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TABLE OF CONTENTS

SECTION I Your Warranty Booklet andWarranty Validation Certificate

SECTION II The Warranties ProvidedBy Your Builder

SECTION III The Option To Repair,Replace or Pay For Defectand/or Structural Defect

SECTION IV Reporting a Warranty Claim

SECTION V The Effect of this Warranty onYour Legal Rights

SECTION VI Dispute Resolution WithBinding Arbitration

SECTION VII Your Responsibilities Under ThisExpress Limited Warranty

SECTION VIII Exclusions

SECTION IX Manufacturers and OtherSimilar Warranties

SECTION X Construction PerformanceGuidelines

Dear Homebuyer:

Congratulations on Your purchase of a new Home thatcomes with an express limited warranty provided by YourBuilder. The warranty is administered by 2-10 HBW. Thiswarranty booklet explains in detail the types of warrantycoverage, the warranty rights and responsibilities You andYour Builder have, 2-10 HBW’s role as administrator, andwhat You need to do if You have a problem that is coveredby this warranty.

You will also receive in the mail a Warranty ValidationCertificate that describes the type of warranty Your Builderis providing and the address for the Home that iswarranted. Since Your Builder’s express limited warranty isonly effective at that address, please contact usimmediately if the address is incorrect.

The remainder of this warranty booklet sets out Your legalrights under the warranty. You should read it very closely.

Finally, let us introduce ourselves. Our company is named2-10 Home Buyers Warranty (or “2-10 HBW” for short).Our job is to administer this warranty during its term. Thatmeans we are available to answer any questions You mayhave about the express limited warranty Your Builder isproviding. This warranty is provided by Your Builder; we donot provide warranties, nor do we provide insurance.

We look forward to answering any questions You have,and congratulations again on Your new Home!

2-10 Home Buyers Warranty

BBSP_5307_010611

Offered by 2-10 Home Buyers Warranty.©2010 2-10 Home Buyers Warranty

2-10 Home Buyers WarrantyWarranty Administration Department

10375 East Harvard Ave.Denver, CO 80231

720.747.6003

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BUILDER’S EXPRESS LIMITED WARRANTY

SECTION I. YOUR WARRANTY BOOKLET AND WARRANTY VALIDATION CERTIFICATE.

This booklet and the Warranty Validation Certificate are very important legal documents that fully define the provisions of YourBuilder’s express limited warranty, Your rights and Your Builder’s rights and obligations. Therefore, it is important to keep thisbooklet and the Warranty Validation Certificate with other legal documents that are important to You.

Your warranty is not a policy of insurance, a maintenance agreement or a service contract. If You have a mortgage on Your Home,Your lender may insist that You have a homeowners’ insurance policy. This warranty is not a homeowners’ insurance policy and itwill not satisfy the lender’s requirement.

The provisions of this warranty may not be changed by Your Builder or by any other person. If any provision of this warranty isfound to be unenforceable, however, the remaining provisions will remain in full force and effect.

A. Transferring Your Builder’s Express Limited Warranty.

If You sell Your Home during the term of the express limited warranty, this warranty automatically transfers to thenext owner, and any subsequent owners. This means all of Your rights and obligations under this warranty, up to theremaining amount of the Warranty Limit, will transfer without cost to each purchaser of Your Home or any person whootherwise obtains title to Your Home, including any mortgagee in possession, for the remaining term of the warranty.

When You sell Your Home, You agree to give this warranty booklet and the Warranty Validation Certificate to Yourbuyer in order to make it possible for the buyer to understand his or her rights and fulfill his or her obligations underthe provisions of this express limited warranty.

If You are a successive owner of the Home, You may benefit from the coverage provided by this express limited warranty,but in return You are bound by all of the terms and conditions of this warranty including but not limited to the proceduresthat must be followed to make a claim and the obligation to participate in arbitration as set out in this warranty.

B. Words With Special Meanings.

Generally speaking, the words used in this warranty have their normal everyday meaning. In some cases, however, a wordwill be used as shorthand to describe specifically one of the key provisions contained in this express limited warranty. Inthose cases, the words will be capitalized, and the capitalized word will always have the same special meaning.

Most defined terms are described in this section, however, other sections of this warranty booklet may contain otherdefined terms. The words being given a special meaning in this section are as follows:

“Builder” means the Home Builder listed on the Warranty Validation Certificate, and is the person or companyproviding You with this express limited warranty.

“Warranty Validation Certificate” is the document issued by 2-10 HBW confirming that Your Builder took all stepsrequired to make the express limited warranty on Your Home effective.

“Common Element” means any portion of a Multi-Family Building which is defined as a common element in eithercommon interest ownership laws or in the declaration establishing such community. Unless excluded in Section VIII,Common Elements may include, without limitation, hallways, roofs, exterior finishes, and electrical, plumbing, andmechanical distribution systems.

“Commercial Space” means any unit within a Multi-Family Building that is used primarily for a non-residentialpurpose, including, without limitation, club houses and recreational facilities.

“Defect” means a failure to meet the Construction Performance Guidelines for workmanship set forth in Section X ofthis warranty booklet.

“Effective Date of Warranty” means the date the express limited warranty goes into effect. That date will be the earliestof: (1) the closing date on which You purchased the Home, (2) the date title to the Home was transferred to You if titlewas transferred before Your closing date, or (3) the date anyone first began living in the Home if before Your closing date.

