your new home workmanship, systems and structural warranty. TX_5307_121013

Transcription

1 your new home workmanship, systems and structural warranty. TX_5307_121013

2 Long live happy homes says it all. It says we are in the business of promises kept and promises kept, make our customers happy. It says we have protected over 5.5 million new and pre-owned homes. It says we partner with thousands of the nation s finest home builders, service contractors and real estate professionals who consider our protection the industry s gold standard. It says we relentlessly focus on reducing the financial risks for our millions of customers. It says a lot about promises kept. The Buyer will receive a Certificate of Warranty within 30 days after the Builder/Seller took all steps required to make the express limited warranty effective. The Certificate of Warranty will identify the coverage selected by Your Builder/Seller and the Warranty Limits. Once the Certificate of Warranty is received, please keep it with this warranty booklet. You do not have a warranty without a valid Certificate of Warranty. Register your warranty at Registration is not required for your warranty to be valid.

3 TABLE OF CONTENTS SECTION I SECTION II SECTION III SECTION IV SECTION V SECTION VI SECTION VII SECTION VIII SECTION IX SECTION X Your Warranty Booklet and Certificate of Warranty Coverage The Warranties Provided By Your Builder/Seller The Option To Repair, Replace or Pay For Defect and/or Structural Defect Reporting a Warranty Claim The Effect of this Warranty on Your Legal Rights Dispute Resolution with Binding Arbitration Your Responsibilities Under This Express Limited Warranty Exclusions Manufacturers and Other Similar Warranties Construction Performance Standards TX_5307_121013

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5 BUILDER/SELLER S EXPRESS LIMITED WARRANTY SECTION I. YOUR WARRANTY BOOKLET AND CERTIFICATE OF WARRANTY COVERAGE. This booklet and the Certificate of Warranty Coverage are very important legal documents that fully define the provisions of Your Builder/Seller s express limited warranty, Your rights and Your Builder/Seller s rights and obligations. Therefore, it is important to keep this booklet and the Certificate of Warranty Coverage with other legal documents that are important to You. Your warranty is not a policy of insurance, a maintenance agreement or a service contract. If You have a mortgage on Your Home, Your lender may insist that You have a homeowners insurance policy. This warranty is not a homeowners insurance policy and it will not satisfy the lender s requirement. The provisions of this warranty may not be changed by Your Builder/Seller or by any other person. If any provision of this warranty is found to be unenforceable, however, the remaining provisions will remain in full force and effect. A. TRANSFERRING YOUR BUILDER/SELLER S EXPRESS LIMITED WARRANTY. If You sell Your Home during the term of the express limited warranty, this warranty automatically transfers to the next owner, and any subsequent owners. This means all of Your rights and obligations under this warranty, up to the remaining amount of the Warranty Limit, will transfer without cost to each purchaser of Your Home or any person who otherwise obtains title to Your Home, including any mortgagee in possession, for the remaining term of the warranty. When You sell Your Home, You agree to give this warranty booklet and the Certificate of Warranty Coverage to Your buyer in order to make it possible for the buyer to understand his or her rights and fulfill his or her obligations under the provisions of this express limited warranty. If You are a successive owner of the Home, You may benefit from the coverage provided by this express limited warranty, but in return You are bound by all of the terms and conditions of this warranty including but not limited to the procedures that must be followed to make a claim and the obligation to participate in arbitration as set out in this warranty. To register the warranty in Your name please complete and mail the Successive Owner Transfer and Acceptance Form along with a check for $20.00 to 2-10 HBW at the address shown on the form. B. WORDS WITH SPECIAL MEANINGS. Generally speaking, the words used in this warranty have their normal everyday meaning. In some cases, however, a word will be used as shorthand to describe specifically one of the key provisions contained in this express limited warranty. In those cases, the words will be capitalized, and the capitalized word will always have the same special meaning. Most defined terms are described in this section; however, other sections of this warranty booklet may contain other defined terms. The words being given a special meaning in this section are as follows: ASCE Guidelines means the Guidelines for the Evaluation and Repair of Residential Foundations, Version 2, published by the Texas Section of the American Society of Civil Engineers. Builder/Seller means the Home Builder/Seller listed on the Certificate of Warranty Coverage, and is the person or company providing You with this express limited warranty. Certificate of Warranty Coverage is the document issued by 2-10 HBW confirming that Your Builder/Seller took all steps required to make the express limited warranty on Your Home effective. Code means the International Residential Code, or if the context requires, the National Electric Code. Common Element means any portion of a Multi-Family Building which is defined as a Common Element in either common interest ownership laws or in the declaration establishing such community. Unless excluded in Section VIII, Common Elements may include, without limitation, hallways, roofs, exterior finishes, and electrical, plumbing, and mechanical distribution systems. Common Element Date of Warranty means the earlier of the date a certificate of occupancy is issued for the Multi-Family Building or the date a unit in the building is first occupied. Commercial Space means any unit within a Multi-Family Building that is used primarily for a nonresidential purpose, including, without limitation, club houses and recreational facilities. Commercial Space has coverage only if issued its own Certificate of Warranty Coverage. Defect means a failure to meet the Construction Performance Standards for workmanship and systems set forth in Section X of this warranty booklet. TX_5307_

6 Effective Date of Warranty means the date the express limited warranty goes into effect. That date will be the earliest of: (1) the closing date on which You purchased the Home, (2) the date title to the Home was transferred to You if title was transferred before Your closing date, or (3) the date anyone first began living in the Home if before Your closing date. Electrical Standard means the standard for residential construction located in a municipality, a standard contained in the version of the National Electrical Code (NEC) applicable to electrical aspects of residential construction in the municipality under Local Government Code and that is effective on the date of commencement of construction of the Home; Excessive or Excessively means a quantity, amount or degree that exceeds that which is normal, usual or reasonable under the circumstance. Extreme Weather Condition(s) means weather conditions in excess of or outside of the scope of the design criteria stated or assumed for the circumstance or locale in the Code. Home means the dwelling unit and garage (if any) or the Commercial Space (if any) located at the address shown on the Certificate of Warranty Coverage. Major Structural Defect is defined in Section IIB of this warranty booklet. Multi-Family Building is a building in a common interest community that may consist of dwelling units, shared parking spaces, Commercial Space(s) and/or Common Elements. Original Construction Elevations means actual elevations of the foundation taken before, on or about the Effective Date of Warranty of the Home. Such actual elevations shall include elevations of porches and garages if those structures are part of a monolithic foundation. To establish original construction elevations, elevations shall be taken at a rate of at least one elevation per 100 square feet showing a reference point and shall be taken at a rate of at least one elevation per 10 linear feet along the perimeter of the foundation, subject to obstructions. Each elevation shall be taken on the surface of the foundation or on the surface of the floor covering on the foundation, if any. For elevations taken on floor coverings, the type of floor covering shall be recorded at each elevation location. If no such actual elevations are taken then the foundation for the habitable areas of the Home are presumed to be level +/ inch (three-quarters of an inch) over the entire area of the foundation. Performance Standard(s) mean the performance standard(s) the Home or element or component must satisfy. Structural Defect is defined in Section IIB of this warranty booklet. You, Your, and similar words means the person or persons who are the legal owners of the Home covered by this express limited warranty. Warranty Insurer is the Builder/Seller s Warranty Insurer as stated on Your Certificate of Warranty Coverage. Warranty Limit is the aggregate financial obligation of the Builder/Seller or Warranty Insurer for all claims under this warranty and is the sum stated on the Certificate of Warranty Coverage. TX_5307_

