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Home My WebLink About08-2643 A LINDA L. KNOLL, : IN THE COURT OF COMMON PLEAS OF Plaintiff : CUMBERLAND COUNTY, PENNSYLVANIA V. No. b$ - 02(0 q 3 Civ? t Term TIMOTHY HOGG AND HOGG PROPERTIES, LLC Defendant JURY TRIAL DEMANDED PRAECIPE FOR WRIT OF SUMMONS TO THE PROTHONOTARY: Kindly issue Writ of Summons in the above matter against Defendants Tim Hogg and Hogg Properties, LLC. 4 Writ of Summons shall be issued and forwarded to the Sheriff. Date: _ZZ-oq )Kichard B. Druby, squir Attorney I.D. No. 19 840 East Chocolate venue Hershey, PA 17033 (717) 533-5406 Attorney for Plaintiff r R., 00 9 0 R _a U1 in 0 r Cl) C K w LINDA L. KNOLL, Plaintiff V. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA No. OB- aogB, l?ivi(Ter-wt TIMOTHY HOGG AND HOGG PROPERTIES, LLC Defendant JURY TRIAL DEMANDED TO: Hogg Properties, LLC 119 South Third Street Lemoyne, PA 17043 'r WRIT OF SUMMONS Hogg Properties, LLC 128 Forest Drive Camp Hill, PA 17011 You are hereby notified that Linda Knoll has commenced an action against you. Date: Protho Lary By: Deputy w LINDA L. KNOLL, Plaintiff V. TIMOTHY NOGG AND HOGG PROPERTIES, LLC Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA No. 08 - A645 Ci v I Term JURY TRIAL DEMANDED WRIT OF SUMMONS TO: Timothy Hogg Timothy Hogg 119 South Third Street 128 Forest Drive Lemoyne, PA 17043 Camp Hill, PA 17011 You are hereby notified that Linda Knoll has commenced an action against you. Date: ?"jv Q Pr notary By: Deputy r CASE NO: 2008-02643 P SHERIFF'S RETURN - REGULAR COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND KNOLL LINDA VS HOGG TIMOTHY ET AL STEPHEN BENDER , Sheriff or Deputy Sheriff of Cumberland ounty,Pennsylvania, who being duly sworn according to law, says, the within WRIT OF SUMMONS was served upon HOGG TIMOTH the DEFENDANT at HESS STATION at 1325:00 HOURS, on the 30th day of April 2008 402 S THIRD STREET LEMOYNE, PA J7043 by handing to TIMOTHY a true and attested copy of WRIT OF SUMMONS together with and at the ame time directing His attention to the contents thereof. Additional omments HOGG OWNS 1 9 S THIRD ST LEMOYNE, BUT DOES NOTLIVE THERE. HOGG STATED THAT HE LIVES IN YORK COUNTY, BUT WOULD NOT TELL WHERE HE LIVES. Sheriff's C?sts: Docketing 18.00 Service 15.00 Postage .75 Surcharge 10.00 ? p 1 ?O F? .00 43.75 Sworn and S bscibed to before me t is of day So Answers: R. Thomas Kline 05/01/2008 NESTICO DRUBY HILDABRAND By. Deputy Sheriff A. D. CASE NO: 2008-02643 P SHERIFF'S RETURN - REGULAR COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND KNOLL LINDA t VS HOGG TIMOTHY ET AL STEPHEN BENDER , Sheriff or Deputy Sheriff of Cumberland ounty,Pennsylvania, who being duly sworn according to law, says, the within WRIT OF SUMMONS was served upon HOGG PROPER IES LLC the DEFENDANT at 1325:00 HOURS, on the 30th day of April , 2008 at HESS STATION 402 S THIRD STREET LEMOYNE, PA 17043 TIMOTHY HOGG, PRESIDENT by handing to a true and attested copy of WRIT OF SUMMONS together with and at the L me time directing His attention to the contents thereof. Additional mments DEFENDANT 0 S, BUT DOES NOT LIVE AT, 119 S THIRD ST LEMOYNE. Sheriff's Costs: Docketing 6.00 Service .00 Affidavit .00 Surcharge 10.00 .00 b? 16.00 Sworn and S bscibed to before me t is day So Answers: R. Thomas Kline 05/01/2008 NESTICO DRUBY HILDABRAND By: Deputy Sheriff 01 A. D. SHERIFF'S RETURN - REGULAR CASE NO: 2008-02643 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND KNOLL LINDA 'IL VS HOGG TIMOTH ET AL STEPHEN BENDER , Sheriff or Deputy Sheriff of Cumberland ounty,Pennsylvania, who being duly sworn according to law, says, the w'thin WRIT OF SUMMONS was served upon HOGG TIMOTH the DEFENDANT , at 1325:00 HOURS, on the 30th day of April 2008 at HESS STA ION 402 S THIRD STREET LEMOYNE, PA 17043 by handing to TIMOTHY HOG a true and attested copy of WRIT OF SUMMONS together with and at the ame time directing His attention to the contents thereof. Additional omments 128 FOREST RIVE CAMP HILL IS LOCATED IN YORK COUNTY. ? DEFENDANT DOES NOT LIVE AT THAT ADDRESS. HE MET DEPUTIES TU ACCEPT S4RVICE OF WRIT. Sheriff's C sts: Docketing 6.00 Service .00 Affidavit .00 Surcharge 10.00 ?jo/bf- 4"' .00 p / w 16.00 Sworn and S bscibed to before me t is day of , So Answers: R. Thomas Kline 05/01/2008 NESTICO DRUBY HILDABRAND By: ?? /?V, eput She iff A. D. CASE NO: 2008-02643 P SHERIFF'S RETURN - REGULAR COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND KNOLL LINDA VS HOGG TIMOTHY ET AL STEPHEN BENDER , Sheriff or Deputy Sheriff of Cumberland ounty,Pennsylvania, who being duly sworn according to law, says, the w'thin WRIT OF SUMMONS was served upon HOGG PROPER IES LLC the DEFENDANT at HESS STATION at 1325:00 HOURS, on the 30th day of April 2008 402 S THIRD STREET LEMOYNE, PA?17043 by handing to TIMOTHY HOGG, PRESIDENT a true and attested copy of WRIT OF SUMMONS together with and at the ame time directing His attention to the contents thereof. Additional omments 128 FOREST RIVE CAMP HILL IS LOCATED IN YORK COUNTY. Sheriff's Costs: Docketing 6.00 Service .00 Affidavit .00 Surcharge 10.00 .00 16.00 Sworn and S bscibed to before me t is day of , So Answers: R. Thomas Kline 05/01/2008 NESTICO DRUBY HILDABRAND By: Deputy Sheriff A. D. David J. Lanza Attorney I.D. No. 55782 2132 Market Street Camp Hill, PA 17011 (717) 730-3775 Attorney for Defendant LINDA KNOLL, Plaintiff v. TIMOTHY J. HOGG and HOGG PROPERTIES, LLC Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 08-2643 CIVIL ACTION -LAW PETITION 1. On or about April 22 2008, Plaintiff filed the above action against Defendants. 2. Plaintiff has simultaneously pursued arbitration through a private arbitration service related to the same claims. 3. Plaintiff is attempting to litigate the same claims twice through arbitration and through this action. 4. Plaintiff has had no dealings with Defendant Timothy Hogg outside of the facts related to the arbitration claim (and no dealings at all with Defendant Hogg Properties, LLC). 5. Plaintiff has no basis to pursue both the Cumberland County litigation and the i separate arbitration. 6. Defendants have attempted to delay the arbitration until Plaintiff chooses which forum in which it wishes to proceed, but the arbitration company has scheduled the arbitration for May 12, 2009 notwithstanding Defendants' procedural objections and notwithstanding Plaintiffs' pursuit of redundant procedures. 7. Defendants are entitled to a stay of any arbitration proceedings until and unless Plaintiffs choose one of the two forums in which to proceed against Defendants. 8. Defendants have provided a copy of this Petition to Plaintiff's counsel and Plaintiff has not concurred in this Petition. Wherefore, Defendants request that this Court enter an Order prohibiting Plaintiffs from proceeding with any arbitration claim so long as this case remains pending, or, in the alternative, dismissing Plaintiffs' action before this Court. Respectfully submitted, Dated: 1 ?'1 ?') I David J. Lanza Attorney I.D. #55782 2132 Market Street Camp Hill, PA 17110 (717) 730-3775 Attorney for Defendant 2 VERIFICATION The undersigned hereby verifies that the facts set forth in the foregoing document are true and correct to the best of his knowledge, information and belief and that the source of the information contained herein is Tim Hogg as well as legal conclusions and matters of record. Tim Hogg was unavailable at the time of this filing and will execute a replacement verification page shortly. I acknowledge that false statements herein are made subject to the penalties of 18 Pa.C.S § 4904 relating to unworn falsification to authorities. Dated. DavqJ.L CERTIFICATE OF SERVICE AND NOW, this 2 4tk day of April, 2009, I hereby certify that I have served a copy of the foregoing document on the following by depositing a true and correct copy of the same in the U.S. Mail at Harrisburg, Pennsylvania, postage prepaid, addressed to: Richard Druby, Esquire 340 East Chocolate Avenue Hershey, PA 17033 David Lanza Fil FU--O rriG OF THE P l-! , }r,TAR'` 20Q9 APR 24 PH 3: 58 l?i '-J14P?` r '-i r7 -z. 1V r ?Jf1i xm. ..Y . r David J. Lanza co r Attorney I.D. No. 55782 2132 Market Street Camp Hill, PA 17011 (717) 730-3775 Attorney for Defendant LINDA KNOLL, IN THE COURT OF COMMON PLEAS OF Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. TIMOTHY J. HOGG and HOGG NO. 08-2643 PROPERTIES, LLC Defendants CIVIL ACTION - LAW AMENDED PETITION 1. On or about April 22 2008, Plaintiff filed the above action against Defendants. 2. Plaintiff has simultaneously pursued arbitration through a private arbitration service related to the same claims. 3. Plaintiff is attempting to litigate the same claims twice through arbitration and through this action. 4. Plaintiff has had no dealings with Defendant Timothy Hogg outside of the facts related to the arbitration claim (and no dealings at all with Defendant Hogg Properties, LLC). 5. Plaintiff has no basis to pursue both the Cumberland County litigation and the separate arbitration. 6. Defendants have attempted to delay the arbitration until Plaintiff chooses which forum in which it wishes to proceed, but the arbitration company has scheduled the arbitration for May 12, 2009 notwithstanding Defendants' procedural objections and notwithstanding Plaintiffs' pursuit of redundant procedures. 7. Defendants are entitled to a stay of any arbitration proceedings until and unless Plaintiffs choose one of the two forums in which to proceed against Defendants. 8. Defendants have made the contents of this Amended Petition known to Plaintiff's counsel and Plaintiff has not concurred in this Petition. 9. No judge has considered or ruled upon any matter related to this case or any related matter. Wherefore, Defendants request that this Court enter an Order prohibiting Plaintiffs Dated: L U Respectfully submitted, David J. Lanza Attorney I.D. #55782 2132 Market Street Camp Hill, PA 17110 (717) 730-3775 Attorney for Defendant from proceeding with any arbitration claim so long as this case remains pending, or, in the alternative, dismissing Plaintiffs' action before this Court. 2 ,Apr 25 2009 1:34PM HP LRSERJET FAX VERIFICATION The undersigned hereby verifies that the facts set forth in the foregoing document are true and correot w the best of his knowledge, information and belief. The undersigned acknowledges that false statcrrww herein are made subject to the penalties of 18 Fa.C.S 14404 relating to unworn falsification to authorities. Dated: 04? Timothy Fogg 5 p.I b6/b6 3Jtid S.171HIM 0 TLi2Wa 6eEZU6LL4 BZ=ti Geezisb/b6 CERTIFICATE OF SERVICE AND NOW, this , day of April, 2009, I hereby certify that I have served a copy of the foregoing document on the following by depositing a true and correct copy of the same in the U.S. Mail at Harrisburg, Pennsylvania, postage prepaid, addressed to: Richard Druby, Esquire 340 East Chocolate Avenue Hershey, PA 17033 David Lanza LINDA KNOLL, Plaintiff vs. TIMOTHY J. HOGG and HOGG PROPERTIES, LLC, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 08-2643 CIVIL IN RE: AMENDED PETITION ORDER AND NOW, this 7-1` day of April, 2009, a rule is issued on the plaintiff to show cause why the relief requested in the within amended petition ought not to be granted. This rule returnable twenty (20) days after service. BY THE COURT, ZRichard DrubY, Esquire For the Plaintiff David J. Lanza, Esquire For the Defendants Arn (26p1JET 6S ;C Wd 8Z 88V 60OZ 1- Y D LINDA KNOLL, Plaintiff V. TIMOTHY J. HOGG AND HOGG PROPERTIES, LLC, Defendants. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA : CIVIL ACTION -LAW NO. 08-2643 CIVIL JURY TRIAL DEMANDED PLAINTIFF'S REPLY WITH NEW MATTER TO DEFENDANTS' AMENDED PETITION FILED APRIL 27, 2009 1. No response is required as the docket speaks for itself. 2. Denied. While it is admitted that Plaintiff filed for arbitration, that arbitration was pursuant to a written warranty (hereinafter "Warranty") issued on behalf of the Defendants by Residential Warranty Company. That Warranty is attached hereto as Exhibit A. Pursuant to the terms of the Warranty, any claims relating to the Warranty are to proceed to arbitration. Arbitration was scheduled and held on May 12, 2009. However, Plaintiff's claims are not limited to express warranty claims against Defendants. Plaintiff has independent causes of action for such claims including, but not limited to, breach of contract, negligence, fraud, violation of the Unfair Trade Practices and Consumer Protection Law as well as the violations of the Magnuson-Moss Act. Those claims are separate and independent from the Warranty claims. In fact, the Warranty itself states that "this Limited Warranty is separate and apart from your contract and/or other sales agreement with your builder." See Section II(D)(4) of the Warranty, p. 319.4. Consequently, Plaintiff is not attempting to litigate this matter twice, but is pursuing the Warranty claim in arbitration as required by the Warranty (section IV(E), p. r r 319.18) and is pursuing the remaining claims arising out of the defects and deficiencies in the construction through this litigation. 