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“Home” means the dwelling unit and garage (if any) or the Commercial Space (if any) located at the address shown inthe Warranty Validation Certificate.

“Multi-Family Building” is a building in a common interest community that may consist of dwelling units, sharedparking spaces, Commercial Space(s) and/or Common Elements.

“Structural Defect” is defined in Section IIB of this warranty booklet.

“You”, “Your”, and similar words means the person or persons who are the legal owners of the Home covered by thisexpress limited warranty.

“Warranty Limit” is the aggregate financial obligation of the Builder for all claims under this warranty and is the sumstated on the Warranty Validation Certificate.

SECTION II. THE WARRANTIES PROVIDED BY YOUR BUILDER.

A. One Year Workmanship Defect Warranty. Your Builder is providing a One Year Workmanship Defect Warranty forYour Home. This means that Your Home will be free from Defects in materials and workmanship as defined in theConstruction Performance Guidelines contained in Section X of this warranty. The Workmanship Warranty shall expireone year from the Effective Date of Warranty.

B. Structural Defect Warranty. Your Builder is providing a Structural Defect Warranty. This means that the Builderwarrants that Your Home will be free from Structural Defects from the Effective Date of Warranty until the Builder’sliability expires under the statute of repose in the state where the Home is located, or ten years, whichever is shorter.

Structural Defect is defined as actual physical damage to the designated load-bearing elements of the Home caused byfailure of such load-bearing elements which affects their load-bearing functions to the extent that Your Home becomesunsafe, unsanitary, or otherwise unlivable. This is coverage for catastrophic failure of load-bearing elements of YourHome. The designated load-bearing elements that are covered under the Structural Defect Warranty 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.

The remaining elements of Your Home are not load-bearing elements under this Structural Defect Warranty. A nonexclusive list of some of the non-load-bearing elements in Your Home not covered by this Structural Defect Warranty 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, stains; and11. Basement and other interior floating, ground-supported concrete slabs.

C. Indiana Residents. If Your Home is located in the State of Indiana, Your Home will be free from Defects in materialsand workmanship as defined in the Construction Performance Guidelines contained in Section X of this warrantybooklet for a period of two years from the Effective Date of Warranty, and the roof on Your Home will be free fromdefects in faulty workmanship or defective materials for a period of four years from the Effective Date of Warranty.All other provisions of this warranty remain the same.

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D. Florida Residents. If Your Home is contained within a Multi-Family Building located in the state of Florida, YourHome will be free of Defects in materials and workmanship as defined in the Construction Performance Guidelinescontained in Section X of this warranty booklet for a period of three years from the Effective Date of Warranty, unlessmodified by state law. All other provisions of this warranty remain the same.

SECTION III. THE OPTION TO REPAIR, REPLACE OR PAY FOR DEFECT AND/OR STRUCTURAL DEFECT.

A. Provisions Applicable to Defect and/or Structural Defect.

The Builder shall have the option to repair, replace or pay You the reasonable cost of repair of any Defect orStructural Defect. The design, method and manner of such repair shall be within the sole discretion of the Builder. Atthe time of repair, replacement or payment for the repair of any Defect or Structural Defect, You must:

1) assign to the Builder any rights You may have against any other person with respect to the Defect or StructuralDefect. You must not do anything to prejudice these rights of subrogation.

2) sign and deliver a full and unconditional release of the Builder, in recordable form, of all legal obligations withrespect to the warranted items and conditions arising from those items.

If an improvement, fixture or property not constructed by the Builder is damaged or requires removal during the repair,it is Your sole responsibility, and not the responsibility of the Builder, to pay for the cost of repair or removal of suchimprovement, fixture or property. No repair shall extend the term of this express limited warranty as to any Defect orStructural Defect, including without limitation, the Defect or Structural Defect that was the subject of the repair.

B. Additional Provisions Applicable to the Repair of Structural Defect.

The repair of a Structural Defect 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 makeYour Home once again safe, sanitary, or otherwise livable, and

3) repair and cosmetic correction of only those surfaces, finishes and coverings, with damage directly attributable tothe Structural Defect provided the surfaces, finishes or coverings are original with the Home, and they weredamaged by the Structural Defect or require removal and replacement to repair the Structural Defect.

Repairs of Structural Defect are intended to restore the Home to approximately the condition just prior to the StructuralDefect, but not necessarily to a like-new condition.

C. Access to Your Home for Inspecting and Making Repairs.

In order to carry out the warranty responsibilities, the Builder will require access to Your Home. If Your Home is ina Multi-Family Building, You agree (after reasonable notice) to allow access to, or within Your Home during normalbusiness hours so repairs may be made to any adjacent unit or Common Element. If emergency repairs are necessaryand You cannot be reached within a reasonable time period, You waive such notice. If You do not provide access toYour Home during normal business hours to inspect, repair, or conduct tests on Your Home as may be required toevaluate or repair a Defect or Structural Defect, You are relieving the Builder of all responsibility to make repairs,replace or pay for any Defect or Structural Defect under this warranty.

In addition to the right to inspect Your Home the Builder shall have the right, in advance of any arbitration concerningYour Home, to re-inspect Your Home if the request for arbitration is made more than sixty (60) days after the last claimdecision concerning the claim that is the subject of the arbitration.

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D. The Limits of Your Warranty.

