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NOTE TO BUYER: All new residential construction goes through a period of stabilization and as the seasons change, periods of expansion and/or contraction will occur. As a result, the home will experience minor material changes which are unavoidable and considered normal. The Buyer should also be aware that he/she is responsible for proper home maintenance. Damage caused by Buyer’s negligence, improper maintenance or changes, alterations, or additions performed by anyone other than this Builder, its employees, or subcontractors is excluded from the warranty. Buyer is not permitted to hire Builder’s subcontractors directly for any work on the property during the period of this warranty without the Builder’s prior written permission. Work performed by the builder’s subcontractor that is not overseen by the Builder is excluded from this warranty.

Builder hereby grants a one year limited warranty to the above Buyer for the residential construction project at the above property address, under the following terms and conditions:

1. Term - The term of this warranty is limited to one year from the Date of Completion” of the building. The “Date of Completion” is defined as the date the occupancy permit is issued for the property.

2. Coverage - Subject to the exclusions set forth below, the Builder warrants that the building will be free from defects in workmanship and materials, consistent with applicable building codes and the generally accepted industry standards existing at the time of construction. There shall be no money withheld by Buyer for items covered by the Builder’s warranty.

3. Exclusions - The following items are not covered by this warranty:

(a) Homeowner Maintenance & Use Responsibilities:

(1) Damage due to the abuse or neglect of the Buyer or the Buyer’s

Failure to provide for proper maintenance.

(2) Loss or damage caused by the Buyer’s failure to take appropriate

action to minimize any damage as soon as practical.

(3) Dampness or condensation due to the failure of the Buyer to maintain adequate ventilation and humidity levels.

(4) Loss or damage resulting from abnormal loading on floors by the Buyer which exceeds the design criteria.

(5) Any loss or damage which arises while the building is being used primarily for non-residential purposes.

(6) Failure of outside hose bibs when cause of the failure is the Buyer neglect to disconnect a hose in freezing temperatures.

(7) Damage or defects in concrete floors of attached garages, stoops, steps, exterior concrete flat works caused by improper use of chemicals by the Buyers or Buyers agent, including the use of salt to remove ice.

(b) Construction Related Exclusions:

(1) Normal wear and tear, normal deterioration, or normal changes which are a result of characteristics common to materials.

(2) Warp age or shrinkage of materials within permitted tolerances indicated within quality standards.

(3) Surface damage to the building; including but not limited to damage to walls, ceilings, trim, cabinets, counters, plumbing fixtures, light fixtures, tile, flooring, glass, windows, doors, overhead doors, mirrors, and screens. Builder and Buyer shall perform an inspection prior to or at the time of closing to inspect the above items. All items are assumed to be in good condition unless documented in writing to the contrary at time of inspection. Buyers therefore release the builder from responsibility for any surface damage which is not specifically documented at time of inspection.

(4) Damage or defects in concrete floors of attached garages, stoops, steps and exterior concrete flatwork caused by weather changes, chemicals or moisture after installation.

(5) All landscaping (including sod, seeding, shrubs, trees, plantings), all boundary walls, all retaining walls and bulkheads that are not necessary for the structural stability of the residence, all fencing, and all sprinkler systems.

(6) Settling of the ground around the foundation and all underground utility laterals.

(7) Any damage caused by soil movement.

(8) Exterior hardware and lighting fixture finishes.

(9) Cosmetic discrepancies such as matching of touch up painting on walls, ceilings, interior trim, exterior trim, siding, roofing, flooring, etc. as a result of a covered defect, or as a result of the repair thereof.

3. Work Performed By Someone Other Than The Builder:

(1) Defects in materials supplied by anyone other than the Builder.

(2) Any work performed by Buyers subcontractor.

(3) Any adjustments or changes to the grading performed by anyone other than the Builder or sub acting on the Builders behalf.

4. Acts Outside of Builders Control, Actual Physical Damage, and Consequential Damages from Defects

(1) Loss or damage caused by external conditions outside of the Builder’s control including but not limited to riots, acts of God, accidents, explosions, smoke, water, unforeseeable changes in the level of the underground water table, windstorm, hail, lightning, or falling trees.

(2) Any defect or condition which does not result in actual physical damage to the property.

(3) Personal or Bodily injury of any kind (including physical or mental pain and suffering and/or emotional distress, medical, hospital, rehabilitation or other incidental or consequential expenses.

(4) Cost of shelter, transportation, food, moving, storage or any other

incidental or consequential damages or expenses associated with or related to any defect or the repair or replacement of any defects in workmanship, materials or design.

(5) Loss of use, loss of opportunity, loss of fair market value, loss of rental value or any other similar loss.

5. Warning:Micro-organisms, including, but not limited to, mould, mildew, spores, or any other form of fungi or bacteria, occur naturally in the environment and may be present, during or after construction, in the indoor air and/or on the interior surfaces of the Building including, without limitation to, wall cavities, attics, windows, basements, and/or on the exterior surfaces of the building, or any part thereof. Concentration of moisture in the building may result from cooking, showering, or similar activities inside the Building, the outside atmosphere, and/or the design, construction means and methods, and/or the building materials used in the construction of the Building. This moisture may cause growth, release, discharge, dispersal, or the presence of Micro-organisms which, at certain levels, can cause deterioration of building materials, damage to property and health hazards. Because this occurs naturally in the environment, The Builder cannot eliminate the possibility that Micro-organisms may grow in, on, or about the Building. Buyer may minimize these effects by proper utilization and maintenance of heating, cooling, dehumidification, or ventilation equipment, interior maintenance and cleaning, and exterior maintenance such as, but not limited to proper grading, landscaping, painting, and caulking. BUYER ACKNOWLEDGES THAT HE/SHE HAS BEEN INFORMED OF SUCH EFFECTS AND BUYER ASSUMES ALL RISKES OF DAMAGE, PERSONAL INJURY, OR DESTRUCTION OF OR INJURY TO PROPERTY THAT MAY ARISE AS A RESULT OF OR IN ANY WAY CONNECTED WITH THE INDOOR AIR QUALITY OR THE PRESENCE OF MICROORGANISMS, ON OR ABOUT THE BUILDING.

6. Remedy: If a defect is covered by this warranty and notice is given to the Builder prior to the expiration of this warranty, then Buyer’s sole remedy under this warranty is for Builder to repair or replace, at Builder’s sole option, the covered defect. Builder makes no implied warranty of any building materials, services and/or construction methods, except as otherwise provided. THIS LIMITED WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES.

7. Time of Notice of Claim:

In order for a defect to be covered by this warranty, Buyer must give prompt written notice to Builder and be ale to provide proof of delivery, prior to the date of expiration of this warranty. Any defect, latent or otherwise, for which written notice of same is not provided to the Builder prior to the expiration of this warranty shall not be covered.

8. Builder Access:

Buyer shall provide Builder with reasonable access to the home during normal working hours for the performance of an work under the warranty. Buyer shall ensure that all furniture and other obstacles within or around the portion of the home to be repaired will e removed so that Builder has reasonable access and sufficient working space necessary to repair and/or replace the covered defect.

9. Warranty Assignments:

Builder assigns to Buyer all manufacturers’ warranties pertaining to any fixtures, appliances and equipment in the building. Builder’s warranty is not assignable or transferable to any subsequent owner of the residence without the Builder’s prior written consent.

10: Arbitration of Dispute:

The Buyer shall promptly contact the Builder regarding any disputes involving this agreement. If discussions between the parties are not resolved then either party may, upon written notice to the other party, submit such a dispute to arbitration. The expenses of the arbitrators shall be shared equally, but each party shall bear its own fees and costs.