3. Denied. The allegations of paragraph 3 are specifically denied. In further answer, Plaintiff's response to paragraph 2 is incorporated herein by reference. 4. Denied. The allegations of paragraph 4 are specifically denied. 5. Conclusion of law to which no response is required. To the extent a response is required, the allegations of paragraph 5 are specifically denied. In further answer, Plaintiff incorporates paragraph 2 as if fully set forth herein. 6. Admitted in part and denied in part. It is admitted that the Defendants have attempted to delay the arbitration on numerous occasions. However, Defendants have had no valid reason to do so. It is specifically denied that Plaintiff is required to choose a forum in which to proceed. On the contrary, the Warranty requires binding arbitration for those issues covered only under the Limited Warranty. The Warranty states that the "Limited Warranty" consists only of "the terms and conditions contained in this book including any applicable addendum." Section I(B)(14). The only matters to proceed to arbitration are "Unresolved Warranty Issues." See section IV(D) and (E). The Warranty does not state that all disputes regarding the design and construction of the home under any theory of law will be submitted to binding arbitration. On the contrary, only those disputes under the Warranty are subject to binding arbitration under the Warranty. See Gettysburg Construction Co. v. Griffo, 38 D.&C. 4th 394(Adams County 1998) affirmed, 745 A.2d 49(Pa. Super 1999). 2 w It is further specifically denied that Plaintiff is pursuing redundant procedures for 0 the reasons set forth above. It is admitted that the arbitration on the Warranty items was held on May 12, 2009. 7. Conclusion of law, to which no response is required. To the extent a response is required, the allegations of paragraph 7 are specifically denied. Defendants are not entitled to a stay at the arbitration proceedings. Those arbitration proceedings have already been held. Furthermore, Plaintiff is not required to choose one of the two forums in which to proceed. The claims pursued are independent of each another. The Warranty requires arbitration of Warranty items. The remaining claims can be brought in the Court of Common Pleas. 8. Admitted. 9. Admitted WHEREFORE, Plaintiff respectfully requests that this Honorable Court deny Defendants' Request to dismiss Plaintiff's action for the reasons set forth above. NEW MATTER 10. Paragraph 1 through 9 above are incorporated herein by reference. 11. The Limited Warranty attached hereto as Exhibit A does not state that all disputes involving Plaintiff and Defendants will be submitted to binding arbitration. In fact, the Warranty states that only "Unresolved Warranty Issues" will be submitted to binding arbitration. 12. Additional causes of action against the Defendants, aside from the warranty claims set forth in the Warranty, are not controlled by the terms and conditions of the Warranty but are, in fact, separate and distinct causes of action. 3 13. In fact, the Warranty itself states that the Limited Warranty is "separate and apart from your contract and/or other sales agreement with your builder." 14. Consequently, the Warranty does not shelter the Defendants from all responsibility in relation to construction of the home as there are claims that are separate from the responsibilities under the Limited Warranty. See Gettysburg Construction Co. v. Griffo, su ra. 15. Accordingly, Plaintiff is not required to choose between arbitration and litigation in the Court of Common Pleas. Plaintiff is required to arbitrate the claims under the Warranty as set forth under the terms of the Warranty and is permitted to bring those remaining claims regarding defects and deficiencies in the construction of the home in a lawsuit in the Court of Common Pleas. WHEREFORE, Plaintiff respectfully requests that this Honorable Court deny Defendants' Request to dismiss Plaintiff's action for the reasons set forth above. Respectfully Date: le' a / NESTICO, DR By: Richard B. Druby Attorney I.D. No 6 4 840 E. Chocolate venue Hershey, PA 17033 (717) 533-5406 Telephone Attorneys for Plaintiff 4 LLP VERIFICATION I, Richard B. Druby, Esquire, verify that the statements made in the foregoing document are true and correct to the best of my knowledge, information and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. §4904 relating to unsworn falsification to Date: `S ? I0 ?d 5 CERTIFICATE OF SERVICE I I, Richard B. Druby, Esquire, of the law firm of Nestico, Druby & Hildabrand, L.L.P., hereby certify that on the 18'" day of May, 2009, a copy of the foregoing document was sent via First Class U.S. Mail, postage paid, to the following: David Lanza, Esquire 2132 Market Street Camp Hill, PA 17011 B. Druby, 6 ?h,?;+ a MOW MG ®031?A- 93H 93183S 00009 ESIDENTIAL ARRANTY ORPORATIOPP 10 Year New Home Wxr?My RESIDENTIAL WARRANTY CORPORATION PRESENTS THE LIMITED WARRANTY IO YEAR WRITTEN WARRANTY FOR NEW HOMES Within 90 days after receiving this War- ranty book, you should receive a validation sticker from RWC. If you do not, contact your Builder to verify that the forms were properly processed and sent to RWC. You do not have a warranty without the validation sticker. Place validation sticker here. Warranty is invalid witlwut sticker. This Limited Warranty does not cover consequential or incidental damages. The Warrantor's total aggregate liability of this Limited Warranty is limited to the Final Sales Price listed on the Application For Warrantyform. The Builder makes no housing merchant implied warranty or any other warranties, express or implied, in connection with the attached sales contract or the warranted Home, and all such warranties are excluded, except as expressly provided in this Limited Warranty. There are no warranties which extend beyond the face of this Limited Warranty. Some states do not allow the exclusion or limitation of incidental or consequential damages by the Builder so all of the limitations or exclusions of this Limited Warranty may not apply to you. For your Limited Warranty to be in effect, you should receive the following documentation: • Limited Warranty #319 - Application For Warranty form #316 (Refer to I.B.3. for applicability)- - Validation Sticker #385 • Insurer: Western Pacific Mutual Insurance Company, A Risk Retention Group W I'IC' 9714 Rn-. 2i(W I'Nb Harrisburg. PA R W a RESIDENTIAL WARRANTY 5300 Derry Street. Harrisburg. PA 17111-3598 CORPORATION (717) 561-1180 Dear Home Buver•, Congratulations on the purchase of 'your new Nome. This is probably one of the largest, most important investments you've ever made and we wish you manv years of' enjovment. You've chosen a Home built by a leading Builder which includes the RWC Limited Warrant v, assurance that your investment is well protected. This book explains the Limitect Warranty in its entirety, and we encourage you to take tinle to READ IT CAREFULL Y. This Limited Warranty provicles youu with protection in ac•cor(lunce with this vrarr•anty book fn- ten fidl-years o/ Holne ownership. During the first two 'rears, your- Builder is resI)onsible fcn• specifiecl warranty obhga- tions. In the rnllikeh- event voln• Builder is unable or unwilling to perform, the TVar-- ranty is provided suhjec•t to the conclition.s, ter•nls curd e.rc•lusions listed. For the remain- ing eight years, your War•r•unty applies to Major Structural Defects a.s defineel in this book. This is not a vrar'rantl' service contract, but a vrritten ten rear- limited vrarr ant- which your Builder has elected to provide with your Home. Take time now to read this book. Funril- icrrize yourself with the Warranty and its limitations. Contact your Builder regarding specific construction standards anct how then apply to your Home.. Again, congr•attdations and enjoy your nevv Home! vel y 11'111)' yours, RESIDENTIAL WARRANTY CORPORATION page 319.1 ?cric+319u,•, '_0a , ioao IIm,"N'.". PA TABLE OF CONTENTS Section I. Definitions ................................................. I Section II. The Limited Warranty ..............................3 Section M. Warranty Standards ................................... 7 Section IV. Requesting Warranty Performance...... 18 Section V. Addenda ................................................... 20 A. Newark, Delaware B. State of New York C. State of Indiana D. HUD (Applicable to N'A/FHA financed homes only) E. Marvland Addendum .y t M1 Section IA. Introduction I. Definitions To help you better understand your Limited Warranty, refer to the following list of definitions which apply in this book. B. Definitions* 1. Administrator 2. 3. Residential Warranty Corporation (RWC) is the Administrator of this Limited Warranty. RWC is neither Warrantor nor Insurer. Appliances and Items of Equipment, including At- tachments and Appurtenances Water heaters, pumps, stoves, refrigerators, com- pactors, garbage disposals, ranges, dishwashers, washers and dryers, bathtubs, sinks, commodes, faucets, light fixtures, switches, outlets, thermo- stats, furnaces and oil tanks, humidifiers, oil purifiers, air conditioning materials, in-house sprin- kler systems and similar items. Application For Warranty The form signed at closing by you, the Purchaser, and your Builder which identities the location, the Effective Date Of Warranty and the Final Sales Price of the enrolled Home. If the Builder is par- ticipating in the RWC electronic enrollment process, the Application for Warranty firm is elimi- nated. 4. Arbitrator A representative of an independent arbin-ation ser- vice agreed upon by you, the Purchaser, and the Administrator to determine coverage on an Unre- solved Warranty Issue. 5. Builder The person, corporation. partnership or other entity which participates in the RWC Limited Warranty Program and has obtained this Limited Warranty for you. 6. Building Codes The following codes are acceptable to the Insurer of the Limited Warranty: a. Building Codes (I ) CABO I & 2 Family Dwelling; Code (2) National Building Code (BOCA) (3) Southern Building Code (SBCCI) (4) Uniform Building Code (IC BO) (5) International Building Code (IBC), (iRC) b. Mechanical Codes (1) CABO I & 2 Family Dwelling; Code (2) National Mechanical Code(BOCA) (3) Southern Mechanical Code (SBCCI) (4) Uniform Mechanical Code (ICBO) (5) international Building Code (IBC), (iRC) c. Plumbing Codes (1) CABO i & 2 Family Dwelling Code (2) International Plumbing Code (3) National Plumbing Code (BOCA) (4) Southern Plumbing Code (SBCCI) (5) Southern Gas Code (SBCCI) (6) Uniform Plumbing Code (ICBO) (7) International Building Code (IBC), (IRC) d. Electrical Codes ( I ) CABO I & 2 Family Dwelling Code (2) National Electrical Code (NEC) Consequential Damages All consequential damages including, but not lim- ited to, damage to the Home that is caused by a warranted Defect but is not itself a warranted De- fect and costs of shelter, transportation, food, moping, storage or other incidental expenses related to relocation during repairs. Cooling;, Ventilating and Heating Systems All ductwork, refrigerant lines, steam and water pipes, relltiters, convectors and dampers. 9. Defect A condition of any item warranted by this Limited Warranty which exceeds the allowable tolerance specified in this Limited Warranty. Failure to cony plete construction of the Home or any portion of the Horne, in whole or in part, is not considered a De- fect. 10. Effective Date Of Warranty The date coverage begins as specified on the Appli- cation for Warranty form. If the Builder is participating in the electronic enrollment process, the effective date is date of closing or occupancy, whichever occurs first.* page 319.1 WPK #319 Rev. ? 04 ?'11A* H-..,haq, PA 11. Electrical Systems All wiring, electrical boxes and connections up to the house side of the meter base. 12. Home The single family dwelling, identified on the Appli- cation For Warranty form, which may be a townhome, condominium or duplex. 13. Insurer Western Pacific Mutual Insurance Company, a Risk Retention Group (WPIC). Located at 1655 Lafayette Street, Suite 200, Denver CO 80218. Phone: 303-388-5688. *FHANA Homeowners, refer to HUD Addendum, Section V.D. Section 14. 