Every time Your Builder pays a claim under this warranty, the amount of that payment is deducted from the WarrantyLimit. When the Warranty Limit is exhausted, there is no longer warranty coverage for Your Home. A claim paymentincludes the cost to the Builder of repairing a Defect or Structural Defect in Your Home covered under this warranty.However, a claim payment does not include the cost of investigating the claim.

If the claim payment is for a Common Elements Defect or Common Elements Structural Defect, the Warranty Limiton each Home in the Multi-Family Building still covered by an unexpired warranty shall be reduced pro-rata in theproportion which the Common Elements claim payment bears to the total original sales price of all such Homes.

Any coverage for Your Builder’s express limited warranty shall be excess of any other valid and collectibles availableto You or Your Builder, whether primary, pro-rata or excess, and whether or not collected.

E. Emergency Repairs.

An emergency means a substantial risk of serious physical damage to the Home or a substantial risk of serious bodilyinjury to its occupants if a Defect or Structural Defect is not immediately repaired. If You have an emergencyinvolving a Defect or a Structural Defect, You must contact Your Builder immediately, who is responsible for makingemergency repairs or authorizing You to make emergency repairs. If You are unable to contact Your Builder, Youmust then (1) make minimal repairs necessary to avoid the emergency until authorization for more extensive repairshas been approved by Your Builder, (2) take any action reasonably necessary to limit additional damage, and (3) reportthe emergency to the Builder on the next business day.

Except for authorized emergency repairs do not repair or attempt to repair a claimed Defect or Structural Defect beforethe Builder has an opportunity to inspect the Defect or Structural Defect. Any attempt to repair a claimed Defect orStructural Defect, other than an authorized emergency repair, will make it impossible to assess whether the Defect orStructural Defect was covered by this warranty, whether the repair was correct, cost-effective, necessary, and effective,or whether the problem could be resolved in another way. Unless an emergency Defect or Structural Defect repair isauthorized, the Builder will have no responsibility to reimburse any costs due to repair, replacement, and expenses,including engineering and attorney’s fees.

SECTION IV. REPORTING A WARRANTY CLAIM.

A. If You believe Your Home has a Defect that is covered under Your Builder’s One Year Workmanship Warranty thatoccurred during the applicable term of the warranty, You must take the steps described in this Section IV.C.1.

B. If You believe Your Home has a Structural Defect that is covered under Your Builder’s Structural Warranty, You musttake the steps described in Section IV.C.2. Notice of Structural Defect must be made by the homeowner, except forMulti-Family Buildings, notice for each affected building must be made by the homeowner’s association or itsdesignated representative, along with a copy of the Warranty Validation Certificate for each Home in the building.

C. Notice to Your Builder.

1. Workmanship Defect must be reported to the Builder as soon as possible but no later than 30 days after theexpiration of the applicable term of the warranty. Send written notification to Your Builder listing completelythe specific Defect(s) and the date the Defect(s) occurred. The Defect will not be covered under this warrantyif the Notice is received after that date. These time limits are a material condition of this warranty. It isrecommended (but not required) that Your letter be sent by certified mail, return receipt requested so You have arecord of when Your letter was sent and received. Oregon Residents. If Your Home is contained within a Multi-Family Building located in the state of Oregon, a written claim reasonably specifying a breach of the warranty onthe general common elements must be delivered to the Builder within two years of expiration of such warrantyfor a Defect that arose during the warranty term. All other provisions of this warranty remain the same.

Notice to 2-10 HBW.. If covered repairs for the Workmanship Defect are not completed by Your Builder withinsixty (60) days of the date You sent Your letter or before the expiration of the warranty term (whichever datecomes earlier), You must complete the following three steps:a. Complete the appropriate Notice of Complaint Form (“Notice”), which is found at the back of this warranty booklet.b. Send one copy of the Notice to Your Builder.

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c. Send one copy of the Notice to 2-10 HBW, and include:1. A copy of Your Warranty Validation Certificate; and2. A copy of all correspondence with Your Builder regarding the Defect(s) in question to:

2-10 Home Buyers WarrantyWarranty Administration Department10375 East Harvard Avenue, 5th FloorDenver, CO 80231Phone: 720-747-6003

We recommended (but do not require) that You send this notice by certified mail, return receipt requested, so Youhave a record of when the notice was sent and received. Include copies of Your Warranty Validation Certificateand all correspondence with Your Builder about the Defect(s) in question.

What 2-10 HBW will do. Once 2-10 HBW has received Your Notice of Defect, it will again notify Your Builderof Your Defect(s). If You and Your Builder still cannot resolve Your differences even with 2-10 HBW’sconciliation help, then You and Your Builder must arbitrate Your dispute under the arbitration agreement set forthin this booklet. 2-10 HBW will provide a form for You to request arbitration after You have completed theprocedure described above. If 2-10 HBW determines that Your Builder cannot or will not participate inarbitration, or Your Builder refused to pay or perform an arbitration award in Your favor, 2-10 HBW will notifyYou of that fact.

2. Structural Defect must be reported to the Builder as soon as possible but no later than 30 days after theexpiration of the applicable term of the Warranty. Send written notification to Your Builder listing completelythe specific Structural Defect(s) and the date the Structural Defect(s) occurred. A Structural Defect will not becovered under this warranty if the Notice is received after that date. These time limits are a materialcondition of this warranty. It is recommended (but not required) that Your letter be sent by certified mail, returnreceipt requested so You have a record of when Your letter was sent and received.

