or insurance, whether collectible or not. 2. This Limited Warranty is binding on the Builder and you and your heirs, executors, ad- ministrators, successors and assigns. 3. This Limited Warranty shall be interpreted and enforced in accordance with the laws of the state in which the Home is located. 4. This Limited Warranty is separate and apart from your contract and/or other sales agree- ments with your Builder. It cannot be affected, altered or amended in any way by any other agreement which you may have.

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THE LIMITED WARRANTY

which were not reasonably foreseeable, water below the surface of the ground (including water which exerts pressure on or seeps or leaks through a building, side- walk, driveway, foundation, swimming pool, or other structure), wetlands, springs or aquifers. f. from normal deterioration or wear and tear. g. caused by material or work supplied by anyone other than your Builder or its em- ployees, agents or subcontractors. h. from your or the condominium as- sociation’s failure to perform routine maintenance on the Home, common areas, common elements or your or the condominium association’s grounds. i. after Year 1, to, resulting from, or made worse by all components of structurally attached decks, balconies, patios, porches, stoops, porch roofs and porticos. j. after Year 1, to, resulting from, or made worse by elements of the Home which are constructed separate from foundation walls or other structural elements of the Home such as, but not limited to, chim- neys and concrete floors of basements and attached garages. k. to wiring, to and between communica- tion devices from the source of power, whether or not connected to the interior wiring system of the Home. Such devices shall include, but not be limited to, tele- phone systems, television cable systems, intercom systems, computer systems and security systems. Sources of power shall include, but not be limited to, service entrance conductors, switches, outlets, receptacles and junction boxes. l. to, or caused by, recreational facilities; driveways; walkways; patios, porches and stoops not structurally attached; decks and balconies which are not bolted to or can- tilevered from the main structure of the Home; boundary and/or retaining walls; bulkheads; fences; landscaping, sodding, seeding, shrubs, trees and plantings; subsurface drainage systems (other than footer drains); lawn sprinkler systems; off-site improvements, including streets, sidewalks, adjacent property and the like; or any other improvements not part of the Home itself.

11. Whenever appropriate, the use of one gender includes all genders and the use of the singu- lar includes the plural.

SECTION

II.

12. Under this Limited Warranty, the Warrantor is not responsible for exact color, texture or fin - ish matches in situations where materials are replaced or repaired, or for areas repainted or when original materials are discontinued. 13. Your Builder must assign to you all manufac- turers’ warranties on products included in the Final Sales Price of your Home. Neither the Insurer nor the Administrator shall be liable for your Builder’s failure to do so. 14. You are responsible for establishing a written, final walk-through inspection list of items in need of service prior to occupancy or closing, whichever is first. This list must be signed and dated by you and your Builder. Keep a copy for your records. E. Exclusions The following are NOT covered under this Lim - ited Warranty: 1. Loss or damage: a. to land. b. to the Home, persons or property directly or indirectly caused by insects, birds, vermin, rodents, or wild or domestic ani- mals. c. which arises while the Home is used pri- marily for non-residential purposes. d. which is covered by any other insurance or for which compensation is granted by legislation. e. resulting directly or indirectly from flood,

surface water, waves, tidal water, over- flow of a body of water, or spray from any of these (whether or not driven by wind), water which backs up from sew- ers or drains, changes in the water table

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THE LIMITED WARRANTY

drains); lawn sprinkler systems; off-site improvements, including streets, sidewalks, adjacent property and the like; or any other improvements not part of the Home itself. k. defects in detached garages or outbuildings (except those which contain Plumbing, Electrical, Heating, Cooling or Ventilat- ing Systems serving the Home, and then only to the extent where Defects would affect these systems). A detached garage is one which is constructed on its own foundation, separate and apart from the foundation of the Home. A breezeway, fence, utility line or similar union shall not cause a garage or outbuilding to be consid- ered attached. l. negligent maintenance or operation of the Home and its systems by anyone other than your Builder or its agents, employees or subcontractors. m. any portion of a Water Supply System, private or public, including volume and pressure of water flow. n. quality and potability of water. o. any portion of a Sewage Disposal System, private or public, including design. p. dampness, condensation or heat build-up caused by your failure to maintain proper ventilation.

