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Limited Warranty Term - Term of this Limited Warranty begins on the Commencement Date shown on the cover sheet. The Limited Warranty terminates two (2) years after its commencement. Coverage - Year one - For one year from the Commencement Date, the Builder warrants that your home will be free from defects due to nonconformity to the Warranty Standards attached hereto and incorporated by reference herein. Years one and two - For two years from the Commencement Date, the Builder warrants that your home will have no Major Structural Defects (as defined in the Warranty Standards) and that cooling, heating, ventilating, electrical and plumbing systems of your home will be free from defects due to nonconformity to the Warranty Standards attached hereto and incorporated by reference herein. Builder's Responsibility and Purchaser's Rights - If a defect in your home arises due to nonconformity with the Warranty Standards during the first year, or if a defect in the cooling, heating, ventilating, electrical, or plumbing system of your home arises due to nonconformity with the Warranty Standards during the first two years, the Builder will repair, replace or pay you the reasonable cost of repairing or replacing the defective item; if a Major Structural Defect arises in your home during the first two years, the Builder will repair or replace or pay you the reasonable cost of repair or replacing the defect or item, limited to such actions as are necessary to restore load-bearing capability of the load-bearing components and to repair those elements of the home damaged by the Major Structural Defect which make the home unsafe or unlivable. In each instance, the Builder's responsibility is subject to the following: The decision whether to repair or to replace, or to pay you the reasonable cost of repair or replacement, is the Builder's. The Builder's total liability is limited to and shall not exceed the original sales price. Actions taken to cure defects hereunder will not extend the specified periods of coverage. When your Builder finishes repairing the defect, or pays the reasonable cost of doings so, you should sign and deliver to your Builder a full and unconditional release with respect to the defect. Exclusions - The following are not covered by this agreement: All consequential damages, including but not limited to costs of shelter, transportation, food, moving, storage, or other incidental expenses related to relocation during repair. Damage caused by insects. Any loss or defect which arises when the home is used for nonresidential purposes. Normal deterioration or normal wear and tear. Any deficiencies in or damage caused by material or work supplied by anyone other then the builder or his employees, agents, or subcontractors, including but not limited to the items listed as additional exclusions in the cover page. Damages or losses not caused by a defect in construction of the home by the Builder or his employees, agents or subcontractors, but resulting from accidents, riots, civil commotion, acts of god or nature, including but not limited to, fire, explosion, smoke, water escape, changes which are not reasonably foreseeable in the level of the underground water table, windstorm, hail, lighting, falling trees, aircraft, vehicles, flood, mud slides, earthquake, or volcanic eruption. Loss or damage resulting from the purchaser's failure to minimize or prevent such loss or damage in a timely manner. Losses or damages to or resulting from defects in improvements which are not part of the house, defects in outer buildings, such as detached garages and carports, swimming pools and detached recreational buildings and facilities, and defects in driveways, walkways, patios not structurally attached, boundary and retaining walls, bulkheads, fences, landscaping of all types, such as plantings, seeding, sodding, trees and shrubs and all off site improvements. Following year one, loss or damage resulting from concrete basement floors and attached garages which are constructed separate from and are not part of the structure of the home. Losses resulting from damages to real property other than the home itself. Any damage to the extent it is caused or made worse by: Negligence, improper maintenance or improper operation by anyone other than the Builder, its employees, agents or subcontractors; or Failure by the homeowner or by anyone other than the Builder, its employees, agents or subcontractors to comply with the warranty requirements of manufacturers of appliances, fixtures and items of equipment; or Failure of the homeowner to give notice to the Builder of any defects within a reasonable time; or Changes, alterations or additions made to the home by anyone after the Limited Warranty Commencement Date stated on the certificate; or Dampness or condensation due to the failure of the homeowner to maintain adequate ventilation. Following year one, and deficiencies in fixtures, appliances, and items of equipment weather or not components of the cooling, ventilating, heating, electrical or plumbing