Notice to 2-10 Home Buyers Warranty. 2-10 Home Buyers Warranty (“2-10 HBW”) has been selected as theneutral administrator to explain the Builder’s liability obligation under the Structural Defect Warranty. 2-10 HBWis available to answer any questions regarding the Structural Defect Warranty coverage, phone: 720-747-6003.The homeowner and the Builder shall arbitrate any unresolved disputes in accordance with Section VI.

SECTION V. THE EFFECT OF THIS WARRANTY ON YOUR LEGAL RIGHTS.

You have accepted this express limited warranty provided in this warranty booklet. All other express or implied warranties,including oral or written statements or representations made by Your Builder or any implied warranty of habitability,merchantability or fitness, are disclaimed by Your Builder and waived by You to the extent possible under the laws of Yourstate. You may have other remedies as provided under the law of the state where the Home is located.

SECTION VI. DISPUTE RESOLUTION WITH BINDING ARBITRATION.

To expedite the resolution of any and all claims, disputes and controversies by or between the homeowner, the Builder, 2-10 HBW,as administrator, or any combination of the foregoing, arising from or related to this Warranty, to the Home, to any defect in or tothe Home or the real property on which the Home is situated, or the sale of the Home by the Builder, including without limitation,any claim of breach of contract, negligent or intentional misrepresentation or nondisclosure in the inducement, execution orperformance of any contract, including this arbitration agreement, and breach of any alleged duty of good faith and fair dealing, shallbe settled by binding arbitration. Agreeing to arbitration means You are waiving Your right to a jury trial.

This arbitration agreement shall inure to the benefit of, and be enforceable by, the Builder’s subcontractors, agents, vendors,suppliers, design professionals, insurers and any other person alleged to be responsible for any defect in or to the subject Home orthe real property on which the subject Home is situated. Any party shall be entitled to recover reasonable attorney’s fees and costsincurred in enforcing this arbitration agreement. The decision of the arbitrator shall be final and binding and may be entered as ajudgment in any State or Federal court of competent jurisdiction.

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The initiation of or participation by any party in any judicial proceeding concerning this arbitration agreement or any matter arbitrablehereunder shall not be deemed a waiver of the right to enforce this arbitration agreement, and notwithstanding any provision of law to thecontrary, shall not be asserted or accepted as a reason to delay, to refuse to participate in, or to refuse to enforce this arbitration agreement.

A. Selecting an Arbitration Service.

The arbitration shall be conducted by the American Arbitration Association pursuant to its Home ConstructionArbitration Rules and Mediation Procedures in effect at the time of the Effective Date of Warranty; pursuant to itsapplicable rules in effect at the time of the Effective Date of Warranty; or by DeMars & Associates, Ltd. pursuant toits applicable rules in effect at the time of the Effective Date of Warranty. The choice of the arbitration service shallbe that of the party who initiates the arbitration. Any dispute concerning the choice of an arbitration service shall besubmitted to a court of competent jurisdiction, which shall have authority to enforce this paragraph.

No arbitration proceeding shall involve more than one single-family detached dwelling or more than one multifamilybuilding. Additionally, if it turns out that there is any state or local law, ordinance or judicial rule that is inconsistentwith any provision of the rules of the arbitration service under which the arbitration proceeding shall be conducted, therules of the arbitration service will nonetheless govern the conduct of the arbitration proceeding.

The arbitrator selected by the service to decide the dispute shall have sufficient knowledge in the residentialconstruction industry, as determined by the arbitration service, to resolve the matter in dispute. Additionally, wheneverpossible, the arbitration hearing shall occur in the Home. The decision of the arbitrator shall be final and binding andmay be entered as a judgment in any State or Federal court of competent jurisdiction.

B. Disputes Concerning the Application of this Arbitration Agreement.

The parties expressly agree that this warranty and this arbitration agreement involve and concern interstate commerceand are governed by the provisions of the Federal Arbitration Act (9 U.S.C. § 1, et seq.) now in effect and as the samemay from time to time be amended, to the exclusion of any different or inconsistent state or local law, ordinance orjudicial rule. To the extent that any state or local law, ordinance or judicial rule shall be inconsistent with anyprovision of the rules of the arbitration service under which the arbitration proceeding shall be conducted, the rules ofthe arbitration service shall govern the conduct of the proceeding.

This arbitration agreement is a self-executing arbitration agreement. Any disputes concerning the interpretation or theenforceability of this arbitration agreement, including without limitation, its revocability or voidability for any cause,the scope of arbitrable issues, and any defense based upon waiver, estoppel or laches, shall be decided by the arbitrator.If any provision of this arbitration agreement shall be determined by the arbitrator or by any court to be unenforceableor to have been waived, the remaining provisions shall be deemed to be severable therefrom and enforceable accordingto their terms.

Any dispute concerning the choice of an arbitration service shall be submitted to a court of competent jurisdiction,which shall have authority to enforce this paragraph. A party starting a judicial proceeding to enforce this arbitrationagreement, or participating in a proceeding involving the enforcement of this arbitration agreement, does not waive anyof its rights to enforce this arbitration agreement. Additionally, regardless of what any other law says, initiating orparticipating in a proceeding to enforce this arbitration agreement shall not in any way be treated as a reason to delayor refuse to participate in any arbitration commenced under the terms of this agreement, and shall not in any way betreated as a reason to refuse to enforce this arbitration agreement.

