BAYBROOK HOMES of POLK COUNTY, LLC

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1 BAYBROOK HOMES of POLK COUNTY, LLC LIMITED HOME WARRANTY Baybrook Homes of Polk County, LLC, hereafter called the Builder, whose address is:, extends the following limited warranty to, hereafter referred to as Buyers, who have purchased from the Builder the house located at in County, Florida for the purchase price of $. The commencement date of the Warranty shall be. Anything contained in this limited warranty to the contrary notwithstanding, all Consumer Products (as such term is used and/or defined by the Federal Trade Commission) which are included in the home covered by said limited warranty are hereby EXCLUDED from all rights, obligations, terms and conditions of this limited warranty. All assignable warranties by manufacturers, subcontractors or suppliers of such consumer products, are hereby assigned to the Buyer and shall be in force according to their own terms. This warranty does not include ordinary wear and tear, abuse, neglect or general maintenance connected with home ownership, and/or acts of God, nature, war and riot. THIS LIMITED HOME WARRANTY IS NON-TRANSFERABLE. ANY OBLIGATION UNDER IT TERMINATES IF THE PROPERTY IS RESOLD OR SHALL CEASE TO BE OCCUPIED BY THE HOMEOWNER TO WHOM IT IS ORIGINALLY ISSUED. WARRANTY CONDITIONS AND PROCEDURES ARE AS FOLLOWS: The following warranty conditions and procedures are outlined to ensure orderly and systematic handling of each service request. 1. COVERAGE OF THE HOME. For a period of one year after the commencement date of the warranty, Contractor expressly warrants to the Buyers that the house will be free from defects in materials and workmanship due to noncompliance with the standards set forth in the Contractors Warranty Guidelines in effect on date of this warranty. 2. LATENT DEFECTS: A latent defect in construction is defined as a defect which becomes apparent up to the end of the warranty period (the warranty period being one (1) year from the date of closing or move-in, whichever should occur first). It is stressed, however, that normal characteristic behavior of building materials, wear and tear, general maintenance and like items, will not constitute latent defects. Procedure: Should it appear that a possible latent defect (non-emergency) has developed, outline all pertinent details in a letter addressed to our company. Following the receipt of said letter a responsible member of our company will make an inspection. If a latent defect exists, remedial action will be scheduled within a reasonable time.

2 3. CONSUMER PRODUCTS: Consumer Products (as such term is used and defined by the Federal Trade Commission) which are covered by the Magnuson-Moss Warranty Act when sold as part of a home are EXCLUDED from this Limited Home Warranty. Such Consumer Products are covered by manufacturers and/or suppliers warranties, if any. Procedure: To ensure prompt attention, please refer to the sub-contractor roster and/or written warranties which have been provided to you. Contact the service department of the applicable equipment supplier, or sub-contractor noted thereon. A telephone call, particularly on an emergency item, should ensure attention; however, if the service is lacking please advise the builder s office. 4. EXCLUSIVE WARRANTY: Builder and Buyers agree that this limited warranty on the home is in lieu of all warranties of merchantability, habitability and/or quality or fitness for a particular purpose, or workmanlike construction or any other warranties, express or implied, to which Buyers might be entitled, except as to consumer products. The warranty is one of reasonable workmanship, NOT an assurance of perfection. Date this day of, 20. By: Builder/Agent Buyer Buyer

3 IMPORTANT NOTE: READ ALL BULLETINS, MANUALS AND WARRANTIES CONCERNING YOUR APPLIANCES AND/OR OTHER EQUIPMENT. EXPERIENCE DICTATES CAUTION IN CHECKING PROBABLE CAUSES FOR THAT EQUIPMENT OR APPLIANCE MALFUNCTIONS. OFTENTIMES IT MAY BE THAT THE ITEM IS NOT BEING OPERATED PROPERLY. AN ACCURATE APPRAISAL WILL AID IN EXPEDITING SERVICE, OR AN INSPECTION REQUEST IS IN ORDER. HOWEVER, UNDUE SERVICE OR INSPECTION REQUESTS MUST BE CHARGED FOR ON THE BASIS OF TIME AND/OR MATERIAL INVOLVED. NON-WARRANTABLE CONDITIONS: 1. Builder shall not be responsible or liable for any consequential or secondary damages and /or losses which may arise from or out of any and all defects including, but not limited to, personal injury or damage to personal property. 2. Prior to completion, any labor and/or material furnished by homeowner which is not included in the total contract price or which is part of any allowance and is paid for by the homeowner, is excluded from this warranty. 3. Any addition, alteration, remodeling, and/or repair performed by or under the supervision of the homeowner which has an adverse affect on any warrantable condition shall invalidate the warrant as to such warrantable condition. 4. Consumer Products: Consumer Products (as such term is used and defined by the Federal Trade Commission) which are covered by the Magnuson-Moss Warranty Act when sold as part of a home are EXCLUDED from this Limited Home Warranty. 5. Cracks, separations, shrinkage and warpage. a. Porches, patios, walks, drives and even the foundation can develop minor cracks during the warranty period. These small cracks are normal and should be expected and are, therefore, not a warrantable condition. The origin of these cracks varies, but is usually related to normal initial differential settlement. Concrete driveways and concrete drive aprons are designed and constructed for normal single axle vehicular traffic. Excess axle weight loads will result in cracking, which is not warrantable. Further, certain governmental building code requirements for the junction of the drive apron and the street can result in cracking at the junction and such cracks are also non-warrantable. b. Exterior veneer and mortar of most houses will develop some degree of cracking during the warranty period. The majority of these small cracks are related to normal initial differential settlement of the foundation and/or thermal expansion and contraction of the veneer walls and are, therefore, not a warrantable condition.