7 SECTION II. THE WARRANTIES PROVIDED BY YOUR BUILDER/SELLER. A. ONE YEAR WORKMANSHIP AND TWO YEAR SYSTEMS DEFECT WARRANTY. Your Builder/Seller is providing One Year of Workmanship and Two Years of Systems Defect Warranty for Your Home. This means that for one year Your Home will be free from Defects in materials and workmanship as defined in the Performance Standards in Section X; and for two years Your Home will be free from Defects in the electrical, plumbing, mechanical, heating, cooling and ventilation distribution systems as stated in Section X. The workmanship warranty shall expire one year from the Effective Date of Warranty; and the systems warranty will expire two years from the Effective Date of Warranty. ROOFING CABINETS HARDWOOD FLOOR/ RESILIENT FLOORING TILE COUNTERTOPS SINK TOILET CERAMIC TILE DRYWALL PAINT CARPET INTERIOR TRIM WORKMANSHIP Examples of items typically covered under the one year workmanship warranty. DOOR PANELS EXTERIOR SIDING DUCTWORK SUPPLY PIPING WASTE PIPING ELECTRICAL WIRING SYSTEMS Examples of items typically covered under the two year systems warranty. B. STRUCTURAL DEFECT WARRANTY. Your Builder/Seller is providing a Major Structural Defect warranty. This means that Your Home will be free from Major Structural Defects from the Effective Date of Warranty for ten years. This obligation is backed by the Warranty Insurer. Major Structural Defect is defined as the failure of Major Structural Components to meet the Performance Standards defined in Section X, paragraph 28. The Major Structural Components are: 1. Footings and Foundation systems; 2. Beams; 3. Headers; 4. Girders; 5. Lintels; 6. Columns; other than a column that is designed to be cosmetic; TX_5307_

8 7. Load-bearing walls and partitions; 8. Roof framing systems; 9. Floor systems; and 10. Masonry Arches. ROOF FRAMING LOAD BEARING WALLS BEAMS STRUCTURE Examples of items typically covered under the ten year structural warranty. FOUNDATION The remaining elements of Your Home are not Major Structural Components. A non exclusive list of some of the components that are not covered are: 1. Non-load-bearing partitions and walls; 2. Wall tile or paper, etc.; 3. Drywall and plaster; 4. Flooring and subflooring material; 5. Stucco, brick and stone veneer; 6. Any type of exterior siding; 7. Roof shingles, roof tiles, sheathing, and tar paper; 8. Heating, cooling, ventilating, plumbing, electrical and mechanical systems; 9. Appliances, fixtures or items of equipment; and 10. Doors, trim, cabinets, hardware, insulation, paint, stains. SECTION III. THE OPTION TO REPAIR, REPLACE OR PAY FOR DEFECT AND/OR STRUCTURAL DEFECT. A. PROVISIONS APPLICABLE TO DEFECT AND/OR MAJOR STRUCTURAL DEFECT. The Builder/Seller shall have the option to repair, replace or pay You the reasonable cost of repair of any Defect. The Warranty Insurer shall have the option to repair, replace or pay You the reasonable cost of repairing any Major Structural Defect. The design, method and manner of such repair shall be within the sole discretion of the Warranty Insurer. At the time of repair, replacement or payment for the repair of any Defect or Major Structural Defect, You must: 1. Assign to the Builder/Seller or Warranty Insurer any rights You may have against any other person with respect to the Defect or Major Structural Defect. You must not do anything to prejudice these rights of subrogation. 2. When repairs are completed, You must sign and deliver a full and unconditional release of the Builder/Seller or Warranty Insurer, in recordable form, of all legal obligations with respect to the warranted items and conditions arising from those items. If an improvement, fixture or property not constructed by the Builder/Seller is damaged or requires removal during the repair, it is Your sole responsibility, and not the responsibility of the Builder/Seller or Warranty Insurer, to pay for the cost of repair or removal of such improvement, fixture or property. No repair shall extend the term of this express limited warranty as to any Defect or Major Structural Defect, including without limitation, the Defect or Major Structural Defect that was the subject of the repair. B. ADDITIONAL PROVISIONS APPLICABLE TO THE REPAIR OF STRUCTURAL DEFECT. The repair of a Major Structural Defect is limited to: 1. The repair of damage to designated load-bearing portions of the Home which is necessary to restore their load-bearing function; 2. The repair of those non-load-bearing portions damaged by the Major Structural Defect (such as the repair of inoperable windows, doors and the restoration of functionality of damaged electrical, plumbing, heating, cooling and ventilating systems); and 3. The repair and cosmetic correction of only those surfaces, finishes and coverings, with damage directly attributable to the Major Structural Defect provided the surfaces, finishes or coverings are original with the Home, and they were damaged TX_5307_