1. Definitions 15. (continued) page 319.2 uric #311) Roy. 2'04 01906 Vlan,6-, PA Limited Warranty The terms and conditions contained in this book including any applicable addenda. Major Structural Defects (MSD) All of the following conditions must be met to con- stitute a Major Structural Defect:* a. actual physical damage to one or more of the following specified load-bearing segments of the Home; b. causing the failure of the specific major struc- tural components; and c, which affects its load-bearing function to the degree that it materially affects the physical safety of the occupants of the Home. Load-bearing components of the Home deemed to have MSD potential: ( I ) roof framing members (rafters and trusses); (2) floor framing members (joists and trusses); (3) bearing walls; (4) columns, (5) lintels (other than lintels supporting ve- neers); (6) girders; (7) load-bearing beams; and (8) foundation systems and footings. Examples of non-load-bearing elements deemed not to have Major Structural Defect potential: (1) non-load-bearing partitions and walls: (2) wall the or paper, etc.; (3) plaster, laths or drywall; (4) flooring and subtlooring material; (5) brick, stucco, stone or veneer; (6) any type ofcxterior siding; (7) roof shingles, sheathing* and tar paper; (8) Heating, Cooling, Ventilating, Plumbing, Electrical and mechanical systems; (9) Appliances, fixtures or Items of Equipment; and (10) floors, trim, cabinets, hardware, insulation, paint and stains. 16. Owner See Purchaser. 17. Plumbing Systems All pipes located within the Houle and their fit- tings, including gas supply lines and vent pipes. 18. Purchaser You. The Purchaser includes the first buyer of the warranted Home and any and all subsequent own- ers who take title within the warranty period. 19. Residence See Home. 20. Sewage Disposal System (Private or Public) This system includes, but is not limited to, all waste, drainage, sewer pipes and lines, cleanouts, tanks, pumps, drainfields and seepage pits, outside and beyond the exterior wall of the Home. 21. Structurally Attached An integral part of the Home being structurally sup- ported by footings, block walls or reinforced concrete and connected to the foundation of the Home. 22. Unresolved Warranty Issue All requests for warranty performance, demands, disputes, controversies and differences that may arise between the parties to this Limited Warranty that cannot be resolved anumg the parties. An Unre- solved Warranty Issue may be a disagreement regarding: a. the coverages in this Limited Warranty; b. an action performed or to be performed by any party pursuant to this Limited Warranty, c. the cost to repair or replace any item covered by this Limited Warranty. 23. Warrantor Your Builder in Years I and 2; the insurer in Years 3 through 10 and in Years I and 2 if your Builder defaults. 24. Water Supply System (Private or Public) This system includes, but is not limited to, all sup- ply and distribution pipes, fittings, valves, pumps and wells, outside the exterior wall of the Horne, which supply water to the Home. *FHAiVA Homeowners, refer to HUD Addendum, Section V.D. Section I A. Introduction to the Limited Warranty 11. The Limited Warranty page 319.3 NP1 0319 Re,. 104 1 ?1?1h HI g, PA This book provides specific details, conditions and limitations of the Limited Warranty including pro- cedures for requesting warranty performance and for binding arbitration, in accordance with the pro- cedures of the Federal Arbitration Act. Additional information may be received by calling RWC at (717) 561-4430. Read this document in its entirety to understand the protection it affords, the exclu- sions applicable to it, the Warranty Standards which determine its interpretations and operation and your responsibilities. 2. This is NOT an insurance policy, a maintenance agreement or a service contract. It is an explanation of what you, the Purchaser, can expect from this Limited Warranty. 3. Appliances and Equipment included in the Home are not warranted under this Limited Warranty, but may be covered by separate warranties provided by the manufacturer or supplier. These warranties are passed on to you by your Builder at closing and are separate from this Limited Warranty. 4. You are responsible for maintenance of your new Home. General and preventative maintenance are required to prolong the life of your new Home. 5. This Limited Warranty is automatically trans- ferred to subsequent Owners dUrin" tile tcri-year term of this Limited Warranty. 6. This Limited Warranty is subject to changes re- quired by various regulating bodies. FHA and VA, as well as some local agencies have mandated the additions noted in the Addenda Section of this Lim- ited Warranty book. Notations throughout indicate where the Addenda apply. B. The Limited Warranty 1. Actions taken to cure Defects will NOT extend the periods of specified coverages in this Limited Warranty. 2. 3. 4. Only warranted elements which are specifically designated in the Warranty Standards are covered by this Limited Warranty. The Warrantor has the choice to repair, replace or pay the reasonable cost to repair or replace war- ranted items which do not meet Warranty Standards and are not excluded in the Limited Warranty. If a warranted MSD occurs during the appropriate coverage period, and is reported as required in Sec- tion IV., the Warrantor will repair, replace or pay you the reasonable cost to repair or replace the war- ranted MSD, limited to actions necessary to restore the MSD to its load-bearing capacity. C. Warranty Coverage* ONE YEAR COVERAGE: Your Builder warrants that for a period of one ( l ) year after the Effective Date Of Warranty, warranted items will function and op- erate as presented in the Warranty Standards of Year 1, Section 11I.A. Coverage is ONLY available where specific Standards and Actions are repre- sented in this Limited Warranty.* 2. Two YEAR COVERACE: Your Builder warrants that for a period of two (2) years from the Effective Date Of Warranty, specified portions of the Heat- ing, Cooling, Ventilating, Electrical and Plumbing Systems, as defined in this Limited Warranty, will function and operate as presented in the Warranty Standards of Years I and 2 only, Section III.B. 3. Tl:.v YEAR COVERAGE: Major Structural Defects (MSD) are warranted for ten (10) years from the Effective Date Of Warranty. Your Builder is the Warrantor during Years I and 2 of this Limited Warranty and the Insurer is the Warrantor in Years 3 through 10. CONDOMINIUM COVERAGE: This Limited Warranty shall only apply to warranted common elements. Warranted common elements are those portions of the defined Electrical, Heating, Ventilating, Cool- ing, Plumbing and structural Systems which serve two (2) or more residential units, and are contained wholly within a residential structure. Warranty cov- erage for common elements shall be for the same periods and to the same extent as similar or compa- rable items in individual residential units. Examples of common elements which are covered by this Limited Warranty are hallways, meeting rooms and other spaces wholly within the residential structure designated for the use of two (2) or more units. Examples of common elements which are not cov- ered under this Limited Warranty are club houses, recreational buildings and facilities, exterior struc- tures, exterior walkways, decks, balconies, arches or any other non-residential structure which is part of the condominium.* D. Conditions* 1. This Limited warranty provides coverage only in *FHANA Horneowncrs, refer to HUD Addendum, Section V.D. Homeowners in Indiana. refer to State of Indiana Addendum SNrtinn Ni r Section 1 1. 2. The Limited Warranty 3. (continued) 4. 5. 6. 7. R 9 10 12. 13 page 319.4 11I' IC 13111 Rc,. 2 ua 1 I'1YO Harrisburg. PA excess of coverage provided by other warranties or insurance, whether collectible or not. This Limited Warranty is binding on the Builder and you and your heirs, executors, administrators, successors and assigns. This Limited Warranty shall be interpreted and en- forced in accordance with the laws of the state in which the Home is located. This Limited Warranty is separate and apart from your contract and/or other sales agreements with your Builder. It cannot be affected, altered or amended in any way by any other agreement which you may have. This Limited Warranty cannot be modified, altered or amended in any way except by a formal written instrument signed by you, your Builder and the Ad- ministrator. If any provision of this Limited Warranty is deter- mined by a court of competent jurisdiction to be unenforceable, that determination will not affect the validity of the remaining provisions. All notices required under this Limited Warranty must be in writing and sent by certified mail, return receipt requested, postage prepaid, to the recipient's address shown on the Application For Warranty form, or to whatever address the recipient may des- Igllate 111 writing. If actions by the Warrantor on any obligations un- der this Limited Warranty are delayed by an event beyond its control, such performance will be ex- cused until the delaying effects of the event are remedied. Such events include, but are not limited to, acts of God, acts of the common enemy, war, not, civil commotion or sovereign conduct, or acts or omissions by you or any other person not a party of this Limited Warranty. If your Builder fails to complete any part of the Home that is reasonably foreseeable to cause struc- tural damage to the Home, then it is your responsibility to complete such parts of the Home to avoid the structural damage. If you fail to com- plete the work, then any resulting structural damage is not covered under this Limited Warranty.* Costs incurred for unauthorized repairs to war- ranted items are not reimbursable. Written authorization prior to incurring expenses must be obtained from the Administrator.* Whenever appropriate, the use of one gender in- eludes all genders and the use of the singular includes the plural. Under this Limited Warranty, the Warrantor is not responsible for exact color, texture or finish matches in situations where materials are replaced or repaired, or for areas repainted or when original materials are discontinued. Your Builder must assign to you all manufacturers' warranties on products included in the Final Sales Price of Your Home. Neither the Insurer nor the Administrator shall be liable for your Builder's Fail- ure to do so. 14. You are responsible for establishing a written, final walk-through inspection list of items in need of ser- vice prior to occupancy or closing, whichever is first. This list must be signed and dated by you and your Builder. Keep a copy for your records. E. Exclusions The following are NOT covered under this Limited Warranty: 1. Loss or damao-e: a. to land. b. to the Home, persons or property directly or indirectly caused by insects, birds, vermin, ro- dents, or wild or domestic animals. c. which arises while the Home is used primarily for non-residential purposes. d. caused by soil movement, including subsid- ence, expansion or lateral movement of the soil which is covered by any other insurance or for which compensation is granted by legislation.* e. resulting directly or indirectly from flood, sur- face water, waves, tidal water, overflow of a body of water, or spray from any of these (whether or not driven by wind), water which backs up from sewers or drains, changes in the water table which were not reasonably foresee- able, water below the surface of the ground (including water which exerts pressure on or seeps or leaks through a building, sidewalk, driveway, foundation, swimming pool, or other structure), wetlands, springs or aquifers.* f. from normal deterioration or wear and tear. g. caused by material or work supplied by any- one other than your Builder or its employees, agents or subcontractors, including the items listed as additional exclusions on the Applica- tion For Warranty form. h. from your or the condominium association's failure to perform routine maintenance on the Home, common areas, common elements or your or the condominium association's grounds. *FHA/VA Homeowners, refer to HUD Addendum, Section V.D. Section If. The Limited Warranty (continued) page 319.5 Nl Iv4'R' e,19 Rc,. I IN 1 R lhn"I .' PA i. after Year I, to, resulting from, or made worse by all components of structurally attached decks, balconies, patios, porches, porch roofs and porticos. j. after Year 1, to, resulting from, or made worse by elements of the Home which are constructed separate from foundation walls or other struc- tural elements of the Home such as, but not limited to, chimneys and concrete floors of basements and attached garages. k. to wiring, to and between communication de- vices from the source of power, whether or not connected to the interior wiring system of the Home. Such devices shall include, but not be limited to, telephone systems, television cable systems, intercom systems, computer systems and security systems. Sources of power shall include, but not be limited to, service entrance conductors, switches, outlets, receptacles and junction boxes. 