m. caused by any item listed as an additional exclusion on the Application for Warranty form. 2. Loss or damage resulting from, or made worse by: a. changes in the grading of the property sur- rounding the Home by anyone except your Builder or its employees, agents or subcon- tractors. b. changes in grading caused by erosion. c. modifications or additions to the Home, or property under or around the Home, made after the Effective Date Of Warranty (other than changes made in order to meet the obli- gations of this Limited Warranty). d. intrusion of water into crawl spaces. e. the weight and/or performance of any type of waterbed or any other furnishing which exceeds the load-bearing design of the Home. f. the presence or consequence of unac- ceptable levels of radon, formaldehyde, carcinogenic substances or other pollut- ants and contaminants; or the presence of hazardous or toxic materials resulting in uninhabitability or health risk within the Home. g. acts or omissions by you, your agents, employees, licensees, invitees; accidents, riots, civil commotion, nuclear hazards, acts of God or nature, fire, explosion, blasting, smoke, drought, water escape, windstorms, tropical storms, hurricanes, hail, lightning, ice, snow, falling trees, aircraft, vehicles, flood, mud slides, sink - holes, mine subsidence, faults, crevices, earthquake, land shock waves or tremors occurring before, during or after a volcanic eruption, or manmade events such as war, terrorism or vandalism. h. your failure to perform routine mainte- nance. i. your failure to minimize or prevent such loss or damage in a timely manner. j. defects in, but not limited to: recreational facilities; driveways; walkways; patios, porches and stoops not structurally attached; decks and balconies which are not bolted to or cantilevered from the main structure of the Home; boundary and/or retaining walls; bulkheads; fences; landscaping, sodding, seeding, shrubs, trees and plantings; sub- surface drainage systems (other than footer

II. SECTION

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THE LIMITED WARRANTY

3. Failure of your Builder to complete construc- tion of the Home or any part of the Home on or before the Effective Date Of Warranty or damages arising from such failure. An incom- plete item is not considered a Defect, although your Builder may be obligated to complete such items under separate agreements between you and your Builder. 4. Any deficiency which does not result in actual physical damage or loss to the Home. 5. Any Consequential Damages. 6. Personal property damage or bodily injury. 7. Violation of applicable Building Codes or ordi- nances unless such violation results in a Defect which is otherwise covered under this Limited Warranty. Under such circumstances, the ob- ligation of the Warrantor under this Limited Warranty shall only be to repair the defective warranted portion of the Home, but not to re- store or bring the Home to conform to code. 8. Any request for warranty performance submit- ted to the Administrator after an unreasonable delay or later than 30 days after the expiration of the applicable warranty period. 9. Warranted Defects that you repair without prior written authorization of the Administrator. 10. Any damage to or resulting from the use, con- struction, placement, equipment, components, maintenance, etc., whether inside or outside the Home, of the following: swimming pools, elevators, or solar panels . 11. The removal and/or replacement of items specifically excluded from coverage under this Limited Warranty, such as landscaping or personal property, and items not originally installed by your Builder, such as wallpaper, where removal and replacement are required to execute a repair. 12. Any Defect consisting of, caused by, contrib- uted to, or aggravated by moisture, wet or dry rot, mold, mildew, fungus or rust, regardless of the originating cause of any moisture or water penetration that leads to the Defect. 13. Sound transmission and sound proofing be - tween rooms or floor levels. 14. Appliances and Equipment included in the Home are not warranted under this Lim- ited Warranty, but may be covered by separate warranties provided by the manufacturer or supplier. These warranties are passed on to you by your Builder at closing and are sepa- rate from this Limited Warranty. Damage

caused by improper maintenance or operation, negligence, or improper service of these items by you or your agent will not be covered under this Limited Warranty. † 15. Modifications or additions to the Home, or property under or around the Home, made af- ter the Effective Date of Warranty (other than changes made in order to meet the obligations of this Limited Warranty).

