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Dear Homebuyer(s):

Congratulations! You are purchasing a newly constructedHome with express limited warranty protection providedby a Builder/Seller enrolled in the 2-10 Home BuyersWarranty (2-10 HBW®) Program of Home BuyersWarranty Corporation. The specific warranty coverage(s)selected by Your Builder/Seller is stated on Your Certificateof Warranty Coverage.

This Warranty Booklet and Your Certificate of WarrantyCoverage contain Your Builder/Seller’s Limited Warrantyto You. Your Builder/Seller warrants that, within thelimitations described in these two documents, Your Homewill be free from qualifying structural defects, and if soindicated on Your Certificate of Warranty Coverage, willalso be free from defects in workmanship and systems.

Your Builder/Seller’s Limited Warranty will be insured bythe insurance company stated on the Certificate ofWarranty Coverage which You will receive after Yourhome is enrolled in the 2-10 HBW Program.

This Warranty is a contract between You and YourBuilder/Seller. 2-10 HBW is the warranty administrator, butNOT a warrantor under the contract. Your Builder/Seller’sWarranty Insurer is not a party to this Warranty Contract,but Your Builder/Seller’s Warranty insurer has agreed toperform certain tasks and undertake certain obligationswhich are described in this Warranty Booklet.

Congratulations and enjoy Your new Home!

Home Buyers Warranty Corporation

2-10 HOME BUYERS WARRANTY® BOOKLETWORKMANSHIP/SYSTEMS AND STRUCTURAL

LIMITED WARRANTY COVERAGE

HBW_307_022009

2-10 HBW is a registered mark of Home Buyers Warranty Corporation.© 2002 Home Buyers Warranty Corporation.

HOME BUYERS WARRANTY CORPORATIONWarranty Administration Office

10375 East Harvard Ave.Denver, CO 80231

720.747.6000

TABLE OF CONTENTS

SECTION I Definitions

SECTION II Express Limited Warranty:One & Two Year

SECTION III Reporting a One YearWorkmanship orTwo Year Systems Defect

SECTION IV Express Limited Warranty:Ten Year

SECTION V Reporting a Structural Defect

SECTION VI Express Limited Warranty:Multi-Family Units

SECTION VII Conditions

SECTION VIII Exclusions

SECTION IX Construction Performance Guidelines

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SECTION I DEFINITIONSYou and Your means the person(s) who holds title to the Home.Home means the newly constructed dwelling and garage.Builder/Seller means the Builder/Seller of the newly constructed home to You, and as identified as listed on the Certificate ofWarranty Coverage.Warranty Insurer is the Builder/Seller’s Warranty Insurer as stated on your Certificate of Warranty Coverage.Effective Date of Warranty is the earliest of Your closing date, first title transfer or the date You or anyone else first occupied theHome if that was before closing.Multi-Family Unit means a multi-family residential dwelling, located in a multi-family building with two or more dwelling units.Multi-family buildings include low or mid rise condominiums and all attached Homes, such as duplexes, triplexes, quadraplexes,townhomes and row houses.Certificate of Warranty Coverage is the document which provides proof of warranty coverage for a certain address and thecoverage provided by Your Builder/Seller.Limited Warranty means the express warranty described by the terms and provisions contained within this Warranty Booklet.2-10 HBW is the warranty administration company which performs certain tasks for the Warranty Insurer.Warranty Term is the period during which a warranted defect must first occur in order to be covered hereunder, and is that periodwhich begins on the Effective Date of Warranty as defined above and ends one, two, four, or ten years thereafter.Warranty Limit is the sum stated in the Certificate of Warranty Coverage.Defect is defined in each instance as a failure to meet the Construction Performance Guidelines for workmanship and systems as setforth in this Agreement.Detached Structure is a building that is not attached to the multi-family building such as club houses, daycares and fitness centersowned in common by the homeowners’ association or the Multi-Family Unit owners. Such building has warranty coverage only if itis issued its own Certificate of Warranty Coverage.Builder/Seller Application for Home Enrollment means the Builder/Seller Application for Home Enrollment Form signed by Youand Your Builder/Seller before the Home was enrolled in the 2-10 HBW Program.Commercial Space is defined as any unit within a multi-family building primarily used for non-residential purposes. CommercialSpace has coverage only if issued a Certificate of Warranty.Common Element is any portion of the multi-family which is defined as a common element in either the governing common interestownership laws or declaration establishing such community. Common Elements may include, without limitation lobbies, hallways,outside walls, roofs, exterior finishes, attached garages and the electrical, plumbing and mechanical distribution systems.Common Element Exterior Stairways and Landings are defined as steps or flights of steps connected by landings, includingsupports, handrails and framework which are maintained by the homeowners’ association or someone other than the owner / occupantof the particular Home. Common Element Exterior Stairways and Landings constructed of wood materials will be covered only ifindicated on your Certificate of Warranty Coverage.Structural Defect is defined as actual physical damage to the designated load-bearing elements of the Home caused by failure ofsuch load-bearing elements which affects their load-bearing functions to the extent that your Home becomes unsafe, unsanitary, orotherwise unlivable. The Structural Defect warranty coverage is the same as that contained in regulations of the Department ofHousing and Urban Development in effect at the time of the issuance of this Limited Warranty. This is coverage for catastrophicfailure of load-bearing elements of your Home. The designated load-bearing elements that are covered under this Structural Defectwarranty are:

1. Footings and Foundation systems;2. Beams;3. Girders;4. Lintels;5. Masonry arches;6. Columns;7. Load-bearing walls and partitions;8. Roof framing systems; and9. Floor systems.

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Examples of elements not covered by this Structural Defect warranty which are deemed NOT to have Structural Defect potential are:1. Non-load-bearing partitions and walls;2. Wall tile or paper, etc.;3. Drywall and plaster;4. Flooring and sub-flooring 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;10. Doors, trim, cabinets, hardware, insulation, paint and stains.

SECTION II EXPRESSLIMITEDWARRANTY:ONEYEARWORKMANSHIPANDTWOYEARSYSTEMSWARRANTY*(*Indiana residents: Please read ADDENDUM at the end of Section VIII)

If Your Certificate of Warranty Coverage indicates Your Builder/Seller is providing One and Two Year Coverage,* for one year fromthe Effective Date of Warranty Your Builder/Seller warrants that Your Home will be free from Defects in materials and workmanshipas defined in the Construction Performance Guidelines in Section IX; and for two years from the Effective Date of Warranty, YourBuilder/Seller warrants that Your Home will be free from Defects in the electrical, plumbing, and mechanical distribution systemsto the extent stated in the same Construction Performance Guidelines.

SECTION III REPORTING A ONE YEAR WORKMANSHIP OR TWO YEAR SYSTEMS DEFECT

If You believe Your Home has a Defect that is covered under Your Builder/Seller’s One Year Workmanship or Two Year SystemsWarranty, which occurred during the applicable Warranty Term, You must first write a letter to your Builder/Seller listing the specificwarranty Defect(s) and the date the Defect(s) occurred. Do this as soon as You notice a warranty problem and before your WarrantyTerm expires. Your Builder/Seller should repair or, at its option, pay to You the cost of repair of these Defects. Once You havewritten to Your Builder/Seller, if repairs are not made within sixty (60) days, complete the following steps (unless your WarrantyTerm will expire within those sixty (60) days, in which case, take these steps immediately):

1. Complete the Notice of Complaint Form (“Notice”), which is found at the back of this Warranty Booklet.2. Send one copy of the Notice to Your Builder/Seller.3. Send one copy of the Notice, a copy of Your Certificate of Warranty Coverage, and a copy of all correspondence

between You and Your Builder/Seller about the warranty Defect(s) in question to:2-10 HBW Warranty Administration Office10375 East Harvard, Ave.Denver, CO 80231

We recommend You send the Notice to Your Builder/Seller and 2-10 HBW by certified mail, return receipt requested.

All three of these steps must be completed. Sending a notice to Your Builder/Seller does not constitute notice to 2-10 HBW. Also,we cannot initiate work on Your warranty problem with a phone call; we must have written documentation. In addition, theBuilder/Seller and 2-10 HBW must receive Your Notice of Complaint no later than thirty (30) days after the expiration of thewarranty to which the Notice relates. Complaints filed after that date will be denied.

Once Your Notice has been received by 2-10 HBW, 2-10 HBW will again notify Your Builder/Seller of Your complaint. If yourBuilder/Seller and You are unable to resolve your differences either by yourselves or with 2-10 HBW’s help, You must arbitrate Yourdispute (see SECTION VII, ARBITRATION). 2-10 HBW will provide a form to request arbitration after You have followed theabove procedure.

If 2-10 HBW determines that Your Builder/Seller cannot or will not participate in arbitration or perform the arbitration award, 2-10HBW will so notify You. You must then forward to 2-10 HBW at the above address a onetime $250.00 claim deductible (checkpayable to the Warranty Insurer stated on your Certificate of Warranty Coverage). At that point, 2-10 HBW will forward the checkand Your file to the Warranty Insurer, and the Warranty Insurer will adjust the claim.

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In summary: All Notices of Complaint must be received by Your Builder/Seller and by 2-10 HBWWarranty Administrationnot later than thirty (30) days after the expiration of the warranty coverage to which the Notice relates. Warranty coveragefor any Notice of Complaint received after this date will be denied, and neither Your Builder/Seller nor the Warranty Insurerwill have any obligation to You for the repair of these Defects. The time limits are a material condition of YourLimited Warranty.

WHAT TO DO IN THE CASE OF AN EMERGENCY: An emergency is a condition that if not immediately repaired may causedanger to the Home or its occupants.

If you have a One Year Workmanship or Two Year Systems Warranty coverage emergency, You must contact Your Builder/Sellerimmediately. If You are unable to contact Your Builder/Seller for emergency authorization, 1) You must make minimal repairs untilauthorization for more extensive repairs has been approved by Your Builder/Seller, 2) You must take action in order that furtherdamage can be mitigated, and 3) You must report the emergency to the Builder/Seller on the next business day.

If you have a Ten Year Structural Defect Warranty coverage emergency, You must contact the 2-10 HBW Warranty AdministrationOffice at (720) 747-6000 in order to receive authorization for any emergency repairs. If You are unable to contact the 2-10 HBWWarranty Administration Office 1) You must make minimal repairs until authorization for more extensive repairs has been approved,2) You must take action in order that further damage can be mitigated, and 3) You must report the emergency to 2-10 HBW WarrantyAdministration on the next business day.

Any unauthorized repairs will not be reimbursed unless You have followed the above procedures.

SECTION IV EXPRESS LIMITED WARRANTY: TEN YEAR STRUCTURAL DEFECT WARRANTY

For ten years from the Effective Date of Warranty Your Builder/Seller warrants your Home against a Structural Defect. A StructuralDefect is defined in Section I.

SECTION V REPORTING A STRUCTURAL DEFECT

If You believe Your Home has a Structural Defect that is covered under Your Structural Defect Warranty as defined in Section I:1. Complete the Notice of Claim Form (“Form”), which is found at the back of this Warranty Booklet. Fully

describe the nature of the Structural Defect and the date You first noticed it on the Form.2. For each claim, send a copy of Your completed Form, a copy of Your Certificate of Warranty Coverage, and

a $250 claim investigation fee payable to the Warranty Insurer stated on Your Certificate of WarrantyCoverage to:

2-10 HBW Warranty Administration Office10375 East Harvard Ave.Denver, CO 80231

We recommend You send the Notice by certified mail, return receipt requested.