If any party is required to bring suit to enforce this arbitration agreement, and prevails through obtaining a rulingenforcing the provisions of this agreement, that party shall be entitled to recover reasonable attorney’s fees and costsincurred in enforcing this arbitration agreement.

C. Cost of Arbitration.

All administrative fees of the arbitration service and fees of the arbitrator shall be allocated to the parties as provided inthe rules of the arbitration service, subject to the discretion of the arbitrator to reallocate such fees in the interests of justice.

SECTION VII. YOUR RESPONSIBILITIES UNDER THIS EXPRESS LIMITED WARRANTY.

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You are responsible for proper maintenance of Your Home including maintaining Builder-set grades around the Home, planting treesand shrubs at the proper distance from the Home, and conforming to generally accepted landscape practices for Your region. YourBuilder is not responsible for problems that arise if You do not meet these responsibilities. Also, all new homes go through a period ofsettlement and movement, and Your Home may experience some minor material shrinkage, cracking and other events which are normaland customary. Examples include small cracks in drywall and paint; and separation where dissimilar materials meet each other — forexample, where moldings meet sheetrock, or where tile grout meets a sink. In most cases, paint and caulking is all that is necessary toconceal these types of blemishes that result from the natural expansion and contraction of construction material. Because these eventsare normal and customary, they are not Defect or Structural Defect that are covered by this express limited warranty.

SECTION VIII. EXCLUSIONS.

Unless You and Your Builder have agreed in writing otherwise, this warranty does not provide coverage for any of the followingitems, which are specifically excluded.

1. Damage to land and other real property that was not part of Your Home, or any property that was not included in thepurchase price stated on the Warranty Validation Certificate;

2. Damage to swimming pools, tennis courts and other exterior recreational facilities; driveways; boundary walls,retaining walls and bulkheads (except where boundary walls, retaining walls and bulkheads are necessary for thestructural stability of the Home); fences; landscaping (including sod, seeding, shrubs, trees, and plantings); sprinklersystems, patios, decks, stoops, steps and porches, outbuildings, detached carports, or any other appurtenant structure orattachment to the dwelling; or other additions or improvements not a part of Your Home;

3. Loss or damage which arises while Your Home is being used primarily for nonresidential purposes;

4. Changes in the level of underground water table which were not reasonably foreseeable at the time of construction ofYour Home;

5. Noncompliance with plans and specifications; violations of local or national building codes, ordinances or standards;

6. Any condition which has not resulted in actual physical damage to Your Home;

7. Any loss or damage that is caused or made worse by any of the following causes, whether acting alone or in sequenceor 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, anyoneother than Your Builder or its employees, agents or subcontractors, including failure to comply with the warrantyrequirements of manufacturers of appliances, equipment or fixtures;

b. Your failure to give prompt and proper notice to 2-10 HBW and Your Builder of any Defect or Structural Defect;

c. Change of the grading of the ground that does not comply with accepted grading practices, or failure to maintainthe 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, landslide, avalanche, earthquake, or volcanic eruption;

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 carcinogenic substance, whether organic orinorganic, and electromagnetic field or emission, including any claim of health risk or uninhabitability based onany of the foregoing;

g. Your failure to minimize or mitigate any defect, condition, loss or damage as soon as practicable;

8. Any loss or damage caused by buried debris, underground springs, sinkholes, mineshafts or other anomalies whichwere not reasonably foreseeable in a building site You provided;

9. Any defect or damage You knew about prior to the Effective Date of Warranty.

10. Any request for warranty performance submitted to Your Builder after an unreasonable delay or later than 30 days afterthe expiration of the applicable term of this warranty, regardless of the reason such request was submitted more than

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30 days after the expiration of the applicable term of this warranty;

11. Loss caused, in whole or in part, by any peril or occurrence for which compensation is provided by state legislation orpublic funds;

12. Costs of shelter, transportation, food, moving, storage, or other incidental expenses related to relocation during repair,or any other costs due to loss of use, inconvenience, or annoyance;

13. Diminished market value of Your Home;

14. Any and all consequential loss or damage, including without limitation, any damage to property not covered by thiswarranty, any damage to personal property, any damage to property which You do not own, any bodily injury orpersonal injury of any kind, including physical or mental pain and suffering and emotional distress, and any medicalor hospital expenses, or lost profits;

15. Any and all exclusions set forth in Section X (Construction Performance Guidelines);

16. Any Defect or Structural Defect first occurring after the applicable term of the Warranty expires.

SECTION IX. MANUFACTURERS AND OTHER SIMILAR WARRANTIES.

Your warranty does not apply to any manufactured item such as appliances, fixtures, equipment (except as specifically defined in theConstruction Performance Guidelines) or any other item which is covered by a manufacturer’s warranty, nor does it cover Defect inany systems that are caused by failure of any such manufactured item.