SECTION

II.

F. Limitation of Liability 1. The Warrantor’s liability and obligations are limited to the repair, replacement or the payment of the reasonable cost of repair or replacement of warranted items not to exceed an aggregate equal to the Final Sales Price of the Home as listed on the Application for War- ranty form or in the absence of an Application for Warranty form, as otherwise provided to the Administrator by the Builder. The choice to repair, replace or make payment is the Warran- tor’s. 2. All other warranties, express or implied, including, but not limited to, all implied warranties of fitness, merchantability or habit - ability, are disclaimed and excluded to the extent allowed by law.

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† Homeowners in the State of New York, refer to State of New York Addendum, Section V.B.

WARRANTY STANDARDS • A. YEAR 1 COVERAGE ONLY The following Warranty Standards are applicable only to warranted items stated in Section II of this Limited Warranty. Read Section II to determine if the following Warranty Standards apply. †

A. YEAR 1 STANDARDS ONLY

1. FOUNDATIONS

OBSERVATION

ACTION REQUIRED

COMMENTS

BASEMENT

SECTION III.

No action required.

The expansion/contraction joint is placed to control cracking. This is not a deficiency. In rooms not initially finished as living areas or where a floor or a portion of a floor surface has been designed for specific drainage purposes, a slope which exceeds 3/8 in. within a 32 in. measure- ment is not a deficiency. Shrinkage cracks are common and should be expected. Surface patching and epoxy injections are examples of acceptable repair methods. Some cracks are common through masonry and mortar joints. Cracks 1/4 in. or less are considered routine Owner maintenance. A one-time occurrence may not indicate a Defect. Owner must maintain proper grading around the Home and maintain any surface water control systems installed by Builder. Dampness and con- densation are normal conditions and are not covered by this Limited Warranty. Disintegration caused by erosion due to salt, chemicals, implements used and other factors beyond Builder’s control is not a warranted deficiency. Minor impressions in floor covering are not considered significant imperfections. Surface patching and epoxy injections are examples of acceptable repair methods. Shrinkage cracks are common and should be expected. Maintaining adequate ventilation and moisture control is considered Owner maintenance.

1.1 Cracks appear in control joints.

Builder will correct those areas in which Defect exceeds 3/8 in. within a 32 in. measurement.

1.2 Uneven concrete floors in finished areas of a base - ment.

Builder will correct any crack which exceeds 1/4 in. in width.

1.3 Cracks in poured concrete foundation walls.

Builder will correct cracks which exceed 1/4 in. in width.

1.4 Cracks in block or veneer wall.

Builder will correct.

1.5 Leaks resulting in actual flow or trickling of water through wall or floor, causing an accumulation.

Builder will correct disintegrat- ed surfaces caused by improper placement of concrete.

1.6 Disintegration of the concrete floor surface.

Builder will correct so Defect is not readily noticeable when floor covering is in place.

1.7 Cracks in concrete floor which rupture or signifi - cantly impair performance of floor covering. 1.8 Cracks in concrete floor of unfinished area (no floor covering) or in areas not designed for living. 1.9 Condensation on walls,

Builder will correct cracks which exceed 1/4 in. in width or vertical displacement.

No action required.

joists, support columns and other components of basement area.

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† Homeowners in the State of New York, refer to State of New York Addendum, Section V.B.

The following Warranty Standards are applicable only to warranted items stated in Section II of this Limited Warranty. Read Section II to determine if the following Warranty Standards apply. WARRANTY STANDARDS • A. YEAR 1 COVERAGE ONLY

1. FOUNDATIONS

OBSERVATION

ACTION REQUIRED

COMMENTS

CRAWL SPACE

SECTION III.