Except for authorized emergency repairs as defined in Section III of this Warranty Booklet, do not repair a claimed Structural Defectbefore the Warranty Insurer has an opportunity to inspect the Structural Defect. Doing so will make it impossible for the WarrantyInsurer to assess whether the Structural Defect was covered by this warranty; whether the repair You performed or caused to beperformed was cost-effective, necessary, and effective; and whether the Warranty Insurer would have been able to solve the problemin another way. As a result, the Warranty Insurer will not accept coverage for any claimed Structural Defect that You have hadrepaired or replaced. In addition, You will not be reimbursed for any costs or expenses You undertake to investigate a StructuralDefect such as, but not limited to, engineering and attorney’s fees.

SECTION VI EXPRESS LIMITED WARRANTY: MULTI-FAMILY UNIT

If Your Certificate of Warranty Coverage indicates Your Builder/Seller is providing One Year Workmanship and Two Year SystemsWarranty, Your Builder/Seller is providing the same coverage for Your Multi-Family Unit as described above under Section IIEXPRESS LIMITED WARRANTY: ONE YEAR WORKMANSHIP AND TWO YEAR SYSTEMS WARRANTY in addition to theSection IV EXPRESS LIMITED WARRANTY TEN YEAR STRUCTURAL DEFECT WARRANTY.

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Reporting a One Year Workmanship, Two Year Systems or Structural Defect: For reporting a One Year Workmanship or Two YearSystems Defect for Your Multi-Family Unit only, follow the procedure outlined above under Reporting a One Year Workmanshipor Two Year Systems Defect. The Warranty Insurer's obligation for One Year Workmanship or Two Year Systems Defect orStructural Defect coverage of the Common Element will be prorated based upon the number of Multi-Family Units enrolled in theWarranty Program as compared to the number of units in the building. Coverage of the Common Element begins on the date theCertificate of Occupancy was issued for the building containing Your unit and Common Element Defects must be reported withinthe applicable Warranty Term for Defect(s). If the Defect involves a One Year Workmanship or Two Year Systems Defect or aStructural Defect, then Your Home Owner’s Association (“Association”) or a representative designated by the Association must fileone Notice of Complaint Form or Notice of Claim Form for each affected building. The Notice of Complaint Form or Notice of ClaimForm must list each unit in the building and a Certificate of Warranty Coverage must be attached for each unit of the building. Underthe One Year Workmanship and Two Year System Warranty coverage, the maximum claim deductible for Common Elementcoverage is $250 per unit in the building or $5000 per building, whichever is less. Under the Ten Year Structural Defect Warrantycoverage, the maximum claim investigation fee is $250 per unit in the building or $5000 per building, whichever is less.

SECTION VII CONDITIONS(**California and Kansas Residents and Homes with FHA/VA financing: Please read ADDENDUM at the end of Section VIII)

WAIVER OF IMPLIED WARRANTIES**. You have accepted the express Limited Warranty provided inthis Warranty Booklet, and all other express or implied warranties, including any oral or written statementsor representations made by Your Builder/Seller or any implied warranty of habitability, merchantability orfitness, are hereby disclaimed by Your Builder/Seller and are hereby waived by You to the extent possibleunder the laws of Your state.

In the event any provision of this Limited Warranty is determined to be unenforceable, that determination will not affect the validityof the remaining provisions.

The aggregate obligation of Your Builder/Seller and the Warranty Insurer for all claims under this Warranty is equal to the WarrantyLimit stated in the Certificate of Warranty Coverage. This means that every time Your Builder/Seller or the Warranty Insurer pays aclaim or pays for a repair, that payment is deducted from the Warranty Limit, and when the Warranty Limit is exhausted, You nolonger have any Warranty coverage. If the payment is made for the repair of a Common Element of a Multi-Family project, thepayment shall be deducted pro-rata from the Warranty Limit for each unit in the Multi-Family building, or project, as applicable.

The obligations of the Warranty Insurer under this Warranty and under any insurance policy insuring the Limited Warranty shall beexcess to any other valid and collectible insurance issued to You or to the Builder/Seller, whether such other insurance is primary,excess or contingent.

The Warranty is not an insurance policy, a maintenance agreement or service contract. If You have a mortgage on Your Home, Yourlender may insist that You have a homeowners insurance policy, and this is not it.

REPAIR. The Builder/Seller or the Warranty Insurer shall have the option to repair, replace or pay You the reasonable cost of repairof any covered Defect or Structural Defect. The design, method and manner of such repair shall be within the sole discretion of theBuilder/Seller, if the Builder/Seller pays for the repair, or of the Warranty Insurer, if the Warranty Insurer pays for the repair. Youare responsible for any damage to any improvement, fixture or property not constructed by the Builder/Seller which is damaged by,or during the repair of, a covered Defect or Structural Defect, and You shall pay for the cost of repair of such improvement, fixtureor property necessitated by the repair of a covered Defect or Structural Defect. No repair shall extend the term of the LimitedWarranty as to any covered Defect or Structural Defect, including without limitation, the Defect or Structural Defect which was thesubject of the repair. Before the Warranty Insurer repairs or pays for the repair of a claim, You must assign to the Warranty Insurerany rights You may have against any other person with respect to the claim. You shall do nothing to prejudice these rights ofsubrogation. At the time of payment for reasonable cost of repairs or repair or replacement of warranted items, You must sign anddeliver to 2-10 HBW a full and unconditional release of Your Builder/Seller, Warranty Insurer and 2-10 HBW, in recordable form,of all legal obligations with respect to the warranted items and condition arising therefrom. The repair of a Structural Defect consistsof, and is limited to: 1) repair of damage to the load-bearing portions of Your Home necessary to restore their load-bearing function,2) repair of those non-load-bearing portions damaged by the Structural Defect and whose repair is necessary to make Your Homeonce again safe, sanitary, or otherwise livable, and 3) repair and cosmetic correction of only those surfaces, finishes and coverings,original with the Home, damaged by the Structural Defect or which require removal and replacement to repair the Structural Defect

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or to repair other damage directly attributable to the Structural Defect. Repairs are intended to restore the Home to approximately thecondition just prior to the Structural Defect, but not necessarily to a like-new condition. Your Builder/Seller’s and/or the WarrantyInsurer’s costs of designing, accomplishing, and monitoring repairs to Your Home (or payments to You or to another instead) arededucted from Your Home’s Warranty Limit. Your Builder/Seller’s and/or the Warranty Insurer’s costs of determining the existenceand/or extent of a covered Defect or Structural Defect are not deducted.

ACCESS TO YOUR HOME. In order for Your Builder/Seller and Warranty Insurer to carry out their responsibilities under thisAgreement, they will require access to Your Home from time to time. By signing the Builder/Seller Application For Home Enrollmentor by using the coverage provided by the Limited Warranty You hereby agree to grant access to Your Builder/Seller and the WarrantyInsurer and their agents and contractors during normal business hours to inspect, repair, and conduct tests in Your Home as in theirjudgment may be required. Failure to allow access to Your Home will eliminate the Builder/Seller and Warranty Insurer’s obligationunder the Limited Warranty.

If Your Home is a Multi-Family Unit, by accepting this Limited Warranty, You agree to allow free access to, on, through or withinYour unit during normal business hours (after receiving notice from your Association, Your Builder/Seller, 2-10 HBW or theWarranty Insurer) so that repairs may be made to any adjacent unit or Common Element area. You also agree that if emergencyrepairs are required (which would be the responsibility of Your Builder/Seller or the Warranty Insurer) and You cannot be contactedwithin a reasonable period of time, You waive such notice.

ARBITRATION. Any and all claims, disputes and controversies by or between the owner, the Builder/Seller, the Warranty Insurerand/or HBW, or any combination of the foregoing, arising from or related to this Agreement, the Warranty, the Home WarrantyInsurance Policy, the subject Home, or the 2-10 HBW Program shall be settled by binding arbitration. Agreeing to arbitration meansyou are giving up your right to a jury trial. Any person in contractual privity with the Builder/Seller whom the Home owner contendsis responsible for any construction defect in the Home shall be entitled to enforce this arbitration agreement. Any party shall be entitledto recover reasonable attorney's fees and costs incurred in enforcing this arbitration agreement. The decision of the arbitrator shall befinal and binding and may be entered as a judgment in any State or Federal court of competent jurisdiction.

The arbitration shall be conducted by the American Arbitration Association pursuant to its Home Construction Arbitration Rulesand Mediation Procedures; or by Construction Arbitration Services, Inc., or by DeMars & Associates, Ltd. The choice of arbitrationservice shall be that of the Home owner if the Home owner is a claimant and if not the choice shall be that of the Builder/Seller orthe Warranty Insurer, if applicable. The arbitration shall be conducted pursuant to the applicable rules of the arbitration serviceselected unless noted otherwise. All administrative fees of the arbitration service and fees of the arbitrator shall be allocated to theparties as provided in the rules of the arbitration service, subject to the discretion of the arbitrator to reallocate such fees in theinterests of justice. If for any reason this method of selecting an arbitration service cannot be followed, the parties to the arbitrationshall mutually select an arbitration service.

The parties expressly agree that this Warranty and this arbitration agreement involve and concern interstate commerce and aregoverned 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 timebe amended, to the exclusion of any different or inconsistent state or local law, ordinance or judicial rule.

WARRANTIES TRANSFERABLE. All of Your rights and obligations hereunder shall fully transfer, up to the remaining amount ofthe Warranty Limit, to each successor in title to the Home, including any mortgagee in possession, for the remainder of the WarrantyTerm and any such transfer shall in no way affect or reduce the coverage under this Limited Warranty for its unexpired term. Thereis no limit to the number of such transfers during the Warranty Term, nor any cost hereunder as a result of such successions. If Yousell Your Home during the Warranty Term, You agree to give this Limited Warranty to Your buyer to inform Your buyer of warrantyrights and to make it possible for the buyer to fulfill the obligations under the terms of this Limited Warranty. If You are a successorowner of the Home (that is, an owner other than the original purchaser), Your Home will benefit from the coverage provided by thisexpress Limited Warranty. Likewise, You are also bound by all the terms and conditions of the Limited Warranty including but notlimited to claims procedures and participation in arbitration.

YOUR OBLIGATIONS. The Warranty coverage pays for the cost of labor and materials to correct a covered Defect or StructuralDefect. Your obligation is to care for Your Home in such a way as to prevent or minimize damage to it. You should be aware thatall new homes go through a period of settlement and movement. During this period, Your Home may experience some minor materialshrinkage, cracking and other events which are normal and customary. Remember that You are responsible for proper maintenanceof Your Home including maintaining Builder/Seller-set grades around Home, planting trees and shrubs at the proper distance, andconforming to generally accepted landscape practices for Your region.