Appliances and items of equipment not covered by this Limited Warranty include but are not limited to; air conditioning units, atticfans, boilers, burglar alarms, carbon monoxide detectors, ceiling fans, central vacuum systems, chimes, dishwashers, dryers, electricmeters, electronic air cleaners, exhaust fans, fire alarms, freezers, furnaces, garage door openers, garbage disposals, gas meters, gasor electric grills, heat exchangers, heat pumps, humidifiers, intercoms, outside lights or motion lights not attached to the Home, rangehoods, ranges, refrigerators, sewage pumps, smoke detectors, solar collectors, space heaters, sump pumps, thermostats, trashcompactors, washers, water pumps, water softeners, water heaters, whirlpool baths, and whole-house fans. This warranty does notaffect or limit in any way any manufacturer’s warranty.

SECTION X. CONSTRUCTION PERFORMANCE GUIDELINES.

The following Construction Performance Guidelines apply only to the One Year Workmanship Warranty. The ConstructionPerformance Guidelines are standards that Your Builder’s construction should meet. Noncompliance with these constructionstandards calls for corrective action by Your Builder. Builder will try to its best ability to match and replace with Your original choiceof colors and materials, except where You custom-ordered the items. Builder cannot be responsible for discontinued items, changesin dye lots, colors or patterns, or items ordered outside of the original construction, or normal wear and deterioration.

It is virtually impossible to develop Construction Performance Guidelines for each possible deficiency. Therefore, the constructionindustry and 2-10 HBW have attempted to identify the most common actual physical damage deficiencies that occur and also whohas responsibility for the guideline, Your Builder’s, or You. Where a specific Construction Performance Guidelines has not beenspecified, the guidelines found in the publication Residential Construction Performance Guidelines 3rd Edition-ContractorReference, National Association of Home Builders (NAHB), will apply. Copies of this publication may be special ordered throughmost book retailers, or purchased directly from the NAHB Bookstore by calling 1-800-223-2665. The NAHB Bookstore may alsobe reached online at www.BuilderBooks.com. If an item is not covered in that publication, locally accepted trade practices of theconstruction industry will be used.

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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

10

INDEX CONSTRUCTION PERFORMANCE GUIDELINES

1 YEAR WORKMANSHIP

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 22

7.3 Hard Surfaces - Page 22Flooring, 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

SAMPLE

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

7.8 Carpeting - Page 25Carpet, 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

SAMPLE

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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.

If Builder has provided finalgrading, Builder shall fill settledareas affecting proper drainage,one time only, during the first yearWarranty Term. You areresponsible for removal andreplacement of shrubs and otherlandscaping affected by placementof the fill.

1.2 DrainageImproper surface drainage.

Necessary grades and swalesshall 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 is only responsible forinitially establishing the propergrades, swales and drainage awayfrom Home. You are responsiblefor maintaining such grades andswales once constructed by theBuilder. Builder is not responsiblefor drainage deficienciesattributable to grading requirementsimposed by state, county, or localgoverning 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 is not responsiblefor soil erosion due to acts of God orother conditions beyond theBuilder’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 by Builderon the property in correctinga deficiency.

Landscaped areas that aredisturbed during repair workare deficiencies.

Restore grades, seed and landscapeto meet original condition.

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

Builder 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’s control. Movement and theresulting cracking may be minimizedby good drainage, proper installationof landscaping and suitablemaintenance.

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

Builder is not responsible fordeterioration caused by salt,chemicals, mechanical implements,or other factors beyond theBuilder’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 will make a reasonable andcost effective effort to meet theConstruction PerformanceGuideline.

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 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. Builderis not responsible for colorvariations between existing andnew 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 shall investigate todetermine cause. Builder shalltake the necessary steps to removethe cause and make repairs bypointing 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 shall repair basement wallsthat are bowed in excess of 1-inchin 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 is not responsible for failureto match color or texture, due tonature of material.

Separation of coating from base onexterior stucco wall.

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

Builder shall repair areas wherethe coating has separated fromthe base.

Builder is not responsible for failureto match color or texture, due to thenature of the material.

4. Carpentry and Framing4.1 Plywood and Joists

Loud and objectionable squeakscaused by improper installation orloose subfloor are deficiencies, buta totally squeak-proof floor cannot be guaranteed.

Builder will refasten any loosesubfloor or take other correctiveaction to reduce squeaking to theextent possible within reasonablerepair capability without removing floor and ceiling finishes.

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 the Builder tomake a reasonable attempt toeliminate squeaks without requiringremoval of floor and ceiling finishes,nailing loose subflooring with casingnails into the carpet surface andcountersinking the head is an acceptable practice.

Uneven wood framed floors. Wood floors shall not have morethan 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 shall repair or replace asrequired. Filling splits is acceptablefor 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 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 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 joints betweendissimilar 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 shall fill hammer marks andrefinish 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 andif necessary, touch up paint,stain, or varnish to match asclosely as 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 in theaffected area but the sump pumpwas not contracted for or installedby Builder, no action is requireduntil a properly sized pump isinstalled by You in an attempt tocorrect the condition. Should thecondition continue to exist, thenBuilder shall take necessary actionto correct the problem.

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

Builder shall install insulation ofsufficient thickness andcharacteristics to meet the localindustry standards. In the case ofdispute, cost for investigating thesufficiency of insulation andrestoring areas to prior conditionis to be borne by You if it is foundthat the standard has been metby Builder.

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 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 moisture maycondense. In Homes that are leftunheated in the winter, theunderside of floors may provide acold surface on which warmer crawlspace air may condense. Theseand other similar conditions arebeyond the Builder’s control.Maintaining adequate heat andseasonal adjustment of vents isYour 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 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 shall repair or replace theroof vents as necessary to meetthe Construction PerformanceGuidelines.