9 by the Major Structural Defect or require removal and replacement to repair the Major Structural Defect. Repairs of the Major Structural Defect are intended to restore the Home to approximately the condition just prior to the Major Structural Defect, but not necessarily to a like-new condition. C. ACCESS TO YOUR HOME FOR INSPECTING AND MAKING REPAIRS. In order to carry out the warranty responsibilities, the Builder/Seller or Warranty Insurer will require access to Your Home. If Your Home is in a Multi-Family Building, You agree (after reasonable notice) to allow access to, or within Your Home during normal business hours so repairs may be made to any adjacent unit or Common Element. If emergency repairs are necessary and You cannot be reached within a reasonable time period, You waive such notice. If You do not provide access to Your Home during normal business hours to inspect, repair, or conduct tests on Your Home as may be required to evaluate or repair a Defect or Major Structural Defect, You are relieving the Builder/Seller or Warranty Insurer of all responsibility to make repairs, replace or pay for any Defect or Major Structural Defect under this warranty. In addition to the right to inspect Your Home the Builder/Seller or Warranty Insurer shall have the right, in advance of any arbitration concerning Your Home, to reinspect Your Home if the request for arbitration is made more than sixty (60) days after the last claim decision concerning the claim that is the subject of the arbitration. D. THE LIMITS OF YOUR WARRANTY. Every time the Builder/Seller or Warranty Insurer pays a claim under this warranty, the amount of that payment is deducted from the Warranty Limit. When the Warranty Limit is exhausted, there is no longer warranty coverage for Your Home. A claim payment includes the cost to the Builder/Seller or Warranty Insurer of repairing a Defect or Major Structural Defect in Your Home covered under this warranty. However, a claim payment does not include the cost of investigating the claim. The Warranty Limit for Common Elements in a Multi-Family Building is equal to the sum of the unexpired Warranty Limits for all Homes in the building which are enrolled in the 2-10 HBW Program. In the event that all Homes in the Multi-Family Building were not enrolled, the Warranty Limit for Common Elements Defects or Common Elements Structural Defect coverage shall be reduced prorata based upon the ratio of the original sale price of the non-enrolled Homes compared to the total original sales price of all Homes in the Multi-Family Building. If the claim payment is for a Common Elements Defect or Common Elements Major Structural Defect, the Warranty Limit on each Home in the Multi-Family Building still covered by an unexpired warranty shall be reduced pro-rata in the proportion which the Common Elements claim payment bears to the total original sales price of all such Homes. Any coverage for the Builder/Seller s express limited warranty shall be excess of any other valid and collectible insurance available to You or the Builder/Seller, whether primary, pro-rata or excess, and whether or not collected. E. EMERGENCY REPAIRS. An emergency means a substantial risk of serious physical damage to the Home or a substantial risk of serious bodily injury to its occupants if a Defect or Major Structural Defect is not immediately repaired. If You have an emergency involving a Defect, You must contact Your Builder/Seller immediately, who is responsible for making emergency repairs or authorizing You to make emergency repairs. If You have an emergency involving a Major Structural Defect, You must contact 2-10 HBW at the address given in Section IV, who will contact the Warranty Insurer to make emergency repairs or authorizing you to make emergency repairs. If You are unable to contact the Builder/Seller or Warranty Insurer, You must then (1) make minimal repairs necessary to avoid the emergency until authorization for more extensive repairs has been approved by the Builder/Seller or Warranty Insurer, (2) take any action reasonably necessary to limit additional damage, and (3) report the emergency to the Builder/Seller or Warranty Insurer and 2-10 HBW on the next business day. Except for authorized emergency repairs do not repair or attempt to repair a claimed Defect or Major Structural Defect before the Builder/Seller or Warranty Insurer has an opportunity to inspect the Defect or Major Structural Defect. Any attempt to repair a claimed Defect or Major Structural Defect, other than an authorized emergency repair, will make it impossible to assess whether the Defect or Major Structural Defect was covered by this warranty, whether the repair was correct, cost effective, necessary, and effective, or whether the problem could be resolved in another way. Unless an emergency Defect or Major Structural Defect repair is authorized, the Builder/Seller or Warranty Insurer will have no responsibility to reimburse any costs due to repair, replacement, and expenses, including engineering and attorney s fees. SECTION IV. REPORTING A WARRANTY CLAIM. A. WORKMANSHIP AND SYSTEMS DEFECTS. If You believe Your Home has a Defect that is covered under Your Builder/Seller s Workmanship or Systems Warranty that occurred during the applicable term of the warranty, You must take the steps described in Sections C and D below. TX_5307_

10 B. STRUCTURAL DEFECTS. If You believe Your Home has a Major Structural Defect that is covered under Your Builder/Seller s Major Structural Defect Warranty, You must take the steps described in Section D below. Notice of Major Structural Defect must be made by the homeowner, except for Multi-Family Buildings, notice for each affected building must be made by the homeowners association or its designated representative, along with a copy of the Certificate of Warranty Coverage for each Home in the building. C. NOTICE TO YOUR BUILDER/SELLER. 1. Workmanship and Systems Defect(s) must be reported to the Builder/Seller as soon as possible but no later than 15 days after the expiration of the applicable term of the warranty. Send written notification to Your Builder/Seller listing completely the specific Defect(s) and the date the Defect(s) occurred. The Defect will not be covered under this warranty if the Notice is received more than 15 days after the expiration of the warranty term. These time limits are a material condition of this warranty. It is recommended (but not required) that Your letter be sent by certified mail, return receipt requested so You have a record of when Your letter was sent and received. D. NOTICE TO 2-10 HBW. 1. WORKMANSHIP AND SYSTEMS DEFECTS MUST BE REPORTED TO 2-10 HBW AS SOON AS POSSIBLE BUT NO LATER THAN 15 DAYS AFTER THE EXPIRATION OF THE APPLICABLE TERM OF THE WARRANTY. If covered repairs for the Workmanship or Systems Defects are not completed by Your Builder/Seller within sixty (60) days of the date You sent Your letter or before the expiration of the warranty term (whichever date comes earlier), You must complete the following three steps: a. Complete the appropriate Notice of Complaint Form ( Notice ), which is found at the back of this warranty booklet. b. Send one copy of the Notice to Your Builder/Seller. c. Send one copy of the Notice to 2-10 HBW, and include: 1. A copy of Your Certificate of Warranty Coverage; and 2. A copy of all correspondence with Your Builder/Seller regarding the Defect(s) in question to: 2-10 Home Buyers Warranty Warranty Administration Department East Harvard Avenue, Suite 100 Denver, CO Phone: We recommended (but do not require) that You send this notice by certified mail, return receipt requested, so You have a record of when the notice was sent and received. Include copies of Your Certificate of Warranty Coverage and all correspondence with Your Builder/Seller about the Defect(s) in question. WHAT 2-10 HBW WILL DO. Once 2-10 HBW has received Your Notice of Complaint, it will again notify Your Builder/Seller of Your Defect(s). If You and Your Builder/Seller still cannot resolve Your differences even with 2-10 HBW s conciliation help, then You and Your Builder/Seller must arbitrate Your dispute under the arbitration agreement set forth in this booklet HBW will provide a form for You to request arbitration after You have completed the procedure described above. If 2-10 HBW determines that Your Builder/Seller cannot or will not participate in arbitration, or Your Builder/ Seller refused to pay or perform an arbitration award in Your favor, 2-10 HBW will notify You of that fact. You must then forward to 2-10 HBW at the address above, a one time $250 claim deductible (check payable to the Builder/Seller s Warranty Insurer stated on Your Certificate of Warranty Coverage). Upon receipt, 2-10 HBW will forward the check and Your file to the Builder/Seller s Warranty Insurer, and the Warranty Insurer will adjust the claim. Homes With FHA/VA Financing Only If You are the original owner and Your Home has original FHA/VA financing still in effect, the $250 deductible is collected after the claim is accepted and the amount of the loss is determined. 2. STRUCTURAL DEFECT(S) MUST BE REPORTED TO 2-10 HBW AS SOON AS POSSIBLE BUT NO LATER THAN THIRTY (30) DAYS AFTER THE EXPIRATION OF THE APPLICABLE TERM OF THE WARRANTY. Send written notification to Your Warranty Insurer listing completely the specific Major Structural Defect(s) and the date the Major Structural Defect(s) occurred. A Major Structural Defect will not be covered under this warranty if the Notice is received after the date the warranty coverage expires. These time limits are a material condition of this warranty. Notice to Warranty Insurer. If You believe that Your Home has a Major Structural Defect that is covered by this warranty: a. Complete the appropriate Notice of Claim Form ( Notice ), which is found at the back of this warranty booklet. b. Send one copy of the Notice to 2-10 HBW, and include: 1. A copy of Your Certificate of Warranty Coverage; pay a $250 claim investigation fee payable to the Warranty Insurer stated on the Certificate of Warranty Coverage; and 2. A copy of all correspondence with Your Builder/Seller regarding the Structural Defect(s) in question to: 2-10 Home Buyers Warranty TX_5307_