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SECTION VIII EXCLUSIONSThis Limited Warranty does not provide any coverage for 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 includedin the purchase price stated on the Certificate of Warranty Coverage;

2. Damage to or defects in swimming pools and other recreational facilities; driveways; boundary walls, retainingwalls and bulkheads (except where boundary walls, retaining walls and bulkheads are necessary for the structuralstability of the Home); fences; landscaping (including sodding, seeding, shrubs, trees, and plantings); sprinklersystems, patios, decks, porches, garage slabs; stoops, steps and, outbuildings, detached carports, or any otherappurtenant 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 Construction Performance Guidelines, defects to basement slabs orother interior ground supported concrete slabs in areas not original to the newly constructed Home or finishedhabitable space; and stoops, steps or stucco;

4. Loss or damage which arises while Your Home is being used primarily for nonresidential 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; violations of local or national building codes, 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 tocomply 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;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 other windstorm, fire, explosion, blasting,

smoke, water escape, tidal wave, flood, hail, snow, ice storm, lightning, falling trees or other objects,aircraft, vehicles, mudslide, avalanche, earthquake, volcanic eruption, sinkholes or geologicalphenomenon 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;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 carcinogenicsubstance, whether organic or inorganic, and electromagnetic field or emission, including any claim ofhealth 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 Structural Defect,except as otherwise provided in the Construction Performance Guidelines;

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, mineshafts or other anomalies in a building

site provided by You;11. Any defect or damage You knew about prior to the Effective Date of Warranty;12. Any request for warranty performance submitted to 2-10 HBW or Your Builder/Seller after an unreasonable

delay or later than 30 days after the expiration of the applicable Warranty Term;13. Loss caused, in whole or in part, by any peril or occurrence for which compensation is provided by state

legislation or public funds;14. 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;15. Diminished market value of Your Home; and16. 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 bodilydamage 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.

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17. Any and all exclusions set forth in Section IX (Construction Performance Guidelines).The Limited Warranty covers only those Defects and Structural Defects which first occur during the Warranty Term; any Defects orStructural Defects You knew about prior to the Effective Date of Warranty such as “walk-through” or “punch-list” items are not covered.

The Limited Warranty does not apply to any manufactured item such as appliances, fixtures, equipment (except as specificallydefined in the Construction Performance Guidelines) or any other item which is covered by a manufacturer’s warranty, nor does itcover systems Defects that are caused by failure of any such manufactured item. Appliances and items of equipment not covered bythis Limited Warranty, include but are not limited to; air conditioning units, attic fans, boilers, burglar alarms, carbon monoxidedetectors, ceiling fans, central vacuum systems, chimes, dishwashers, dryers, electric meters, electronic air cleaners, exhaust fans, firealarms, fire protection sprinkler systems, freezers, furnaces, garage door openers, garbage disposals, gas meters, gas or electric grills,heat exchangers, heat pumps, humidifiers, intercoms, oil tanks, 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 wholehouse fans.

ADDENDUM*Indiana: State of Indiana Only - If your Certificate of Warranty Coverage indicates Your Builder/Seller is providing Two YearWorkmanship, Two Year Systems and Four Year Roof Warranty coverage, your Builder/Seller warrants that your Home will be freefrom Defects in material and workmanship for two years instead of one year as stated in the Construction Performance Guidelinesand the roof will be free from Defects in faulty workmanship or defective materials for four years from the Effective Date ofWarranty.**California: State of California Only - The protection provided under this Warranty is not in limitation of, but is in addition to, anyother rights provided to You under California law.**Kansas: State of Kansas Only - You have not waived the implied warranties and the Limited Warranty is not Your exclusiveremedy. You may have other remedies as provided to You under Kansas law.**Homes with FHA/VA financing Only - If Your Certificate of Warranty Coverage indicates Your Home has FHA/VA financingplease refer to the Addendum provided with the Certificate of Warranty Coverage.

SECTION IX CONSTRUCTION PERFORMANCE GUIDELINESThe following Construction Performance Guidelines are standards that have been developed and accepted by the residentialconstruction industry in general. They apply only to the One Year Workmanship and Two Year Systems* Warranties. While it isvirtually impossible to develop Construction Performance Guidelines for each possible deficiency, the construction industry and 2-10 HBW have attempted to isolate the most common actual physical damage deficiencies that occur and in so doing, list the extentof Your Builder/Seller’s, Warranty Insurer’s and Your responsibility. Where a specific Construction Performance Guidelines has notbeen specified, the guidelines found in the publication Residential Construction Performance Guidelines 3rd Edition-ContractorReference, National Association of Home Builders (NAHB), 2005, will apply. Copies of this publication may be special orderedthrough most book retailers, or purchased directly from the NAHB Bookstore by calling 1-800-223-2665. The NAHB Bookstore mayalso be reached online at www.BuilderBooks.com. If an item is not covered in that publication, locally accepted trade practices ofthe construction industry will be used.The following Construction Performance Guidelines are expressed in terms of required standards that Your Builder/Seller’s constructionshould meet. Noncompliance with these construction standards calls for corrective action by Your Builder/Seller. Builder/Seller will tryto its best ability to match and replace with Your original choice of colors and materials, except where You custom-ordered the items.Builder/Seller cannot be responsible for discontinued items, changes in dye lots, colors or patterns, or items ordered outside of theoriginal construction.

Refer to other parts of this Booklet for specific terms, definitions, exclusions and conditions that apply to the first (1st), second (2nd)and fourth (4th) (INDIANA RESIDENTS ONLY) year of the warranty.

Normal wear and deterioration; failure of Your Builder/Seller to perform any washing, cleaning, or cleanup, are not covered underthe Limited Warranty.

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INDEX CONSTRUCTION PERFORMANCE GUIDELINES

1 YEAR WORKMANSHIP

11.. SSiittee WWoorrkk -- PPaaggee 11331.1 Grading - Page 131.2 Drainage - Page 13

Soil Erosion - Page 13Grassed or Landscaped Areas - Page 13

22.. FFoouunnddaattiioonn aanndd CCoonnccrreettee -- PPaaggee 11332.1 Cast-In Place Concrete - Page 13

Basement Floor - Page 14Attached Garage Floor Slab - Page 14Attached Patio Slab and Sidewalks - Page 14Concrete Slab on Grade Floors - Page 14Uneven Concrete Floor Slabs - Page 14Interior Concrete, Pitting Scaling or Spalling - Page 14Basement Floor, Efflorenscence - Page 14Brick or Masonry Edging - Page 14Stoops and Steps - Page 14

2.2 Construction and Control Joints - Page 1433.. MMaassoonnrryy -- PPaaggee 11553.1 Unit Masonry (Brick, CBlock and Stone ) - Page 15

Concrete Block Basement Walls, Cracks - Page 15Concrete Block Basement Walls, Bowed - Page 15

3.2 Stucco and Cement Plaster - Page 15Exterior Stucco Wall - Page 15

44.. CCaarrppeennttrryy -- PPaaggee 1155Plywood and Joists - Page 15Wood Framed Floors, Uneven - Page 15Walls or Ceilings, Bowed - Page 16Wood Frame Walls, Plumb - Page 16Wood Beam/Post, Split - Page 16Exterior Sheathing and Sub-flooring - Page 16Wood Floor, Square - Page 16

4.2 Finish Carpentry - Page 16Exterior Trim - Page 16Interior Trim - Page 16Interior Trim, Split - Page 16Interior Trim, Hammer Marks - Page 17Exposed Nail Heads, Woodwork - Page 17

55.. TThheerrmmaall aanndd MMooiissttuurree PPrrootteeccttiioonn -- PPaaggee 11775.1 Waterproofing - Page 17

Basement, Foundation, Crawl-space, Leaks - Page 175.2 Insulation - Page 17

Insufficient Insulation - Page 17Sound Transmission - Page 17

5.3 Ventilation and Noise Control - Page 18Crawl-Spaces, Inadequate Ventilation, Moisture Control - Page 18Attics/Roofs, Inadequate Ventilation, Moisture Control - Page 18Attic Vents/Louvers, Leak - Page 18Exhaust Fans, Bath/Kitchen, Vented Into Attic - Page 18

5.4 Sealants - Page 185.5 Exterior Siding - Page 19

Siding, Delamination, Splitting, Deterioration - Page 19Siding, Loose or Fallen - Page 19Siding, Bowed - Page 19Siding, Nails Stains - Page 19

5.6 Roofing - Page 19Roof or Flashing Leaks - Page 19Roof Shingles, Blown Off - Page 19Shingles, Defective - Page 19Standing Water, Built-Up Roofs - Page 20

5.7 Sheet Metal - Page 20Gutters and Downspouts, Leak - Page 20Gutter, Water Remains - Page 20

66.. DDoooorrss aanndd WWiinnddoowwss -- PPaaggee 22006.1 Doors, Interior/Exterior - Page 20

Doors, Interior/Exterior, Warpage - Page 20Doors, Binding, Does not lock - Page 20Door Panels, Shrink - Page 20Door Panels, Split - Page 20Doors, Drag on carpet - Page 20Doors, Interior, Excessive Opening - Page 20

6.2 Garage Doors (Attached Garage) - Page 21Garage Door, Operation and Fit - Page 21

6.3 Wood, Plastic and Metal Windows - Page 21Window, Operation - Page 21Windows, Double Hung, Do No Stay Open - Page 21Windows, Condensation/Frost - Page 21

6.4 Hardware - Page 21Hardware, Operation - Page 21

6.5 Storm Doors, Windows and Screens - Page 21Storm Doors, Windows and Screens, Operation, Fit - Page 21

6.6 Weather-stripping and Seals - Page 21Doors and Windows, Drafts - Page 21

6.7 Glass and Glazing - Page 22Insulated Glass, Clouding and Condensation - Page 22

77.. FFiinniisshheess -- PPaaggee 22227.1 Lath and Plaster - Page 22

Plaster Walls and Ceiling, Cracks - Page 227.2 Drywall - Page 22

Drywall, Nail pops, Blisters, Blemishes - Page 22Drywall, Corner bead, Joint Compound, Trowel Marks,

Blisters - Page 227.3 Hard Surfaces - Page 22

Flooring, Broken, Loose - Page 22Grouting, Cracks - Page 22

7.4 Resilient Flooring - Page 23Resilient Flooring, Nail Pops - Page 23Resilient Flooring, Depressions or Ridges - Page 23Resilient Flooring, Adhesion - Page 23Resilient Flooring, Seams, Shrinkage - Page 23

7.5 Finished Wood Flooring - Page 23Wood Flooring, Cupping, Joints, Separation - Page 23

7.6 Painting - Page 24Paint, Knot and Wood Stains - Page 24Exterior Paint, Stain, Peels or Deteriorates - Page 24Painting, Repair Work - Page 24Painted Surfaces, Mildew or Fungus - Page 24Lacquer, Varnish, Deterioration - Page 24Paint, Interior Coverage - Page 24Paint, Splatter, Smears - Page 24

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7.7 Wall Covering - Page 24Wall Covering, Peeling - Page 24Wall Covering, Pattern Mismatched - Page 25Wall Covering, Homeowner Installed, Lumps and Ridges -

Page 257.8 Carpeting - Page 25

Carpet, Seams do not meet - Paint 25Carpet, Color Variations - Page 25Carpet, Stretch, Loosen - Page 25

88.. SSppeecciiaalliittiieess -- PPaaggee 22668.1 Fireplaces - Page 26

Fireplace, Chimney, Operation - Page 26Chimney, Separation - Page 26Hearth, Cracks - Page 26