1. to recreational facilities, driveways; walkways; patios, porches and stoops not structurally at- tached; decks and balconies which are not bolted to or cantilevered from the main struc- ture of the Home; boundary and/or retaining walls; bulkheads; fences; landscaping, sodding, seeding, shrubs, trees and plantings; subsurface drainage systems (other than footer drains); km,n sprinkler systems; off site improvements, including street. sidewalks, adjacent property and the like; or any other improvements not part of the Home itself. 3. Loss or dama?:e resulting from, or made worse by: a. changes in the grading of the property sur- roundin"I the Home by anyone except your Builder or its employees, agents or subcontrae- to rs. b. changes in grading caused by erosion. c. modifications or additions to the Home, or property under or around the Home, made after the Effective Date Of Warranty (other than changes made in order to meet the obligations of this Limited Warranty). d. intrusion of water into crawl spaces.* e. the weight and/or performance of any type of waterbed or any other furnishing which ex- ceeds the load-bearing design of the Horne. f. the presence or consequence of unacceptable levels of radon, formaldehyde, carcinogenic substances or other pollutants and contami- nants; or the presence of hazardous or toxic materials resulting in uninhabitability or health risk within the Home. g. acts or omissions by you, your agents, employ- ees, licensees, invitees; accidents, riots, civil commotion, nuclear hazards, acts of God or na- ture, tire, explosion, blasting, smoke, water escape, windstorms, hail, lightning, ice, snow, falling trees, aircraft, vehicles, flood, mud slides, sinkholes, mine subsidence, faults, crev- ices, earthquake, land shock waves or tremors occurring before, during or after a volcanic eruption. h, your failure to perform routine maintenance. i. Your failure to minimize or prevent such loss or damage in a timely manner. j. defects in, but not limited to: recreational fa- cilities; driveways; walkways; patios, porches and stoops not structurally attached; decks and balconies which are not bolted to or cantile- vered from the main structure of the HOIIe; boundary and/or retaining- walls bulkheads; fences; landscaping, sodding, seeding, shrubs, trees and plantings; subsurface drainage sys- tems (other than footer drains); lawn sprinkler systems off-Site improvements, includin" streets, sidewalks, adjacent property and the like; or any other improvements not part of the Home itself. k. defects in detached garages or outbuildings (except those which contain Plumbing, Electri- cal, Heating, Cooling or Ventilating Systems serving the Home, and then only to the extent where Defects would affect these systems). A detached garage is one which is constructed on its own foundation, separate and apart from the foundation of the Home. A breezeway, fence, utility line or similar union shall not cause a garage or outbuilding to be considered at- tached. 1, negligent maintenance or operation of the Home and its systems by anyone other than your Builder or its agents, employees or sub- contractors. m. any portion of a Water Supply System, private or public, including volume and pressure of water flow.* n. quality and potability of water. o. any portion of a Sewage Disposal System, pri- vate or public, including design.* p. dampness, condensation or heat build-up *FHANA homeowners, refer to HUD Addendum, Section V.D. Section 11. The Limited Warranty (continued) 3. 4 5. 6. 7. 8 9 10. caused by your failure to maintain proper ven- tilation.* Failure of Your Builder to complete construction of the Home or any part of the Home on or before the Effective Date Of Warranty or damages arising from such failure. An incomplete item is not con- sidered a Defect, although your Builder may be obligated to complete such items under separate agreements between you and your Builder. Any deficiency which does not result in actual physical damage or loss to the Home. Any Consequential Damages.* Personal property damage or bodily injury. Violation of applicable Building Codes or ordi- nances unless such violation results in a Defect which is otherwise covered under this Limited War- ranty. Under such circumstances, the obligation of the Warrantor Linder this Limited Warranty shall only be to repair the defective warranted portion of the Home, but not to restore or bring the Home to conform to code. Any request for warranty performance submitted to the Administrator after an unreasonable delay or later than 30 days after the expiration of the appli- cable warranty period. Warranted Defects that you repair without prior written authorization of the Administrator.* Any damages to, or resulting from a swimming pool whether located within or outside the Home, as a result of its construction, placement, use, equipment, maintenance, etc. The removal and/or replacement of items specifi- cally excluded from coverage under this Limited Warranty, such as landscaping or personal prop- erty, items not originally installed by your Builder, such as wallpaper, where removal and replacement are required to execute a repair. 12. Any Defect consisting of, caused by, contributed to, or aggravated by moisture, wet or dry rot, mold, mildew, fungus or rust. 13. Sound transmission and sound proofing between rooms or floor levels. 14. Appliances and Equipment included in the Home are not warranted tinder this Limited Warranty, but may be covered by separate warranties provided by the manufacturer or supplier. These warranties are passed on to you by your Builder at closing and are separate from this Limited Warranty.' F. Limitation of Liability 1. The Warrantor's liability and obligations are lim- ited to the repair, replacement or the payment of the reasonable cost of repair or replacement of war- ranted items not to exceed an aggregate equal to the Final Sales Price of the Home as listed on the Ap- plication for Warranty firm or in the absence of an Application for Warranty form, as otherwise pro- vided to the Administrator by the Builder. The choice to repair, replace or make payment is the Warrantor's. 2. All other warranties, express or implied, including, but not limited to, all implied warranties of fitness, merchantability or habitability, are disclaimed and excluded to the extent allowed by law. page 319.6 w1'I('.911+) R,,. 2_114 t Homeowners in the State of New York, refer to State of New York Addendum, Section V.B. i IN9h I lurrisbur_. P.a *FHA/VA Homeowners, refer to HUD Addendum, Section V.D. The following Warranty Standards are applicable only to warranted items stated in Section 11 of ` this Limited Warranty. Read Section 11 to determine if the following Warranty Standards apply.t CATEGORY OBSERVATION ACTION REQUIRED BASF,MENT Lt Cracks appear in No action required. The expansion/contraction It is placed to control joints. control cracking. This is not a deficiency. 1.2 Pit, depression or areas Builder will correct those areas in In rooms not initially designed as finished of unevenness in areas which Defect exceeds 1/4 in. within living areas or where a floor or a portion of designed for living a 32 in. measurement, a floor surface has been designed for purposes. specific drainage purposes, a slope which exceeds 1/4 in. within a 32 in. measurement is not a deficiency. 1.3 Cracks in poured con- Builder will correct any crack Shrinkage cracks are common and should Crete foundation walls. which exceeds 1/8 in. in width. be expected. Surface patching and epoxy injection are examples of acceptable repair methods. 1.4 Cracks in block or Builder will correct cracks which Some cracks are common through masonry veneer wall. exceed 1/4 in. in width. and mortar joints. Cracks 1/4 in. or less are considered routine Owner maintenance. 1.5 Leaks resulting in Builder will correct. A one-time occurrence may not indicate a actual flow or trickling Defect. Owner must maintain proper of water through wall grading around the Home and maintain any or floor, causing an surface water control systems installed by accumulation. Builder. Dampness and condensation are normal conditions and are not covered by this Limited Warranty. 1.6 Disintegration of the Builder will correct disintegrated Disintegration caused by erosion due to concrete floor surface. surfaces caused by improper salt, chemicals, implements used and other placement of concrete. factors beyond Builder's control is not a warranted deficiency. 1.7 Cracks in concrete floor Builder will correct so Defect is not Minor impressions in floor covering are which rupture or signif- readily noticeable when floor not considered significant imperfections. icantly impair perfor- covering is in place. mance of floor covering. 1.8 Condensation on walls, No action required. Maintaining adequate ventilation and joists, support columns moisture control is considered Owner and other components maintenance. of basement area. COMMENTS Cnnwa. SP:%cF 1.9 Cracks in poured con- Builder will correct any crack Surface patching and epoxy injection are Crete foundation walls. which exceeds 1/8 in, in width. examples of acceptable repair methods. Shrinkage cracks of 1/8 in. or less are common and should be expected. L10Cracks in block or veneer wall. Builder will correct cracks greater than 1/4 in. in width. Surface patching and epoxy injection are examples of acceptable repair methods. Shrinkage cracks of 1 /4 in. or less are common and should be expected. 1.11 Inadequate ventilation. 1.12 Condensation on walls, joists, support columns and other components of the crawl space area. page 319.7 wPi(' hl P) Rc, 2101 I IM, lla-hur3. PA Builder will install properly sized louvers or vents. Maintaining adequate ventilation and moisture control, including seasonal adjustment of vent openings, is considered Owner maintenance. No action required. Maintaining adequate ventilation and moisture control, including seasonal adjustment of vent openings, is considered Owner maintenance. t Homeowners in the State of New York, refer to State of New York Addendum, Section V.B. The following Warranty Standards are applicable only to warranted items stated in Section II of this Limited Warranty. Read Section 11 to determine if the following Warranty Standards apply. CATEGORY OBSERVATION ACTION REQUIRED COMMENTS SLAB oN GRADE 1.13 Cracks appear at control No action required. Expansion/contraction joint is placed to joints. control cracking. This is not a deficiency. 1.14 Pits, depressions or areas Builder will correct areas in which In rooms not initially designed as finished of unevenness in areas Defect exceeds 1/4 in. within a 32 in. living areas or where a floor or a portion of designed for living measurement. a floor surface has been designed for purposes. specific drainage purposes, a slope which exceeds 1/4 in. within a 32 in. measurement is acceptable. 1.15 Disintegration of con Crete floor Surface. Builder will correct disintegrated surfaces caused by improper placement of concrete. Disintegration caused by erosion due to salt, chemicals, implements used and other factors beyond Builder's control is not a warranted deficiency. 1.16 Crack in concrete floor which ruptures or signifi- cantly impairs perfor- mance of floor covering. 1.17 Cracks in attached garage slab. 1.18 Cracks in concrete floor of unfinished area (tit) floor covering) or in areas not designed forliving. Builder will correct so Defect is not readily noticeable when floor covering is in place. Builder will correct cracks which exceed 1/4 in. in width or vertical displacement. Builder will correct cracks which exceed 1/4 in. in width or vertical displacement. 1.19 Cracks in visible face of Builder will correct cracks in foundation. excess of 1/8 in. in width. I CHUNG 2.1 Uneven ceiling. Builder will correct if unevenness exceeds 1/4 in. within a 32 in. measurement. Minor impressions in floor covering are not considered significant imperfections. Surface patching and epoxy injections are examples of acceptable repair methods. Shrinkage cracks are common and should be expected. Surface patching and epoxy injections are examples of acceptable repair methods. Shrinkage cracks are common and should be expected. Sur11,1ce patching and epoxy injections arc examples of acceptable repair methods. Shrinkage cracks arc common and should be expected. Some minor framing imperfections should be expected. FLOOR 2.2 High and low areas. Builder will correct if high or low Some minor framing imperfections should areas exceed 1/4 in. within a 32 in. be expected. measurement. 