11 Warranty Administration Department East Harvard Avenue, Suite 100 Denver, CO Phone: We recommended (but do not require) that You send this notice by certified mail, return receipt requested, so You have a record of when the notice was sent and received. Homes With FHA/VA Financing Only If You are the original owner and Your Home has original FHA/VA financing still in effect, You do not have to send the $250 claim fee investigation fee with Your Notice of Claim Form. The $250 fee will be collected after the claim is accepted and the amount of the loss is determined. WHAT 2-10 HBW WILL DO. Upon receipt of the items identified in D.2 above, 2-10 HBW will forward the check and Your file to the Warranty Insurer, and the Warranty Insurer will adjust the claim. SECTION V. THE EFFECT OF THIS WARRANTY ON YOUR LEGAL RIGHTS. You have accepted this express limited warranty provided in this warranty booklet. All other express or implied warranties, including oral or written statements or representations made by Your Builder/Seller or any implied warranty of habitability, merchantability or fitness, are disclaimed by Your Builder/Seller and waived by You to the extent possible under Texas law. You may have other remedies as provided under Texas law. SECTION VI. DISPUTE RESOLUTION WITH BINDING ARBITRATION*. To expedite the resolution of any and all claims, disputes and controversies by or between the homeowner, the Builder/ Seller, 2-10 HBW, as administrator, the Warranty Insurer or any combination of the foregoing, arising from or related to this Warranty, the Warranty Insurance Policy, the 2-10 HBW Program, or to the Home, shall be settled by binding arbitration. Agreeing to arbitration means You are waiving Your right to a jury trial, class action or consolidation. Any person in contractual privity with the Builder/Seller whom the homeowner contends is responsible for any construction Defect in the Home shall be entitled to enforce this arbitration agreement. Any party shall be entitled to recover reasonable attorney s fees and costs incurred in enforcing the validity of this arbitration agreement. The decision of the arbitrator shall be final and binding and may be entered as a judgment in any State or Federal court of competent jurisdiction. A. SELECTING AN ARBITRATION SERVICE. The arbitration shall be conducted by DeMars & Associates, Ltd or by Construction Dispute Resolution Services, LLC or by any mutually agreeable arbitration service, pursuant to the service s applicable rules in effect at the time of the arbitration. The choice of the arbitration service shall be that of the Homeowner, or if the Homeowner is not involved, that of the party who initiates the arbitration. The arbitration shall be held in the home. No arbitration proceeding shall involve more than one single-family detached dwelling or more than one Multi-Family Building. The arbitrator shall render an award in accordance with the substantive law in the state in which the Home is located. B. DISPUTES CONCERNING THE APPLICATION OF THIS ARBITRATION AGREEMENT. The parties expressly agree that this warranty and this arbitration agreement involve and concern interstate commerce and are governed by the provisions of the Federal Arbitration Act (9 U.S.C. 1, et seq.) now in effect and as the same may from time to time be amended, to the exclusion of any different or inconsistent state or local law, ordinance or judicial rule. This arbitration agreement is a self-executing arbitration agreement. Any disputes concerning the interpretation or the enforceability of this arbitration agreement, including without limitation, its revocability or voidability for any cause, the scope of arbitrable issues, and any defense based upon waiver, estoppel or laches, shall be decided by the arbitrator. C. COST OF ARBITRATION. All administrative fees of the arbitration service and fees of the arbitrator shall be allocated to the parties as provided in the rules of the arbitration service, subject to the discretion of the arbitrator to reallocate such fees in the interests of justice. TX_5307_

