THE COTTAGES AT SURF ESTATES

Transcription

1 PORTIONS OF THIS AGREEMENT ARE SUBJECT TO ARBITRATION PURSUANT TO THE SOUTH CAROLINA UNIFORM ARBITRATION ACT, & , S.C. CODE OF LAWS OF 1976, AS AMENDED. THE COTTAGES AT SURF ESTATES PURCHASE AGREEMENT Cottage Unit Number Date WHEREAS, Cynmar Designs, Inc. (hereinafter called Seller ) is building in a community known as The Cottages At Surf Estates (Hereinafter called Community ), upon a tract of real property located in Surf Estates in the city of North Myrtle Beach, SC and WHEREAS, (hereinafter called Purchaser ) desires to purchase the above unit in the community (hereinafter collectively called the Unit ), NOW THEREFORE, in consideration of the premises and other good and valuable consideration, Purchaser agrees to purchase and Seller agrees to sell the Unit on the terms and conditions hereinafter set forth: TERMS AND CONDITIONS 1. PURCHASE PRICE: Total Purchase Price $ 10% Deposit due upon execution of this agreement $ Balance of Purchase Price to be paid by Purchaser shall be payable at closing of Title by Bank wire or Certified Funds $ All money deposited with the Seller will be held in Escrow by Blue Strand Properties, LLC. 2. CLOSING. Conveyance shall be made subject to all easements as well as covenants of record (provided they do not make the title unmarketable) and to all governmental statutes, ordinances, rules and regulations. Seller agrees to covey by marketable title and deliver a proper general warranty deed, if applicable, free of encumbrances, except as herein stated. Seller agrees to pay all statutory deed recording fees. The deed shall be delivered at the stipulated place of closing, and transaction closed on or before, 2012, not later than 5:00 p.m. Time is of the essence. Seller and Buyer authorize their respective attorneys and the settlement agent to furnish to Listing Broker and Selling Broker copies of the final HUD-1 settlement statement for the transaction for their review prior to closing. PURCHASER SELLER PAGE 1 OF 7

2 3. CLOSING COSTS. Buyer shall be responsible to pay all normal mortgage closing costs, certificate of assessment, recording fees, interim interest, attorney fees, and prepaid escrow deposits if any. Seller shall pay for deed preparation and deed stamps to be placed thereon. Buyer, shall, at closing, pay to The Cottages at Surf Estates Horizontal Property Regime, a working capital contribution of 2/12 of the annual assessment to be utilized for capital and operating expenses of the Regime plus insurance and the annual/quarterly/monthly assessment prorated from the date of closing. 4. PURCHASER S FINANCING ARRANGEMENTS. Purchaser s obligations under this Agreement shall be contingent upon Purchaser obtaining, at Purchaser s sole cost and expense, a loan to finance the portion of the purchase price set forth in Paragraph 1 hereinabove, which loan shall be secured by a mortgage. Purchaser shall select mortgage lender and notify seller of his selection within ten (10) days of executing the Purchase Agreement. Purchaser shall complete and return to his chosen permanent mortgage lender, within fourteen (14) days after receipt, a properly completed loan application and such other financial information as may be required by the permanent mortgage lender. Failure to return completed application forms to the lender with fourteen (14) days from the date of delivery thereof or any other information requested by the lender within fourteen (14) days after the date of request thereof, shall constitute a default on the part of Purchaser at Seller s sole option. If Purchaser s credit is not approved as provided above, Purchaser shall elect to pay the balance of the purchase price without financing or shall elect to finance the balance independently and thereby waive any further financing contingency in this Agreement if the Purchaser notifies Seller in writing of such election within ten (10) days after receipt of written notice from Purchaser s lender of disapproval. PURCHASER WAIVES FINANCING CONTINGENCY AND ELECTS TO PAY THE BALANCE OF THE PURCHASE PRICE IN CASH AT CLOSING 5. CONSTRUCTION. The terms of the contract are limited to the provisions contained in this agreement and the other documents described as follows: 6. HOMEOWNERS ASSOCIATION. a. Outline Specifications, Standard Features, Insulation Disclosure Information, and any Addenda b. Limited Warranty c. Non-warrantable Conditions d. Certificate of Acceptance e. Homeowner Pre-settlement Report 6.1 Regime Association. The Unit will be conveyed subject to The Cottages at Surf Estates Master Deed (the Regime Master Deed ) and the Bylaws of The Cottages at Surf Estates (the Regime Association ), which includes or will include the obligation that you pay PURCHASER SELLER PAGE 2 OF 7