systems. During year one, coverage on fixtures, appliances, and items of equipment (including attachments and appurtenances) is for one year or the manufacturer's written warranty period, whichever is less. Improper maintenance or operation, negligence and improper service by the home owner causing defects will not be covered by this agreement. Any condition which does not result in actual physical damage to the home, including, but not limited to: uninhabitabilty or health risks due to presence or consequence of unacceptable levels of radon gas, formaldehyde or other pollutants and contaminants; or the presence of hazardous or toxic on-site materials; Bodily injury or damage to personal property; Loss or damage caused by or resulting from abnormal loading on floors by home owner which exceeds design loads as mandated by codes. No Other Warranties - This Limited Warranty is the only express warranty we give. Implied warranties, including but not limited to warranties or merchantability, fitness for a particular purpose, and habitability, are limited to the warranty periods set forth above. Some states do not allow limitations on how long an implied warranty lasts, so this limitation may not apply to you. This Limited Warranty gives you specific legal rights, and you may also have other legal rights which vary from state to state. Claims Procedure - If a defect appears which you think is covered by this limited warranty, you must submit the claim to our office on our forms supplied to you at closing. You must make arrangements to allow the service work to be done during the normal service hours of 8:00 a.m. to 4:00 p.m., Monday through Friday. If delay will cause extra damage (i.e., if a pipe has burst) telephone us. ONLY EMERGENCY REPORTS WILL BE TAKEN BY PHONE. For further details of this claims procedure, refer to the "Customer Service Program" given to you at closing. Not Transferable - This Limited Warranty is extended to you only if you are the first purchaser of the home. When the first purchaser sells the home or moves out of it, this Limited Warranty automatically terminates. Warranty Standards Purpose of the Standards - This section establishes the standards by which it will be determined whether your home has a defect which is covered by this Agreement and the obligation of the Builder to correct those defects. Where specific standards and obligations are not set forth, the standard shall be the accepted industry practice of the area for workmanship and materials. Additional Conditions: Purchaser's Responsibility - The applicability of these warranty standards is conditioned upon the purchaser's proper maintenance of the home to prevent damage due to neglect, abnormal use or improper maintenance. Major Structural Defects - In addition to the following Standards, your Limited Warranty also provides that your home will have no Major Structural Defects for a period of two years. Major Structural Defects are defined as physical damage to the following specified segments of the home, which are load-bearing and caused by failure of such load-bearing segments which affect their load-bearing functions to the degree that the home becomes unsafe or unlivable: roof framing members and systems (rafters and trusses). floor systems (joists). bearing walls and partitions. columns. lintels. girders load-bearing beams. foundation systems and footings. Examples of nonload-bearing elements which will be deemed not to have Major Structural Defect potential are: nonload-bearing partitions and walls. wall tile or paper, etc. plaster, lathes, or drywall. flooring and subfloor plywood. brick, stucco, stone or veneer. any type of exterior siding. roof shingles, sheathing and tar paper. heating, cooling, ventilating, plumbing, electrical, and mechanical systems. appliances, fixtures or items of equipment. doors, trim, cabinets, hardware, insulation, paint, stains. basement and garage floor slabs. WARRANTY STANDARDS STANDARDS APPLICABLE DURING YEAR ONE I. MASONRY AND CONCRETE POTENTIAL PROBLEM   COMMENTS   BUILDER'S OBLIGATION A) Concrete foundation wall cracks   Shrinkage or settlement cracks are common and should be expected within certain tolerances.   Any cracks greater than 1/8 inch in width will be repaired by surface patching or epoxy injection at Builder's discretion; Builder is not responsible for color variations. B) Cracks in block or veneer walls (blocks, bricks, and mortar joints)   Settlement cracks are common and should be expected within certain tolerances.   Any Cracks greater than 3/8 inch in width will be repaired by surface patching or pointing at Builder's discretion; Builder will not be responsible for color variations. C) Cracks in concrete basement floors   Shrinkage (hairline) cracks are common and should be expected within certain tolerances.   Any cracks greater than 1/4 inch in width or 1/8 inch vertical displacement will be repaired by surface patching other remedies. D) Vertical or horizontal movement of concrete slabs at joints   Concrete slabs are engineered to move at expansion and contraction joints.   