4 c. Sheetrock or drywall, paneling and molding: slight visible defects such as nail pops, seam lines and cracks due to normal shrinkage are common in plaster and sheetrock or drywall installations. Minor cracks and separations in paneling and moldings may appear and are normal. d. Minor cracking or loss of grouting between tile or between tile and other material after thirty (30) days. e. Small cracks in hard floor coverings (including, but not limited to terrazzo, Mexican tile, and brick). f. Exterior wood can develop minor cracks, separations, shrinkage or warpage and such are non-warrantable conditions. 6. Floor squeaks. 7. Discoloration, non-uniformity of, or appearance of brick. 8. Marble: (natural or man-made) variation in color or appearance of marble is a normal condition. 9. Mirror defects: except latent silvering failure. 10. Wood finishes (interior and exterior): variation in color or appearance of woods is a normal condition. 11. Warpage of wood doors and cabinet doors and other wood trim items which does not affect their function. 12. Chips, scratches, loss of finish, or mars in tile, marble (plastic or natural), resilient flooring, woodwork, walls, porcelain, brick, mirrors, plumbing fixtures, plastic laminate, glass, or any other materials not recognized at time of pre-move-in inspection or acceptance, whichever occurs first. 13. Spots on carpeting not recognized on pre-move-in inspection. Minor fading due to variety of exposure to light and slight dye lot variance. 14. Dripping faucets, toilet adjustments after thirty (30) days. 15. Plumbing stoppage due to foreign material being deposited in line by occupants. 16. Service company meter problems, service lines installed by developer, municipality, or service company and back filling or slumping thereof. 17. Utility lines (water, sewer, gas and electric) installed by builder after ninety (90) days.

5 18. Shrubbery, trees, plants, grass, etc. Existing natural trees are also not warrantable. 19. Grading and Drainage: Grading has been provided in such a manner that water drains positively away from the perimeter of the house and off the site. Maintaining established drainage patterns and prevention of erosion is the homeowner s responsibility. Builder assumes no responsibility for grading and/or drainage if the established pattern is altered in any way. Further, Builder assumes no responsibility for consequences (direct or indirect) of such alteration such as abnormal differential settlement of the foundation, drive, patio, etc., due to inadequate drainage. 20. Paint. Conditions of color fading and mildew shall not be warrantable. 21. Loss or Damage Caused by Acts of God: including, but not limited to, fire, explosion, smoke, water escape, changes which are not reasonably foreseeable in the level of the underground water table, glass breakage, windstorm, hail, lightning, falling trees, aircraft, vehicles, flood, sinkholes, and earthquakes. 22. Insect Damage. 23. Any obligation to eliminate or mitigate radon and radon gas in or around the home on the real property and any damage to home or bodily injury resulting from any such radon or radon gas. RADON GAS: Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained from your county public health unit.