12 *Homes With FHA/VA Financing Only If You are the original owner and Your Home has original FHA/VA financing still in effect, in lieu of any right to have a claim resolved in a judicial proceeding, You may, at Your election, submit to arbitration all claims, disputes and controversies by or between You, the Builder/Seller, the Warranty Insurer and/or 2-10 HBW, arising from or related to the warranty. In addition, 2-10 HBW and/or the Warranty Insurer will offer pre-arbitration conciliation at no cost to You. SECTION VII. YOUR RESPONSIBILITIES UNDER THIS EXPRESS LIMITED WARRANTY. You are responsible for proper use and maintenance of Your Home and lot including keeping Builder/Seller set grades around the Home, not planting trees and shrubs within ten feet or closer from the Home s foundation so drainage is not obstructed and the Home s performance is not impacted, pruning landscape to prevent contact with the Home and following generally accepted landscape practices for Your region. It is impossible to identify every item that requires maintenance, but we have described some items in this section and others in the Performance Standards in Section X. Such maintenance items include but are not limited to: proper cleaning, care and upkeep, periodic repainting and resealing of finished surfaces, caulking of windows and doors, regular replacement of mechanical system filter, and cleaning of drains and gutters to allow proper water drainage from Your Home. Inside the Home, You should prevent excessive moisture collection by properly using ventilation equipment, preventing excessive temperature fluctuations, and taking other reasonable actions that are necessary to avoid excessive moisture, dampness, humidity or condensation that may lead to damage. You should use all manufactured products according to the manufacturer s instructions and specifications. Misuse, abuse, neglect of components of Your Home, including failure to follow manufacturer s specifications with regard to manufactured products may void the Builder/Seller and manufacturer s warranty. You should be aware that all new homes go through a period of settlement and movement. During this period, Your Home may experience some minor material shrinkage, cracking and other events which are normal and customary. However, if You observe conditions that may cause more or additional damage to the Home, or its components, You must take reasonable actions necessary to prevent further damage to the Home. SECTION VIII. EXCLUSIONS. This warranty does not provide coverage for any of the following items which are specifically excluded. 1. Damage to land and other real property that was not part of Your Home, or any property that was not included in the purchase price stated on the Certificate of Warranty Coverage; 2. Damage to or Defects in swimming pools and other exterior recreational facilities; boundary walls, retaining walls and bulkheads (except where boundary walls, retaining walls and bulkheads are necessary for the structural stability of the Home); landscaping (including sod, seeding, shrubs, trees, and plantings); decks, outbuildings, or any other appurtenant structure or attachment to the dwelling; or other additions or improvements not a part of Your Home; 3. Except for Defects specifically covered in the Performance Standards, Defects to basement slabs; 4. Loss or damage which arises while Your Home is being used primarily for non-residential purposes; 5. Changes in the level of underground water table which were not reasonably foreseeable at the time of construction of Your Home; 6. Failure of Your Builder/Seller to complete construction; 7. Noncompliance with plans and specifications; and except for the Defects specifically covered in the Performance Standards, violations of local or state ordinances or standards; 8. Any condition which has not resulted in actual physical damage to Your Home; 9. Any loss or damage that is caused or made worse by any of the following causes, whether acting alone or in sequence or concurrence with any other cause or causes whatsoever, including without limitation: a. Negligence, improper maintenance, defective material or work supplied by, or improper operation by, anyone other than Your Builder/Seller or its employees, agents or subcontractors, including failure to comply with the warranty requirements of manufacturers of appliances, equipment or fixtures; b. Your failure to give prompt and proper notice to 2-10 HBW and Your Builder/Seller of any Defect or Structural Defect; c. Change of the grading of the ground that does not comply with accepted grading practices, or failure to maintain the original grade; d. Riot or civil commotion, war, vandalism, hurricane, tornado or windstorm, other extreme weather conditions, fire, explosion, blasting, smoke, water escape, tidal wave, flood, hail, snow, ice storm, lightning, falling trees or other objects, aircraft, vehicles, mudslide, avalanche, earthquake, or volcanic eruption or geological phenomenon involving subsurface slope instability; e. Abuse or use of Your Home, or any part thereof, beyond the reasonable capacity of such part for such use, including use that exceeds the normal design loads prescribed by the Code or engineer of record. f. Microorganisms, fungus, decay, wet rot, dry rot, soft rot, rotting of any kind, mold, mildew, vermin, termites, insects, rodents, birds, wild or domestic animals, plants, corrosion, rust, radon, radiation, formaldehyde, asbestos, any solid, liquid or gaseous pollutant, contaminant, toxin, irritant or carcinogenic substance, whether organic or inorganic, and TX_5307_

13 electromagnetic field or emission, including any claim of health risk or uninhabitability based on any of the foregoing; g. Water infiltration through the foundation or building envelope that is not the result of a Major Structural Defect, except as otherwise provided in the Performance Standards; h. Your failure to minimize or mitigate any defect, condition, loss or damage as soon as practicable; 10. Any loss or damage caused by buried debris, underground springs, sinkholes, mineshafts or other anomalies which were not reasonably foreseeable in a building site You provided; 11 Loss caused, in whole or in part, by any peril or occurrence for which compensation is provided by state legislation or public funds; 12. Costs of shelter, transportation, food, moving, storage, or other incidental expenses related to relocation during repair, or any other costs due to loss of use, inconvenience, or annoyance; 13. Diminished market value of Your Home*; 14. Any and all consequential loss or damage, including without limitation, any damage to property not covered by this warranty, any damage to personal property, any damage to property which You do not own, any bodily injury or personal injury of any kind, including physical or mental pain and suffering and emotional distress, and any medical or hospital expenses, or lost profits; 15. Any and all exclusions set forth in Section X (Performance Standards); 16. Defect or Major Structural Defect that first occurs or You knew about prior to the Effective Date of Warranty such as walkthrough or punchlist items. *Homes With FHA/VA Financing Only If You are the original owner and Your Home has original FHA/VA financing still in effect, Diminished market value of the Your Home is deleted. SECTION IX. MANUFACTURERS AND OTHER SIMILAR WARRANTIES. Your warranty does not apply to any manufactured item such as appliances, fixtures, equipment (except as specifically defined in the Performance Standards) or any other item which is covered by a manufacturer s warranty, nor does it cover Defect in any systems that are caused by failure of any such manufactured item. Appliances and items of equipment not covered by this express limited warranty include but are not limited to: air conditioning units, attic fans, boilers, burglar alarms, carbon monoxide detectors, ceiling fans, central vacuum systems, chimes, dishwashers, dryers, electric meters, electronic air cleaners, exhaust fans, fire alarms, freezers, furnaces, garage door openers, garbage disposals, gas meters, gas or electric grills, heat exchangers, heat pumps, humidifiers, intercoms, outside lights or motion lights not attached to the Home, range hoods, ranges, refrigerators, sewage pumps, smoke detectors, solar collectors, space heaters, sump pumps, thermostats, trash compactors, washers, water pumps, water softeners, water heaters, whirlpool baths, and whole house fans. This warranty does not affect or limit in any way any manufacturer s warranty. SECTION X. CONSTRUCTION PERFORMANCE STANDARDS. The following Performance Standards are standards that have been developed and accepted by the Texas Association of Builders and the residential construction industry in general. While it is impossible to develop Performance Standards for each possible deficiency, using the Texas Association of Builders Standard, 2-10 HBW has attempted to isolate the most common actual physical damage deficiencies that occur and in so doing, list the scope of responsibility for Your Builder/Seller, the Warranty Insurer and You. Where a specific Performance Standard for the One Year Workmanship and Two Year Systems Warranty has not been specified, the guidelines found in Residential Construction Performance Guidelines, as published by the National Association of Home Builders (also known as NAHB ) and in effect at the time of the commencement of construction, will apply. Copies of this publication may be special ordered through most book retailers, or purchased directly from the NAHB Bookstore by calling The NAHB Bookstore may also be reached online at If an item is not covered in that publication, usual and customary industry standards or practices for the geographic region of Texas will be used. The Performance Standards set the required standards for the construction performed by Your Builder/Seller. Failure of the construction to satisfy the One and Two Year Performance Standards means that Your Builder/Seller must correct the Defect. In repairing the Defect, adjacent surfaces that are changed will be finished or touched up to match the surrounding area as closely as practical. In connection with the repair of finish or surface material, such as paint, wallpaper, flooring or a hard surface, the Builder/Seller will match the standard and grade as closely as reasonably possible. Although the Builder/Seller will attempt to match the finish, he will not be responsible for discontinued patterns or materials, color variations or shade variations. When the surface finish material must be replaced and the original material has been discontinued, the Builder/Seller is responsible for installing replacement material substantially similar in appearance to the original material. Refer to other parts of this Limited Warranty Booklet for specific terms, definitions, exclusions and conditions that apply to the workmanship and systems warranty. Major structural components are warranted to satisfy the Performance Standards of paragraph TX_5307_