99.. CCaabbiinneettss aanndd VVaanniittiieess -- PPaaggee 22669.1 Kitchen Cabinets and Vanities - Page 26

Cabinet Doors, Drawers, Bind - Page 26Cabinet Doors, Drawers Warping - Page 26Cabinets, Gaps - Page 26

9.2 Countertops - Page 26Countertops, Surface Cracks, De-lamination - Page 26

1100.. MMeecchhaanniiccaall -- PPaaggee 227710.1 Plumbing - Page 27

Faucet, Valve, Leak - Page 27Plumbing Fixtures, Fittings, Appliances Defective - Page 27

10.2 Water Supply - Page 27Plumbing, Fixtures, Staining - Page 27Water Pipes, Noisy - Page 27

10.3 Heating and Air Conditioning- Page 27Heat Inadequate - Page 27Cooling Inadequate - Page 27Ductwork, Heating Piping, Insulation - Page 28Condensation Lines, Clog - Page 28Evaporative Cooling, Operation - Page 28Ductwork, Noise - Page 28Ductwork, Oil Canning - Page 28

1111.. EElleeccttrriiccaall CCoommppoonneennttss -- PPaaggee 228811.1 Switches and Receptacles - Page 28

Electrical Outlets, Drafts - Page 28Electrical outlets, Switches, Fixtures Malfunction - Page 28Light Fixture, Tarnish - Page 29

11.2 Service and Distribution - Page 29Ground Fault Interrupter (GFCI) Trips - Page 29

2 YEAR SYSTEMS

1122.. MMeecchhaanniiccaall -- PPaaggee 229912.1 Septic Tank Systems - Page 29

Septic Tank, Operation - Page 2912.2 Plumbing - Page 29

Plumbing Pipes, Freeze - Page 29Plumbing Pipes, Leak - Page 30Sanitary Sewers, Waster, Drain Lines Clog - Page 30

12.3 Water Supply - Page 30Water Supply, Fails - Page 30

12.4 Heating and Air Conditioning - Page 30Refrigerant Lines, Leak - Page 30Ductwork, Separates - Page 30

1133.. EElleeccttrriiccaall SSyysstteemm -- PPaaggee 330013.1 Electrical Conductors - Page 30

Wiring, Designed Load, Failure - Page 30

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ITEMS COVERED UNDER THE 1-YEAR WORKMANSHIP COVERAGE

1. Site Work1.1 GradingSettling of ground aroundfoundation, utility trenches or otherareas on the property whereexcavation and backfill have takenplace that affect drainage awayfrom Home.

Settling of ground aroundfoundation walls, utility trenches orother filled areas that exceeds amaximum of six inches fromfinished grade establishedby Builder/Seller.

If Builder/Seller has provided finalgrading, Builder/Seller shall fillsettled areas affecting properdrainage, one time only, during thefirst year Warranty Term. You areresponsible for removal andreplacement of shrubs and otherlandscaping affected by placementof the fill.

1.2 DrainageImproper surface drainage. Necessary grades and swales

shall be established to provideproper drainage away from theHome. Site drainage, under theLimited Warranty, is limited togrades within 10-feet and swaleswithin 20-feet of the foundation ofthe Home. Standing or pondingwater shall not remain in theseareas for a period longer than 24-hours after a rain, except in swalesthat drain from adjoining propertiesor where a sump pump discharges.In these areas an extended periodof 48-hours is to be allowed forwater to dissipate. The possibilityof standing water after anunusually heavy rainfall should beanticipated and is not to beconsidered a deficiency. Nograding determination is to bemade while there is frost or snowor when the ground is saturated.

Builder/Seller is only responsible forinitially establishing the propergrades, swales and drainage awayfrom Home. You are responsiblefor maintaining such grades andswales once constructed by theBuilder/Seller. Builder/Seller is notresponsible for drainagedeficiencies attributable to gradingrequirements imposed by state,county, or local governing agencies.

Standing or ponding water outsideof defined swales and beyond 10-feet from the foundation of theHome, or that is within 10-feet butis caused by unusual gradeconditions, or retention of treedareas, is not considered adeficiency. Standing or pondingwater caused by changes in thegrade or placement of sod, fencing,or any other obstructions by Youare excluded from LimitedWarranty coverage.

Soil Erosion NONE. NO COVERAGE. NONE. Builder/Seller is notresponsible for soil erosion due toacts of God or other conditionsbeyond the Builder/Seller’s control.

Soil erosion and runoff caused byfailure of You to maintain theproperly established grades,drainage structures and swales;stabilized soil, sodded, seeded andlandscaped areas; are excludedfrom Limited Warranty coverage.

Grassed or landscaped areas,which are disturbed or damageddue to work performed byBuilder/Seller on the property incorrecting a deficiency.

Landscaped areas that aredisturbed during repair workare deficiencies.

Restore grades, seed and landscapeto meet original condition.

Builder/Seller is not responsible forgrassed or landscaped areas whichare damaged by others, includingany work performed by public orprivate utility companies.

Replacement of trees and largebushes that existed at the time Homewas constructed or those added byYou after occupancy or those thatsubsequently die are excluded fromLimited Warranty coverage.

2. Foundation and Concrete2.1 Cast-In Place ConcreteBasement or foundation wallcracks, other than expansion or control joints.

Concrete cracks greater than 1/4-inch in width, or which allowexterior water to leak intobasement, are deficiencies.

Repair non-structural cracks bysurface patching. These repairsshould be made toward the end ofthe first year of Limited Warrantycoverage to permit normalstabilizing of the Home by settling.

Shrinkage cracks are not unusualand are inherent in the concretecuring process.

Deficiency Construction Performance Builder/Seller/Warrantor Responsibility ExclusionGuidelines

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Cracking of basement floor. Minor cracks in concrete basementfloors are common. Cracksexceeding 1/4-inch in width or 3/16-inch in vertical displacementare deficiencies.

Repair cracks exceeding maximumtolerance by surface patching orother methods, as required.

Cracking of attached garagefloor slab.

Cracks in concrete garage floorgreater than 3/16-inch in width or3/16-inch in vertical displacementare deficiencies.

Builder/Seller shall repair excessivecracks in the slab by filling, chippingout and surface patching, or othersuitable method to meet theConstruction PerformanceGuideline. Repaired area may notmatch the existing floor in color andtexture.

Builder/Seller is not responsible forcracking or deterioration caused bythe storage of unusually heavyequipment or placement ofexcessive loads that exceed theweight of a typical automobile or lighttruck, or by other factors beyond theBuilder/Seller’s control. Movementand the resulting cracking may beminimized by good drainage, properinstallation of landscaping andsuitable maintenance.

Cracks in attached patio slaband sidewalks.

NONE. NO COVERAGE. NONE. NO COVERAGE is provided for thiselement under the Limited Warranty.

Cracks in concrete slab-on-gradefloors, with finish flooring.

Cracks that rupture or significantlyimpair the appearance orperformance of the finish flooringmaterial are deficiencies.

Repair cracks as required so as notto be apparent when the finishflooring material is in place. Repairor replace finish flooring.

Uneven concrete floor slabs. Except for basement floors orwhere a floor or a portion of floorhas been designed for specificdrainage purposes, concrete floorsin rooms finished for habitability byBuilder/Seller shall not have pits,depressions or area or unevennessexceeding 3/8-inch in 32-inches.

Repair/replace to meet theConstruction PerformanceGuidelines. Where applicable,surface patching is an acceptedmethod of repair. Reinstall orreplace any finish flooring materialas necessary.

Interior concrete work is pitting,scaling, or spalling.

Interior concrete surfaces thatdisintegrate to the extent thataggregate is exposed andloosened under normal conditionsof use are deficiencies.

Builder/Seller shall take whatevercorrective action is necessary torepair or replace defectiveconcrete surfaces.

Builder/Seller is not responsible fordeterioration caused by salt,chemicals, mechanicalimplements, or other factorsbeyond the Builder/Seller’s control.

Efflorescence is present on surfaceof basement floor.

NONE. NO COVERAGE. NONE. This is a normal condition.

Separation of brick or masonryedging from concrete slab or step.

It is common for the joint to crackbetween concrete and masonry dueto the dissimilarity of the materials.Cracks in excess of 1/4-inch are adeficiency.

Grout crack fully and reset loosemasonry where required.Replacement of masonry material,if required, shall match the existingas closely as possible.

Cracking, settling or heaving ofstoops and steps.

Stoops and steps that have settled,heaved, or separated in excess of1-inch from Home are a deficiency

Builder/Seller will make areasonable and cost effective effortto meet the ConstructionPerformance Guideline.

2.2 Construction and Control JointsSeparation or movement ofconcrete slabs within the structureat construction and control joints.

NONE. NO COVERAGE. NONE. Concrete slabs within the structureare designed to move atconstruction and control joints andare not deficiencies. You areresponsible for maintenance ofjoint material.


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3. Masonry3.1 Unit Masonry (Brick, Blockand Stone)Cracks in masonry, brick, or stone veneer.

Small hairline cracks resulting fromshrinkage are common in mortarjoints of masonry construction.Cracks greater than 1/4-inch inwidth or are visible from a distancein excess of 20-feet aredeficiencies.

Builder/Seller will repair cracks thatexceed 1/4-inch by tuck pointingand patching. These repairs shouldbe made toward the end of the firstyear of Limited Warranty coverageto permit Home to stabilize andnormal settlement to occur.Builder/Seller is not responsible forcolor variations between existingand new mortar.

Cracks in concrete blockbasement walls.

Small shrinkage cracks that do notaffect the structural ability ofmasonry foundation walls are notunusual. Cracks 1/4-inch or greaterin width are deficiencies.

Builder/Seller shall investigate todetermine cause. Builder/Sellershall take the necessary steps toremove the cause and makerepairs by pointing and patching,reinforcement or replacement ofthe defective courses.

Concrete block basement wallis bowed.

Block concrete walls shall not bowin excess of 1-inch in 8 feet whenmeasured from the base to the topof the wall.

Builder/Seller shall repair basementwalls that are bowed in excess of 1-inch in 8 feet.

3.2 Stucco and Cement PlasterCracking or spalling of stucco andcement plaster.

Hairline cracks in stucco or cementplaster are common especially ifapplied directly to masonry back-up. Cracks greater than 1/8 inch inwidth or spalling of the finishsurfaces are deficiencies.

Scrape out cracks and spalledareas, one time only during the firstyear warranty term. Fill withcement plaster or stucco to matchfinish and color as close aspossible.

Builder/Seller is not responsible forfailure to match color or texture,due to nature of material.

Separation of coating from base onexterior stucco wall.

The coating shall not separate fromthe base on an exterior stucco wall.

Builder/Seller shall repair areaswhere the coating has separatedfrom the base.

Builder/Seller is not responsible forfailure to match color or texture, dueto the nature of the material.

4. Carpentry and Framing4.1 Plywood and Joists Loud and objectionable squeaks

caused by improper installation orloose subfloor are deficiencies, buta totally squeak-proof floor cannot be guaranteed.

Builder/Seller will refasten anyloose subfloor or take othercorrective action to reducesqueaking to the extent possiblewithin reasonable repair capabilitywithout removing floor and ceilingfinishes.