6 QUALITY STANDARDS The Quality Standards are intended to specify the minimum performance standards for construction of homes and to set forth the basis for determining acceptable materials and workmanship. These standards consist of two parts: (a) Those standards relating to the building construction, mechanical, plumbing, and electrical systems, and (b) Standards which define limits of permissible defects relating to quality. Only the most frequent defects of concern to the consumer have been enumerated in the Quality Standards set forth in the pages that follow. Any specific defect not enumerated, will be evaluated at such time as the defect is brought to the Builder s attention. A decision will be based on the circumstances presented. The construction, mechanical, plumbing and electrical standards shall be those contained in the Building Code, Mechanical Code, Plumbing Code and Electrical Code regulating construction in the area where such codes exist. Inspection by the governmental jurisdiction will provide evidence of compliance. The validity of any consumer complaints shall be determined on the basis of acceptable industry practices, and any inspection of such complaints shall be conducted accordingly. SITEWORK A. EXCAVATING AND BACKFILLING Possible Deficiency: Settling of ground around foundation, utility trenches or other filled areas. Performance Standard: Grading is to be provided in such a manner that water drains positively away from the perimeter of the house and off the site. Maintaining established drainage patterns and prevention of erosion is the homeowner s responsibility. Builder shall not be responsible for alteration of established pattern by homeowner or consequences of such alteration. Settling of ground around utility trenches or other filled areas. Maximum allowable three (3) inches. Settling of back fill around foundation shall not interfere with water drainage away from the house. Builder Responsibility: Upon request by the Buyer, the Builder shall fill excessively settled areas one time only during the first sixty (60) days of occupancy or closing. The owner shall be responsible for any grass, irrigation, shrubs or other landscaping affected by placement of such fill.

7 B. SITE DRAINAGE Possible Deficiency: Improper drainage of site. Performance Standard: The necessary grades and swales should be established to ensure proper drainage away from the house. No standing water should remain in the yard twentyfour (24) hours after a normal rain, except in swales, which may drain longer than other areas after a rain or sump pump discharge. Builder Responsibility: The builder is responsible only for establishing the proper grades and swales. Maintaining established drainage patterns and prevention of erosion is the homeowners responsibility thereafter. CONCRETE Concrete has a natural tendency to crack and cracks in concrete are not abnormal or uncommon. The Portland Cement Association s Design & Control of Concrete Mixtures tells us the following: When concrete dries, it shrinks just as wood, paper, and clay do (though not as much)...drying shrinkage is a primary cause of cracking and is an inherent, unavoidable property of concrete, and the width of the crack is a function of the degree of drying...concrete shrinkage cracks occur because of restraint...when shrinkage occurs and there is no restraint, the concrete does not crack...restraint comes from several sources...drying shrinkage is always greater near the surface of concrete, so the innermost portions restrain the concrete nearer the surface...this kind of restraint can cause cracking. Other sources of restraint are reinforcing steel embedded in concrete, the interconnected parts of the structure and the friction of the subgrade. A. Possible Deficiency: Cracks in concrete slab on grade floors. Performance Standard: Cracks which significantly impair the appearance or performance of the finished flooring material shall not be acceptable. Builder Responsibility: The builder shall repair cracks as necessary so as not to be readily apparent when the finished flooring material is in place. B. Possible Deficiency: Cracking of attached garage slabs, covered porches, patios and pool decks. Performance Standard: Cracks in excess of 1/4 inch in width are considered excessive. Builder Responsibility: Builder shall repair excessive cracks as required, one time during the warranty period. Subsequently, slab maintenance is a homeowner responsibility. Note: Expansion joints are not considered cracks. Variation in color and/or texture in concrete repairs is normal.

8 C. Possible Deficiency: Pitting, scaling, or spalling of concrete work. Performance Standard: Concrete surfaces should not disintegrate to the extent that the aggregate is exposed under normal conditions of weathering and use. Builder Responsibility: Builder to repair as required. The builder is not responsible for deterioration caused by salt, chemicals, mechanical implements and other factors beyond the builder s control. D. Possible Deficiency: Excessive powdering or chalking of concrete surfaces. Performance Standard: Powdering or chalking of concrete surfaces is not permissible; however, it should not be confused with surface dust. Builder Responsibility: The builder shall take whatever corrective action necessary to repair or resurface defective areas. E. Possible Deficiency: Suspected abnormal initial differential settlement of the foundation. Performance Standard: Cracks in the foundation when accompanied by other classic evidences and consequences of settlement (such as interior and exterior wall cracks, sticking doors and/or foundation slopes) should be referred for further investigation by a registered professional engineer. Small cracks in concrete of 3/16 inch or less (not accompanied by other evidences of settlement) can generally be considered normal. Any size concrete crack not felt to be or understood to be normal by the entire inspection team should be referred to a qualified professional engineer. Builder Responsibility: The builder to make corrections which include attention to the cause of the problem as well as correction of the consequences. MASONRY Possible Deficiency: Cracks in masonry walls or brick veneer. Performance Standard: Small cracks are common in mortar joints of masonry construction. Cracks greater than 1/4 inch in width are considered excessive. Builder Responsibility: Repair cracks in excess of 1/4 inch. These repairs shall be reported to the Builder and will be made close to the end of the warranty period to allow for normal settling of the structure. Builder shall not be responsible for any variations in color between old and new mortar.