14 28 of this Section for ten (10) years. Refer to other parts of this Limited Warranty Booklet for specific terms, exclusions and conditions that apply to the Major Structural Defect warranty. Normal wear and deterioration; failure of Your Builder/Seller to perform any washing, cleaning, or cleanup, are not covered under the Limited Warranty. RESOLVING CONFLICTS AMONG STANDARDS. During the construction of Your Home, when an inconsistency exists between the Code, manufacturer s instructions and specifications, the United States Department of Housing and Urban Development Minimum Property Standards, or the ANSI/ASHRAE Standard, Your Builder/Seller shall apply the most restrictive standard. TX_5307_

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16 INDEX CONSTRUCTION PERFORMANCE STANDARDS 1 YEAR WORKMANSHIP 1. Foundations and Slabs 14 (a) Raised Floor Foundations or Crawl Spaces 14 (b) Concrete Slab Foundations 14 (c) Exterior Concrete Framing 15 (a) Walls 15 (b) Ceilings 15 (c) Subfloors 16 (d) Stairs Drywall Insulation Exterior Siding and Trim 17 (a) Exterior Siding 17 (b) Exterior Trim Masonry Including Brick, Block, and Stone 18 (a) Masonry Wall Bow 18 (b) Masonry or Mortar Broken 18 (c) Mortar Cracks 18 (d) Masonry or Mortar Excessive Deterioration 18 (e) Dirt, Stain, or Debris on Masonry 18 (f) Gap with Adjacent Material 18 (g) Obstructions Stucco 18 (a) Stucco Bowed or Wavy 18 (b) Broken or Loose Stucco 18 (c) Cracks in Stucco 18 (d) Excessive Deterioration 18 (e) Dirt, Stain, or Debris on Stucco 18 (f) Visible Imperfections in Stucco 18 (g) Lath 18 (h) Stucco Joints 18 (i) Separation with Adjacent Material 19 (j) Stucco Obstruction 19 (k) Minimum Stucco Clearance 19 (l) Exterior Insulation Roofs 19 (a) Flashing 19 (b) Roof Leaks 19 (c) Vent Leaks 19 (d) Gutter and Downspouts 19 (e) Loose Shingles or Tiles 19 (f) Skylights 19 (g) Built-Up Roof Drainage 19 (h) Cracked or Broken Roof Tiles 19 (i) Water Diversion Methods 19 (j) Moisture Penetration Doors and Windows 20 (a) Both Door and Windows 20 (b) Windows 20 (c) Doors 20 (d) Garage Doors Interior Flooring 21 a) Carpet, Finished Concrete, Wood and Vinyl Flooring 21 (b) Carpet 21 (c) Finished Concrete Floor 21 (d) Wood Flooring 22 (e) Vinyl Flooring Hard Surfaces 23 (a) Hard Surfaces Generally 23 (b) Grout 23 (c) Concrete Countertops Painting, Stain, and Wall Coverings 24 (a) Caulking 24 (b) Painting and Stain 24 (c) Wall Coverings Plumbing 25 (a) Plumbing Accessories 25 (b) Pipes and Vents Heating, Cooling, and Ventilation 26 (a) Heating and Cooling 26 (b) Venting 27 (c) Ductwork Electrical Systems and Fixtures Interior Trim 27 (a) Trim 27 (b) Shelving 28 (c) Cabinet Doors Mirrors, Interior Glass, and Shower Doors 28 TX_5307_

17 18. Hardware and Ironwork 28 (a) Hardware 28 (b) Interior Ironwork Countertops and Backsplashes 29 (a) Countertops and Backsplashes Generally 29 (b) Laminate Countertops and Backsplashes Fireplaces 29 (a) Panel Separations 29 (b) Fireplace Door 29 (c) Gas Leak 29 (d) Gas Logs 30 (e) Crack in Hearth 30 (f) Chimney Draw 30 (g) Water Infiltration in Firebox 30 (h) Fireplace Fan Irrigation Systems 30 (a) Leaks, Breaks or Clogs 30 (b) Sprinkler Coverage 30 (c) Operation Fencing 30 (a) Wood & Masonry Fences Yard Grading Pest Control 31 2 YEAR SYSTEMS 25. Electrical Delivery Systems 31 (a) Electrical Wiring 31 (b) Panels, Breakers and Fuses 31 (c) GFI Outlets 32 (d) Fixtures, Outlets, Doorbells and Switches 32 (e) Cable TV, Telephone, and Ethernet Plumbing Delivery Systems 32 (a) Pipes 32 (b) Wastewater Treatment Systems Heating, Air Conditioning and Ventilation Delivery Systems 33 (a) Refrigerant Lines 33 (b) Heating and Cooling Functions 33 (c) Vents, Grills or Registers 34 (d) Ductwork YEAR MAJOR STRUCTURAL COMPONENTS 28. MAJOR STRUCTURAL COMPONENTS 34 (a) Slab Foundations 34 (b) Components Other Than Slab Foundations 34 (1) Pier and Beam Foundations 35 (2) Distorted Structural Components 35 (3) Deflected Structural Components 35 (4) Damaged Structural Components 35 (5) Separated Structural Components 35 (6) NonPerforming Structural Components 35 TX_5307_