1.10 Cracks in poured concrete foundation walls.

Surface patching and epoxy injections are examples of acceptable repair methods. Shrinkage cracks of 1/4 in. or less are common and should be expected. Surface patching and epoxy injections are examples of acceptable repair methods. Shrinkage cracks of 1/4 in. or less are common and should be expected. Maintaining adequate ventilation and moisture control, including seasonal adjustment of vent openings, is considered Owner maintenance. Maintaining adequate ventilation and moisture control, including seasonal adjustment of vent openings, is considered Owner maintenance. Expansion/contraction joint is placed to control cracking. This is not a deficiency. In rooms not initially finished as living areas or where a floor or a portion of a floor surface has been designed for specific drainage purposes, a slope which exceeds 3/8 in. within a 32 in. measurement is acceptable. Disintegration caused by erosion due to salt, chemicals, implements used and other factors beyond Builder’s control is not a war- ranted deficiency. Minor impressions in floor covering are not considered significant imperfections. Surface patching and epoxy injections are examples of acceptable repair methods. Shrinkage cracks are common and should be expected. Surface patching and epoxy injections are examples of acceptable repair methods. Shrinkage cracks are common and should be expected. Surface patching and epoxy injections are examples of acceptable repair methods. Shrinkage cracks are common and should be expected.

Builder will correct any crack which exceeds 1/4 in. in width.

1.11 Cracks in block or veneer wall.

Builder will correct cracks greater than 1/4 in. in width.

1.12 Inadequate ventilation.

Builder will install properly sized louvers or vents.

1.13 Condensation on walls, joists, support columns and other components of the crawl space area.

No action required.

SLAB ON GRADE

1.14 Cracks appear at control joints. 1.15 Uneven concrete floors in finished areas.

No action required.

Builder will correct areas in which Defect exceeds 3/8 in. within a 32 in. measurement.

1.16 Disintegration of concrete floor surface.

Builder will correct disintegrated surfaces caused by improper placement of concrete.

1.17 Crack in concrete floor which ruptures or sig- nificantly impairs perfor - mance of floor covering. 1.18 Cracks in attached garage slab. 1.19 Cracks in concrete floor of unfinished area (no floor covering) or in areas not designed for living. 1.20 Cracks in visible face of foundation.

Builder will correct so Defect is not readily noticeable when floor covering is in place.

Builder will correct cracks which exceed 1/4 in. in width or vertical displacement.

Builder will correct cracks in excess of 1/4 in. in width.

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WARRANTY STANDARDS • A. YEAR 1 COVERAGE ONLY

The following Warranty Standards are applicable only to warranted items stated in Section II of this Limited Warranty. Read Section II to determine if the following Warranty Standards apply.

2. FRAMING

OBSERVATION

ACTION REQUIRED

COMMENTS

CEILING

SECTION III.

2.1 Uneven ceiling.

Some minor framing imperfections should be expected.

Builder will correct if unevenness exceeds 1/4 in. within a 32 in. measurement.

FLOOR

2.2 High and low areas.

Some minor framing imperfections should be expected.

Builder will correct if high or low areas exceed 1/4 in. within a 32 in. measurement. Builder will correct if caused by a defective joist or improp- erly installed subfloor. Builder will take corrective action to reduce squeaking to the extent possible within reasonable re- pair capability without remov- ing floor or ceiling finishes.

2.3 Floor squeaks.

A large area of floor squeaks which is noticeable, loud and objectionable is a Defect. A squeak-proof floor cannot be guaranteed. Lumber shrinkage as well as temperature and humidity changes may cause squeaks.

ROOF

2 .4 Split or warped rafters or trusses.

Some splitting and warping is normal and is caused by high temperature effects on lumber.

No action required.

WALL

2.5 Bow or bulge.

Minor framing imperfections should be expected.

Builder will correct if bow or bulge exceeds 1/2 in. within 32 in. horizontal or vertical measurement. Builder will correct where out-of-plumb condition exceeds 3/4 in. within 8 ft. vertical measurement. No action required.