3 regular, special, and other assessments, as therein provided, when levied, for the purpose of insuring, maintaining repairing and replacing the common elements of the Regime, commencing with the date which title to the Unit is conveyed. The amount of the annual assessment will be set, and may be increased each year, by the Board of Directors of the Regime Association, as set forth in the Regime Master Deed. We reserve the right to modify the Regime Master Deed in any manner whatsoever prior to Closing; and after Closing, any amendments to the Regime Master Deed will be undertaken by us as provided in the Master Deed itself. You hereby acknowledge having received a copy of the Regime Master Deed and Regime Association Bylaws, as said draft exists today. a. Nature of Your Condominium Unit. Even though we have referred to your Unit generically to include the residence we have constructed or are obligated to construct hereunder, your actual condominium unit is the space occupied by your residence. The effect is that, unlike condominiums with which you may be familiar in a multi-unit, multi-story structure, you and not the Regime Association will be responsible for insuring, maintaining, repairing, and replacing the structure we will build and locate within the Unit s space. You acknowledge having received and reviewed a site plan either showing your Unit or showing as an example another Unit in the Regime, with the Unit s legal metes and bounds, and the ground elevation and dimension of the Unit within which the actual residence is to be constructed. It may even look to you like a subdivision plat of a lot upon which a house is to be constructed, but unlike a traditional subdivision where everything outside of the lot lines is either public property or property owned by a property owner association, all the property outside your Unit space and the Unit space of your neighbors (but within the perimeter boundary of the Regime), which we call Common Area, is actually owned in common by you and your Cottages at Surf Estates neighbors through condominium ownership. The Regime Association doesn t really own the Common Areas, but only manages them for you and all the other owners. Again, you will be solely responsible for maintaining, repairing, and replacing all the elements of your residence and for maintaining property insurance on it, and will also be required to have on file at all time with the Regime Association a current insurance certificate of such coverage. 6.2 Architectural Review. You hereby acknowledge that any further improvement to your Unit, including, but not limited to, land clearing, grading, and landscape improvements, will be subject to the architectural guidelines established, from time to time, pursuant to the Master Deed and the prior written approval thereof by the Architectural Review Committee (sometimes referred to as the ARC) established there under. 7. TITLE. Seller shall convey the Property to Purchaser by insurable fee simple general warranty deed with all stamps affixed thereto free of monetary liens and encumbrances and free from all other liens and encumbrances, except the following: PURCHASER SELLER PAGE 3 OF 7

4 a. Pro-rata taxes and assessments, not yet due and payable. Purchaser will be charged his pro-rata share at closing and therefore Seller is responsible for the payment of said taxes during the year of closing. b. All matter which would be revealed by an accurate survey or inspection of the Property. c. Existing easements, and easements and restrictive covenants of record, including any shown on recorded plats and all governmental statutes, rules, regulations, and ordinances. d. The Unit will be conveyed subject to the provisions of the Master Deed of the Cottage at Surf Estates Horizontal Property Regime, and the By-laws of The Cottage at Surf Estates 8. PURCHASER S ACKNOWLEDGEMENTS. Purchaser hereby acknowledges that prior to execution of this Agreement, Purchaser has made a personal, on-site inspection of the Property, or if done by proxy then the proxy has authority from the Purchaser to approve said property. 9. DISCLAIMER. The Unit being sold hereby may constitute a part of a stage or a phase of a development which may result in the construction of additional phases by the Seller or other developers. The Seller, however, assumes no liability for the construction or completion of any additional phases, their type, style, or use, or any other portion or stage of the development. 10. DEFAULT It is expressly agreed that upon the event of any default of failure on the part of the Purchaser to comply with the terms and conditions of this Agreement, then the said deposit shall be paid to Seller as liquidated damages and Seller may seek other remedies available to it under judicial proceedings, including recovering reasonable attorney fees and cost. 11. NOTICES Any notice to be given hereunder shall be in writing and delivered in a postage prepaid envelope, sent by registered or certified mail, receipt requested, to the Purchaser or to the Seller at 4504 Poinsett Street North Myrtle Beach, SC (Ashe Law Firm). 12. OWNERSHIP OF PLANS AND SPECIFICATION. Purchaser has no ownership rights in the plans and specifications used under this Contract, and the Purchaser will be liable to the Seller in the amount of lost profits and all consequential damages for the reuse or resale of these plans. 13. INSPECTION, ACCEPTANCE, AND POSSESSION. Purchaser shall be given a reasonable opportunity to examine his Residence and complete the Homeowner Pre-Settlement Report with Seller s representative prior to closing of title, and at that time shall present to Seller an inspection statement signed by Purchaser setting forth any PURCHASER SELLER PAGE 4 OF 7

