REQUESTING WARRANTY PERFORMANCE
fee of $250 for each request prior to repair or replacement. 4. In Years 3 through 10 you must pay the Admin- istrator a warranty service fee of $500 for each request. 5. If the Administrator elects to award you cash rather than repair or replace a warranted item, the warranty service fee will be subtracted from the cash payment. 6. If the Warrantor pays the reasonable cost of repairing a warranted item, the payment shall be made to you and to any mortgagee or mort- gagee's successor as each of your interests may appear; provided that the mortgagee has notified the Administrator in writing of its security inter- est in the Home prior to such payment. Warrantor shall not have any obligation to make payment jointly to the Purchaser and mortgagee where the mortgagee has not notified your Builder or the Administrator in writing of its security interest in the Home prior to such payment. Any mortgagee shall be completely bound by any mediation or arbitration relating to a request for warranty per- formance between you and the Warrantor. 7. Prior to payment for the reasonable cost of repair or replacement of warranted items, you must sign and deliver to the Builder or the Administrator, as applicable, a full and un- conditional release, in recordable form, of all legal obligations with respect to the warranted Defects and any conditions arising from the warranted items. 8. Upon completion of repair or replacement of a warranted Defect, you must sign and deliver to the Builder or the Administrator, as applicable, a full and unconditional release, in recordable form, of all legal obligations with respect to the Defect and any conditions arising from the situ- ation. The repaired or replaced warranted item will continue to be warranted by this Limited Warranty for the remainder of the applicable period of coverage. 9. If the Warrantor repairs, replaces or pays you the reasonable cost to repair or replace a war- ranted item, the Warrantor shall be subrogated to all your rights of recovery against any person or entity. You must execute and deliver any and all instruments and papers and take any and all other actions necessary to secure such rights, including, but not limited to, assignment of proceeds of any insurance or other warranties to the Warrantor. You shall do nothing to prejudice these rights of subrogation.
10. Any Warrantor obligation is conditioned upon your proper maintenance of the Home, common elements and grounds to prevent damage due to neglect, abnormal use or improper maintenance.
SECTION IV.
11. Condominium Procedures: a. In the case of common elements of a con- dominium, at all times, owner(s) of each unit affected by the common elements in need of warranty performance shall each be responsible to pay the warranty service fee ($250 in Years 1 and 2, $500 in Years 3 through 10) for each request for warranty performance. b. If a request for warranty performance under this Limited Warranty involves a common element in a condominium, the request may be made only by an authorized representative of the condominium associa- tion. If the Builder retains a voting interest in the association of more than 50%, the request may be made by unit owners rep- resenting 10% of the voting interests in the association. c. If a request for warranty performance
under this Limited Warranty involves a common element affecting multiple units, and all affected units are not warranted by the RWC Warranty Program, the Insurer’s liability shall be limited to only those units warranted by the RWC Warranty. The limit of liability shall be prorated based upon the number of units warranted by this Limited Warranty.
Homeowners in Maryland, refer to Maryland Addendum, Section V.D. Homeowners in Newark, Delaware, refer to Newark, Delaware, Addendum, Section V.A.
WPMIC #319 Rev. 8/19 © 1996 Harrisburg, PA page 23
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