18 ITEMS COVERED UNDER THE 1 YEAR WORKMANSHIP COVERAGE 1. PERFORMANCE STANDARDS FOR FOUNDATIONS AND SLABS (a) Performance Standards for Raised Floor Foundations or Crawl Spaces. (1) A crawl space shall be graded and drained properly to prevent surface runoff from accumulating deeper than two inches in areas 36 inches or larger in diameter. Exterior drainage around perimeter crawl space wall shall not allow water to accumulate within ten feet of the foundation for more than 24 hours after a rain except in a sump that drains other areas. (A) If the crawl space is not graded or does not drain in accordance with the performance standard stated in paragraph (1) of this subsection, the Builder/Seller shall take such action as is necessary to bring the variance within the standard. (B) The homeowner shall not modify improperly the existing grade or allow water from an irrigation system to cause water to accumulate excessively under the foundation. The homeowner shall not allow landscape plantings to interfere with proper drainage away from the foundation. The homeowner shall not use the crawl space for storage of any kind. (2) Water shall not enter through the basement or crawl space wall or seep through the basement floor. (A) If water enters the basement or crawl space wall or seeps through the basement floor, the Builder/Seller shall take such action as is necessary to bring the variance within the standard stated in paragraph (2) of this subsection. (B) The homeowner shall not modify improperly the existing grade or allow water from an irrigation system to cause water to accumulate excessively near the foundation. The homeowner shall not allow landscape plantings to interfere with proper drainage away from the foundation. (b) Performance Standards for Concrete Slab Foundations, excluding Finished Concrete Floors. (1) Concrete floor slabs in living spaces that are not otherwise designed with a slope for drainage, such as a laundry room, shall not have excessive pits, depressions or unevenness equal to or exceeding 3/8 of an inch in any 32 inches and shall not have separations or cracks that equal or exceed 1/8 of an inch in width or 1/16 of an inch in vertical displacement. If a concrete floor slab in a living space fails to meet the standard stated in this paragraph, the Builder/Seller shall take such action as is necessary to bring the variance within that standard. (2) Concrete slabs shall not have protruding objects, such as a nail, rebar or wire mesh. If a concrete slab has a protruding object, the Builder/Seller shall take such action as is necessary to bring the variance within the standard stated in this paragraph. (3) A separation in an expansion joint in a concrete slab shall not equal or exceed 1/4 of an inch vertically or one inch horizontally from an adjoining section. If an expansion joint in a concrete slab fails to meet the standard stated in this paragraph, the Builder/Seller shall take such action as is necessary to bring the variance within the standard. (c) Performance Standards for Exterior Concrete including Patios, Stem Walls, Driveways, Stairs or Walkways. (1) Concrete corners or edges shall not be damaged excessively due to construction activities. If a concrete corner or edge is damaged excessively, the Builder/Seller shall take such action as is necessary to bring the variance within the standard stated in this paragraph. (2) A crack in exterior concrete shall not cause vertical displacement equal to or in excess of 1/4 of an inch or horizontal separation equal to or in excess of 1/4 of an inch. (A) If an exterior concrete slab is cracked, separated or displaced beyond the standard of performance stated in paragraph (2) of this subsection, the Builder/Seller shall take such action as is necessary to bring the variance within the standard. (B) The homeowner shall not overwater surrounding soil or allow the surrounding soil to become excessively dry. The homeowner shall not allow heavy equipment to be placed on the concrete. (3) The finish on exterior concrete shall not be excessively smooth, so that the surface becomes slippery. (A) If the finish on exterior concrete is excessively smooth so that the surface becomes slippery, the Builder/Seller shall take such action as is necessary to bring the variance within the standard stated in paragraph (3) of this subsection. (B) A concrete surface that has been designed to be smooth is excluded from this performance standard. (4) Exterior concrete shall not contain a protruding object, such as a nail, rebar or wire mesh. If an exterior concrete surface has a protruding object, the Builder/Seller shall take such action as is necessary to bring the variance within the standard stated in this paragraph. (5) A separation in an expansion joint in an exterior concrete shall not equal or exceed 1/2 of an inch vertically from an adjoining section or one inch horizontally, including joint material. If an expansion joint fails to perform in accordance with the standard stated in this paragraph, the Builder/Seller shall take such action as is necessary to bring the variance within the standard. (6) A separation in a control joint shall not equal or exceed 1/4 of an inch vertically or 1/2 of an inch horizontally from an adjoining section. If a control joint fails to perform in accordance with the standard stated in this paragraph, the Builder/Seller shall take such action as is necessary to bring the variance within the standard. TX_5307_

19 ITEMS COVERED UNDER THE 1 YEAR WORKMANSHIP COVERAGE (7) Concrete stair steepness and dimensions, such as tread width, riser height, landing size and stairway width shall comply with the Code. If the steepness and dimensions of concrete stairs do not comply with the Code, the Builder/Seller shall take such action as is necessary to bring the variance within the standard for Code compliance. (8) Handrails shall remain securely attached to concrete stairs. If handrails are not firmly attached to the concrete stairs, the Builder/ Seller shall take such steps necessary as to attach the rails securely. (9) Concrete stairs or stoops shall not settle or heave in an amount equal to or exceeding 3/8 of an inch. Concrete stairs or stoops shall not separate from the home in an amount equal to or exceeding one inch, including joint material. If the stairs or stoops settle or heave, or separate from the home in an amount equal to or exceeding the standard above Builder/Seller shall take such action as is necessary to bring the variance within the standard stated in this paragraph. (10) A driveway will not have a negative slope unless due to site conditions. If a driveway has a negative slope due to site conditions, it shall have swales or drains properly installed to prevent water from entering into the garage. If a driveway has a negative slope that allows water to enter the garage in normal weather conditions, the Builder/Seller shall take such action as is necessary to bring the variance within the standard stated in this paragraph. (11) Concrete floor slabs in detached garages, carports or portecocheres shall not have excessive pits, depressions, deterioration or unevenness. Separations or cracks in these slabs shall not equal or exceed 3/16 of an inch in width, except at expansion joints, or 1/8 of an inch in vertical displacement. If a concrete floor slab in a detached garage, carport or portecochere does not meet the standards stated in this paragraph, the Builder/Seller shall take such action as is necessary to bring the variance within the standard. (12) Plaster over concrete shall not flake off more than one square foot in one spot within 36 square inches or more than 3 feet over the entire surface of the home. 2. PERFORMANCE STANDARDS FOR FRAMING (a) Building and Performance Standard for Walls. (1) Walls shall not bow or have depressions that equal or exceed 1/4 of an inch out of line within any 32 inch horizontal measurement as measured from the center of the bow or depression or 1/2 of an inch within any eight foot vertical measurement. If a wall does not meet the standard stated in this paragraph, the Builder/Seller shall take such action as is necessary to bring the variance within the standard. (2) Walls shall be level, plumb and square to all adjoining openings or other walls within 3/8 of an inch in any 32 inch measurement. If a wall does not meet the standard stated in this paragraph, the Builder/Seller shall take such action as is necessary to bring the variance within the standard. (3) A crack in a beam or a post shall not equal or exceed 1/2 of an inch in width at any point along the length of the crack. If a crack in the beam or post fails to meet the standard stated in this paragraph, the Builder/Seller shall take such action as is necessary to bring the variance within the standard. (4) A nonstructural post or beam shall not have a warp or twist equal or exceeding one inch in eight feet of length. Warping or twisting shall not damage beam pocket. If a nonstructural post or beam fails to meet the standard stated in this paragraph, the Builder/Seller shall take such action as is necessary to bring the variance within the standard. (5) Exterior sheathing shall not delaminate or swell. (A) If exterior sheathing delaminates or swells, the Builder/Seller shall take such action as is necessary to bring the variance within the standard stated in paragraph (5) of this subsection. (B) The homeowner shall not make penetrations in the exterior finish of a wall that allow moisture to come in contact with the exterior sheathing. (6) An exterior moisture barrier shall not allow an accumulation of moisture inside the barrier. (A) If an exterior moisture barrier allows an accumulation of moisture inside the barrier, the Builder/Seller shall take such action as is necessary to bring the variance within the standard stated in paragraph (6) of this subsection. (B) The homeowner shall not make penetrations through the exterior moisture barrier that permit the introduction of moisture inside the barrier. (b) Performance Standards for Ceilings. (1) A ceiling shall not bow or have depressions that equal or exceed 1/2 of an inch out of line within a 32 inch measurement as measured from the center of the bow or depression running parallel with a ceiling joist. If a ceiling has a bow or depression that is greater than the standard stated in this subsection, the Builder/Seller shall take such action as is necessary to bring the variance within the standard. TX_5307_