2.6 Out-of-plumb.

Minor framing imperfections should be expected.

A wall out-of-square is not a Defect.

2.7 Wall is out-of-square.

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3. EXTERIOR

OBSERVATION

ACTION REQUIRED

COMMENTS

STRUCTURALLY ATTACHED WOOD OR COMPOSITE DECKS

SECTION III.

3.1 Wood twisting, warping or splitting.

Twisting, warping or splitting of wood deck material is normal due to exposure to the elements. Owner maintenance is required. Some slope is often provided to allow for water drainage.

Builder will correct only if due to improper installation.

3.2 Settlement.

Builder will correct slope of deck which exceeds a ratio of 2 in. in a 10 ft. measurement. Builder will correct if due to improper installation.

Owner maintenance is required.

3.3 Loose railing or post.

DOORS

Seasonal changes may cause doors to expand and contract, and are usually temporary conditions. Panels will shrink and expand and may expose unfinished surfaces. Seasonal changes may cause doors to expand and contract, and are usually temporary conditions. Splits which do not allow the entrance of elements are considered normal. Owner maintenance is required. Even with properly installed weather- stripping, some movement of the door, when closed, may be expected. Owner maintenance is required for minor alterations to adjustable thresholds and other parts of the door. Owner is responsible for establishing a pre-closing walk-through inspection list. Some entrance of elements can be ex- pected and is not considered a deficiency. If Owner installs a garage door opener, Builder is not responsible for operation of door.

Builder will correct if caused by faulty workmanship or materials. No action required. Builder will correct warping which exceeds 1/4 in., measured vertically, horizontally or diagonally. Builder will correct if split al- lows the entrance of elements. Builder will correct if daylight is visible or if entrance of elements occurs under normal conditions. Builder will correct only if damage is documented prior to occupancy. Builder will correct garage doors which do not fit or operate properly.

3.4 Binds, sticks or does not latch.

3.5 Wood door panel shrinks.

3.6 Warping.

3.7 Split in panel.

3.8 Separation between door and weather-stripping.

3.9 Screen mesh is torn or damaged.

3.10 Overhead garage door fails to operate or allows rain or snow to leak through.

page 11

WARRANTY STANDARDS • A. YEAR 1 COVERAGE ONLY

The following Warranty Standards are applicable only to warranted items stated in Section II of this Limited Warranty. Read Section II to determine if the following Warranty Standards apply.

3. EXTERIOR

OBSERVATION

ACTION REQUIRED

COMMENTS

ROOFING

SECTION III.

3.11 Roof and roof flashing leaks.

Builder will correct active and current leaks that occur under normal conditions.

No action is required if leak is due to snow or ice buildup, high winds or driving rains. Prevention of snow or ice buildup is the Owner's responsibility. Substantiation of an active and current leak is the Owner's responsibility. Owner maintenance is required. Cupping in excess of 1/2 in. should be reported to the manufacturer. Shingles shall not blow off in winds less than the manufacturer's specifications. Moisture accumulation in attics which are not adequately vented is a deficiency. Owner is responsible to keep vents clear of obstruc- tions to promote air flow. Owner is responsible for keeping gutters and downspouts clean. Owner is responsible for keeping gutters and downspouts clean. Gutters may overflow during heavy rains. Standing water beyond the 10 ft. perimeter of the foundation is not covered by this Limited Warranty. Owner is responsible for establish- ing and maintaining adequate ground cover. If settlement does not exceed 6 in., it is Owner’s responsibility to fill affected areas. The party responsible for establishing the final grade shall provide for positive drainage away from foundation. Owner is responsible for establishing and maintaining adequate ground cover.

3.12 Lifted, torn, curled, or cupped shingles.

No action required.

3.13 Shingles that have blown off. 3.14 Inadequate ventilation.

Builder will correct affected area if due to poor installation. Builder will provide adequate ventilation.

Builder will correct to limit standing water depth at 1 in. Builder will correct leaks at connections.