9 CARPENTRY A. ROUGH CARPENTRY Possible Deficiency: Floor squeaks. Performance Standard: Floors will squeak. Builder Responsibility: Excessive squeaks resulting from loose or improperly secured flooring will be corrected. Other squeaks considered acceptable. Possible Deficiency: Bowed Walls. Performance Standard: All interior and exterior walls have slight variances on their finished surfaces. Bowing of wall should not detract from or blemish the walls finished surface. Allowable structural deflections are governed by the approved building code specifications. However, bowing greater than 1/2 inch in five (5) lineal feet of wall length will be considered unacceptable. Builder Responsibility: Repair interior and exterior walls as required. Possible Deficiency: Out of plumb walls. Performance Standard: Walls should not be more than 1/2 inch out of plumb for any five (5) foot vertical measurement. Builder Responsibility: Builder to repair to meet the above standard. B. FINISH CARPENTRY-INTERIOR Possible Deficiency: Quality of interior trim workmanship. Performance Standard: Joints in cabinet mouldings or joints between mouldings and adjacent surfaces should not result in cracks exceeding 1/8 inch in width. Cracks or joints in paneling should not exceed 1/16 inch, door jambs and trim should not exceed 1/8 inch. Builder Responsibility: Correct defective joints and cracks in excess of standards. Caulking is acceptable. Builder is not responsible for color variations of old and new caulking and paint touch-ups may not match existing. C. FINISH CARPENTRY-EXTERIOR Possible Deficiency: Quality of exterior trim workmanship.

10 Performance Standard: Joints between exterior trim elements, including siding, should not result in open cracks in excess of 1/4 inch. The exterior trim and siding shall be capable of performing its function to exclude the elements. Builder Responsibility: Builder to correct open cracks in excess of standard one time near the end of the first year. Caulking is acceptable. Builder is not responsible for color variations of old and new caulking and paint touch-ups may not match existing. D. CLADDING/SIDING Possible Deficiency: Warpage, shrinkage, cracking or splitting. Performance Standard: The above conditions (warpage, shrinkage, cracking or splitting) can occur. Builder Responsibility: None, as the nature of the materials can cause the above conditions. Possible Deficiency: Delamination or deterioration of exterior siding. Performance Standard: Siding should not delaminate or deteriorate within manufacturer s specifications. Natural wood sidings can be expected to weather and change color with age. Builder Responsibility: Builder will repair or replace as needed unless caused by owner s neglect to maintain siding properly. Repaired area of pre-finished material may not match in color and/or texture. The owner can expect that the newly painted surface may not match original surface in color. MOISTURE PROTECTION A. Possible Deficiency: Leaks or seepage in slab. Performance Standard: NO leaks or seepage of water is acceptable. Builder Responsibility: The builder shall correct as necessary. B. Possible Deficiency: Leaks in exterior walls due to inadequate caulking. Performance Standard: Joints in exterior wall surfaces and around openings should be properly caulked to exclude the entry of water. Properly installed caulking will shrink and must be maintained by the homeowner within the life of the home after the first ninety (90) days of occupancy. Builder Responsibility: Builder shall caulk joints in exterior wall surfaces as required to correct deficiency.

11 INSULATION Possible Deficiency: Insufficient insulation. Performance Standard: Insulation should be installed in accordance with applicable energy and building code requirements. Builder Responsibility: Install insulation in sufficient amounts to meet above standards. ROOFING A. SHINGLES AND ROOFING TILES Possible Deficiency: Roof or flashing leaks. Performance Standard: Roofs or flashing should not leak under normal conditions. Builder Responsibility: The builder shall correct roof or flashing leaks within the warranty period. Possible Deficiency: Leaks due to rain driven into attic through louvers or vents. Performance Standard: Attic ventilation is required by the Southern Building Code and, therefore, cannot be omitted. Occasionally, depending on the force and direction of the wind, these vents may leak and cause spotting on the ceiling. Builder Responsibility: Builder cannot be responsible for such weather damage and will not make repairs in this instance. Possible Deficiency: Standing water on flat built-up roofs. Performance Standard: Water shall drain from built-up roofs except for minor ponding after rainfall. Builder Responsibility: Builder to take necessary action to assure proper drainage. B. ALUMINUM FASCIA Possible Deficiency: Staining from roof shingles. Performance Standard: Fascia may become temporarily soiled from water run-off. Roof shingles are a petroleum based product and are expected to have some oil displacement. Builder Responsibility: Allow six (6) months to a year for excess oils to fade away.