2.3 Floor squeaks. Builder will correct if caused by a A squeak-proof floor cannot be guaranteed. defectivejoist or improperly Lumber shrinkage as well as temperature installed subtloor. and humidity changes may cause squeaks. ROOF 2.4 Split or warped ratters or No action required. Some splitting and warping is normal and trusses. is caused by high temperature effects on lumber. 2.5 Bow or bulge. Builder will correct if bow or bulge Minor framing imperfections should be exceeds 1/4 in. within 32 in. expected. horizontal or vertical measurement. 2.6 Out-of-plumb. Builder will correct where out-of- Minor framing imperfections should be plumb condition exceeds 3/4 in. expected. within 8 ft. vertical measurement. page 319.8 2.7 Wall is out-of-square. No action required. A wall out-of-square is not a Defect. N'PI(' 1;919 Nei. '_ 04 19M Haunaurc. PA The following Warranty Standards are applicable only to warranted items stated in Section If of this Limited Warranty, Read Section 11 to determine if the following Warranty Standards apply. CATEGORY OBSERVATION ACTION REQUIRED COMMENTS STRUCTURALt.v I 3.1 Wood twisting, warping Arr,u-eFa or splitting. Wooi) DECKS Builder will correct only if due to improper installation. Twisting, warping or splitting of wood deck material is normal due to exposure to the elements. Owner maintenance is required. 3.2 Settlement. 3.3 Loose railing or post. DooR 3.4 Binds, sticks or does Builder will correct if caused Seasonal changes may cause doors to not latch. by faulty workmanship or materials. expand and contract, and are usually temporary conditions. 3.5 Wood door panel No action required. shrinks. 3.6 Warping. Builder will correct warping which exceeds 1/4 in., measured vertically horizontally or diagonally. 3.7 Split in panel. Builder will correct if split allows the entrance of elements. 3.8 Separation between Builder will correct if daylight is door and weather- visible or if entrance of elements stripping. occurs under normal conditions. 3.9 Screen mesh is torn or damaged. 3.10 Overhead garage door fails to operate or al lows rain or snow to leak through. Builder will correct slope of deck which exceeds a ratio of 2 in. in a 10 ft. measurement. Builder will correct if due to improper installation. Builder will correct only if damage is documented prior to occupancy. Builder will correct garage doors which do not fit or operate properly Some slope is often provided to allow for water drainage. Owner maintenance is required. Panels will shrink and expand and may expose unfinished surfaces. Seasonal changes may cause doors to expand and contract, and are Ltsually temporary conditions. Splits which do not allow the entrance of elements arc considered normal. Owner maintenance is required. Even with properly installed weather stripping, some movement of the door, when closed, may be expected. Owner maintenance is required for minor alterations to adjustable thresholds and other parts of the door. Owner is responsible for establishing a pre-closing walk-through inspection list. Some entrance of elements can be expected and is not considered a deficiency. If Owner installs a garage door opener, Builder is not responsible for operation of door. Roortrvc 3.11 Roof and roof flashing Builder will correct if leak occurs No action is required if leak is due to snow leaks, under normal conditions. or ice build-up, high winds or driving rains. 3.12 Lifted, torn or curled shingles. Builder will correct if due to poor installation. Owner maintenance is required. 3.13 Inadequate ventilation. 3.14 Water stays in gutters 3.15 Gutter or downspout leaks. Builder will provide adequate ventilation. Moisture accumulation in attics which are not adequately vented is a de fieiency. It is Owner's responsibility to keep existing vents clear of obstructions to promote air flow. Builder will correct to limit standing Owner is responsible for keeping gutters water depth at I in. and downspouts clean. Builder will correct leaks at Owner is responsible for keeping gutters connections. and downspouts clean. Gutters may over- flow during heavy rains. page 319.9 W PIC 931+) Rev. 2,01 ! 1996 HarriNbuty. P:% The following Warranty Standards are applicable only to warranted items stated in Section If of this Limited Warranty. Read Section 11 to determine if the following Warranty Standards apply. CATEGORY OBSERVATION ACTION REQUIRED COMMENTS 1, EXTERIOR (CONTINUED) J CSrm WORK 3.16 Standing water within Builder will correct water which Standing water beyond the IOft. perimeter 10 ft. of the foundation. stands for more than 24 hours, or of the foundation is not covered by this more than 48 hours in swales. Limited Warranty. Owner is responsible for establishing and maintaining adequate ground cover. 3.17 Settling of ground around foundation walls, utility trenches or other filled areas on property where there has been excavation and backfill which affected foundation drainage. STRUCTURALLY ATTACHED STOOP, PORCH & PATIO If final grading was performed by Builder, he will replace fill in excessively settled areas only once,* If settlement does not exceed 6 in., it is Owner's responsibility to fill affected areas. The party responsible for establishing the final grade shall provide for positive drainage away from foundation, Owner is responsible for establishing and maintaining adequate ground cover, 3.18 Settlement, heaving or movement. Builder will correct if movement exceeds I in. from the Home for stoops, porches and patios which are structurally attached. Stoops, porches and patios which are poured separately and simply abut the house are not covered by this Limited Warranty. 3.19 Concrete splatters on Builder will correct only if damage Owner is responsible for establishing a adjacent surfaces. is documented prior to occupancy. pre-closing walk-through inspection list. L WALL COVERING 3.20 Entrance of elements Builder will correct entrance of Any separations 3/8 in. or less are through separations of elements or separations exceeding considered routine Owner maintenance. siding or trim joints, or 3/8 in. by caulking or other separation between trim methods. and surfaces of masonry or siding. 3.21 Cracks in stucco, cement Builder will correct cracks which Hairline cracks are common. and plaster surfaces. exceed 1/8 in. in width. 3.22 Sidin, materials Builder will correct affected area Separated, loose or delaminated siding can deteriorate, delaminatc if due to improper workmanship also be due to improper maintenance. or come loose. or materials. Wavy siding may be due to temperature changes and can be expected. 3.23 Paint or stain peels Builder will correct. If 75% of a Some fading is normal and is caused by or deteriorates. particular wall is affected, entire weathering. Mildew and fungus on siding wall will be corrected. are caused by climatic conditions and are considered routine maintenance. Varnish or lacquer will deteriorate quickly and is not covered by this Limited Warranty. 3.24 Paint splatters and Builder will correct only if damage Owner is responsible for establishing a smears on other surfaces. is documented prior to occupancy. pre-closing walk-through inspection list. 3.25 Faulty application of Builder will correct affected area. Some minor imperfections such as over- paint on wall and trim If greater than 75% of wall spray, brushmarks, etc., are common and surfaces. or trim piece is affected, entire should be expected. surface will be corrected. 3.26 Knot holes bleed Builder will correct affected areas Knot holes will be apparent depending on through paint or stain. where excessive bleeding of the quality of material used. knots appear. 3.27 Vent or louver leaks. Builder will correct if caused by Property installed louvers or vents may at improper installation. times allow rain or snow to enter under strong wind conditions and is not a deficiency. page 319.10 %FiC 019 R- 2,04 *FHA/VA Homeowners, refer to HUD Addendum, Section V.D. c 1990 H, iTisburg. PA The following Warranty Standards are applicable only to warranted items stated in Section It of this Limited Warranty, Read Section It to determine if the following Warranty Standards apply. CATEGORY OBSERVATION ACTION REQUIRED COMMENTS WAIL COVERINC. 3.28 Cracks in masonry, Builder will correct cracks which Some cracks are common through masonry (CONTINUED) veneer, stone, etc. exceed 1/4 in. in width. and mortar joints. Cracks 1/4 in. or less are considered routine Owner maintenance. WINDOWS 3.29 Condensation or frost No action required. Condensation is relative to the quality and on interior window type of windows. Temperature differences surface. in high levels of humidity along with indivi- dual living habits will cause condensation. 3.30 Clouding or conden- sation between panes of glass. 3.31 Glass breakage. 3.32 Excessive drafts and leaks. Builder will correct only if damage is documented prior to occupancy. Builder will correct only if damage is documented prior to occupancy. Builder will correct poorly fitted windows. Owner is responsible for establishing a pre-closing walk-through inspection list. 3.33 Difficult to open, close Builder will correct. or lock. Owner is responsible for establishing a pre-closing walk-through inspection list. Relative to the quality and type of windows, some drafts are normally noticeable around windows, especially during high winds. It may be necessary for the Owner to have storm windows installed to provide a satisfactory solution in high wind areas. All caulking materials expand and contract due to temperature variation and dissimilar materials. Maintenance of weather stripping is Owner's responsibility. Windows should open, close and lock with reasonable pressure. DooRS 4.1 Latch is loose or rattles. No action required. Some minor movement should be expected. 4.2 Binds, sticks or does Builder will correct if due to not latch. faulty workmanship and materials. 4.3 Warping. Builder will correct warping which exceeds 1 /4 in., measured vertically, horizontally or diagonally. 4.4 Excessive opening at Builder will correct gaps in excess bottom. of 1-1/2 in. between bottom of passage door and finished floor or 2 in. between bottom of closet door and finished floor. 4.5 Rubs on carpet. Builder will correct. Seasonal changes may cause doors to expand and contract, and is usually a temporary condition. Seasonal changes may cause doors to expand and contract, and are usually temporary conditions. Gaps under doors are intended for air flow. Builder is not responsible if Owner installs carpet. page 319.11 NPIC 4319 R- 2101 01"t, Hamshwg„ PA The following Warranty Standards are applicable only to warranted items stated in Section 11 of this Limited Warranty. Read Section 11 to determine if the following Warranty Standards apply. CATEGORY OBSERVATION ACTION REQUIRED COMMENTS WALLS, CEILINGS, 4.6 Cracks and separations Builder will correct cracks in excess Minor seam separations and cracks, along SUIUACES, FINISIIES in drywall, lath or of 1/8 in. in width. Builder will with other slight imperfections, are & TRIM plaster; nail pops. correct nail pops which have broken common and should be expected. Minor finished surface. depressions and slight mounds at nail heads are not Defects. 4.7 Peeling of wallpaper. Builder will correct if not due to Builder is not responsible for wallpaper Owner neglect or abuses. installed by Purchaser. Owner is respon- sible for maintaining adequate ventilation in areas of high humidity, such as kitchens and bathrooms. 4.8 Separated seams in Builder will correct if wall surface Minor imperfections can be expected. wallpaper. is readily visible. 4.9 Lumps, ridges and nail No action required. Owner should insure that surface to be pops in wallboard which covered is suitable for installation of wall appear after Owner has covering. wall covering installed by himself orothers. 4.10 Surface deficiencies in Builder will correct readily Owner is responsible for establishing a finished woodwork. apparent splits, cracks, hammer pre-closing walk-through inspection list. marks and exposed nail heads, only if documented prior to occupancy. 4.11 Gaps between trim and Builder will correct gaps in excess Some separation due to lumber shrinkage adjacent surfaces, and of 1/8 in. at trim joints and 14 in. is normal and should be expected. gaps at trim joints. between trim and adjacent sul'hlces. 