3.15 Water stays in gutters.

3.16 Gutter or downspout leaks.

SITE WORK

Builder will correct water which stands for more than 24 hours, or more than 48 hours in swales. If final grading was performed by Builder, he will replace fill in excessively settled areas only once.

3.17 Standing water within 10 ft. of the foundation.

3.18 Settling of ground around foundation walls, utility trenches or other filled areas on property where there has been excavation and backfill which affected foundation drainage.

STRUCTURALLY ATTACHED STOOP, PORCH & PATIO

Stoops, porches and patios which are poured separately and simply abut the house are not covered by this Limited Warranty.

3.19 Settlement, heaving or movement.

Builder will correct if move- ment exceeds 1 in. from the Home for stoops, porches and patios which are structurally attached. Builder will correct only if damage is documented prior to occupancy.

Owner is responsible for establishing a pre- closing walk-through inspection list.

3.20 Concrete splatters on adjacent surfaces.

page 12

3. EXTERIOR

OBSERVATION

ACTION REQUIRED

COMMENTS

WALL COVERING

SECTION III.

3.21 Entrance of elements through separations of wood, hardboard or fiber cement siding or trim joints, or separation between trim and surfaces of masonry or siding.

Builder will correct entrance of elements or separations exceeding 3/8 in. by caulking or other methods.

Any separations 3/8 in. or less are considered routine Owner maintenance.

3.22 Cracks in stucco or

Builder will correct cracks which exceed 1/8 in. in width.

Caulking and touch-up painting are examples of acceptable repair methods. Builder is not responsible for exact color, texture or finish matches. Hairline cracks are common. Separated, loose or delaminated siding can be due to improper maintenance and is not considered a Defect. Check your manufacturer's warranty on this product for coverage regarding dents, holes, wind specifications, etc. Some fading is normal due to weathering. Mildew and fungus on exterior surfaces are caused by climatic conditions and are considered routine maintenance. Varnish or lacquer deteriorates quickly and is not covered by this Limited Warranty. Owner is responsible for establishing a pre-closing walk-through inspection list.

similar synthetic based finishes.

Builder will correct affected area if due to improper workmanship or materials. Builder is responsible only if installed improperly and waves or bowing exceed 1/2 in. within a 32 in. measurement. Builder will correct. If 75% of a particular wall is affected, entire wall will be corrected. Builder will correct only if damage is documented prior to occupancy. Builder will correct affected area. If greater than 75% of wall or trim piece is affected, entire surface will be corrected. Builder will correct affected areas where excessive bleeding of knots appear. Builder will correct if caused by improper installation.

3.23 Siding materials become detached from the Home.

3.24 Aluminum or vinyl siding is bowed or wavy.

3.25 Paint or stain peels or deteriorates.

3.26 Paint splatters and smears on other surfaces.

3.27 Faulty application of paint on wall and trim surfaces.

Some minor imperfections such as over- spray, brushmarks, etc., are common and should be expected.

3.28 Knot holes bleed through paint or stain.

Knot holes will be apparent depending on the quality of material used.

3.29 Vent or louver leaks.

Properly installed louvers or vents may at times allow rain or snow to enter under strong wind conditions and is not a deficiency. Some cracks are common through masonry and mortar joints. Cracks 1/4 in. or less are considered routine Owner maintenance.

3.30 Cracks in masonry, veneer, stone, etc.

Builder will correct cracks which exceed 1/4 in. in width.

page 13

WARRANTY STANDARDS • A. YEAR 1 COVERAGE ONLY

The following Warranty Standards are applicable only to warranted items stated in Section II of this Limited Warranty. Read Section II to determine if the following Warranty Standards apply.

3. EXTERIOR

OBSERVATION

ACTION REQUIRED

COMMENTS

WINDOWS

SECTION III.

3.31 Condensation or frost on interior window surface.

Condensation is relative to the quality and type of windows. Temperature differences in high levels of humidity along with indi- vidual living habits will cause condensation. Owner is responsible for establishing a pre-closing walk-through inspection list.