None. E) Cracks in attached garage slab   Shrinkage cracks are common and should be expected within certain tolerances.   Cracks exceeding 1/4 inch in width or 1/4 inch in vertical displacement will be repaired by patching or other remedies F) Concrete floors in rooms designed for living having pits, depressions or unevenness   Slopes purposefully created for drainage are not covered.   If the unevenness exceeds 1/4 inch in a 32 inch measurement, it will be corrected. G) Concrete slab cracks which cause finished floor coverings to rupture       The problem will be corrected so that the defect is not readily noticeable. H) Powdering, scaling or pitting of concrete (aggregate showing or loose)   If the problem is caused by erosion due to salt, chemicals or unusual weather, the Builder is not responsible.   If the deterioration occurs under normal use and conditions, the Builder will repair it. I) Settling, heaving, or separating of stoops, steps or garage floors   Stoops, steps or garage floors shall not settle, heave or separate in excess of 1 inch from the house structures.   Builder will take whatever corrective action is required to meet these standards. J) Standing water on stoops   Water should drain from outdoor stoops and steps. The possibility of minor water standing on stoops for a short period after rain can be anticipated.   Builder shall take corrective action to assure drainage of steps and stoops. II. LOT GRADING AND DRAINAGE A) Ground settlement around foundation and utility trenches   Ground settlement may occur but should not disrupt water drainage from the house. In all cases, the Purchaser is responsible for the removal and replacement of shrubs, grass, etc.   If the final grading was performed by the Builder, he will replace fill in excessively settled areas only once. B) Lot drainage not functioning properly   Water should no stand in yard for 24 hours nor in swales for 48 hours after the introduction of water to the area (i.e., from rainfall, sump pump discharge, sprinklers). No decision regarding coverage will be made while frost or snow exists on the ground or while the ground is saturated.   The Builder is responsible for establishing the proper grades and swales; after that, the Purchaser is responsible for maintaining them. III. FOUNDATION AND WATERPROOFING A) Water leaking into basement   Dampness of floors and walls is common and not covered by this warranty. The Builder will not be responsible if the cause is improper landscaping, maintenance or negligence by the Purchaser.   Actual leakage of water (actual flow and accumulation) into the basement will be corrected. IV. CARPENTRY (ROUGH-IN) A) Walls which bulge, bow or are out-of-plumb   All interior and exterior walls have minor differences.   Walls bowing more than 1/4 inch within any 32 inch horizontal or vertical measurement will be repaired. V. INSULATION A) Insufficient insulation   Insulation shall be installed in accordance with applicable energy and Builder's code requirements.   Builder will install insulation to meet this standard. VI. ROOFING A) Roof leaking   The rook should not leak and no leaks should arise from flashing, except where snow and ice are allowed to build up. Prevention of snow and ice buildup is the Purchaser's responsibility.   All roof and flashing leaks not caused by snow and ice buildup or other neglect by the Purchaser will be repaired. The Builder is not responsible for color variations. B) Leaks in gutters and downspout leaders   Gutters and leaders should not leak. However, during heavy rains, overflow should be expected. The Purchaser is responsible for keeping gutters and leaders open and free from debris.   Leaks not caused by Purchaser's neglect will be repaired. C) Water stays in gutters   Purchaser is responsible for keeping gutters and leaders open and free from debris.   Builder will repair so that if free from debris, the standing water depth will not exceed 1 inch. D) Insufficient attic or roof ventilation   The applicable building codes will control.   Builder will correct to meet the applicable code requirements. VII. SIDING AND CAULKING A) Faulty workmanship trim.   Separation between siding, masonry, and trim should not exceed 3/8 inch. In all cases, siding, trim, and masonry should be capable of performing its function to exclude the elements.   Builder will repair by caulking or other methods. B) Leakage of elements through attic louvers, vents and ridge or soffit vents   Even if vents are installed according to building codes, driving snow or rain may enter. This is not a defect.   Builder will correct to meet the applicable code requirements. C) Wall leaks due to caulking shrinkage   All caulking shrinks and replacement is a Purchaser's maintenance item.   Any junctions and separations of wall surfaces that cause water leakage will be recaulked once to correct water leakage. D) Delamination of veneer siding or joint separation   All siding shall be installed according to the manufacturer's and industry's accepted standards. Separations and delaminations shall be repaired or replaced.   