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

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 shall vent exhaust fans tothe outside to correct deficiencies.

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 will repair bowed siding tomeet standard. If replacement ofsiding is required, Builder willmatch original material as closelyas possible. You should be awarethat the new finish may not exactlymatch the original surface textureor color.

Bowed siding due to Your actions orneglect, such as bowing caused bysprinkler system repeatedly wettingsiding, 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 shall correct by eitherremoving stains, painting, orstaining the affected area. Buildershall match color and finish asclosely as possible. Where paint orstain touch up affects the majority ofthe wall surface, the whole areashall 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 will replace shingles thatblow 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 will take corrective action toassure proper drainage of the 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 will repair gutters to assureproper 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 by Builderand You carpet is planned to beinstalled as floor finish by Builder,the bottom of the doors which dragon the carpet 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’s or Builder’ssubcontractors’ installation of anelectric door opener.

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 shall correct or repair asrequired 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 will instruct Youon the method of adjustment forfuture 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 will adjust, repair, or replaceknobs that are not damaged byabuse, one time only during the firstyear 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 shall make necessaryadjustments for proper fit andoperation. Replace whenadjustment cannot be made.

Missing screens, rips or gouges inthe screen mesh are not covered bythis Limited Warranty.

6.6 Weatherstripping and SealsDrafts around doors and windows.

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

Builder 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 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 shall repair cracks that aregreater than 1/16-inch in width andtouch up paint to match as closelyas possible, one time only. Suchconditions should be reported nearthe end of the first year of LimitedWarranty coverage to allow fornormal movement in Home.

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 shall repair cracks that aregreater than 1/16-inch in width andtouch up paint to match as closelyas possible, one time only. Suchconditions should be reported nearthe end of the first year of LimitedWarranty coverage to allow fornormal movement in Home.

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 will repair such blemishes,and touch up paint to match asclosely as possible, one time only.Such conditions should be reportednear the end of the first year ofLimited Warranty coverage to allowfor normal settlement of the Home.

Depressions or slight mounds atnail heads are not considereddeficiencies. Builder 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 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 shall replace crackedtiles, marble, or stone andresecure loose tiles, marble, orstone flooring.

Cracking and loosening of flooringcaused by Your negligence is not adeficiency. Builder 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 the Builder hasregrouted once.

Builder shall repair grouting asnecessary one time only withinthe first year of LimitedWarranty 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 shall correct nail pops thathave caused damage to the floormaterial and repair or replacedamaged floor covering in theaffected area. Builder 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 shall take required action tobring the deficiency withinacceptable tolerances so as to benot readily visible. Builder is notresponsible 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 shall repair or replaceresilient flooring or base asrequired. Builder is not responsiblefor discontinued patterns orcolor variations.

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 shall repair or replace theresilient flooring to meet theConstruction PerformanceGuidelines. Builder 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 shall determine the causeand if the result of a deficiency inworkmanship or material, correctone time only. For repairabledeficiencies, repair cracks by fillingand refinishing to match the woodsurface as closely as possible. Fornon-repairable deficiencies,replace and finish affected area tomatch remaining flooring as closelyas 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 by movingfurniture or dropping heavy objects,and certain high heel style shoesmay cause indentations. Theseconditions are not covered by theLimited 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 shall seal affected areaswhere excessive bleeding ofknots and stains appear, onetime only during the firstWarranty Term. Builder willtouch-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 shall properly prepare andrefinish affected areas, matchingcolor as closely as possible. Wherefinish repairs affect the majority ofthe surface areas, the whole areashould be refinished. The LimitedWarranty on the newly repaintedsurfaces will not extend beyond theoriginal Warranty 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 shall refinish repaired areasto meet the standard as required.

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 shall refinish affected areasof 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 shall repaint wall, ceilingor trim surfaces whereinadequate paint has beenapplied. Where the majority of thewall or ceiling surface is affectedthe entire area will be paintedfrom breakline to breakline.Builder is not required to repaintan entire room unless all wallsand ceiling have been 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 shall remove paint splatterswithout affecting the finish of thematerial, or replace the damagedsurface if paint cannot be removed.

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.

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

Builder 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 shall remove mismatchedwallcovering and replace. Builder isnot responsible for discontinued orvariations in color.

Defect in the wallcovering patternsare 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 suitable andassumes full responsibility shouldlumps, ridges, and nail pops occurat 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 shall correct to eliminatevisible gap or overlapping atthe 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 shading mayshow at most if not all seams, evenwhere the same dye lot is used.Carpet material is not coveredunder the Limited Warranty. Youshould consult carpetmanufacturer’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 will restretch or resecurecarpeting to meet ConstructionPerformance Guidelines one timeonly during the first year of LimitedWarranty coverage.


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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 by constructing a fire so thecondition can be observed.

When determined the malfunction isbased upon improper constructionof the fireplace, the Builder shalltake the necessary steps to correctthe problem, one time only duringthe first year Warranty Term.

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

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 shall correct. Caulking orgrouting is acceptable unless thecause of the separation is due tostructural failure of the chimneyfoundation. In that case, caulkingis 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 shall adjust or replace doorsand drawers as necessary to meetConstruction 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 shall correct or replace dooror drawer front as required.