No action required.

3.32 Clouding or condensation between panes of glass.

Builder will correct only if damage is documented prior to occupancy. Builder will correct only if damage is documented prior to occupancy. Builder will correct poorly fitted windows.

3.33 Glass breakage.

Owner is responsible for establishing a pre-closing walk-through inspection list.

3.34 Excessive drafts and leaks.

Relative to the quality and type of windows, drafts are sometimes noticeable around win- dows, especially during high winds. It may be necessary for the Owner to have storm windows installed to provide a satisfactory solution in high wind areas. All caulking materials expand and contract due to tem- perature variation and dissimilar materials. Maintenance of weather-stripping is Owner's responsibility. Windows should open, close and lock with reasonable pressure.

3.35 Difficult to open, close or lock.

Builder will correct.

4. INTERIOR

DOORS

4.1 Latch is loose or rattles. 4.2 Binds, sticks or does not latch.

Some minor movement should be expected. Seasonal changes may cause doors to expand and contract, and are usually temporary conditions. Seasonal changes may cause doors to expand and contract, and are usually temporary conditions.

No action required. Builder will correct if due to faulty workmanship and materials. Builder will correct warping which exceeds 1/4 in., measured vertically, horizon- tally or diagonally. Builder will correct gaps in excess of 1-1/2 in. between bottom of passage door and finished floor or 2 in. between bottom of closet door and finished floor. Builder will correct.

4.3 Warping.

4.4 Excessive opening at bottom.

Gaps under doors are intended for air flow.

4.5 Rubs on carpet.

Builder is not responsible if Owner installs carpet.

page 14

4. INTERIOR

OBSERVATION

ACTION REQUIRED

COMMENTS

WALLS, CEILINGS, SURFACES, FINISHES & TRIMS

SECTION III.

4.6 Cracks and separations in drywall, lath or plaster; nail pops.

Minor seam separations and cracks, and other slight imperfections, are common and should be expected. Minor depres- sions and slight mounds at nail heads are not Defects.

Builder will correct cracks in excess of 1/8 in. in width. Builder will correct nail pops which have broken finished surface. Repair cracks and/or nail pops and touch up paint to match as close as possible, one time only. Such con- ditions should be reported near the end of Year 1 of the warranty period to allow for normal move- ment of the Home. Builder will correct if not due to Owner neglect or abuses.

4.7 Peeling of wallpaper.

Builder is not responsible for wallpaper installed by Purchaser. Owner is respon- sible for maintaining adequate ventilation in areas of high humidity, such as kitch- ens and bathrooms. Minor imperfections can be expected.

4.8 Separated seams in wallpaper. 4.9 Lumps, ridges and nail

Builder will correct if wall sur- face is readily visible. No action required.

Owner should insure that surface to be covered is suitable for installation of wall covering.

pops in wallboard which appear after Owner has wall covering installed by himself or others.

4.10 Surface deficiencies in finished woodwork.

Owner is responsible for establishing a pre-closing walk-through inspection list.

Builder will correct readily appar- ent splits, cracks, hammer marks and exposed nail heads, only if documented prior to occupancy. Builder will correct gaps in excess of 1/8 in. at trim joints and 1/4 in. between trim and adjacent surfaces. Builder will correct cracks in excess of 1/8 in. one time only. Builder will correct only if docu- mented prior to occupancy. No action required.

4.11 Gaps between trim and

Some separation due to lumber shrinkage is normal and should be expected.

adjacent surfaces, and gaps at trim joints.

4.12 Cracks in ceramic grout joints.

Cracking of grout joints is common and is considered routine Owner maintenance unless excessive. Owner is responsible for establishing a pre-closing walk-through inspection list. All interior caulking shrinks and deterio- rates. Owner maintenance is required.

4.13 Ceramic tile cracks or becomes loose. 4.14 Cracking or deterioration of caulking.

page 15

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