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HomeMy WebLinkAbout10-5740??CE DTARY DF ??-!r E - ? Ali 11.21 CUMBEbL" D COUNTY PENNSYLVANIA Brandon R. and Julianne M. Morgans h/w Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Triple Crown Corporation Defendant NO. A) -,51740 I IV?ITierrn Zd Civil Term NOTICE TO DEFEND YOU HAVE BEEN SUED IN COURT. IF YOU WISH TO DEFEND AGAINST THE CLAIMS SET FORTH IN THE FOLLOWING PAGES, YOU MUST TAKE ACTION WITHIN TWENTY (20) DAYS AFTER THIS COMPLAINT AND NOTICE ARE SERVED, BY ENTERING A WRITTEN APPEARANCE PERSONALLY OR BY AN ATTORNEY AND FILLING IN WRITING WITH THE COURT YOUR DEFENSES OR OBJECTIONS TO THE CLAIMS SET FORTH AGAINST YOU. YOU ARE WARNED THAT IF YOU FAIL TO DO SO THE CASE MAY PROCEED WITHOUT YOU AND A JUDGEMENT MAY BE ENTERED AGAINST YOU BY THE COURT WITHOUT FURTHER NOTICE FOR ANY MONEY CLAIMED IN THE COMPLAINT OR FOR ANY OTHER CLAIM OR RELIEF REQUESTED BY THE PLAINTIFF. YOU MAY LOSE MONEY OR PEOPERTY OR OTHER RIGHTS IMPORTANT TO YOU. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO THE TELEPHONE OR THE OFFICE SET FORTH BELOW TO FIND WHERE YOU CAN GET LEGAL HELP. CUMBERLAND COUNTY BAR ASSOCIATION 32 SOUTH BEDFORD STREET CARLISLE, PA 17013 1-800-990-9108 717-249-3166 Q 49a .00 Pb ATrf e-# 7.33q Q,"a.q-781,4 DAVIS, BUCCO & ARDIZZI By: David S. Makara, Esquire Attornez Id. No. 78241 10 E. 6 Avenue, Suite 100 Conshohocken, PA 19428 (610) 238-0880 IN i n? Lvux'1' OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Brandon R. And Julianne M. Morgans (h/w), 284 Mindy Drive Harrisburg, PA 17112 Plaintiffs, V. JURY TRIAL DEMANDED No. lQ .57? Triple Crown Corporation, CIVIL ACTION-LAW 5351 Jaycee Avenue Harrisburg, PA 17112 Defendant. COMPLAINT Plaintiffs, Brandon R. Morgans and Julianne M. Morgans by and through their attorneys Davis, Bucco & Ardizzi, hereby complain of the defendant as follows: 1. Plaintiffs, Brandon R. Morgans and Julianne M. Morgans are adult individuals and husband and wife with an address of 284 Mindy Drive, Harrisburg, Pennsylvania 17112. 2. Defendant, Triple Crown Corporation is a Pennsylvania business corporation with its principal place of business located at 5351 Jaycee Avenue, Harrisburg, Pennsylvania 17112. 3. On March 11, 2010, Defendant, Triple Crown Corporation (hereinafter "Triple Crown"), through its agents, servants or employees, showed the Plaintiffs, Brandon R. Morgans and Julianne M. Morgans (hereinafter the "Morgans") a residential property located at 14 Foxwood Boulevard, Mechanicsburg, Cumberland County, Pennsylvania 17050, which Triple Crown was offering for sale. 4. At the time of the tour of the home located at 14 Foxwood Boulevard, for Plaintiffs Mechanicsburg, Cumberland County, Pennsylvania 17050 (hereinafter the "Property") David Shuey, an employee and representative of Triple Crown, represented to the Morgans that Triple Crown had purchased the home from its previous owner, Altieri Homes and performed certain "corrections to meet Triple Crown's Standard of Excellence" to the Property before Triple Crown offered it for sale. 5. On or about March 15, 2010, the Morgans and Triple Crown entered into a written contract whereby the Morgans, subject to certain conditions, agreed to purchase the Property for a specified sum. A true and correct copy of the written contract between the Morgans and Triple Crown is attached hereto, made a part hereof and marked as Exhibit "A". 6. The Morgans and Triple Crown thereafter agreed to a series of addenda which postponed, at various times, the date for settlement on the Property. True and correct copies of the five (5) Addenda between the Morgans and Triple Crown are attached hereto and marked as Exhibits "B", "C", "D", "E" and "F" respectively. 7. On or about April 30, 2010, the Morgans hired Tillery Inspections to perform a home inspection of the Property. 8. The inspection performed by Tillery revealed certain defective conditions with the premises, including but not limited to, excessive moisture in the home which had caused numerous structures within the home to warp. 9. A meeting was subsequently held between the Morgans and Triple Crown at the Triple Crown office to discuss the results of the inspection. The Morgans thereafter notified Triple Crown that they intended to conduct a mold inspection at the Property. 10. On or about May 3, 2010, Gale Riddle, Superintendent and an employee of Triple Crown, informed the Morgans that mold had previously been found in the master bathroom and in the basement of the home prior to the Morgans execution of the real estate sales agreement 2 with Triple Crown. Mr. Riddle further informed the Morgans that the certain drywall had been torn out and replaced as a result of mold infestation. 11. On or about May 11, 2010, Tillery Inspections issued a mold test report which revealed the presence of certain harmful mold spores within the home, and further, rendered an opinion that mold remediation work should be performed at the home before it was inhabited. A true and correct copy of the Tillery Inspections LLC mold test report dated May 11, 2010 is attached hereto, made apart hereof and marked as Exhibit "G". 