12 FLASHING Possible Deficiency: Leaks in exterior walls due to inadequate flashing. Performance Standard: Horizontal joints in exterior wall surfaces and/or around openings should be properly flashed to exclude the entry of water. Builder Responsibility: Builder should correct as necessary. DOORS Significant dents, scratches, chips or other mars noted on the walk-through list will be repaired. Paint touch-ups on such repairs will be by brush and, therefore, will not match existing paint exactly. Selection of deep-tone colors for exterior doors with heavy exposure can cause problems as a result of heat absorption, i.e., swelling, sticking. Problems resulting from deep-tone colors will not be repaired. Possible Deficiency: Warpage of interior doors. Performance Standard: Interior doors (full opening) should not warp to exceed National Woodwork Manufacturers Association Standards (1/4 inch), provided the proper levels of humidity have been maintained in the home. Builder Responsibility: Correct or replace and refinish defective doors to match existing doors as nearly as possible. Possible Deficiency: Cracking and delamination of interior and exterior doors. Performance Standard: Interior and exterior doors should not crack or delaminate. Builder Responsibility: Builder should correct as necessary. Possible Deficiency: Split door panel. Performance Standard: Split panels should not allow light to be visible or allow the weather to get through the door. Builder Responsibility: If light is visible or the weather is getting through the door, fill split to match paint or stain as closely as possible, one time during the warranty period. Possible Deficiency: Warpage of exterior doors. Performance Standard: Exterior doors will warp to some degree due to temperature differential on inside and outside faces. However, they should not warp to the extent that they become inoperable or cease to be weather resistant or exceed National Woodwork Manufacturers Association Standards (1/4 inch).

13 Builder Responsibility: Correct or replace and refinish defective doors to match existing doors as nearly as possible. Possible Deficiency: Shrinkage of insert panels exposing raw wood edges, or cracking caulked joints. Performance Standard: Panels will naturally shrink and expand and may expose unfinished surfaces or cause cracking of caulked joints. Builder Responsibility: Builder shall refinish or re-caulk and paint door as necessary one time within the warranty period. Paint color and texture of newly painted or refinished doors may not match existing exactly. GARAGE DOORS Possible Deficiency: Garage door fails to operate properly. Performance Standard: Garage doors should operate properly under normal conditions of use. Drafts and leaks around garage doors do not constitute a deficiency. Builder Responsibility: The builder shall correct garage doors as required. Possible Deficiency: Garage doors not reacting to sensors. Performance Standard: Sensors must be lined up correctly in order for automatic garage doors to function correctly. Builder Responsibility: Sensors are lined up one time at the time of start-up. It is a function of homeowners maintenance to keep them aligned. Possible Deficiency: Small gaps around garage door. Performance Standard: No airtight seal is to be expected. Rain or insects may get into garage. Builder Responsibility: Builder must initially affix door in an appropriate manner according to garage door specifications. WINDOWS Possible Deficiency: Malfunction of windows.

14 Performance Standard: Windows should perform their function and operate with reasonable ease as intended. Builder Responsibility: Builder to correct as required. Possible Deficiency: Scratches on windows. Performance Standard: Windows should be free of scratches when viewed six (6) feet away. Builder Responsibility: Homeowner responsible after move-in. Prior to move-in, builder to correct if required. WEATHERSTRIPPING Possible Deficiency: Drafts and leaks. Performance Standard: Some infiltration is normally noticeable around the doors and windows, especially during high winds. Excessive infiltration resulting from open cracks, poorly fitted doors or windows, or poorly fitted weather-stripping is not acceptable. It should be noted that weather-stripping will vibrate in high winds. Builder Responsibility: The builder shall correct weather-stripping as required. FINISHES A. STUCCO Possible Deficiency: Cracks in stucco wall surfaces. Performance Standard: Hairline cracks are not unusual in stucco wall surfaces. Cracks greater than 1/8 inch in width are considered excessive. Builder Responsibility: The builder shall repair and repaint cracks exceeding 1/8 inch as required. Caulking is acceptable. Builder not responsible for variations in paint colors. B. GYPSUM WALLBOARD Possible Deficiency: Visible defects such as nail pops or cracks (3/16 or less) in seam lines are due to normal shrinkage, expansion or movement of the home. Performance Standard: These cracks are common in gypsum and wallboard construction. Cracks greater than 3/16 inch in width are considered excessive. Builder Responsibility: Correct cracks in excess of 3/16 inch and touch up to match as close as possible. Builder is not responsible for color variations in the paint. Possible Deficiency: Blisters in tape or tape comes loose from gypsum.