5 defects in workmanship or materials. As to any items therein described which are truly defects in workmanship and materials (keeping in mind the construction standards prevalent in Horry County for similar property), Seller shall be obligated to correct the same at its cost within a reasonable period of time, but Seller s obligation to correct shall not be ground for deferring the closing of title nor the position of any condition upon closing. Purchaser agrees not to interfere with any workman at the site of the Property and Purchaser further agrees that any personal inspections shall be made with the consent of the Seller while accompanied by Seller s representative. Prior to closing of title, the Purchaser shall execute the Certificate of Acceptance. The Purchaser shall not take possession of the home before inspection of the home and execution of this Certificate of Acceptance. All parties agree that this provision is subject to the right of either party to obtain an injunction or file for any other legal or equitable remedies. 14. REPRESENTATIONS AND WARRANTY The Limited Warranty attached and incorporated by reference into this Contract contains the sole warranty provided by the Seller to the Purchaser. The Limited Warranty shall have no force and effect until the Seller has received full payment of the purchase price stated above, and the warranty shall take effect at the time of closing. The Limited Warranty excludes all items on the attached statement of Non-warrantable Conditions that is incorporated by reference into this Contract. The Seller assigns to the Purchaser, to the extent they are assignable, all rights under manufacturer s warranties on appliances, equipment, fixtures, and consumer products included in the unit and located on the Purchaser s Property. The Seller provides no other warranties relating to manufactured or consumer products. THIS CONTRACT CONTAINS ALL THE REPRESENTATIONS, WARRANTIES AND PROMISES OF THE SELLER. NO AGENT OR REPRESENTATIVE OF THE SELLER IS AUTHORIZED TO MAKE ANY REPRESENTATION OR PROMISE ON BEHALF OF THE SELLER OTHER THAN THOSE CONTAINED HEREIN, AND THE SELLER MAKES NO OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF GOOD WORKMANSHIP AND HABITABILITY. 15. DISPUTE RESOLUTION; MEDIATION AND ARBITRATION. If a dispute, controversy or claim (whether based upon contract, tort, statue, common law or otherwise)(collectively a Dispute ) arises from or relates directly or indirectly to the subject matter hereof, and if the Dispute cannot be settled through direct discussions, the parties shall first endeavor to resolve the Dispute by participating in a meditation administered by the American Arbitration Association (the AAA ) under its Construction Industry Arbitration Rules Before Resorting to arbitration. Thereafter, any unresolved dispute shall be settled by binding arbitration after the review rights set forth below have been exhausted, may be entered in any court having jurisdiction. The arbitration proceedings shall be conducted in Myrtle Beach, South Carolina on an expedited basis before a neutral arbitrator (or multiple arbitrators if called for by the Construction Industry Arbitration Rules.) Each arbitrator shall be an attorney with excellent academic and professional credentials, who (i) is a member of the Bar of the State of South Carolina, (ii) has been actively engaged in the practice of law for at least PURCHASER SELLER PAGE 5 OF 7

6 fifteen (15) years, and (iii) specializes in real estate and/or construction transactions, with substantial experience in the subject matter of the Dispute. Any attorney who serves as an arbitrator shall be compensated at a rate equal to his or her current regular hourly billing rate. Upon the request of either party, the arbitrator s award shall include findings of fact and conclusions of law provided that such findings may be in summary form. Either party may seek review of the arbitrator s award before an arbitration review panel comprised of three (3) arbitrators qualified in the same manner as the initial arbitrator(s)(as set forth above) by submitting a written request to the AAA. The right of review shall be deemed waived unless requested in writing within ten (10) days of the receipt of the initial arbitrator s award. The arbitration review panel shall be entitled to review all findings of fact and conclusions of law in whatever manner it deemed appropriate and may modify the award of the initial arbitrator(s) in its discretion. The prevailing party in any arbitration proceeding shall be entitled to an award of all reasonable out-of-pocket costs and expenses (including attorney s and arbitrators fees) related to the entire arbitration proceeding (including review if applicable). Upon request of either party, the arbitrator(s) may require that the subject arbitration proceedings be kept confidential and no party shall disclose or permit the disclosure of any information produced or disclosed in the arbitration proceeding until the award is final. A party shall not be prevented from seeking temporary injunctive relief before a court of competent jurisdiction in an emergency situation, but responsibility for resolution of the Dispute shall be appropriately transferred to the arbitrator(s) upon appointment in accordance with the provisions hereof Exception to the Arbitration. Anything contained herein to the contrary notwithstanding, the election by us under Section 10 to terminate this Agreement and retain your Deposits as liquidated damages in the event of your default shall not be a Dispute subject to the provisions of this Section ENTIRE AGREEMENT AND SEVERABILITY. This Agreement including the documents incorporated by reference pursuant to this Agreement constitutes the entire agreement between the parties and supersedes all prior or contemporaneous agreements and understandings whether written or oral. This Agreement may be changed only be a written agreement amendment signed by all parties to this agreement. This Agreement shall be binding upon each of the parties respective heirs, executors, administrators, successors and assigns. However, this Contact shall not be assigned without the written consent of all parties. Each provision of this Agreement is separable from every other provision of the Agreement and if any provision is unenforceable or revised, the remainder of the Agreement will remain valid and enforceable. This Agreement will be governed by the law of the jurisdiction in which the property is located. The provisions of this Agreement shall survive the execution and delivery of the deed and shall not be merged therein. 17. EFFECTIVE AND SIGNATURES. This Agreement has no force or effect and will not be binding upon the Seller until it is accepted and executed by the Seller. This Agreement shall become effective on the date designated below or the date it is executed by both parties, whichever is later. PURCHASER SELLER PAGE 6 OF 7