4.12 Cracks in ceramic grout Builder will correct cracks in excess Cracking of grout joints is common and is joints. of 1/8 in. one time only. considered routine Owner maintenance unless excessive. 4.13 Ceramic the cracks or Builder will correct only if dOCLI- Owner is responsible for establishing a becomes loose. merited prior to occupancy. pre-closing walk-through inspection list. 4.14 Cracking or deterioration No action required. All interior caulking shrinks and deterior- of caulking. ates. Owner maintenance is required. 4.15 Wall or trim surfaces Builder will correct affected area. Some minor imperfections such as over- visible through paint. If greater than 751/, of wall, trim spray, brushmarks, etc., are common and piece, or ceiling is affected, entire should be expected. surface will be corrected. page 319.42 WP I( 1}11) Rec. 2l4 149(' I r.,-b,nw. {'A The following Warranty Standards are applicable only to warranted items stated in Section 11 of this Limited Warranty. Read Section 11 to determine if the following Warranty Standards apply. CATEGORY OBSERVATION ACTION REQUIRED COMMENTS FLOOR COVERIN0 4.16 Resilient flooring comes Builder will correct. Owner maintenance is required. loose at edge. 4.17 Fades, stains or discolors. 4.18 Premature wearing of carpet. 4.19 Visible gaps at carpet seams. 4.20 Carpet becomes loose or buckles. 4.21 Gaps at seams of resilient flooring. 4.22 Fastener pops through resilient flooring. 4.23 Depressions or ridges in resilient flooring at scams ofsub- flooring. 4.24 Cuts and gouges in any floor covering. 4.25 Hollow sounding marble or tile. Builder will correct stains or spots Fading is not a deficiency. Owner is only if documented prior to responsible for establishing a pre-closing occupancy. walk-through inspection list. No action required. Excessive wear in high-traffic areas such as entryways and hallways is normal. Wearability is directly related to quality of carpet. Builder will correct gaps. Seams will be apparent. Owner maintenance is required. Builder will correct. Some stretching is normal. Owner should exercise care in moving furniture. Builder will correct gaps of similar materials in excess of 118 in., and 3/16 in. where dissimilar materials abut. Minor gaps should be expected. Builder will correct where fastener has broken through floor covering. Builder will correct depressions or ridges which exceed U8 in, in height or depth. Builder will correct only if documented prior to occupancy No action required. Sharp objects such as high heels, table and chair legs, can cause similar problems, and are not covered by this Limited Warranty. This is determined by placing a 6 in. straight edge over ridge or depression, with 3 in. on either side, and measuring height or depth at sub-flooring seam. Owner is responsible for establishing a pre-closing walk-through inspection list. Hollow sounding marble or tile is not a deficiency of construction and is not covered under this warranty. SUB-FLOORING 4.26 Loose sub-flooring. Builder will correct if due to a Lumber shrinkage as well as temperature defective joist or improper fastening. and humidity changes may cause loose sub-flooring. page 319.13 \1 PIC 4.1N Roc. bW °FHA'VA Homeowners. refer to HUD Addendum, Section V.D. The following Warranty Standards are applicable only to warranted items stated in Section II of this Limited Warranty. Read Section It to determine if the following Warranty Standards apply. CATEGORY OBSERVATION ACTION REQUIRED COMMENTS 5. MECHANICAL CEUCTRIC.AL 5.1 Circuit breakers trip Builder will correct if tripping Ground Fault Circuit Interrupters (GFCI) excessively. occurs under normal usage. are intended to trip as a safety factor. 5.2 Outlets, switches or Builder will correct if caused by Owner should exercise routine care and fixtures malfunction. defective workmanship or maintenance. Replacement of light bulbs materials. is Owner's responsibility. 14EATINC & COOLING 5.3 Condensation lines clog No action required. Condensation lines will clog under normal under normal use. conditions. Continued operation of drain line requires Owner maintenance. 5.4 Noisy duct work. Builder will correct oil canning noise if caused by improper installation. When metal heats and cools, ticking and cracking may occur and are not covered by this Limited Warranty. 5.5 Insufficient heating. 5.6 Insufficient cooling. 5.7 Refrigerant line leaks. Builder will correct if heating system cannot maintain a 70 degree Fahrenheit temperature, under normal operating and weather conditions. Temperature shall be measured at a point 5 ft. above center of floor in affected area. On extremely cold days, a 6 degree difference between actual inside temperature and thermo- stat setting is acceptable. All rooms may vary in temperature by as much as 4 degrees. Builder will correct if cooling system cannot maintain a 78 degree Fahrenheit temperature, under normal operating and weather conditions. Temperature shall be measured at a point 5 ft. above center of the floor in the affected room. On excessively hot days, where outside temperature exceeds 95 degrees Fahrenheit, a difference of 17 degrees from outside temperature will be difficult to maintain. All rooms may vary in temperature by as much as 4 degrees. Builder will correct. Orientation of the Home, location of rooms and location of vents will also provide a temperature differential. There may be periods when outdoor temperature falls below design temperature thereby lowering temperature in the Home. Certain aspects of the Home including, but not limited to, expansive stairways, open foyers, sunrooms or cathedral ceilings may cause abnormal variation from these Standards and are not covered by this Limited Warranty. Orientation of the Home, location of rooms and location of vents will also provide a temperature differential. There may be periods when outdoor temperature rises above design temperature thereby raising temperature in the Home. Certain aspects of the Home including, but not limited to, expansive stairways, open foyers, sunrooms or cathedral ceilings may cause abnormal variation from these Standards and are not covered by this Limited Warranty. Owner maintenance is required on the system. PLUMBING 5.8 Pipe freezes and bursts. Builder will correct if due to Proper winterization of pipes is considered faulty workmanship or materials. routine maintenance and Owner should maintain suitable temperatures inside the Home. 5.9 Noisy water pipe. Builder will correct hammering noise if caused by improper installation. Some noise can be expected due to flow of water and pipe expansion. This is not a Defect. 5.10 Plumbing fixtures, appliances and trim fittings leak or malfunction. Builder will correct if due to faulty workmanship and materials. Owner maintenance is required. Scratches, tarnishing or marring must be noted on a pre-closing walk-through inspection list. page 319.14 WI%' 4319 R,!,, 2, W s. 199p Hcm4b g.P\ The following Warranty Standards are applicable only to warranted items stated in Section 11 of this Limited Warranty. Read Section 11 to determine if the following Warranty Standards apply. CATEGORY OBSERVATION ACTION REQUIRED COMMENTS BAMROONI I 6.1 Cabinet separates from & KITCHEN wall or ceiling. 6.2 Crack in door panel 6.3 Warping of cabinet door or drawer front. Builder will correct separation in excess of 1/4 in. Builder will correct only if documented prior to occupancy. Builder will correct if warp exceeds 3/8 in. as measured from cabinet frame. Some separation is normal. Caulking is an acceptable method of repair. Owner is responsible for establishing a pre-closing walk-through inspection list. Seasonal changes may cause warping and may be a temporary condition. 6.4 Doors or drawers do not operate. 6.5 Chips, cracks, scratches on countertop, cabinet fixture, fitting or appliance. 6.6 Delamination of countertop or cabinet. 6.7 Cracks or chips in fixture. 6.8 Defective fixture, fitting or appliance. Builder will correct. Builder will correct only if documented prior to occupancy Builder will correct only if documented prior to occupancy Builder will correct only if documented prior to occupancy Builder will correct. Owner maintenance is required. Owner is responsible for establishing a pre-dosing walk-through inspection list. Owner is responsible for establishing a pre-closing walk-through inspection list. Owner is responsible for establishing a pre-closing walk-through inspection list. Owner maintenance is required. CHIMNEY 6.9 Exterior and interior & Ffltt:m. \C F. masonry veneer cracks. Builder will correct cracks in excess of 1/4 in. in width. Some cracks are common in masonry and mortarjoints. Cracks 1/4 in. in width or less are considered Owner maintenance. 6.10 Firebox color is changed; accumulation of residue in chimney or flue. No action required. 6.11 Chimney separates tcorn Builder will correct separation in the Home. excess of 1/2 in. within 10 ft. 6.12 Smoke in living area. 6.13 Water infiltration into firebox from flue. 6.14 Firebrick or mortarjoint cracks. Builder will correct if caused by improper construction or inadequate clearance. No action required. No action required. Owner maintenance is required. Newly built chimneys will often incur slight amounts of separation. Temporary negative draft situations can be caused by high winds; obstructions such as tree branches too close to the chimney; the geographic location of the fireplace; or its relationship to adjoining walls and roof. In some cases, it may be necessary to open a window to create an effective draft. Since negative draft conditions could be temp- orary, it is necessary that Owner substan- tiate problem to Builder by constructing a fire so the condition can be observed. A certain amount of rainwater can be expected under certain conditions. Intense heat may cause cracking. INSULATION 6.15 Air infiltration around No action required. Air flow around electrical boxes is electrical receptacles. normal and is not a deficiency. page 319.15 1 wPIC A3 17 Rey. 2,04 I`N 6 HamsNw. PA The following Warranty Standards are applicable only to warranted items stated in Section II of this Limited Warranty. Read Section 11 to determine if the following Warranty Standards apply. CATEGORY OBSERVATION ACTION REQUIRED COMMENTS 13. SYSTEMS - YEARS C ELEc1 Rtc.U, B.1 Wiring fails to carry Builder will correct if failure is due Switches, outlets and fixtures are applicable specified load. to improper installation or materials. to Year I Coverage Only. HEATING I B.2 Duct work separates. Builder will correct. & COOLING Builder will correct if due to faulty workmanship or materials inside the Home. PLuMBIN(;* B.3 Pipe leaks. Builder will correct. Condensation on pipes does not constitute leakage. Faulty faucets, valves, joints and fittings are applicable to Year 1 Coverage Only. 13.4 Water supply stops. 6.5 Clogged drain or sewer page 319.15 \1'Pic 4111) Ro. '_ Oa 1996 FVarri.bum, P-N Builder will correct clog within structure caused by faulty workmanship or materials. Owner maintenance is required. Drought or causes other than faulty workmanship and materials will not be covered under this Limited Warranty. Clogs and stoppages beyond the exterior wall are not covered by this Limited Warranty. Routine Owner maintenance and proper use is required. 'FHANA Homeowners, refer to [IUD Addendum, Section V.D. The following; Warranty Standards are applicable only to warranted items stated in Section If of this Limited Warranty. Read Section 11 to determine if the following; Warranty Standards apply. CATEGORY OBSERVATION ACTION REQUIRED COMMENTS K STeur°rURAL I CA Major DEFEC' aural Detects The criteria for establishing the existence of a Major Structural Defect is set forth in Section I.B.15 of this Limited Warranty Agreement. I he Warrantor will correct Major Structural Defects, limited to such actions as are necessary to restore the load-bearing capability of the component(s) affected by a Major Structural Defect. page 319.17 R'PIC' #319 110" ?0.1 ti.I41A, Havi,Aure. PA v $ediOnl A. Notice to Warrantor in Years 1 & 2 IV. Requesting Warranty Performance page 319.18 WPIC 1319 Rev. 2;04 i NIX, Hartisbore, PA 2. 