15 Performance Standard: Defects readily observed by visual inspection without resorting to artificial light placement are not acceptable. Builder Responsibility: Correct such defects to meet the above standards. Possible Deficiency: Exterior drywall loses stability, falls apart or becomes mildewed. Performance Standard: Exterior drywall should not lose its stability, fall apart or become mildewed if homeowner does not apply water in any method. Builder Responsibility: None. A function of homeowners correct maintenance. CERAMIC TILE Possible Deficiency: Ceramic tile cracks or becomes loose. Performance Standard: Ceramic tile should not crack or become loose. Builder Responsibility: The builder shall replace any cracked tiles one time within the first year unless the defects were caused by the owner s negligence. Builder not responsible for color variations in ceramic tile or grout or for discontinued materials. Possible Deficiency: Cracks appear in grouting of ceramic tile joints or at junctions with other materials such as a bathtub. Performance Standard: Cracks in grouting of ceramic tile joints are commonly due to normal shrinkage conditions. Regrouting of these cracks is a maintenance responsibility of the homeowner within the life of the home except within the first thirty (30) days of occupancy. Builder Responsibility: Builder will repair grouting as necessary one time within the first thirty (30) days. Builder is not responsible for color variations or discontinued grout colors. RESILIENT FLOORING Possible Deficiency: Depressions or ridges appear in the resilient flooring due to subfloor irregularities Performance Standard: Readily apparent depressions or ridges exceeding 1/8 inch should be repaired. The ridge or depression measurement is taken as the gap created at one end of a six-inch straight edge placed over the depression or ridge with three (3) inches on one side of the defect held tightly to the floor. Builder Responsibility: The builder shall take corrective action, as necessary to bring the defect within acceptable tolerances so that it is not readily visible. Builder is not responsible for discontinued patterns or color variations in floor covering.

16 Possible Deficiency: Resilient flooring loses adhesion. Performance Standard: Resilient flooring should not lift, bubble, or become unglued. Builder Responsibility: The builder shall correct resilient flooring as required. The builder shall not be responsible for discontinued patterns or color variations or for problems caused by owner neglect or abuse. Possible Deficiency: Cuts, gouges, seams/shrinkage gaps in resilient flooring. Performance Standard: Cuts, gouges beyond the pre-move-in inspection are non-warrantable items (see warranty). Gaps shall not exceed 1/16 inch in width in resilient floor covering joints. Where dissimilar materials abut, a gap not to exceed 1/8 inch is permissible. Builder Responsibility: The builder shall take action as necessary to correct the problem. The builder shall not be responsible for discontinued patterns or color variation of floor covering. CARPETING Although carpet seams may be visible, no gap or fraying is acceptable. Stains or spots noted on walk-through list will be correct by cleaning, patching or replacement. Builder will not be responsible for dye lot variations if replacements are made. Possible Deficiency: Wrinkles in carpet. Performance Standard: Wrinkles should not appear in carpet. Carpet should lay flat on slab. Builder Responsibility: Builder to re-stretch or re-secure carpeting as needed one time within the first year of warranty. Possible Deficiency: Seams come apart. Performance Standard: Carpet seams should not come apart. Builder Responsibility: Builder to correct or repair open seams. Possible Deficiency: Carpet loose from tack strip. Performance Standard: Carpet should be attached to tack strip when installed. Builder Responsibility: Builder to correct as necessary.

17 PAINTING Possible Deficiency: Exterior paint or stain peels, fades or mildews. Performance Standard: Exterior paints or stains should not peel during the first year of ownership. Mildewing and fading of paints/stains are caused by climatic conditions and as such are not covered under the warranty. Builder Responsibility: Builder shall correct areas effected, matching color as closely as possible. Builder is not responsible for faded or mildewed exterior surfaces. Possible Deficiency: Painting required as corollary repair because of other work. Performance Standard: Necessary repairs required under this warranty should be refinished to match surrounding areas as closely as possible. However, paint color variations in newly painted and existing surfaces can be expected. Builder Responsibility: Refinish repaired areas as indicated. Possible Deficiency: Deterioration of varnish or lacquer finishes. Performance Standard: Natural Finishes on interior woodwork should not deteriorate during the first year of ownership. However, varnish type finishes used on the exterior will deteriorate rapidly and are not covered by the warranty. Builder Responsibility: Retouch affected areas of natural finished interior woodwork, matching the color as closely as possible. Possible Deficiency: Interior paint fails to cover. Performance Standard: Interior paint shall be applied in a manner sufficient to visually cover a wall, ceiling and trim where specified. Builder Responsibility: Correct as necessary. Builder shall not be responsible for homeowner wear and tear. WALLPAPER Possible Deficiency: Peeling of wallpaper. Performance Standard: Peeling of wallpaper is unacceptable. Builder Responsibility: The builder shall repair or replace defective wallpaper. Builder is not responsible for minor mismatching in pattern or color, or discontinued materials. FIREPLACES