7 We, the undersigned, have read and understand and agree to each of the provisions of this Contract and hereby acknowledge receipt a copy of this Contract. WITNESSES: PURCHASER(S): Title to the Unit to be taken in the following name: Mailing Address: Home Phone: Mobile Phone: SELLER: CYNMAR DESIGNS, INC. By: JOHN MARNELL LISTING AGENT: SELLING AGENT: JOHN CURTIS DUKES BLUE STRAND PROPERTIES LLC SELLING AGENT COMPANY PURCHASER SELLER PAGE 7 OF 7

8 . THE COTTAGES AT SURF ESTATES OUTLINE SPECIFICATIONS, STANDARD FEATURES, AND INSULATION DISCLOSURE INFORMATION Purchaser: Unit Number: Physical Address: Cottage Cove Circle North Myrtle Beach, SC Plans and Specifications have been reviewed with the resident sales agent. Plans and specifications supersede model displays and existing structures. 2. The included Standard Features offered by Cynmar Designs, Inc. have been reviewed by a representative of the company with Purchaser prior to the signing of this contract. 3. Purchaser understands that Change Requests are difficult to incorporate beyond the contract date and changes are not possible after the Unit has been released for construction. Any changes made after construction starts will not be the responsibility of the Seller. Purchaser Initials. 4. Position of Unit and Drive- Due to varying site conditions including drainage, elevation, tree and ground cover, and community appearance, Cynmar Designs, Inc. retains control over siting the Unit and driveway. The Unit may be moved forward or back, within the community restrictions, and built per plan or reversed at the discretion of Cynmar Designs, Inc. 5. EXTERIOR FEATURES A. Vinyl Siding- Low maintenance aluminum and vinyl fascia, soffit and trim. It is the homeowner s responsibility to wash the exterior of the building regularly to avoid buildup of dust and dirt which could support the growth of mildew. B. Brick Accents- front elevation C. Shutters- Louvered vinyl shutters in black D. Roofing- Standing seam metal roofing E. Windows- Low-E vinyl single hung windows with insulated double pane glass and screens F. Front Door- Painted fiberglass front door with side lights as per plan. Handle set lock to be installed. G. Patio Door- White vinyl insulated sliding patio door with screen H. Garage Door- Raised panel steel garage door with electronic openers I. Driveway- Concrete drive to street J. Screened Porch- as per plan with approved flooring (trex or wood) K. Gutters and downspouts as per plan PURCHASER SELLER PAGE 1 OF 5