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 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 shall repair or replacelaminated surface covering havingcracks or joints exceeding theallowable 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 shall repair or replace theleaking 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 shall correct to eliminate“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 shall correct heating systemas required to provide the requiredtemperatures if a deficiency 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 shall install requiredinsulation.

Condensate lines clog up. NONE. NO COVERAGE. Builder shall provide clean andunobstructed 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 shall correct and adjust sothat 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 shall take the necessarysteps to eliminate noise caused byoil 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 shall check all wiring andreplace wiring or breaker if itdoes not perform adequately or isdefective.

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 in newHome 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 shall repair or replacedefective 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 shall replace the device ifdefective during the first year ofLimited Warranty coverage.

12. Mechanical Systems12.1 Septic Tank SystemsSeptic systems fail to operate properly. Septic system should be capable of

properly handling normal flow ofhousehold effluent.

Builder shall take corrective action ifit is determined that malfunction isdue to a deficiency in workmanship,materials, or failure to constructsystem in accordance with state,county, or local requirements.Builder is not responsible formalfunctions or limitations in theoperation of the system attributableto design restrictions imposed bystate, county, or local governingagencies. Builder is also notresponsible for malfunctions whichoccur or are caused by conditionsbeyond Builder’s control, includingYour negligence, abuse, freezing,soil saturation, changes in groundwater table, or other acts of nature.

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; f.) placement ofimpervious surfaces over thedisposal area; g.) allowing vehiclesto drive or park over the disposalarea; h.) failure to periodically pumpout the septic tank when required.Sewage pumps are excluded underthe Limited 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 shall correct conditions notmeeting Construction PerformanceGuidelines.

Burst pipes due to Your neglect andresultant damage are not Builder’sresponsibility. You are responsiblefor draining exterior faucets, andmaintaining suitable temperature inthe Home to prevent water in pipesfrom freezing. During periods whenthe outdoor temperature falls belowthe design temperature, You areresponsible for draining orotherwise protecting pipes. Homeswhich are periodically occupied,such as summer homes, or wherethere will be no occupancy for anextended period of time, must beproperly winterized or periodicallychecked to insure that a reasonabletemperature is maintained.



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

Builder 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 is not responsible forsewers, fixtures, or drains thatare clogged because of Youractions or negligence. Sanitarysewers, fixtures, waste or drainlines that do not operate or drainproperly due to improperconstruction are deficiencies.

When defective construction isshown to be the cause, Builder shallmake necessary repairs.

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 where cloggeddrains are caused by Your actionsor negligence.

Builder is not responsible forsewer 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’s responsibility wheninstalled by Builder.

Builder shall repair as required iffailure to supply water is the resultof deficiency in workmanshipor materials.

If conditions exist which disrupt oreliminate the sources of watersupply that are beyond Builder’scontrol, then Builder isnot responsible.

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

ground loop pipes that developleaks during normal operationare deficiencies.

Builder shall repair leaking lines andrecharge the unit as required.

Leaks due to Your actions ornegligence are excluded.

Ductwork separates, becomesunattached.

Ductwork that is not intact orsecurely fastened is a deficiency.

Builder shall reattach and resecureall separated or unattachedductwork.

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 shall check wiring andreplace if it fails to carry thedesign load.


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NOTICE OF COMPLAINT FORMFOR BUILDERS WARRANTY COVERAGE

Workmanship complaints only

ADDRESS OF COMPLAINT ________________________________________________________________________________

________________________________________________________________________________

NATURE OF DEFECT (BE SPECIFIC) ________________________________________________________________________

________________________________________________________________________________________________________

________________________________________________________________________________________________________

________________________________________________________________________________________________________

________________________________________________________________________________________________________

________________________________________________________________________________________________________

________________________________________________________________________________________________________

Attach any copies of relevant correspondence between You and Your Builder involving this matter. Please provide any correspondencethat indicates that Your Builder has failed to perform his/her warranty obligations, and a copy of the Warranty Validation Certificate.

DATE DEFECT FIRST OBSERVED __________________________________________________________________________

DATE FIRST REPORTED TO BUILDER ______________________________________________________________________

BUSINESS PHONE ( )____________________________

HBW 5305 122810

Please read the 2-10 HBW Warranty Booklet for filing instructions and pertinent information. If Your previous written attempts toresolve Your problems with the Builder have failed, then this form is to be sent to Your Builder, with a copy to the 2-10 HBW WarrantyAdministration Department. This form must be received by 2-10 HBW no later that thirty (30) days after the expiration of theapplicable warranty term or the coverage will be denied. We recommend certified mail, return receipt requested.

2-10 Home Buyers WarrantyWarranty Administration Department

10375 East Harvard Ave.Denver, Colorado 80231

720.747.6003

(Date of Closing or First Occupancy)

(City) (State)

(Street)

(Zip)

HOME PHONE ( ) __________________________

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

NAME ____________________________________________________________________________________________

Warranty Validation Certificate #

______________________________________________Homeowner Signature Date

______________________________________________Homeowner Signature Date

30

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HBW 5307 122810

Documents

SAMPLE - CA Homes · SAMPLE “Home”meansthedwellingunitandgarage(ifany)ortheCommercialSpace(ifany)locatedattheaddressshownin theWarrantyValidationCertificate. “Multi-FamilyBuilding