Builder will repair or replace siding as needed unless caused by Homeowner's neglect to maintain siding properly. Repaired area may not match in color and/or texture. For surfaces requiring paint, Builder will paint only the new materials. The Homeowner can expect the newly painted surface will not match the original color. VIII. PAINTING A) Exterior paint or stain peels, deteriorates or fades   Exterior paints or stains should not fail during the first year of the Limited Warranty period. However, fading is normal and the degree is dependent on climate conditions.   If paint or stain is defected, Builder will properly prepare and refinish affected areas, matching color as closely as possible. Where finish deterioration affects the majority of the wall area, the whole area will be refinished. B) Painting required as corollary repair because of other work   Repairs required under this Limited Warranty shall be finished to match surrounding areas as closely as practicable.   Builder will finish repair areas as indicated. C) Deterioration of varnish or lacquer finishes   Natural finishes on interior shall not deteriorate during the first year of the Limited Warranty period. However, varnish type finishes used on the exterior will deteriorate rapidly and are not covered by the Limited Warranty.   Builder will retouch affected areas of natural finish interior woodwork, matching the color as closely as possible. D) Mildew or fungus on painted surfaces   Mildew or fungus will form on a painted surface if the structure is subject to abnormal exposures (i.e., rainfall, lake, or riverfront).   Mildew or fungus formation is a condition the Builder cannot control and is a Homeowner maintenance item. IX. CHIMNEYS AND FIREPLACES A) Not enough draw or down draft   Trees too close to the chimney or high winds can cause down drafts. Some homes are extremely air-tight and a window may have to be opened slightly in order to create an effective draft.   If the problem is caused by improper construction or design, it will be corrected. B) Chimney separated from structure   Some minor separation is normal and should be expected within certain tolerances.   Separation in excess of 1/2 inch in any 10 foot measurement will be corrected by caulking or other measures. C) Cracking of firebrick   It is expected that heart from fires will cause cracking   Cracks in brick veneer greater than 1/4 inch in width will be repaired by pointing or patching. D) Fireplace brick veneer cracking   Some cracking is common and should be expected with certain tolerances.   Cracks in brick veneer greater than 1/4 inch in width will be repaired by pointing or patching. E) Creosote or resin build-up or creosote seepage through chimney   Creosote seepage is caused by the build-up of creosote in the chimney flue which is the direct result of the materials and manner in which the fireplace or stove is utilized. Burning of non-seasoned wood or improper operation will greatly enhance this situation. Chimney flues should be cleaned regularly.   Builder is responsible for constructing the chimney to meet code requirements. Since the Builder does not have control of the materials and methods used in operating, he is not responsible for any defects caused by anything other than a code violation in construction. X. WINDOWS AND DOORS A) Warpage of doors-passage and closet   Some warping, especially of exterior doors is normal and is caused by surface temperature changes. Such warping, however, should not cause the doors to become unusable or allow entrance of the elements, and should not exceed National Woodwork Manufacturers Association Standards (i.e., 1/4 inch measured corner to corner diagonally).   Defective doors will be repaired or replaced and the finish matched as closely as possible. B) Shrinkage of door panels   Expansion and contraction is normal and may cause unfinished surfaces to appear.   None. C) Door panel splits   Expansion and contraction is normal and may cause unfinished surfaces to appear.   If the split allows the entrance of light, it will be repaired. The Builder will match the finish as closely as possible. D) Glass breakage   This is not covered by your warranty. You should inspect your property and bring any glass breakage to the Builder's attention prior to occupancy.   None. E) Garage door malfunctions   Maintenance is Purchaser's responsibility.   The door will be repaired and adjusted to function as designed, except where cause of malfunction is determined to be Homeowner action or negligence. F) Rain or snow enters through garage door   Some entrance of the elements should be expected.   The door will be adjusted to meet the manufacturer's specifications. G) Malfunction of windows   Windows shall operate with reasonable ease, as designed.   Builder will correct or repair as required. H) Condensation and/or frost on windows   Windows will collect condensation on interior surfaces when extreme temperature differences and high humidity levels are present. Condensation is usually the result of climatic/humidity conditions, created by the Homeowner.   