9 6. INTERIOR FEATURES A. Ceiling Heights- 9 Feet high on first floor and second floor unless otherwise noted in plans B. Volume Ceilings- Living areas to have volume ceilings as per plan C. Ceiling finish- Smooth D. Wall Paint- Latex flat finish paint on all interior walls, one color E. Trim Paint- Latex semi-gloss finish paint on interior trim, one color F. Garage Paint- Finished and painted walls with baseboard G. Interior Doors- Smooth 2 panel Roman style interior doors H. Trim- 3 casing, 5 baseboard I. Cabinets- De but maple raised panel cabin in 4 colors with 42 uppers J. Counter Tops- Granite (level 1) in kitchen with 4 backsplash K. Tile- 12 ceramic tile flooring in foyer, baths, and laundry area L. Wood Flooring- Main living areas and hallways will include 5 engineered wood in 4 color choices. M. Waines Coating- Dining areas N. Carpeting- Shaw frashia carpet with 6lb padding O. Mirrors- 52 high mirrors in master bath P. Door Handles- Brushed nickel or oil rubbed bronze levered door handles Q. Shelving- Ventilated vinyl coated shelving in closets R. Appliance Package- Allowance of $1,500 or as included a stainless steel smooth top range, microwave, dishwasher, and garbage disposal. (Specifications of models on display and installed may change due to model revision by the manufacturer. Also, Cynmar Designs, Inc. reserves the right to substitute an appliance of a different model or manufacturer with comparable specifications.) 7. PLUMBING FEATURES A. Powder Room- Pedestal sink with oval mirror as per plan B. Garden Tub- Master bath as per plan C. Fiberglass Shower- Master bath as per plan, with clear glass and selected metal shower frame D. Fiberglass Tub/Shower- Guest bathrooms E. Faucets- Decorative faucets with 4 spread in all bathrooms in brushed nickel or oil rubbed bronze F. Sinks- Double sinks in master, polystone vanity tops with decorative edge in 20 different colors G. Toilets- Comfort height water saving toilets with elongated bowl H. Hot Water Heater- 50 gallon I. Ice Maker- Water line to be installed J. Exterior Hose Bibs- 2 installed K. Kitchen Sink- 8 deep, double bowl stainless steel kitchen sink with stainless steel single pull out handle faucet with sprayer PURCHASER SELLER PAGE 2 OF 5

10 8. HEATING / AIR CONDITIONING / VENTILATION A. HVAC- Goodman brand or equivalent 13 SEER HVAC system professionally sized, with digital thermostat B. Insulation- Energy-efficient, R-30 in attic spaces and R-13 in walls C. Exhaust- Bathroom exhaust fans vented to the outside D. Dryer Vent- vented to the outside 9. ELECTRIC A. Voltage- 110/220 V ISO Amp service with 200 amp breaker panel box located in garage B. Garage Door- Pre-wired for garage door opener C. Lighting- Allowance of $1,500 D. Smoke Detectors- Installed per local building code E. Outdoor Receptacles- 2 Outdoor/Waterproof installed F. Ground Fault Circuit Interrupter- Kitchen, bath, and outside outlets G. Prewiring- Ceiling fan (great room, bedrooms, porches), Phone jacks (main living area and all bedrooms), Cable jacks (main living area and all bedrooms) H. Recessed Lighting- as per plan 10. Landscaping. Cynmar Designs, Inc. will grade and sod the area immediately surrounding the building. Wetland, wooded, and natural areas will be left in their natural state. Minor disturbed areas within a natural area will be allowed to return to their natural state (example: an underground power line at the rear of a wooded lot.) During the lot clearing and construction period, existing trees will be preserved if possible but no tree located on the lot can be guaranteed against intended or accidental removal. Any trees on the lot which are determined to be dead prior to the closing will be removed by the Seller. Any trees which are determined to be dead following closing will be the responsibility of the Association. The Association will be responsible for maintenance of drainage and the grading and sodding of any common area not designated as Wetland, wooded and natural areas as determined by the ARB and/or Developer. 11. All changes or additions to the exterior of the Unit or the grounds after closing must be submitted to the Architectural Review Committee in writing for approval. Inc. 12. No fixtures supplied by the homeowner will be installed by Cynmar Designs, PURCHASER SELLER PAGE 3 OF 5

11 13. Walk-through inspections must be preformed prior to closing. It is preferred that the walk-through be with the Purchaser. Any person performing a walk-through on behalf of a Purchaser must have authorization from that Purchaser in writing granting that person all of the rights of the Purchaser to approve the property. A firm move-in date cannot be given until the Unit is in the cabinet and trim stage of construction. At this point a 6-week notice of closing with a scheduled walk-through date will be given. 14. Subcontractors and Suppliers work for Cynmar Designs, Inc. and are not allowed to make changes without the approval of Cynmar Designs, Inc. The superintendent will meet with the Purchaser prior to closing at a scheduled walk-through of the home for familiarization and to correct any discrepancies. Otherwise, the superintendent is not obligated to meet with the homeowner during construction unless there is an obvious problem. 15. Insulation specifications for The Cottages at Surf Estates, are as follows: COMPONENT MATERIAL R-VALUE* A. Exterior Walls Fiberglass R-13 B. Ceilings Fiberglass R-30 Sloped Areas Fiberglass R-30 *According to Manufacturer/Subcontractor The above specifications will meet or exceed all current local, state, and federal requirements and specifications. Any change in the above materials is done with the understanding that an equal or better product, as it relates to thermal efficiency, is being installed. A certificate is installed near the attic entrance of subject contracted residence giving additional specifics as to date, type, materials, and R factors (as represented by the various manufacturers) of areas insulated. 16. Non-inclusive Items, Dimension Variations, Manufacturer s Warranties- Purchaser fully understands and agrees that the following items, as may be seen in the models, are not included with the sale of the Residence: wallpaper, wall ornaments, drapes, blinds, furniture, and other decorator accessories, fireplaces, washers and dryers, and refrigerators. The above list is not meant to be all-inclusive, but is provided as an illustration of the items built-in or placed upon the model for purposes of decoration and example only, and such items will not be included in the Residence unless specifically provided otherwise in the Purchase Agreement. Purchaser further understands and agrees that the dimensions of room and garages, as well as the location of drives, walks, utility lean-ins, outlets, and electrical panel boxes may vary in order to accommodate optional items, site conditions, the location of transformers, the saving of trees, or the particular dimensions of the lot. Purchaser also understands support columns will exist in the garage. PURCHASER SELLER PAGE 4 OF 5