18 Possible Deficiency: Chimney of fireplace does not draw properly. Performance Standard: A properly designed and constructed fireplace and chimney should function properly. It is normal to expect that high winds can cause temporary negative draft situations. Similar negative draft situations can also be caused by obstructions such as large branches of trees too close to the chimney. Some houses may need to have a window opened slightly to create an effective draft. Builder Responsibility: Determine the cause of malfunction and correct as required if the problem is one of design and/or construction. Adverse climatic conditions are nonwarrantable. Possible Deficiency: Rainwater leaks down flue. Performance Standard: Some minor dripping will occur in prolonged rains. Immediate leakage in all rains is unacceptable. Builder Responsibility: Builder to correct to meet the above standard. EQUIPMENT RESIDENTIAL EQUIPMENT Possible Deficiency: Kitchen cabinet malfunctions. Performance Standard: Cabinet doors and drawer faces should not warp to exceed 1/4 inch, provided the proper levels of humidity have been maintained. Both cabinet doors and drawer faces should be properly adjusted and operating in a smooth, efficient manner. Builder Responsibility: Adjust, repair or replace defective cabinet doors and drawer faces to correct condition one time during the first ninety (90) days. Possible Deficiency: Surface cracks, delaminations and chips in high pressure laminated vanity and kitchen cabinet counter tops. Performance Standard: Counter tops fabricated with high pressure laminate coverings should not delaminate or have chips or surface cracks. The deck areas joint may have a maximum of 1/16 inch gap. All other areas of the joint may have a maximum of 1/16 inch differential in surface alignment. Surface cracks or chips are non-warrantable beyond the pre-move-in inspection and must be noted on walk-through list. Builder Responsibility: Repair or replace to meet the above criteria.

19 Possible Deficiency: Counter top separating from finished wall. Performance Standard: Counter top separation should not exceed 1/4 inch. Builder Responsibility: The builder shall repair or replace the counter top to eliminate or correct the gap caused by separation. Caulking is acceptable. MECHANICAL A. SEPTIC TANK SYSTEMS Possible Deficiency: Septic system fails to operate properly. Performance Standard: Septic system should be capable of properly handling normal flow of household effluent. It is possible that due to freezing, soil saturation, changes in the ground water table or excessive use of plumbing systems or appliances, an overflow can occur. Periodic pumping of the septic tank is considered home-buyer maintenance, and a normal need for pumping is not a deficiency. Builder Responsibility: Builder shall be responsible for the installation of an operational system and shall take corrective action to repair. Builder shall not be responsible for malfunctions which occur through owner negligence or abuse and from conditions that are beyond his/her control. The following are considered examples of owner negligence or abuse as an exclusion under the warranty. 1. Excessive use of water, such as overuse of washing machine and dishwasher, including their simultaneous use. 2. Connection of sump pump, roof drains, or backwash from water conditioner, to the system. 3. Placing of non-biodegradable items in the system. 4. Addition of any harsh chemicals, greases or cleaning agents, and excessive amounts of bleaches or drain cleaners. 5. Use of food waste disposal not supplied by builder. 6. Placement of impervious surfaces over the disposal area. 7. Allowing vehicles to drive or park over the disposal area. 8. Failure to periodically pump out the septic tank, when required. PLUMBING Possible Deficiency: Leakage from any piping.