Unless directly attributed to faulty installation, window condensation is a result of conditions beyond the Builder's control. No corrective action required. I) Air infiltration around doors and windows   Some infiltration is normally noticeable around doors and windows, especially during high winds. Poorly fitted weatherstripping shall be adjusted or replaced. It may be necessary for the Homeowner to have storm doors and windows installed to provide satisfactory solutions in high-wind areas.   Builder will adjust or correct poorly fitted doors, windows and poorly fitted weatherstripping. XI. INTERIOR WALLS AND TRIM A) Faulty workmanship trim   Some separations in moldings between moldings and adjacent surfaces (including casement, base, etc.) is normal and should be expected within certain tolerances.   Separation in excess of 1/4 inch will be repaired by caulking or other methods. B) Walls or ceiling cracks   Hairline cracks and seams or tape cracks, along with other slight imperfections are normal and should be expected within certain tolerances. Nail pops are common and are due to contraction and expansion of lumber products. They are beyond the Builder's control and are not covered by this warranty.   Cracks exceeding 1/8 inch in width will be repaired once. The Builder is responsible for repainting only the affected area attempting to closely match the existing paint. Entire walls or ceilings will not be repainted. (Homeowner should save the touch-up paint provided at closing). C) Cracking of ceramic tile   Cracking of grout joints is common and is a home maintenance item.   Broken tiles will be replaced and excessive cracking of grout joints will be repaired once. Builder is not responsible for discontinued patterns or colors or for variations in color. XII. FLOORING AND COVERING A) Floor squeaks or subfloor appears loose   Floor squeaks and loose subfloor are often temporary conditions common to new construction, and a squeak-proof floor cannot be guaranteed.   Builder will correct the problem only if caused by an underlying construction defect. B) Uneven wood floors   Floors shall not have more than 1/4 inch ridge or depression within any 32 inch measurement when measured parallel to the joists. Allowable floor and ceiling joist deflections are governed by the applicable building code.   Builder will correct or repair to meet applicable building code. C) Separations between finished floor boards   Some separation is normal and should be expected within certain tolerances.   Separations exceeding 1/4 inch in width will be repaired by filling or repairing. D) Nail popping through resilient flooring   Only nails which have broken through the floor covering will be repaired.   The nail pops will be repaired and the covering repaired or replaced in the area damaged. Builder is not responsible for discontinued patterns or colors or for variations in color. E) Subfloor imperfections causing ridges   Minor ridges or indentations are common and should be expected within certain tolerances.   Ridges or indentations in excess of 1/8 inch (measured with a straight edge perpendicularly over the ridge and the deflection measured no more than 3 inches from the ridge) will be repaired and affected floor covering will be repaired or replaced. Builder is not responsible for discontinued patterns or colors or for variations in color. F) Resilient flooring becomes loose or bubbles       The affected area will be repaired or replaced. Builder is not responsible for discontinued patterns or colors or for variations in color. G) Seam or shrinkage gaps show at resilient flooring joints   Gaps shall not exceed 1/16 inch in width in resilient floor covering joints. Where dissimilar materials abut, a gap not to exceed 1/8 inch is permissible.   Builder will repair or replace at Builder's sole option, the affected resilient flooring as required. Builder will not be responsible for discontinued patterns or color variation of floor covering, or for problems caused by Homeowner neglect or abuse. H) Open carpet seams   Carpet seams will show. However, no visible gap is acceptable.   Builder will correct. I) Carpeting becomes loose, seams separate or stretching occurs   Wall to wall carpeting, installed as the primary floor covering, when stretched and secured properly shall not come up, become loose, or separate from its point of attachment.   Builder will restretch or re-secure carpeting as needed, if original installation was performed by Builder. J) Spots on carpet, minor fading   Exposure to light may cause spots/minor fading on carpet.   None. XIII. CABINETS AND COUNTER TOPS A) Vanity or kitchen counter tops or cabinets chip, crack or delaminate   Cracks or chips, including porcelain and fiberglass fixtures, not reported to the Builder prior to occupancy will not be covered by this warranty.   Builder will repair or replace delaminated covering to meet specified criteria. B) Cabinet doors or drawers warp   Minor warpage is common and should be expected within certain tolerances.   