Floor squeaks may occur when asubfloor that has come loose fromthe joists is deflected by the weightof a person and rubs against thenails that hold it in place. Squeaksmay also occur when one joist isdeflected while the other membersremain stationary. Because theConstruction PerformanceGuidelines requires theBuilder/Seller to make a reasonableattempt to eliminate squeakswithout requiring removal of floorand ceiling finishes, nailing loosesubflooring with casing nails intothe carpet surface andcountersinking the head is an acceptable practice.Uneven wood framed floors. Wood floors shall not have more

than a 1/4-inch ridge or depressionwithin any 32-inch measurement.

Correct or repair to meet the Construction PerformanceGuidelines.


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Bowed stud walls or ceilings. All interior and exterior frame wallsor ceilings have slight variations onthe finish surfaces. Walls or ceilingsthat are bowed more than 1/2-inchwithin a 32-inch horizontalmeasurement; or 1/2-inch withinany 8-foot vertical measurement,are deficiencies.

Exterior and interior frame wallsor ceilings bowed in excess ofthe allowable standard shall becorrected to meet theallowances of the ConstructionPerformance Guidelines.

Wood frame walls out of plumb. Wood frame walls that are morethan 3/8-inch out of plumb for any32-inch vertical measurement area deficiency.

Make necessary repairs to meet theConstruction Performance Guidelines.

Wood beam or post is split. Beams or posts, especially those 21/2-inches or greater in thickness,will sometimes split as they drysubsequent to construction.Unfilled splits exceeding 1/4-inch inwidth and all splits exceeding 3/8-inch in width and more than 4inches in length are deficiencies.

Builder/Seller shall repair or replaceas required. Filling splits isacceptable for widths up to 3/8-inch.

Some characteristics of dryingwood are beyond the control of thebuilder and cannot be prevented.

Exterior sheathing and subflooringwhich delaminates or swells.

Sheathing and subflooringdelaminating or swelling on the sidethat the finish material has beenapplied is a deficiency.

Builder/Seller shall repair or replacesubflooring or sheathing asrequired. Replacement of the finishmaterials, when necessary, shall bedone to match the existing finish asclosely as possible.

Wood floor is out of square. The diagonal of a triangle with sidesof 12-feet and 16-feet along theedges of the floor shall be 20-feetplus or minus 1/2-inch.

Builder/Seller shall make necessarymodifications to any floor notcomplying with the ConstructionPerformance Guidelines.

4.2 Finish CarpentryUnsatisfactory quality of finishedexterior trim and workmanship.

Joints between exterior trimelements and siding or masonry,which are in excess of 1/4-inch, aredeficiencies. In all cases, theexterior trim abutting masonrysiding shall be capable ofperforming its function to excludethe elements.

Repair open joints and touch upfinish coating where required tomatch existing as closely aspossible. Caulk open jointsbetween dissimilar materials.

Unsatisfactory quality of finishedinterior trim and workmanship.

Joints between moldings andadjacent surfaces that exceed 1/8-inch in width are deficiencies.

Repair defective joints and touch upfinish coating where required tomatch as closely as possible.Caulking is acceptable.

Interior trim is split. NONE. NO COVERAGE. NONE. Splits, cracks, and checking areinherent characteristics of allwood products, and are notconsidered deficiencies.


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Hammer marks visible on interior trim. Hammer marks on interior trim shallnot be readily visible from adistance of 6 feet under normallighting conditions.

Builder/Seller shall fill hammer marksand refinish or replace affected trim tomeet the Construction PerformanceGuidelines. Refinished or replacedareas may not match surroundingareas exactly.

Exposed nail heads in woodwork. Setting nails and filling nail holesare considered part of paintingand finishing. After painting orfinishing, nails and nail holes shallnot be readily visible from adistance of 6 feet under normallighting conditions.

Fill nail holes where required and ifnecessary, touch up paint, stain, orvarnish to match as closelyas possible.

Nail holes do not have to be filledwhere the surface finish is notconducive or so designed to havenail holes filled because of theproduct. Nail holes in base and trimin unfinished rooms or closets donot have to be filled.

5. Thermal and MoistureProtection5.1 WaterproofingLeaks in basement or infoundation/crawl space.

Leaks resulting in actual trickling ofwater through the walls or seepingthrough the floor are deficiencies.

Take such action as is necessary tocorrect basement and crawl spaceleaks, except where the cause isdetermined to be the result of Yournegligence. Where a sump pit hasbeen installed by Builder/Seller inthe affected area but the sumppump was not contracted for orinstalled by Builder/Seller, no actionis required until a properly sizedpump is installed by You in anattempt to correct the condition.Should the condition continue toexist, then Builder/Seller shall takenecessary action to correct theproblem.

Leaks caused by landscapingimproperly installed by You orfailure by You to maintain propergrades are excluded from LimitedWarranty coverage. Dampness inbasement and foundation walls orin concrete basement and crawlspace floors is often common tonew construction and is not a deficiency.

5.2 InsulationInsufficient insulation. Insulation that is not installed

around all habitable areas inaccordance with established localindustry standards is a deficiency.

Builder/Seller shall installinsulation of sufficient thicknessand characteristics to meet thelocal industry standards. In thecase of dispute, cost forinvestigating the sufficiency ofinsulation and restoring areas toprior condition is to be borne byYou if it is found that the standardhas been met by Builder/Seller.

Sound transmission betweenrooms, floor levels, adjoiningcondominium units in a building, orfrom the street into Home.

NONE. NO COVERAGE. NONE. NO COVERAGE is provided forsoundproofing.


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5.3 Ventilation and MoistureControlInadequate ventilation or moisturecontrol in crawl spaces.

Crawl spaces shall have adequateventilation to remove moisture orother approved method ofmoisture control. Ventilation orother moisture control methodsshall be considered inadequate ifthere is damage to supportingmembers or insulation due tomoisture accumulation.

Builder/Seller shall investigate todetermine cause, and makenecessary repairs. Correctiveaction may include theinstallation of properly sizedlouvers, vents, vapor barrier, orother locally approved method ofmoisture control.

Temporary conditions may causecondensation in crawl spaces thatcan not be eliminated by ventilationand/or vapor barrier. Night air maycool foundation walls and provide acool surface on which moisturemay condense. In Homes that areleft unheated in the winter, theunderside of floors may provide acold surface on which warmercrawl space air may condense.These and other similar conditionsare beyond the Builder/Seller’scontrol. Maintaining adequate heatand seasonal adjustment of ventsis Your responsibility.

Inadequate ventilation or moisturecontrol in attics or roofs.

Attics or roofs shall have adequateventilation to remove moisture, orother approved method ofmoisture control. Ventilation orother moisture control methodsshall be considered inadequate ifthere is damage to supportingmembers or insulation due tomoisture accumulation.

Builder/Seller shall investigate todetermine cause, and makenecessary repairs. Correctiveaction may include theinstallation of properly sizedlouvers, vents, vapor retarder, orother locally approved method ofmoisture control.

You are responsible for keepingexisting vents unobstructed.

Locally approved and properlyconstructed “hot roof” or otheralternative roof designs may notrequire ventilation, and where thereis no evidence of moisture damageto supporting members orinsulation, are not deficiencies.

Attic vents or louvers leak. Attic vents and louvers shallnot leak.

Builder/Seller shall repair orreplace the roof vents as necessaryto meet the ConstructionPerformance Guidelines.

Infiltration of wind-driven rain andsnow are not considered leaks andare beyond the control ofthe Builder/Seller.

Bath or kitchen exhaust fansimproperly vented into attic.

Bath or kitchen exhaust fans thatare vented into attics causingmoisture to accumulate resulting indamage to supporting members orinsulation, are deficiencies.

Builder/Seller shall vent exhaustfans to the outside to correctdeficiencies.

5.4 SealantsWater or air leaks in exterior wallsdue to inadequate caulking.

Joints and cracks in exterior wallsurfaces and around openings thatare not properly caulked to excludethe entry of water or excessivedrafts are a deficiency.

Repair and/or caulk joints inexterior wall surfaces as requiredto correct deficiency one time onlyduring the first year of LimitedWarranty coverage.

You must maintain caulking oncethe condition is corrected.


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5.5 Exterior SidingDelamination, splitting, ordeterioration of exterior siding.

Exterior siding that delaminates,splits or deteriorates is a deficiency.

Repair/replace only the damagedsiding. Siding to match the originalas closely as possible, however,You should be aware that the newfinish may not exactly match theoriginal surface texture or color.

Delaminated siding due to Youractions or neglect, such asdelamination caused by sprinklersystem repeatedly wetting siding, isnot a deficiency.

Loose or fallen siding. All siding that is not installedproperly, which causes same tocome loose or fall off, isa deficiency.

Reinstall or replace siding andmake it secure.

Loose or fallen siding due to Youractions or neglect, such as leaningheavy objects against siding,impact, or sprinkler systemsrepeatedly wetting siding, is nota deficiency.

Siding is bowed. Bows exceeding 1/2-inch in 32-inches are deficiencies.

Builder/Seller will repair bowedsiding to meet standard. Ifreplacement of siding is required,Builder/Seller will match originalmaterial as closely as possible.You should be aware that the newfinish may not exactly match theoriginal surface texture or color.

Bowed siding due to Your actionsor neglect, such as bowing causedby sprinkler system repeatedlywetting siding, is not a deficiency.

Nails have stained siding. Nail stains exceeding 1/2-inch inlength and visible from a distance of20-feet are deficiencies.

Builder/Seller shall correct by eitherremoving stains, painting, orstaining the affected area.Builder/Seller shall match color andfinish as closely as possible. Wherepaint or stain touch up affects themajority of the wall surface, thewhole area shall be refinished.

“Natural weathering” or semi-transparent stains are excludedfrom coverage.

5.6 RoofingRoof or flashing leaks.

Roof or flashing leaks that occurunder normal weather conditionsare deficiencies.

Correct any roof or flashing leaksthat are verified to have occurredunder normal weather conditions.

Where cause of leaks isdetermined to result from severeweather conditions such as ice andsnow build-up, high winds anddriven rains, such leaks arenot deficiencies.

Roof shingles have blown off. Shingles shall not blow off in windsless than the manufacturer’sstandards or specifications.

Builder/Seller will replace shinglesthat blow off in winds less than themanufacturer’s standards orspecifications only if improperinstallation is shown to bethe cause.

Shingles that blow off in winds lessthan the manufacturer’s standardsor specifications due to amanufacturing defect in theshingles are the manufacturer’sresponsibility.Shingles that blow off in hurricanes,tornadoes, hailstorms, or winds,including gusts greater than 60miles per hour, are not deficiencies.You should consultshingle manufacturer’s warrantyfor specifications, standards,and manufacturer’s warrantyresponsibility if shingles blow off inhigher wind speeds.

Defective shingles. NONE. NO COVERAGE. NONE Manufacturing defects in shinglesare not covered under the LimitedWarranty. You should consultshingle manufacturer’s warranty forspecifications, standards, andmanufacturer’s warranty responsibility.


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Standing water on built-up roofs. Water shall drain from a flat orlow-pitched roof within 24-hoursof a rainfall.

Builder/Seller will take correctiveaction to assure proper drainage ofthe roof.