4. If a Defect occurs in Years I and 2, you must notify your Builder in writing. Your request for warranty per- formance should clearly describe the Defect(s) in reasonable detail. Request for warranty performance to your Builder does not constitute notice to the Administrator, and it will not extend applicable coverage periods. You must provide the Warrantor with reasonable weekday access during normal business hours in order to perform its obligations. If a request for warranty performance to your Builder does not result in satisfactory action within a reason- able time, written notice must be given to RWC, Administrator, 5300 Derry Street, Harrisburg, Penn- sylvania 17111-3598, Attn: Warranty Resolution Department. This notice should describe each item in reasonable detail and should be forwarded by certified mail, return receipt requested. Please note that a written request fir warranty perlor- manc•e nrtrst be mailed to RYVC crud postmarked no later than thirty (30) duYs q ter the expiration of the appli- cable ivar•ranty period. For example, il•the irent is one which is warranted hr vvur Builder clurAr, ruur seccmc( recn• ol,c•nver•a,e, a request lbr warremll, perlbrnranc•e must be mailed to RWC and postmarked no later than rhirtr (30) dar y after the end ol'the second rear to be ralict B. Notice to Warrantor in Years 3-10 Ifa Detect related to a warranted MSD occurs in Years 3 through 10 of this Limited Warranty, you must no- tify the Administrator to review the item. All such notices must be presented in writing to RW'C, Admin- istrator, 5300 Derry Street, Harrisburg, Pennsylvania 17111-3598, Attn: Warranty Resolution Department, by certified mail, return receipt requested, within a rea- sonable time after the situation arises. Any such notice should describe the condition of the MSD in reasonable detail. Requests for warranty performance postmarked more than thirty (30) days after the expiration of the term of this Limited Warranty will not be honored. C. Purchaser's Obligations 1. 2. Your notice to the Administrator must contain the following information: a. Validation # and Effective Date Of Warranty; b. Your Builder's name and address; c. Your name, address and phone number (includinghome and work numbers); d. Reasonably specific description of the warranty item(s) to be reviewed; e. A copy of any written notice to your Builder; and f. Photograph(s) may be required. You have an obligation to cooperate with the Administrator's mediation, inspection and investiga- tion of your warranty request. From time to time, the Administrator may request information from you re- garding an alleged Defect. Failure by you or your appointed representative to respond with the requested information within thirty (30) days of the date of the Administrator's request can result in the closing of your warranty tile. D. Mediation and Inspection Within thirty (30) days following the Administrator's receipt of proper notice of request for warranty performance, the Admin- istrator may review and mediate your request by communicating with you, your Builder and any other indi- viduals or entities who the Administrator believes possess relevant information. If, after thirty (30) days, the Administra- tor has not been able to successfully mediate your request, or at any earlier time when the Administrator believes that your Builder and you are at an impasse, then the Administrator will notify you that your request has become an Unresolved War- ranty Issue. At any time following the receipt of proper notice of your request for warranty performance, the Administrator may schedule an inspection of the item. You must provide the Administrator reasonable access for any such inspection as discussed in Section IV.E.2. The Administrator, at its discre- tion, may schedule a subsequent inspection to determine Builder compliance. When a request for warranty performance is tiled and the deficiency cannot be observed under normal conditions, it is your responsibility to substantiate that the need for warranty performance exists including any cost involved. If properly substantiated, you will be reimbursed by the Warrantor. E. Arbitration * You begin the arbitration process by giving the Ad- ministrator written notice of your request for arbitration of an Unresolved Warranty Issue, Within twenty (20) days after the Administrator's receipt of your notice of request for arbitration, any Unresolved Warranty Issue that you have with the Warrantorshall be submitted to an independent arbitration service upon which you and the Administrator agree. This binding arbitration is governed by the procedures of the Federal Arbitration Act, 9 U.S.C. I et. seq. If you submit a request for arbitration, you must pay the arbitration fees before the matter is submitted to the arbitration service. After arbitration, the Arbitrator shall have the power to award the cost of this fee to any party or to split it among the parties to the arbitration. The arbitration shall be con- ducted in accordance with this Limited Warranty and the arbitration rules and regulations to the extent that they are not in conflict with the Federal Arbitration Act. Within one (1) year after an arbitration award, either party may apply to the U.S. District Court where the Home is situated to confirm the award. The Admini- strator's receipt of a written request for arbitration in appropriate form shall stop the running of any statute of limitations applicable to the matter to be arbitrated until the Arbitrator renders a decision. The decision of the Arbitrator shall be final and binding upon all par- ties.' Since this Limited Warranty provides for mandatory binding arbitration of Unresolved Warranty Issues, if any party commences litigation in violation of this Lim- *FHA,'VA Homeowners, refer to HUD Addendum, Section V.D. Section IV. Requesting Warranty (continued) page 319.19 wPIC #319 Rev. 2;01 ited Warranty, such party shall reimburse the other par- ties to the litigation for their costs and expenses, including attorney fees, incurred in seeking dismissal of such litigation.* In Years l & 2, the Builder shall have sixty (60) days from the date the Administrator sends the Arbitrator's award to the Builder to comply with the Arbitrator's decision. In Years 3-10, the Warrantor shall have sixty (60) days from the date the Administrator receives the Arbitrator's award to comply with the Arbitrator's de- cision. Warranty compliance will begin as soon as possible and will be completed within the sixty-day compliance period with the exception of any repair that would reasonably take more than sixty (60) days to complete, including, but not limited to, repair de- layed or prolonged by inclement weather. The Warrantor will complete such repair or replacement as soon as pos- sible without incurring overtime or weekend expenses. You may request a compliance arbitration within twenty (20) days after the sixty-day compliance period has ex- pired by giving the Administrator written notice of your request. You mast pay the fees for the compliance arbi- tration prior to the matter being submitted to the arbitration service. 2. You must provide the Warrantor with reasonable week- day access during normal business hours in order to perform its obligations. Failure by you to provide such access to the Warrantor may relieve the Warrantor of its obligations under this Limited Warranty. If your Builder does not fulfill its obligations under this Limited War- ranty, the Administrator will process the request for warranty performance as described in this Limited War- ranty and subject to the provisions in Section IV.F. F. Conditions of Warranty Performance 1. When your request for warranty performance is deter- mined to be a warranted issue, the Warrantor reserves the right to repair or replace the warranted item, or to pay you the reasonable cost of repair or replacement. 2. In Years I and 2, if your Builder defaults in its war- ranty obligations, the Administrator will process the request for warranty performance provided you pay a warranty service fee of $250 for each request prior to repair or replacement.*** 3. In Years 3 through 10 you must pay the Administrator a warranty service fee of $500 for each request.*** 4. If the Administrator elects to award you cash rather than repair or replace a warranted item, the warranty service fee will be subtracted from the cash payment. 5. If the Warrantor pays the reasonable cost of repairing a warranted item, the payment shall be made to you and to any mortgagee or mortgagee's successor as each of your interests may appear; provided that the mortgagee has notified the Administrator in writing of its security in- terest in the Home prior to such payment. Warrantor shall not have any obligation to make payment jointly to the Purchaser and mortgagee where the mortgagee has not notified your Builder or the Administrator in writing of its security interest in the Home prior to such pay- ment. Any mortgagee shall be completely bound by any mediation or arbitration relating to a request for war- ranty performance between you and the Warrantor.* 6. Prior to payment for the reasonable cost of repair or replacement of warranted items, you must sign and de- liver to the Builder or the Administrator, as applicable, a full and unconditional release, in recordable form, of all legal obligations with respect to the warranted De- fects and any conditions arising from the warranted items. 7. Upon completion of repair or replacement of a war- ranted Defect, you must sign and deliver to the Builder or the Administrator, as applicable, a full and uncondi- tional release, in recordable form, of all legal obligations with respect to the Defect and any conditions arising from the situation. The repaired or replaced warranted item will continue to be warranted by this Limited War- ranty for the remainder of the applicable period of coverage. 8. If the Warrantor repairs, replaces or pays you the rea- sonable cost to repair or replace a warranted item, the Warrantor shall be subrogated to all your rights of re- covery against any person or entity. You must execute and deliver any and all instruments and papers and take any and all other actions necessary to secure such rights, including, but not limited to, assignment of pro- ceeds of any insurance or other warranties to the Warrantor. You shall do nothing to prejudice these rights of subrogation. 9. Any Warrantor obligation is conditioned upon your proper maintenance of the Home, common elements and grounds to prevent damage due to neglect, abnor- mal use or improper maintenance. 10. Condominium Procedures: a. In the case of common elements of a condo- minium, at all times, owner(s) of each unit affected by the common elements in need of warranty per- formance shall each be responsible to pay the warranty service fee ($250 in Years 1 and 2, $500 in Years 3 through 10) for each request for war- ranty performance.** b. If a request for warranty performance under this Limited Warranty involves a common element in a condominium, the request may be made only by an authorized representative of the condominium association. If the Builder retains a voting interest in the association of more than 50%, the request may be made by unit owners representing 10% of the voting interests in the association. c. If a request for warranty performance under this Limited Warranty involves a common element af- fecting multiple units, and all affected units are not warranted by the RWC Warranty Program, the Insurer's liability shall be limited to only those units warranted by the RWC Warranty. The limit of liability shall be prorated based upon the num- ber of units warranted by this Limited Warranty. *FHA/VA Homeowners, refer to HUD Addendum, Section V.D. *Homeowners in Maryland, refer to Maryland Addendum, Section V.E. 'Homeowners in Newark, Delaware. refer to Newark rlvta%i- AAA-A.