12 Purchaser further understands and agrees that certain items such as tile, cabinets, wood, paint and carpeting are subject to color variations and changes by manufacturer and as such, these items are beyond the control of Cynmar Designs, Inc. and may vary from that shown on the model. If circumstances arise that are beyond the control of Cynmar Designs, Inc., Seller reserves the right to substitute materials or equipment that are substantially equal to or better than those in the models. READ, UNDERSTOOD, AND ACCEPTED BY: PURCHASER PURCHASER SELLER CYNMAR DESIGNS, INC. POST OFFICE BOX 1492 N. MYRTLE BEACH, SC PURCHASER SELLER PAGE 5 OF 5

13 THE COTTAGES AT SURF ESTATES LIMITED WARRANTY AGREEMENT This Limited Warranty Agreement is extended by Cynmar Designs Inc., the Seller, to, the Purchaser, who is the original buyer of the Unit at the following Address: Unit Number: Physical Address: Cottage Cove Circle North Myrtle Beach, SC COVERAGE. The Seller warrants that all construction related to the house substantially conforms with the specifications and change orders for the job. Within one (1) year from the date of closing, or occupancy by the Purchaser, whichever is first, the Seller will repair or replace, at the Seller s option, any latent defects in material or workmanship by the standards of construction relevant in Horry County. A latent defect is defined as one which was not apparent or ascertainable at the time of occupancy. The Purchaser agrees to accept a reasonable match in any repair or replacement in the event that the original item is no longer available. The Purchaser understands that the sole remedy under this Limited Warranty Agreement is repair as set forth hereto. Any claim for breach of this Warranty must be brought within one (1) year from the date of expiration of the warranty by the Purchaser, whichever is first. 2. EXCLUSIONS FROM COVERAGE. This Limited Warranty does not cover the following items: a) Damage resulting from fires, floods, storms, electrical malfunctions, accidents, nor Acts of God. b) Damage from alterations, misuse, or abuse of the covered items by any person. c) Damage resulting from the Purchaser s failure to observe any operating instructions furnished by the Seller at the time of installation. d) Damage resulting from the malfunction of equipment or lines of the telephone, gas, power, or water companies. e) Any items listed as Non-warrantable Conditions on the list that is incorporated into this Contact; the Purchaser acknowledges receipt of the list of Non-warrantable Conditions. f) Any item furnished or installed by the Seller, including appliances or equipment, that are covered by the manufacturer s warranties. The Seller hereby assigns (to the extent that they are assignable) and PURCHASER SELLER PAGE 1 OF 3

14 conveys to the Purchaser all warranties provided by the manufactures on manufactured items such as appliances and equipment that have been installed or included in the purchase of the Property. The Purchaser accepts this assignment and acknowledges that the Seller s only responsibility relating to such items is to lend assistance to the Purchaser in settling any claim resulting from the installation of these products. Following are examples of such appliances and equipment though not every home includes all of these items and some homes may include appliances and equipment not on this list: Refrigerator, range, washing machine, dishwasher, garbage disposal, ventilating fan, HVAC equipment, water heater, microwave, light fixtures, floor covering. g) Any conditions resulting from condensation on, or expansion or contraction of, materials. h) Defects that are the result of characteristics common to the materials used, such as (but not limited to) warping and deflection of wood, fading, caulking, and checking of paint due to sunlight; cracks due to drying and curing of concrete, stucco, plaster, bricks, and masonry; drying, shrinking, and cracking of caulking and weather stripping. 3. LIMITATION OF WARRANTY. This warranty is personal to the original Purchaser and does not run with the Property or the items contained in the building. The original Purchaser may not assign, transfer, or convey this warranty. 4. OBTAINING SERVICE. It shall be the policy of the Seller to warrant the Purchaser s home according to the following guidelines: a) All requests for Warranty service shall be in writing. The only exception will be in the case of emergencies such as plumbing leaks, etc. b) If the service needed is mechanically related (i.e. plumbing, HVAC, electrical appliances), the homeowner should call the subcontractor/supplier directly according to the subcontractor s/supplier s list supplied in the closing package. c) Requests for non-emergency or cosmetic items will be accepted in writing after sixty (60) days. d) The Seller will begin performing the obligations under this Warranty within a reasonable time of the Seller s receipt of any such request and will diligently pursue these obligations. Repair work will be done during the Seller s normal working hours except where delay will cause additional damage. The Purchaser agrees to provide the Seller or the Seller s representative access to the house and Purchaser s failure to do so shall release the Seller of its obligations as to the Purchasers claim. PURCHASER SELLER PAGE 2 OF 3