Minor ponding or standing of wateris not considered a deficiency.

5.7 Sheet MetalGutters and downspouts leak. Gutters and downspouts that leak

are deficiencies. Repair leaks in gutters anddownspouts.

Water remains in gutters aftera rain.

Small amounts of water may remainin some sections of gutter for ashort time after a rain. Standingwater in gutters shall not exceed1/2-inch in depth.

Builder/Seller will repair gutters toassure proper drainage.

You are responsible for keepinggutters and downspouts free fromdebris that would obstruct drainage.

6. Doors and Windows6.1 Doors: Interior and ExteriorWarpage of interior or exterior doors.

Interior and exterior doors that warpso as to prevent normal closing andfit are deficiencies. The maximumallowable warpage of an interiordoor is 1/4-inch when measuredfrom corner to corner.

Repair or replace as may berequired. New doors to berefinished to match the original asclosely as possible.

Door binds against jamb or head offrame or does not lock.

Passage doors that do not openand close freely without bindingagainst the doorframe aredeficiencies. Lock bolt is to fitthe keeper to maintain a closed position.

Adjust door and keeper tooperate freely.

Wood doors may stick duringoccasional periods of high humidity.

Door panels shrink and exposebare wood.

NONE. NONE. Door panels will shrink due to thenature of the material, exposingbare wood at the edges and arenot deficiencies.

Door panels split. Door panels that have split to allowlight to be visible through the doorare deficiencies.

If light is visible, fill crack andfinish panel to match as closelyas possible. Correct one timeonly during first year of LimitedWarranty coverage.

Bottom of doors drag on carpetsurface.

Where it is understood byBuilder/Seller and You carpet isplanned to be installed as floorfinish by Builder/Seller, the bottomof the doors which drag on thecarpet are deficiencies.

Undercut doors as required. Where carpet is selected by Youhaving excessive high pile, the Youare responsible for any additionaldoor undercutting.

Excessive opening at the bottom ofinterior doors

Passage doors from room to roomthat have openings between thebottom of the door and the floorfinish material in excess of 1 1/2-inches are deficiencies. Closetdoors having an opening in excessof 2-inches are deficiencies.

Make necessary adjustment orreplace door to meet therequired tolerance.


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6.2 Garage Doors (AttachedGarage)Garage door fails to operate orfit properly.

Garage doors that do not operateand fit the door opening within themanufacturer’s installation tolerancesare deficiencies. Some entrance ofthe elements can be expectedunder heavy weather conditionsand is not considered a deficiency.

Make necessary adjustments tomeet the manufacturer’sinstallation tolerances.

No adjustment is required whencause is determined to result fromanyone but Builder/Seller’s orBuilder/Seller’s subcontractors’installation of an electric door

6.3 Wood, Plastic and MetalWindowsWindow is difficult to open or close. Windows should require no greater

operating force than that describedin the manufacturer’s specifications.

Builder/Seller shall correct or repairas required to meet manufacturer’sspecifications.

Double hung windows do not stay inplace when open.

Double hung windows arepermitted to move within a two inchtolerance, up or down when put inan open position. Any excessivemovement exceeding the toleranceis a deficiency.

Adjust sash balances one time onlyduring the first year of LimitedWarranty coverage. Wherepossible, Builder/Seller will instructYou on the method of adjustmentfor future repair.

Condensation or frost on windowframes and glass.

NONE. NONE. Window glass and frames willcollect condensation on the frameand glass surface when humidityand temperature differences arepresent. Condensation is usuallythe result of temperature/humidityconditions in the Home.

6.4 HardwareA doorknob, deadbolt, or locksetdoes not operate smoothly.

A doorknob, deadbolt, or locksetshould not stick or bind duringoperation.

Builder/Seller will adjust, repair, orreplace knobs that are notdamaged by abuse, one time onlyduring the first year Warranty Term.

6.5 Storm Doors, Windows andScreensStorm doors, windows and screensdo not operate or fit properly.

Storm doors, windows andscreens, when installed, whichdo not operate or fit properly toprovide the protection for whichthey are intended, areconsidered deficiencies.

Builder/Seller shall make necessaryadjustments for proper fit andoperation. Replace whenadjustment cannot be made.

Missing screens, rips or gouges inthe screen mesh are not coveredby this Limited Warranty.

6.6 Weatherstripping and SealsDrafts around doors and windows. Some infiltration is usually

noticeable around doors andwindows, especially during highwinds. No daylight shall be visiblearound frame when window orexterior door is closed.

Builder/Seller shall repair to meet Construction PerformanceGuidelines.

In high wind areas, You may needto have storm windows and doorsinstalled to eliminate drafts.


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6.7 Glass and GlazingClouding and condensation oninside surfaces of insulated glass.

Insulated glass that clouds up orhas condensation on the insidesurfaces of the glass is a deficiency.

Builder/Seller shall replace glass inaccordance with window and glassmanufacturer’s requirements.

7. Finishes7.1 Lath and PlasterCracks in plaster wall andceiling surfaces.

Hairline cracks are not unusual.Cracks in plaster wall and ceilingsurfaces exceeding 1/16-inch inwidth are deficiencies.

Builder/Seller shall repair cracksthat are greater than 1/16-inch inwidth and touch up paint to matchas closely as possible, one timeonly. Such conditions should bereported near the end of the firstyear of Limited Warranty coverageto allow for normal movement inHome.

7.2 DrywallDrywall cracks. Hairline cracks are not unusual.

Cracks in interior gypsum board orother drywall materials exceeding1/16-inch in width are deficiencies.

Builder/Seller shall repair cracksthat are greater than 1/16-inch inwidth and touch up paint to matchas closely as possible, one timeonly. Such conditions should bereported near the end of the firstyear of Limited Warranty coverageto allow for normal movement inHome.

Nail pops, blisters, or other blemishis visible on finished wall or ceiling.

Nail pops and blisters that arereadily visible from a distance of 6feet under normal lightingconditions are deficiencies.

Builder/Seller will repair suchblemishes, and touch up paint tomatch as closely as possible, onetime only. Such conditions shouldbe reported near the end of the firstyear of Limited Warranty coverageto allow for normal settlement ofthe Home.

Depressions or slight mounds atnail heads are not considereddeficiencies. Builder/Seller is notresponsible for nail pops or blistersthat are not visible, such as thosecovered by wallpaper.

Cracked corner bead, excess jointcompound, trowel marks, or blisters in tape joints.

Cracked or exposed corner bead,trowel marks, excess jointcompound, or blisters in drywall tape, are deficiencies.

Builder/Seller will repair to meetConstruction PerformanceGuidelines, and touch up paint tomatch as closely as possible, onetime only. Such conditions shouldbe reported near the end of thefirst year of Limited Warrantycoverage to allow for normalsettlement of the Home.

7.3 Hard Surfaces Flagstone, Marble, Quarry Tile,Slate, or other hard surfaceflooring is broken or loose.

Tile, flagstone, or similar hardsurfaced sanitary flooring thatcracks or becomes loose is adeficiency. Subfloor and wallboardare required to be structurallysound, rigid, and suitable toreceive finish.

Builder/Seller shall replacecracked tiles, marble, or stoneand resecure loose tiles, marble,or stone flooring.

Cracking and loosening of flooringcaused by Your negligence is not adeficiency. Builder/Seller is notresponsible for color and patternvariations or discontinued patternsof the manufacturer.

Cracks appear in grouting ofceramic tile joints or at junctionswith other material such as abathtub, shower, or countertop.

Cracks in grouting of ceramic tilejoints in excess of 1/16-inch aredeficiencies. Regrouting of thesecracks is Your maintenanceresponsibility after theBuilder/Seller has regrouted once.

Builder/Seller shall repairgrouting as necessary one timeonly within the first year ofLimited Warranty coverage.

Open cracks or loose grouting,where the wall surface abuts theflashing lip at a tub, shower basin,or countertop are considered Yourmaintenance and any resultantdamage to other finish surfacesdue to leaks, etc. are notconsidered deficiencies.

Glass breakage is excluded.


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7.4 Resilient FlooringNail pops appear on the surface ofresilient flooring.

Readily apparent nail popsare deficiencies.

Builder/Seller shall correct nail popsthat have caused damage to thefloor material and repair or replacedamaged floor covering in theaffected area. Builder/Seller is notresponsible for discontinuedpatterns or color variations.

Depressions or ridges appear inthe resilient flooring due tosubfloor irregularities.

Readily apparent depressions orridges exceeding 1/8-inch are adeficiency. The ridge or depressionmeasurement is taken as the gapcreated at one end of a 6-inchstraight edge placed over thedepression or ridge with 3-incheson one side of the deficiency heldtightly to the floor.

Builder/Seller shall take requiredaction to bring the deficiency withinacceptable tolerances so as to benot readily visible. Builder/Seller isnot responsible for discontinuedpatterns or color variations in thefloor covering, Your neglect orabuse, nor installations performedby others.

Resilient flooring or baseloses adhesion.

Resilient flooring or base that lifts,bubbles, or becomes unglued isa deficiency.

Builder/Seller shall repair or replaceresilient flooring or base as required.Builder/Seller is not responsible fordiscontinued patterns or colorvariations.

Seams or shrinkage gaps show atresilient flooring joints.

Gaps in excess of 1/32-inch in widthin resilient floor covering joints aredeficiencies. Where dissimilarmaterials abut, a gap in excess of1/8-inch is a deficiency.

Builder/Seller shall repair or replacethe resilient flooring to meet theConstruction PerformanceGuidelines. Builder/Seller is notresponsible for discontinuedpatterns or color variations of floorcovering. Proper repair can beaffected by sealing gap with seamsealer.

7.5 Finished Wood FlooringCupping, open joints, orseparations in wood flooring.

Open joints or separations betweenfloorboards of finished woodflooring shall not exceed 1/8-inch in width. Cups in stripfloorboards shall not exceed 1/16-inch in height in a 3-inch maximumdistance when measuredperpendicular to the length ofthe board.

Builder/Seller shall determine thecause and if the result of adeficiency in workmanship ormaterial, correct one time only. Forrepairable deficiencies, repaircracks by filling and refinishing tomatch the wood surface as closelyas possible. For non-repairabledeficiencies, replace and finishaffected area to match remainingflooring as closely as possible.

Wood floors are subject toshrinkage and swell due toseasonal variations in the humiditylevel of Home. While boards maybe installed tight together, gaps orseparations may appear duringheating seasons or periods of lowhumidity. Gaps or separations thatclose during non-heating seasonsare not considered deficiencies.You should be familiar with therecommended care andmaintenance requirements of theirwood floor. Repeated wetting anddrying, or wet mopping maydamage wood finishes. Dimples orscratches can be caused bymoving furniture or dropping heavyobjects, and certain high heel styleshoes may cause indentations.These conditions are not coveredby the Limited Warranty.


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7.6 PaintingKnot and wood stains appearthrough paint on exterior.

Excessive knot and wood stainsthat bleed through the paint areconsidered deficiencies.

Builder/Seller shall seal affectedareas where excessive bleedingof knots and stains appear, onetime only during the firstWarranty Term. Builder/Sellerwill touch-up paint to match asclosely as possible.

Exterior paint or stain peelsor deteriorates.