- -- w Section IA. Newark, Delaware, Addendum V. Addenda The warranty service fee as described in Sections IV.F.2., IV.F.3. and IV.F.10.a. will be waived for homes built in the city of Newark, Delaware. B. State of New York Addendum Except as expressly provided in this Addendum, the warranties and rights listed herein are in addi- tion to, and are not exclusive of, any warranties or rights listed in this Limited Warranty. Appliances and Items of Equipment - Subject to other terms and conditions listed in this Limited Warranty, the exclusion concerning deficiencies in Appliances and Items of Equipment described in Section II.E.14. of this Limited Warranty shall not apply during the first two (2) years of the warranty term wherever (i) such Appliances and Items of Equipment are components of the Cooling, Venti- lating, Heating, Electrical or Plumbing Systems; and (ii) the deficiencies in such fixtures, Appli- ances or items of Equipment are the result of defective installation by your Builder. Standards - Section Ill. - if the statutes of the State of New York provide greater coverage than the provisions of this Limited Warranty, those pro- visions shall modify the warranty to allow for the greater coverage. Alternative Dispute Resolution - When making a request for warranty performance pursuant to Sec- tion IV.E. of this Limited Warranty, you have no obligation to submit to binding arbitration, nor do you have to pay any fee or charge for participation in non-binding arbitration or any mediation process concerning your request. However, any Unresolved Warranty Issues must be submitted to arbitration before a legal proceeding may be commenced. Fur- ther, if an Owner resorts to litigation, the rights and obligations imposed by Section iV.E. shall apply to such litigation. page 319.20 %k PIC'319 Rec. 22.04 19% liuri.buq, PA C. State of Indiana Addendum The warranties and rights listed above are in addition to, and are not exclusive of, any warranties listed in this book. Notwithstanding anything contained in the attached printed form of the RWC Limited Warranty, this Limited Warranty shall include the following protection per Sec- tion 1LC., and is amended to read as follows: Two YEAR COVERAGE - Commencing on the Effec- tive Date of this Limited Warranty as specified on the Application For Warranty form, and subject to the terms and conditions listed herein, your Builder warrants that for a period of two (2) years your Home will be free from Defects due to nonconfor- mity with the Warranty Standards set forth in Section 111. of this Limited Warranty. With respect to fixtures, Appliances and Items of Equipment, the Warranty is for one (1) year or the manufacturer's written warranty, whichever is less. 2. YEARS 3 AlNu 4 COVERAGE ONLY- During the third and fourth year following the Effective Date Of Warranty as specified on the Application For War- ranty form, and subject to the terns and conditions listed in this Limited Warranty, your Home will be free from Defects caused by poor workmanship and materials in its roof and roof systems. D. HUD Addendum (Applicable to VA/FHA Financed Homes only) I. Section I.B. - The following definition is added: Emergency Condition is an event or situation that presents an imminent threat of damage to the Home or common elements and results in an unsafe living condition due to Defects or Major Structural De- fect failures that manifest themselves outside of the Warrantor's normal business hours and pre- cludes you from obtaining prior written approval to initiate repairs to stabilize the condition and pre- vent further damage. 2. Section I.B. 10. Effective Date Of Warranty - The following language is substituted: The Effective Date Of Warranty will be the date on which closing or settlement occurs in connection with the initial sale of the Home. In no event will the Effective Date Of Warranty be later than the date of FHA endorsement of your Mort-a?ae on the Home. 3. Section I.B.15. Major Structural Defects - The following language is substituted for a-c.: A Major Structural Detect is actual physical damage to the designated load-bearing portions of a Home caused by failure of such load-bearing functions to the extent that the Home becomes unsafe, unsani- tary, or otherwise unlivable. The following language is added: Delamination or rupture of roof sheathing shall be deemed a Major Structural De- fect in need of warranty performance. 4. Section II.C.I. One Year Coverage-The follow- ing language is added: Notwithstanding anything to the contrary contained in this Limited Warranty, during the first year of coverage, your Builder will repair or restore the reliable function of Appliances and Equipment damaged during installation or im- properly installed by your Builder. In addition, your Builder will correct Construction Deficiencies in workmanship and materials resulting from the fail- ure of the Home to comply with standards of quality as measured by acceptable trade practices. Construction Deficiencies are Defects (not of a structural nature) in the Home that are attributable to poor workmanship or to the use of inferior mate- rials which result in the impaired functioning of the Home or some part of the Home. Defects resulting frorn your abuse or from normal wear and tear are not considered Construction Deficiencies. 5. Section ILC.4. Condominium Coverage-The fol- lowing language is substituted: The Limited Section V. Addenda (continued) page 319.21 uPit' ;eao rs:. 2741 . 1046 Harrisburg. P. Warranty shall only apply to warranted common elements which arc those portions of the defined Electrical, Heating, Ventilating, Cooling, Plumbing and structural Systems which serve two (2) or more residential units; and arc contained wholly within a residential structure that, if defective, would con- stitute a health or safety condition for the occupants. Examples of common elements which are covered by this Limited Warranty are hallways, meetings rooms, stairwells and other spaces wholly within the residential structure serving two (2) or more units; and structurally attached balconies, arches and decks. Examples of common elements which are not covered under this Limited Warranty are club houses, recreational buildings and facili- ties, walkways, exterior structures, or any other non-residential structure which is part of the con- dominium. 6. Section U.C. - The following coverage is added for the State of Colorado ONLY: The Builder's warranty for basement slabs in the State of Colo- rado is extended from the first through the fourth year. 7. Section U.D. - The following statement is added: This agreement is non-cancelable by the Warrantor. 8. Section ILD.9. is deleted. 9. Section ILD.10. - The following language is added: Repairs to the Home may be made without the prior written authorization of the Warrantor only in the event an Emergency Condition arises that necessitates repairs be made for the sole pur- pose of protecting the [Ionic from further damage. You must notify the Warrantor as soon as pos- sible, but in no event, later than rive (5) days after the repairs have been made in order to qualify for reimbursement. An accurate, written record of the repair cost must accompany your notification. Section II.E.I.d. - The following language is sub- stituted: Loss or damage caused by soil movement, including subsidence, expansion or lateral move- ment of the soil which is covered by any other insurance or for which compensation is granted by state legislation. Section II.E.i.e. - The following language is sub- stituted: resulting directly or indirectly from flood, waves, tidal water, overflow of a body of water, or spray from any of these (whether or not driven by wind), water which backs up from sewers or drains, changes in the water table which were not reason- ably foreseeable, wetlands, springs or aquifers. Surface water and underground water which cause an unforeseeable hydrostatic condition with result- ant damage to the structure are covered. 12. Section Ii.E.2.d. is deleted. 13. Section II.E.2.m. - The following language is sub- stituted: any portion of a public Water Supply System, including volume and pressure of water flow. 14. Section iI.E.2.o. -The following language is sub- stituted: any portion of a public Sewage Disposal System, including design. 15. Section II.E.2.p. - exclusion is deleted. 16. Section II.E.5. - The following language is substi- tuted: Consequential Damages to personal property are excluded. Consequential Damages to real property as a result of a Defect or repair of a Defect are covered. 17. Section 11.E.9.- The following language is added: Warranted Defects repaired as a result of emer- gency property protection measures as described and defined in this addendum are covered. 18. Section M.A. a. SITE WORK - The following language is sub- stituted: (1) 3.17 (Action Required) If final grading was performed by the Builder, he will replace fill in excessively settled areas. b. FLOOR COVERING - The following language is added: (1) 4.27 (Observation) Gaps or cracks between finished floor boards. (Action Required) Builder will correct gaps or cracks which ex- ceed 1!8 in. in width. (Comments) Finished wood floors expand and contract due to humid- ity changes in your Home. Cracks and gaps which shrink and disappear in non-heating sea- sons are considered normal. (2) 4.28 (Observation) Cupping, crowning or loose finished floor boards. (Action Required) Builder will correct only if caused by a Defect in installation. (Comments) Finished wood flooring cups from gaining or losing moisture on one side faster than the other. Some cupping and crowning should be considered normal due to growth rings in the tree and the part of the tree used. The Builder is not responsible for natural properties of the product, or for cli- matic conditions and personal living habits which can affect moisture content of floor boards. Cupping or crowning action may have loosened nails or adhesive. Owner is respon- sible if condition is caused by conditions beyond Builder's control. (3) 4.29 (Observation) Ceramic tile cracks or loos- ens. (Action Required) Builder will correct only if documented prior to occupancy. (Comments) Owner is responsible for establishing a pre-clos- ing walk-through inspection list. 19, Section 111.13.6. - The following language is added: (Observation) Septic system fails. (Action Required) Builder will correct if damage is due to poor workmanship or materials, which are not in conformance with Sewage Enforcement Officer's in- structions as per design and installation only. (Comments) Builder is required to abide by state or local requirements for the installation of on-site sewage disposal system. Any deficiency or failure •e Section V. Addenda (continued) page 319.22 W PIC x319 Re,. 2 '{N 20. 21 22. which occurs or is caused by a condition other than faulty workmanship or materials, such as de- sign, is not covered by this Limited Warranty. Owner is responsible for routine maintenance of system, which may include, but not be limited to: pumping the septic tank; adding chlorine to a chlo- rinator; and refraining from driving of parking vehicles or equipment on the system. Damages caused by freezing, soil saturation, underground springs, water run-off, excessive use and an in- crease in level of water table are among causes not covered by this Limited Warranty. Section IV.E. Arbitration - The following lan- guage is added: The judicial resolution of disputes is not precluded by this warranty and may be pur- sued by the homeowner at any time during the dispute resolution process. Section IV.E.I. Arbitration - Because HUD does not require binding arbitration, the following is de- leted: Since this Limited Warranty provides for mandatory binding arbitration of disputes, if any party commences litigation in violation of this Lim- ited Warranty, such party shall reimburse the other parties to the litigation for their costs and ex- penses, including attorney fees, incurred in seeking dismissal of such litigation. Section IV.F.2., F.3. and F.10.a. - The following language is substituted: In the first two (2) years, if your Builder does not fulfill its obligations under this Limited Warranty, the insurer will be respon- sible for your Builder's obligations, subject to a one-time warranty service fee of $250. The Insurer's liability in Years 3 through 10 under this Limited Warranty is subject to a warranty service fee of $250 per request for warranty performance. In each instance, you must pay the fee prior to the Insurer's repair or replacement. In the event of pay- ment, the fee will be subtracted from the cash payment. In the case of the common elements of a condominium, the warranty service fee shall be $250 per Home affected by each common element in need of service, limited to a maximum of $5,000 per free standing structure. 23. Section IV.F.5. - The following language is added: Where a warranted Defect is determined to exist and where the Warrantor elects to pay the rea- sonable cost of repair or replacement in lice of per- forming such repair or replacement, the cash offer must be in writing. You will be given two (2) weeks to respond. Cash offers over $5,000 are subject to an on- site review by a HUD approved fee inspector (inspection costs will be paid by the Warrantor) un- less: a. the cash offer is made pursuant to a binding bid by an independent third party contractor, which will accept an award of a contract from you pursuant to such bid; b. payment is being made in settlement of legal action; C, you are represented by legal counsel. E. Maryland Addendum You should contact the Administrator personally to verify the existence of your Warranty. Further, you should report any Warranty problems, which are not promptly resolved by your Builder, to the Administrator. 1. Section IV.F.2. and iV.F.3. are not applicable for the state of Maryland. RESIDENTIAL WARRANTY CORPORATION OF T f= 2GO9 MAY 18 PH 1: 51