20 ITEMS COVERED UNDER THE 1 YEAR WORKMANSHIP COVERAGE (c) Performance Standards for Subfloors. (1) Under normal residential use, the floor shall not make excessive squeaking or popping sounds. If the floor makes excessive squeaking and popping sounds under normal residential use, the Builder/Seller shall take such action as is necessary to bring the variance within the standard stated in this paragraph. (2) Subfloors shall not delaminate or swell to the extent that it causes observable physical damage to the floor covering or visually affects the appearance of the floor covering. Exposed structural flooring, where the structural flooring is used as the finished flooring, is excluded from the standard stated in this paragraph. If a subfloor delaminates or swells to the extent that it affects the flooring covering as stated in this paragraph, the Builder/Seller shall take such action as is necessary to bring the variance within the standard. (3) Subflooring shall not have excessive humps, ridges, depressions or slope within any room that equals or exceeds 3/8 of an inch in any 32 inch direction. If the subflooring fails to meet the standard stated in this paragraph, the Builder/Seller shall take such action as is necessary to bring the variance within the standard. (d) Performance Standards for Stairs. (1) Stair steepness and dimensions such as tread width, riser height, landing size and stairway width, shall comply with the Code. If stair steepness and dimensions do not comply with the Code, the Builder/Seller shall take such action as is necessary to bring the variance within the standard stated in this paragraph. (2) Under normal residential use, stairs shall not make excessive squeaking or popping sounds. If stairs make excessive squeaking and popping sounds under normal residential use, the Builder/Seller shall take such action as is necessary to bring the variance within the standard stated in this paragraph. 3. PERFORMANCE STANDARDS FOR DRYWALL (1) A drywall surface shall not have a bow or depression that equals or exceeds 1/4 of an inch out of line within any 32 inch horizontal measurement as measured from the center of the bow or depression or 1/2 of an inch within any eightfoot vertical measurement. If a drywall surface fails to meet the standard stated in this subsection, the Builder/Seller shall take such action as is necessary to bring the variance within the standard. (2) A ceiling made of drywall shall not have bows or depressions that equal or exceed 1/2 of an inch out of line within a 32 inch measurement as measured from the center of the bow or depression running parallel with a ceiling joist or within 1/2 of an inch deviation from the plane of the ceiling within any eightfoot measurement. If a drywall ceiling fails to meet the standard stated in this subsection, the Builder/Seller shall take such action as is necessary to bring the variance within the standard. (3) A drywall surface shall not have a crack such that any crack equals or exceeds 1/32 of an inch in width at any point along the length of the crack. If a drywall surface has a crack that exceeds the standard in this subsection, the Builder/Seller shall take such action as is necessary to bring the variance within the standard. (4) Crowning at a drywall joint shall not equal or exceed 1/4 of an inch within a twelve inch measurement centered over the drywall joint. If crowning at a drywall joint exceeds the standards stated in this subsection, the Builder/Seller shall take such action as is necessary to bring the variance within the standard. Crowning occurs when a drywall joint is higher than the plane of the drywall board on each side. (5) A drywall surface shall not have surface imperfections such as blisters, cracked corner beads, seam lines, excess joint compound or trowel marks that are visible from a distance of six feet or more in normal light. If a drywall surface fails to meet the standard stated in this subsection, the Builder/Seller shall take such action as is necessary to bring the variance within the standard. (6) A drywall surface shall not be out of level (horizontal), plumb (vertical) or square (perpendicular at a 90degree angle) such that there are variations in those measurements to wall or surface edges at any opening, corner, sill, shelf, etc. shall not equal or exceed 3/8 of an inch in any 32 inch measurement along the wall or surface. (A) If a drywall surface fails to meet the standard stated in subsection (6) of this section, the Builder/Seller shall take such action as is necessary to bring the variance within the standard. (B) This standard shall not apply to remodeling projects where existing conditions do not permit the Builder/Seller to achieve the performance standard. At or about the time of discovery of such a pre-existing condition, a remodeler shall notify the homeowner, in writing, of any existing condition that prevents achievement of the standard. (7) Nails or screws shall not be visible in a drywall surface from a distance of 6 feet under normal lighting conditions. If nails or screws are visible, the Builder/Seller shall take such action as is necessary to bring the variance within the standard. 4. PERFORMANCE STANDARDS FOR INSULATION (1) Insulation shall be installed in the walls, ceilings and floors of a home in accordance with the building plan and specifications and the Code. If the insulation in walls, ceilings or floors is not in accordance with the building plans and specifications and the Code, the Builder/ Seller shall take such action as is necessary to bring the variance within the standard stated in this subsection. (2) Blown insulation in the attic shall not displace or settle so that it reduces the R-value below manufacturer s specifications, the building plans and the Code. If the blown insulation in the attic reduces, settles or is displaced to the extent that the R-value is below the manufacturer s specifications, the building plans and Code, the Builder/Seller shall take such action as is necessary to bring the variance TX_5307_