Exterior paints or stains that peel ordeteriorate during the first year ofownership are deficiencies.

Builder/Seller shall properly prepareand refinish affected areas,matching color as closely aspossible. Where finish repairs affectthe majority of the surface areas,the whole area should berefinished. The Limited Warranty onthe newly repainted surfaces willnot extend beyond the originalWarranty Term.

Fading, however, is normal andsubject to the orientation of paintedsurfaces to the climactic conditionswhich may prevail in the area.Fading is not a deficiency.

Painting required as corollary repairbecause of other work.

Necessary repair of a paintedsurface under this LimitedWarranty is to be refinished tomatch surrounding areas as closelyas possible.

Builder/Seller shall refinish repairedareas to meet the standard asrequired.

Mildew or fungus forms on paintedor factory finished surfaces.

NONE. NO COVERAGE. NONE. Mildew or fungus that forms on apainted or factory finished surfacewhen the surface is subject tovarious exposures (e.g.: ocean,lake, riverfront, heavily woodedareas or mountains) is nota deficiency.

Deterioration of varnish or lacquerfinishes.

Natural finish on interior woodworkthat deteriorates during the firstyear of Limited Warranty coverageis a deficiency.

Builder/Seller shall refinish affectedareas of natural finished interiorwoodwork, matching the color asclosely as possible.

Varnish-type finishes used onexterior surfaces will deterioraterapidly and are not covered by theLimited Warranty.

Interior paint coverage. Wall, ceiling, and trim surfaces thatare painted shall not show throughnew paint when viewed from adistance of 6-feet under normallighting conditions.

Builder/Seller shall repaint wall,ceiling or trim surfaces whereinadequate paint has been applied.Where the majority of the wall orceiling surface is affected the entirearea will be painted from breaklineto breakline. Builder/Seller is notrequired to repaint an entire roomunless all walls and ceiling havebeen affected.

Paint splatters and smears on finishsurfaces.

Paint splatters on walls,woodwork, or other surfaceswhich are excessive, shall not bereadily visible when viewed from adistance of 6-feet under normallighting conditions.

Builder/Seller shall remove paintsplatters without affecting the finishof the material, or replace thedamaged surface if paint cannot beremoved.

Minor paint splatter and smearson impervious surfaces that canbe easily removed by normalcleaning methods are consideredto be Your maintenance and arenot deficiencies.

7.7 Wall CoveringPeeling of wallcovering installedby Builder/Seller.

Peeling of wallcovering is adeficiency, unless it is due to Yourabuse or negligence.

Builder/Seller shall repair or replacedefective wallcovering.


Wallpaper applied in highmoisture areas is exempt fromthis Guideline because theproblem results from conditionsbeyond the builder’s control.

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Pattern in wallcovering ismismatched at the edges.

Pattern in wallcovering shall matchat the edges.

Builder/Seller shall removemismatched wallcovering and replace.Builder/Seller is not responsible fordiscontinued or variations in color.

Defects in the wallcoveringpatterns are the manufacturer’sresponsibility, and excluded fromLimited Warranty coverage.

Lumps and ridges and nail pops inwallboard that appear after theHomeowner has wallcoveringinstalled by others.

NONE. NO COVERAGE. NONE. You shall insure that the surface toreceive wallcovering is suitableand assumes full responsibilityshould lumps, ridges, and nailpops occur at a later date.

7.8 CarpetingCarpet does not meet at the seams. It is not unusual for carpet seams to

show. However, a visible gap oroverlapping at the seam due toimproper installation is a deficiency.

Builder/Seller shall correct toeliminate visible gap oroverlapping at the seam.

Carpet material is not coveredunder the Warranty.

Color variations in carpet. NONE. NO COVERAGE. NONE. Colors may vary by dye lot, andfrom one end to another in thesame roll. Side to side shadingmay show at most if not all seams,even where the same dye lot isused. Carpet material is notcovered under the LimitedWarranty. You should consultcarpet manufacturer’s warranty forspecifications, standards, andmanufacturer’s warrantyresponsibility for color variations.

Carpeting loosens, or the carpetstretches.

When stretched and securedproperly, wall-to-wall carpetinginstalled as the primary floorcovering shall not come up, loosen,or separate from the pointsof attachment.

Builder/Seller will restretch orresecure carpeting to meetConstruction PerformanceGuidelines one time only during thefirst year of Limited Warrantycoverage.


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8. Specialties8.1 FireplacesFireplace or chimney does notdraw properly causing smoke toenter home.

A properly designed andconstructed fireplace or chimneyshall function correctly. High windscan cause temporary negative ordown drafts. Negative drafts canalso be caused by obstructionssuch as tree branches, steephillsides, adjoining homes, andinterior furnaces. In some cases, itmay be necessary to open awindow slightly to create aneffective draft. Since negative draftconditions could be temporary, it isnecessary for the homeowner tosubstantiate the problems to theBuilder/Seller by constructing a fireso the condition can be observed.

When determined the malfunctionis based upon improperconstruction of the fireplace, theBuilder/Seller shall take thenecessary steps to correct theproblem, one time only during thefirst year Warranty Term.

When it is determined that thefireplace is properly designed andconstructed, but still malfunctionsdue to natural causes beyondBuilder/Seller’s control,Builder/Seller is

Chimney separation from structureto which it is attached.

Newly built fireplaces will oftenincur slight amounts ofseparation. Separation thatexceeds 1/2-inch from the mainstructure in any 10-foot verticalmeasurement is a deficiency.

Builder/Seller shall correct.Caulking or grouting is acceptableunless the cause of the separationis due to structural failure of thechimney foundation. In that case,caulking is unacceptable.

Cracks in masonry hearth or facing. Small hairline cracks in mortar jointsresulting from shrinkage are notunusual. Heat and flames fromnormal fires can cause cracking

None. Heat and flames from normal firescan cause cracking of firebrick andmortar joints. This should beexpected, and is not covered by theLimited Warranty.

9. Cabinets and Vanities9.1 Kitchen Cabinets and VanitiesKitchen and vanity cabinet doorsand drawers bind.

Cabinet doors and drawersshall open and close withreasonable ease.

Builder/Seller shall adjust or replacedoors and drawers as necessary tomeet Construction PerformanceGuidelines.

Warping of kitchen and vanitycabinet doors and drawer fronts.

Warpage that exceeds 1/4-inch asmeasured from the face of thecabinet frame to the furthermostpoint of warpage on the drawer ordoor front in a closed position isa deficiency.

Builder/Seller shall correct orreplace door or drawer front asrequired.

Gaps between cabinets, ceilingand walls.

Countertops, splash boards, baseand wall cabinets are to be securelymounted. Gaps in excess of 1/4-inch between wall and ceilingsurfaces are a deficiency.

Builder/Seller shall make necessaryadjustment of cabinets andcountertop or close gap by meansof moulding suitable to match thecabinet or countertop finish, or asclosely as possible; or otheracceptable means.

9.2 CountertopsSurface cracks and delaminationsin high pressure laminates of vanityand kitchen cabinet countertops.

Countertops fabricated with highpressure laminate coverings thatdelaminate or have surfacecracks or joints exceeding 1/16-inch between sheets areconsidered deficiencies.

Builder/Seller shall repair orreplace laminated surface coveringhaving cracks or joints exceedingthe allowable width.


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10. Mechanical 10.1 PlumbingFaucet or valve leak. A valve or faucet leak due to

material or workmanship is adeficiency and is covered onlyduring the first year of the Warranty.

Builder/Seller shall repair or replacethe leaking faucet or valve.

Leakage caused by worn ordefective washers or seals are Yourmaintenance item.

Defective plumbing fixtures,appliances or trim fittings.

Fixtures, appliances, or fittings shallcomply with their manufacturer’sstandards as to use and operation

NONE. Defective plumbing fixtures,appliances, and trim fittings arecovered under their manufacturer’swarranty.

10.2 Water SupplyStaining of plumbing fixtures due tohigh iron, manganese, or othermineral content in water.

NONE. NO COVERAGE. NONE. High iron and manganesecontent in the water supply systemwill cause staining of plumbingfixtures.

Maintenance and treatment of thewater is Your responsibility.

Noisy water pipes. Some noise can be expected fromthe water pipe system, due to theflow of water. However, the supplypipes should not make thepounding noise called “waterhammer”. “Water hammer” is adeficiency covered only during thefirst year of the Warranty.

Builder/Seller shall correct toeliminate “water hammer.”

Noises due to water flow and pipeexpansion are not considereddeficiencies.

10.3 Heating and Air ConditioningInadequate heat. A heating system shall be capable

of producing an inside temperatureof at least 70-degrees Fahrenheitas measured in the center of theroom at a height of five feet abovethe floor under local outdoor winterdesign conditions. NOTE FORHEATING: There may be periodswhen the outdoor temperature fallsbelow the design temperature,thereby lowering the temperaturein Home.

Builder/Seller shall correct heatingsystem as required to provide therequired temperatures if adeficiency exists.

Orientation of Home and location ofroom will also provide atemperature differential, especiallywhen the heating system iscontrolled by a single thermostat forone or more floor levels. You areresponsible for balancing dampersand registers and for making othernecessary minor adjustments.

Inadequate cooling. When air conditioning is provided,the cooling system is to be capableof maintaining a temperature of 78-degrees Fahrenheit as measured inthe center of each room at height offive feet above the floor, under localoutdoor summer design conditions.NOTE FOR AIR CONDITIONING:In the case of outside temperaturesexceeding 95-degrees Fahrenheit,the system shall keep the insidetemperature 15-degrees coolerthan the outside temperature.National, state, or localrequirements shall supersede thisguideline where such requirementshave been adopted by the localgoverning agency.

Correct cooling system to meet theConstruction PerformanceGuidelines during the first year ofLimited Warranty coverage.

Orientation of Home and location ofroom will also provide atemperature differential, especiallywhen the air-conditioning system iscontrolled by a single thermostat forone or more levels. You areresponsible for balancing dampersand registers and for making othernecessary minor adjustments.


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Ductwork and heating piping notinsulated in uninsulated area.

Ductwork and heating pipes thatare run in uninsulated crawl spaces,garages or attics are to beinsulated. Basements are not“uninsulated areas”, and noinsulation is required.

Builder/Seller shall install requiredinsulation.

Condensate lines clog up. NONE. NO COVERAGE. Builder/Seller shall provide cleanand unobstructed lines on EffectiveDate of Warranty.

Condensate lines will clog undernormal conditions. You areresponsible for continued operationof drain lines.

Improper mechanical operation ofevaporative cooling system.

Equipment that does not functionproperly at temperature standardset is a deficiency.

Builder/Seller shall correct and adjustso that blower and water systemoperate as designed during the firstyear of Limited Warranty coverage.

Ductwork makes noises. NONE. NO COVERAGE. NONE. When metal is heated, it expands,and when cooled, it contracts. Theresulting “ticking” or “crackling”sounds generally are to beexpected and are not deficiencies.

Ductwork makes excessively loudnoises known as “oil canning”.

The stiffening of the ductwork andthe gauge of metal used shall besuch that ducts do not “oil can”.The booming noise caused by oilcanning is a deficiency.

Builder/Seller shall take thenecessary steps to eliminate noisecaused by oil canning.