20 Performance Standard: No leaks should exist in any soil, waste, vent or water pipe. Condensation on piping does not constitute leakage, and is not covered. Builder Responsibility: Fix leakage from piping. Possible Deficiency: Faucet or valve leak. Performance Standard: No valve or faucet should leak due to defects in material or workmanship. However, leakage caused by worn washers or seats is a home-buyer maintenance item. Builder Responsibility: Builder shall repair or replace the leaking faucet or valve unless leakage is due to a worn washer or seat. Refer to warranty. Dripping faucets or toilet adjustments are homeowner s responsibility after the first thirty (30) days. Possible Deficiency: Noisy water pipes. Performance Standard: There will be noise emitting from the water pipe system due to the flow of water. Builder Responsibility: Builder cannot remove all noises due to water flow and pipe expansion. The builder shall correct any noise problems that are due to faulty workmanship or installation. Possible Deficiency: Defective plumbing fixtures, appliances or trim fittings. Performance Standard: Fixtures, appliances or fittings should be judged according to their manufacturing standards. NOTE: SOME PLUMBING APPLIANCES ARE CONSUMER PRODUCTS AND AS SUCH ARE NOT COVERED UNDER THE WARRANTY AND WILL NOT BE ADDRESSED WITHIN THESE STANDARDS. Builder Responsibility: The builder shall correct any fixture or fitting which is outside of acceptable standards as defined by the manufacturer when such fixtures/fittings are not consumer products. Possible Deficiency: Stopped up sewers, fixtures and drains. Performance Standard: Sewers, fixtures and drains should operate properly. Builder Responsibility: The builder is not responsible for sewers, fixtures and drains which are clogged through the owner s negligence. Where defective construction is the cause, the builder shall assume the cost of the repair; where owner negligence is shown to be the cause, the owner shall assume all repair costs.

21 Possible Deficiency: Cracking or chipping of porcelain or fiberglass surfaces. Performance Standard: Chips or cracks on surfaces of bathtubs and kitchen sinks can occur when the surface is hit with sharp or heavy objects. Builder Responsibility: Builder to repair any chips or cracks noted prior to first occupancy. Possible Deficiency: Dryer vents becoming clogged due to lint. Performance Standard: Dryers in good working condition will not clog a dryer vent. Builder Responsibility: None. A function of homeowner s correct maintenance. Possible Deficiency: Scratches on polished brass fixtures. Performance Standard: Polished brass will scratch over time from normal wear and tear. This problem can accelerate if homeowner does not maintain correctly. Builder Responsibility: Prior to move-in, builder will replace all scratched polish brass fixtures. After move-in, it is a function of correct homeowner s maintenance. Refer to manufacturer standards on care. Possible Deficiency: Well not pumping or chlorinating water. Equipment failure. Performance Standard: Well should pump and chlorinate correctly. Builder Responsibility: Builder will repair any defective equipment. It is a function of homeowner s maintenance to make sure the pump stays primed and chlorine is added on an as needed basis. POWER OR HEAT GENERATION Possible Deficiency: Inadequate heat. Performance Standard: Heating system should be capable of producing and maintaining an inside temperature of seventy-two (72) degrees Fahrenheit as measured in the center of each room at a height of five (5) feet above the floor under normal local outdoor winter design conditions as specified in the unit instructions for maintenance and warranty. Builder Responsibility: Builder shall correct the heating problem as required to provide the required temperature. However, after initial adjustment by builder, the homeowner has the responsibility of maintaining balance, dampers, registers, and any other minor adjustments. COOLING Possible Deficiency: Inadequate cooling.

22 Performance Standard: The cooling system shall be capable of maintaining a temperature of seventy-eight (78) degrees Fahrenheit as measured in the center of each room at a height of five (5) feet above the floor under normal local outside summer design conditions as specified in ASHRAE handbooks. Builder Responsibility: Correct cooling system to meet the above standard. Where outside temperatures exceed ninety-five (95) degrees Fahrenheit, a differential of twenty (20) degrees Fahrenheit will be acceptable. After initial adjustment by builder, homeowner has the responsibility of maintaining balance, damper, registers, and other minor adjustments. Possible Deficiency: Condensation lines clog up. Performance Standard: Condensation lines will clog under normal use. This is a homeowner maintenance item. Builder Responsibility: Builder to provide unobstructed condensation lines at closing. Possible Deficiency: Ductwork noisy. Performance Standard: When metal is heated it expands and when cooled it contracts. The result is ticking or cracking which is generally to be expected. Builder Responsibility: The stiffening of the ductwork and the gauge of the metal used shall be such that the ducts do not oil can. The booming noise caused by oil canning is not acceptable and the builder must take steps to eliminate this sound. Possible Deficiency: Ductwork separates or becomes unattached. Performance Standard: Ductwork should remain intact and securely fastened. Builder Responsibility: Re-attach and re-secure all separated or unattached ductwork. ELECTRICAL Possible Deficiency: Malfunction of electrical switches, fixtures, outlets, or circuitry. Performance Standard: All electrical switches, fixtures, outlets, and circuitry should operate as intended. Builder Responsibility: Correct inoperative items as necessary. Possible Deficiency: Burned out light bulbs. Performance Standard: All light bulbs should work at time of move-in.

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