15 5. NO OTHER WARRANTIES. The Purchaser acknowledges that they have thoroughly examined the Property to be conveyed, and have read and understand the Limited Warranty and that the Seller has made no guarantees, warranties, understandings, nor representations, (nor have any been made by any representatives of the Seller) that are not set forth in this document. I acknowledge having read, understood, and received a copy of this Limited Warranty PURCHASER PURCHASER SELLER CYNMAR DESIGNS, INC. POST OFFICE BOX 1492 N. MYRTLE BEACH, SC PURCHASER SELLER PAGE 3 OF 3

16 THE COTTAGES AT SURF ESTATES NON-WARRANTABLE CONDITIONS Purchaser: Unit Number: Physical Address: Cottage Cove Circle North Myrtle Beach, SC This statement of conditions that are not subject to the Seller s Warranties explains some of the changes and needs for maintenance that may occur in a new building over the first year or so of occupancy. A building requires more maintenance and care than most products because it is made of many different components, each with its own special characteristics. The Purchaser understands that, like other products made by humans, a building is not perfect; it will show some minor flaws and unforeseeable defects, and it may require some adjustments and touching up. As described in the Limited Warranty provided to the Purchaser of which this statement of Non-warrantable Conditions is made a part, the Seller will correct certain defects that arise during defined time periods after construction is completed. Other items that are not covered by the Seller s Warranties may be covered by the manufacturer s warranties. Some conditions, including (but not limited to) those listed in this statement of Non-warrantable Conditions, are not covered under the Seller s Warranties. The Purchaser should read these carefully and understand that the Purchaser has not contracted for the Seller to correct certain types of maintenance (a) that are the responsibility of the Purchaser and (b) that could lead to problems if they are neglected. The following list outlines some of the conditions that are not warranted by the Seller. The Purchaser should be certain that they understand this list. If the Purchaser has any questions, they should ask the Seller and feel free to consult an attorney before signing the acknowledgement. 1. CONCRETE Concrete foundations, steps, walks, drives, and patios will develop cracks that do not affect the structural integrity of the building. These cracks are caused by characteristics of the concrete itself. No reasonable method of eliminating these cracks exists. This condition does not affect the strength of the building. 2. MASONRY AND MORTAR Masonry and mortar can develop cracks from shrinkage of either the mortar or the brick. This condition is normal and should not be considered a defect. PURCHASER SELLER PAGE 1 OF 4

17 3. WOOD Wood will sometimes check or crack or the fibers will spread apart because of the drying out process. This condition is most often caused by the heat inside the unit or exposure to the sun on the outside of the unit. This condition is considered normal, and the homeowner is responsible for any maintenance or repairs resulting from it. 4. SHEETROCK AND DRYWALL Sheetrock and drywall will sometimes develop nail pops or settlement cracks. These nail pops and settlement cracks are a normal part of the drying out process. These items can easily be handled by the homeowner with spackling during normal redecorating. However, if the homeowner wishes, the Seller will send a worker at the end of one (1) year following closing to make the necessary repairs. The Seller s repairs will not include repainting. 5. FLOOR SQUEAKS Despite proper construction and the best efforts of the builder, Floor Squeaks can occur. Generally, floor squeaks will appear and disappear over time with changes in the weather and other phenomena. 6. FLOORS Floors are not warranted for damage caused by neglect or the incidents of use. Wood, tile, and carpet all require maintenance. Floor casters are recommended to prevent scratching or chipping or wood or tile, and stains should be cleaned from carpets, wood, or tile immediately to prevent discoloration. Carpet has a tendency to loosen in damp weather and will stretch tight again in drier weather. Reflective cracks in the floor tile may occur if the concrete sub-floor underneath develops a crack as described in Item 1, Concrete. There is no reasonable method for eliminating cracks in the concrete, nor with resulting reflective cracks in the floor tile. 7. CAULKING Exterior caulking and interior caulking in bathtubs, shower stalls, and ceramic tile surfaces will crack or bleed somewhat in the months after installation. These conditions are normal and should not be considered a problem. Any maintenance or repairs resulting from them are the homeowner s responsibility. All caulking should be checked and any damage or missing caulk replaced on an annual basis. 8. BRICK DISCOLORATION Most bricks may discolor because of the elements, rain run-off, weathering, or bleaching. Efflorescence- the formation of salts on the surface of brick wallmay occur because of the passage of moisture through the wall. Efflorescence is a common occurrence, and the homeowner can clean these areas as the phenomenon occurs. PURCHASER SELLER PAGE 2 OF 4