11. Electrical Components11.1 Switches and ReceptaclesFuses blow, or circuit breakerskick out.

Fuses and circuit breakers thatdeactivate under normal usage,when reset or replaced aredeficiencies during the first year ofLimited Warranty coverage.

Builder/Seller shall check allwiring and replace wiring orbreaker if it does not performadequately or is defective.

Drafts from electrical outlets. NONE. NO COVERAGE. NONE. The electrical junction box onexterior walls may produce a slightair flow whereby the cold air can bedrawn through the outlet into aroom. This problem is normal innew Home construction.

Malfunction of electrical outlets,switches, or fixtures.

All switches, fixtures and outletswhich do not operate as intendedare considered deficiencies onlyduring the first year of LimitedWarranty coverage.

Builder/Seller shall repair orreplace defective switches, fixturesand outlets.

Light fixture tarnishes. NONE. NO COVERAGE. NONE. Finishes on light fixtures may becovered under their manufacturer’swarranty.


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11.2 Service and DistributionGround fault interrupter tripsfrequently.

Ground fault interrupters are sensitivesafety devices installed into theelectrical system to provide protectionagainst electrical shock. Thesedevices are sensitive and can betripped very easily. Ground faultoutlets that do not operate asintended are considered deficiencies.

Builder/Seller shall replace thedevice if defective during the firstyear of Limited Warranty coverage.

ITEMS COVERED UNDER THE 2-YEAR SYSTEMS COVERAGE

12. Mechanical Systems12.1 Septic Tank SystemsSeptic systems fail to operateproperly.

Septic system should be capable ofproperly handling normal flow ofhousehold effluent.

Builder/Seller shall take correctiveaction if it is determined thatmalfunction is due to a deficiency inworkmanship, materials, or failureto construct system in accordancewith state, county, or localrequirements. Builder/Seller is notresponsible for malfunctions orlimitations in the operation of thesystem attributable to designrestrictions imposed by state,county, or local governing agencies.Builder/Seller is also notresponsible for malfunctions whichoccur or are caused by conditionsbeyond Builder/Seller’s control,including Your negligence, abuse,freezing, soil saturation, changes inground water table, or other acts ofnature.

You are responsible for periodicpumping of the septic tank and anormal need for pumping is not adeficiency. The following areconsidered Your negligence orabuse as exclusion under theLimited Warranty: a.) excessive useof water such as overuse ofwashing machine and dishwasher,including their simultaneous use; b.)connection of sump pump, roofdrains or backwash from waterconditioner, to the system c.)placing of non-biodegradable itemsin the system; d.) addition of harshchemicals, greases or cleaningagents, and excessive amounts ofbleaches or drain cleaners; e.) useof a food waste disposer notsupplied by Builder/Seller; f.)placement of impervious surfacesover the disposal area; g.) allowingvehicles to drive or park over thedisposal area; h.) failure toperiodically pump out the septictank when required. Sewagepumps are excluded under theLimited Warranty.

12.2 PlumbingWater in plumbing pipes freezes,and the pipes burst.

Drain, waste, vent, and water pipesshall be adequately protected toprevent freezing and bursting duringnormally anticipated cold weather.

Builder/Seller shall correctconditions not meeting ConstructionPerformance Guidelines.

Burst pipes due to Your neglect andresultant damage are notBuilder/Seller’s responsibility. Youare responsible for draining exteriorfaucets, and maintaining suitabletemperature in the Home to preventwater in pipes from freezing. Duringperiods when the outdoortemperature falls below the designtemperature, You are responsible fordraining or otherwise protecting pipes.Homes which are periodicallyoccupied, such as summer homes, orwhere there will be no occupancy foran extended period of time, must beproperly winterized or periodicallychecked to insure that a reasonabletemperature is maintained.



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ITEMS COVERED UNDER THE 2-YEAR SYSTEMS COVERAGE

Leakage from any piping. Leaks in any waste, vent and waterpiping are deficiencies.

Builder/Seller shall make necessaryrepairs to eliminate leakage.

Condensation on piping does notconstitute leakage, and is not adeficiency, except where pipeinsulation is required.

Sanitary sewers, fixtures, waste ordrain lines are clogged.

The Builder/Seller is notresponsible for sewers, fixtures,or drains that are cloggedbecause of Your actions ornegligence. Sanitary sewers,fixtures, waste or drain lines thatdo not operate or drain properlydue to improper construction aredeficiencies.

When defective construction isshown to be the cause,Builder/Seller shall make necessaryrepairs.

If Your actions or negligence is thecause, You are responsible forcorrecting the problem. You areliable for the entire cost of anysewer and drain cleaning serviceprovided by Builder/Seller whereclogged drains are caused by Youractions or negligence.

Builder/Seller is not responsiblefor sewer lines that extend beyondthe property lines on which theHome is constructed.

12.3 Water SupplyWater supply system fails todeliver water.

All service connections to municipalwater main or private water supplyare Builder/Seller’s responsibilitywhen installed by Builder/Seller.

Builder/Seller shall repair asrequired if failure to supply water isthe result of deficiency inworkmanship or materials.

If conditions exist which disrupt oreliminate the sources of watersupply that are beyondBuilder/Seller’s control, thenBuilder/Seller is not responsible.

12.4 Heating and Air ConditioningRefrigerant lines leak. Builder/Seller-installed refrigerant

lines or ground loop pipes thatdevelop leaks during normaloperation are deficiencies.

Builder/Seller shall repair leakinglines and recharge the unit asrequired.

Leaks due to Your actions ornegligence are excluded.

Ductwork separates, becomesunattached.

Ductwork that is not intact orsecurely fastened is a deficiency.

Builder/Seller shall reattach andresecure all separated orunattached ductwork.

13. Electrical System13.1 Electrical ConductorsFailure of wiring to carry itsdesigned load.

Wiring that is not capable ofcarrying the designated load, fornormal residential use to switches,receptacles, and equipment, isa deficiency.

Builder/Seller shall check wiringand replace if it fails to carry thedesign load.


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CHECK ONE (if applicable)1.�FHA 2. �VA 3.�RHS

Case # If you are the original owner, and your Home has originalFHA-financing, please provide the following:Name of mortgage company:Address of mortgage company:

BUSINESS PHONE ( )

ADDRESS OF COMPLAINT ________________________________________________________________________________

NATURE OF DEFECT (BE SPECIFIC) ________________________________________________________________________

________________________________________________________________________________________________________

________________________________________________________________________________________________________

________________________________________________________________________________________________________

________________________________________________________________________________________________________

________________________________________________________________________________________________________

________________________________________________________________________________________________________

Attach any copies of relevant correspondence between you and your Builder/Seller involving this matter. Please provide anycorrespondence that indicates that your Builder/Seller has failed to perform his/her warranty obligations, and a copy of the Certificateof Warranty Coverage.

DATE DEFECT FIRST OBSERVED

DATE FIRST REPORTED TO SELLER

HBW_305_012709

Please read the 2-10 Home Buyers Warranty® Booklet for filing instructions and pertinent information. If your previous writtenattempts to resolve your problems with the Builder/Seller have failed, then this form is to be sent to your Builder/Seller, with a copyto the 2-10 HBW Warranty Administration Office. This form must be received by your Builder/Seller and 2-10 HBW no later thatthirty (30) days after the expiration of the applicable warranty term or the coverage will be denied. We recommend certified mail,return receipt requested.

NOTICE OF COMPLAINT FORMFOR SELLERS WARRANTY COVERAGEWorkmanship/Systems complaints only


10375 East Harvard Ave.Denver, Colorado 80231

720.747.6000

(Date of Closing or First Occupancy)

(City) (State)

(Street)

(Zip)

HOME PHONE ( )

EFFECTIVE DATE OF WARRANTY(Mo.) (Day) (Year)

NAME

Certificate of Warranty Coverage #HBW

Homeowner Signature Date

Homeowner Signature Date

31

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Please read the 2-10 Home Buyers Warranty® Booklet for filing instructions and pertinent information.

YOUR NAME ______________________________________________________________________________________________________________

ADDRESS OF CLAIM ________________________________________________________________________________________________________

(Street)

__________________________________________________________________________________________________________________________

(City) (State) (Zip)

HOME PHONE (____________)________________________________________BUSINESS PHONE (______________)________________________

EFFECTIVE DATEOF WARRANTY ________________________________________

(Mo.) (Day) (Year)HBW Certificate of Warranty Coverage #(Date of Closing or First Occupancy)

Please note that 2-10 Home Buyers Warranty® provides Limited Structural Warranty Coverage which is subject to exclusions and conditions. You areencouraged to review the Structural Coverage provisions of your Warranty Booklet.

Please answer the following questions:1. Have you reviewed the Definition of a Structural Defect in your Warranty Booklet? � Yes � No

2. Do you believe that you have actual physical damage to one or more of the listedload bearing portions of your home? � Yes � No

3. Have you reviewed the list of non-load-bearing elements which would not qualify asa Structural Defect under this coverage? � Yes � No

4. Do you feel that your home is unsafe, unsanitary or otherwise unlivable as a result of the defect? � Yes � No

NATURE OF DEFECT (BE SPECIFIC; IF AVAILABLE, ENCLOSE PHOTOGRAPHS; ATTACH SEPARATE SHEET IF NECESSARY) ______________

________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________

DATE DEFECT FIRST OBSERVED ____________________________________________________________________________________________(Mo.) (Day) (Year)

IT IS UNLAWFUL TO KNOWINGLY PROVIDE FALSE, INCOMPLETE, OR MISLEADING FACTS OR INFORMATION TO AN INSURANCE COMPANY FORTHE PURPOSE OF DEFRAUDING OR ATTEMPTING TO DEFRAUD THE COMPANY. PENALTIES MAY INCLUDE IMPRISONMENT, FINES, DENIAL OFINSURANCE, AND CIVIL DAMAGES. ANY INSURANCE COMPANY OR AGENT OF AN INSURANCE COMPANY WHO KNOWINGLY PROVIDES FALSE,INCOMPLETE, OR MISLEADING FACTS OR INFORMATION TO A POLICYHOLDER (SELLER) OR CLAIMANT (HOMEOWNER) FOR THE PURPOSE OFDEFRAUDING OR ATTEMPTING TO DEFRAUD THE POLICYHOLDER (SELLER) OR CLAIMANT (HOMEOWNER) WITH REGARD TO A SETTLEMENTOR AWARD PAYABLE FROM INSURANCE PROCEEDS SHALL BE REPORTED TO THE INSURANCE COMMISSIONER OF YOUR STATE.

__________________________________Homeowner Signature (Date)

__________________________________Homeowner Signature (Date)

33HBW_304_012709

CHECK ONE (if applicable) 1. � FHA 2. � VA 3. � RHSCase # ____________________________________________________________If you are the original owner, and your Home has FHA/VA financing, please provide the following:Name of Mortgage Company:________________________________________Address of Mortgage Company: ________________________________________________________________________________________________________


10375 East Harvard Ave.Denver, Colorado 80231

720.747.6000

NOTICE OF CLAIM FORMFOR STRUCTURAL CLAIMS ONLY

32807_307-20509 2/20/2009 11:36 AM

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32807_307-20509 2/20/2009 11:36 AM

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HBW_307_022009

32807_307-20509 2/20/2009 11:36 AM

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