Warpage in excess of 1/4 inch (from the face of frame to the point of the further- most warpage with the door or drawer in closed position) will be repaired or the doors or drawers replaced. C) Cabinet separates from wall or ceiling   Some separation is common and should be expected within certain tolerances.   Separation in excess of 1/4 inch will be repaired or the cabinet replaced. XIV. COOLING - HEATING A)Insufficient cooling   Where applicable, the cooling cooling system should be able to maintain a temperature of 78 degrees (measured 5 feet above the center of the floor) under local outdoor ASHRAE specifications. In the case of excessive outdoor temperature, a 15 degree difference is acceptable. Purchaser is responsible for minor adjustments such as balancing dampers and registers. All rooms will vary in temperature by 3 or 4 degrees. This is acceptable.   The Builder will repair the system so that it will perform as described. B) Insufficient heating   The heating system should be able to maintain a temperature of 72 degrees (measured 5 feet above the center of the floor) under local outdoor. ASHRAE specifications. Purchaser is responsible for minor adjustments such as balancing dampers and registers. On extremely cold days, a 5 to 6 degree difference between the actual inside temperature and the thermostat setting is acceptable. All rooms will vary in temperature by 3 or 4 degrees. This is acceptable.   The Builder will repair the system so that it will perform as described. C) Ductwork noisy   When metal ducts heat and cool, some noise will result. Very loud noise known as oil canning is not acceptable.   Builder will correct the oil canning noise only. XV. PLUMBING A)Plumbing pipes freeze and burst   Drain, waste and vent, and water pipes shall be adequately protected, as required by applicable code, during normally anticipated cold weather, and as defined in accordance with ASHRAE design temperatures, to prevent freezing. During excessive and constant low temperatures, some freezing is to be expected.   Builder will correct the situation not meeting the code. It is the Homeowner's responsibility to drain or otherwise protect lines and exterior faucets exposed to freezing temperatures. B) Plumbing fixtures, appliances and trim fittings, leaks or malfunctions       Leaks or malfunction in faucets, valves, appliances and trim fittings caused by defects in materials or workmanship will be corrected. C) Pipes noisy   Expansion and contraction caused by water flow will cause some noise which is to be expected.   Loud, hammering noises in pipes will be corrected. D)Scratches, cracks or chips in porcelain, fiberglass or stainless steel   Scratches, chips and cracks on surfaces of bathtubs and sinks can occur when surfaces are hit with sharp or heavy objects.   The Builder will repair or replace these items only if reported prior to occupancy. XVI. ELECTRICAL A)Consistently blown fuses or circuit breakers kick off   Builder will not be responsible if caused by overloads in the system.   Builder will inspect and repair any defects caused by noncompliance with applicable building and electrical codes. B) Drafts from electrical outlets   Electrical junction boxes on exterior walls may produce air flow whereby the cold air can be drawn through the outlet into a room. The problem is normal in new home construction.   None. C) Malfunction of electrical outlets, switches or fixtures   All switches, fixtures and outlets shall operate as intended.   Builder will repair or replace defective switches, fixtures and outlets. D) Ground fault interrupter trips frequently   Ground fault interrupters are sensitive safety devices installed into the electrical system to provide protection against electrical shock. These sensitive devices can be tripped very easily.   Builder shall install ground fault interrupter in accordance with approved electrical code. Tripping is to be expected and is not covered, unless due to a construction defect. STANDARDS APPLICABLE DURING YEARS ONE AND TWO I. Water supply stops   Drought or causes other than defective workmanship and materials will not be covered by this warranty.   Builder will repair or replace faulty workmanship and materials only. II. Septic System fails   Freezing, soil saturation, underground springs, water run off, excessive use and increase in the water table are among the causes not covered by this warranty.   Builder will repair or replace faulty workmanship and materials and conform with the Sewage Enforcement Officer's instructions as per design and installation only. III. Pipe leaks   Condensation on pipes is normal and is not covered by this warranty.   Leaks will be repaired. IV. Clogged drain and sewers   This is a Purchaser's sewers maintenance item. The Builder will be responsible only if the cause is a defect in construction.   Builder will repair only if caused by a defect in construction. Purchaser will pay for Builder's repair if not a construction defect. V. Ductwork separates       The Builder will repair. VI. Wiring fails to carry specified electrical load       Builder will correct to meet applicable building and electrical codes.

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