18 9. BROKEN GLASS Any broken glass or mirrors that are not noted by the Purchaser on final inspection form are the responsibility of the Purchaser. 10. FROZEN PIPES The Purchaser must take precautions to prevent freezing of pipes and sillcocks during cold weather, such as removing outside hoses from sillcocks, leaving faucets with a slight drip, and turning off the water system if the unit is to be left for extended periods during cold weather. 11. STAINED WOOD All items that are stained will normally have a variation of colors because of the different textures of the woods. Because of weather changes, doors that have panels will sometimes dry out and leave a small space of bare wood, which the homeowner can easily touch up. These normal conditions should not be considered defects. 12. PAINT Good quality paint has been used internally and externally on this home. Nevertheless, exterior paint can sometimes crack or check. The source of this defect is most often something other than the paint. To avoid problems with the paint, Purchaser should avoid allowing lawn sprinkler to hit painted areas, washing down painted areas, and so on. Purchaser should also not scrub latex-painted, inside walls and be careful of newly painted walls as they move furniture. The best paint will be stained or chipped if is not cared for properly. Any defects in painting that are not noted at final inspection are the Purchaser s responsibility. Exterior paint should be checked annually and repainted as needed. 13. COSMETIC ITEMS The Purchaser has not contracted with the Seller to cover ordinary wear and tear or other occurrences subsequent to construction that affect the condition of features in the home. Chips, scratches, or mars in tile, woodwork, walls, porcelain, brick, mirrors, plumbing fixtures, marble and Formica tops, lighting fixtures, kitchen and other appliances, doors, paneling, fiberglass tubs and showers, siding, screens, windows, carpet; vinyl floors, cabinets and the like that are not recognized and noted by the Purchaser at the final inspection are non-warrantable conditions, and the upkeep of any cosmetic aspect of the unit is the Purchaser s responsibility. Also de-silvering and black edging of mirrors are not warranted. 14. PLUMBING Dripping faucets, toilet adjustments (due to failure of wax seal or ballcock mechanism only), and toilet seats are covered by the Seller s warranty for one (1) year period only. After that, they are the Purchaser s responsibility. If the plumbing is stopped up during the warranty period and the person servicing PURCHASER SELLER PAGE 3 OF 4

19 the plumbing finds foreign materials in the line, the Purchaser will be billed for the call. 15. DRAINAGE AND ALTERATIONS TO GRADING All yards will be graded to drain away from the unit. Any disruption or alteration by the homeowner will void this warranty. There can and often will be standing water in wetlands, drainage ditches and swales. 16. LAWN AND SHRUBS The Seller accepts no responsibility for the growth of grass and shrubs. Once the Seller grades, seeds and/or sods the yard, the Association must water the plants and grass the proper amount, and plant ground cover where necessary to prevent erosion. The Seller will not re-grade a yard, nor remove or replace any shrubs or trees, except for those that are noted as diseased at the final inspection. 17. ROOF During the first year the warranty on the Purchaser s roof is for the workmanship and materials. After that the warranty on the roof is for material only and is prorated over the period of lifetime use of the roof. Warranty claims for any defects of materials will be handled with the manufacturer. The Seller will not be responsible for damages caused by walking on the roof. 18. HEATING AND AIR CONDITIONING The Purchaser s source of heating and air conditioning is covered by a manufacturer s warranty and is note warranted by Seller. The Purchaser is responsible for making sure the filters are kept clean and changed on a 30-day basis. Failure to do so may void the warranty. Having the equipment serviced or checked at least yearly is recommended. PURCHASER PURCHASER SELLER CYNMAR DESIGNS, INC. POST OFFICE BOX 1492 N. MYRTLE BEACH, SC PURCHASER SELLER PAGE 4 OF 4