12. On or about May 14, 2010, the Morgans sent a corrective proposal to Triple Crown, requesting that certain steps be taken to remediate the moisture/mold problem at the Property. A true and correct copy of the corrective proposal is attached hereto, made a part hereof, and marked Exhibit "H". 13. On or about May 14, 2010, Triple Crown responded to the corrective action proposal stating that they spoke with a remediation company and they proposed to run a dehumidifier in the house for two days to dry it out and run a professional air scrubber. 14. The Morgans responded with questions about the remediation company and the protocol the company suggested using as their suggested remedies didn't seem to address any hidden mold in the walls/ducts/floors/etc. 15. Triple Crown responded stating they would like to meet face to face to discuss their response as "there is a lot at stake for all involved." 16. On or about May 19, 2010, the Morgans met with Ms. Trout and Bill Manna, Vice President of Construction, at the Triple Crown office. After a brief meeting with Mr. Manna, the Morgans handed Mr. Manna a notarized termination of contract notice and a release of deposit money. 3 17. Mr. Manna then left the meeting and the Morgans were joined by Mark DiSanto, president of Triple Crown Corporation, who read the termination of contract notice and release of deposit money and stated he would not agree to their terms. 18. On or about May 20, 2010, the Morgans followed up with the meeting of May 19, 2010, with an email to Mr. DiSanto reiterating that the Morgans were terminating the contract and asking for a release of deposit money. 19. On or about May 21, 2010, Stacy Trout of Triple Crown wrote to the Morgans advising that the corrective proposal was not accepted by Triple Crown. 20. The Morgans also incurred $2,000.00 in moving/storage expenses in anticipation of moving into the home after settlement, which cost Triple Crown agreed to reimburse or credit the Morgans at the time of settlement. 21. At the time of their execution of the written contract, the Morgans placed $7,500.00 in escrow with Triple Crown towards the purchase of the home and also paid $10,000.00 for upgrades to the home. 22. After the termination of written contract, the Morgans demanded the return of the escrow, money paid for upgrades and costs incurred for moving and storage expenses however, despite such demand, Triple Crown has refused to return these funds to the Morgans. 23. Triple Crown failed to obtain a use and occupancy permit for the Property at anytime prior to the scheduled settlement date or the Morgans termination of the written contract with Triple Crown. 24. Triple Crown failed to provide the Morgans with a seller's disclosure pursuant to the Real Estate Disclosure Law, 68 Pa.C.S.A. §7301 et. seq. 4 25. The Morgans would not have purchased the Property or executed the written contract for the purchase of the Property had they been aware of the water damage or the presence of mold at the subjected Property on or before March 15, 2010. 26. As a direct and proximate result of Triple Crown's default under the terms of the written contract, the Morgans were unable to take advantage of the Federal tax credit in the amount of $6,500.00 which would have been available to the Morgans had the Property been provided in a moisture and mold free, habitable condition prior to settlement on May 20, 2010, as required by the written contract and subsequent addenda. COUNT I. BREACH OF CONTRACT 27. The Morgans hereby incorporate the preceeding paragraphs of their complaint as though fully set forth at length herein. 28. The Morgans and Triple Crown Corporation entered into a legally binding written contract, for good and valuable consideration, whereby Triple Crown agreed to convey the Property subject to conditions and warranties contained in the written contract and the Morgans agreed to pay for the Property subjected to certain conditions set forth the written contract. (See Exhibit "A"). 29. Triple Crown's failure to disclose the material defect in the Property before the written agreement was signed to wit, the presence of harmful mold and water damage to the Property constitutes a material breach to the written contract between the Morgans and Triple Crown. 30. Triple Crown had knowledge of the water damage to the Property and the presence of harmful mold within the Property prior to the time the Morgans executed the written contract with Triple Crown. 5 31. Despite this knowledge, Triple Crown hid this defective condition from the Morgans by failing to disclose the water damage to the Property, prior mold remediation efforts, or the presence of mold within the Property prior to the execution to the real estate sales agreement. 32. Had the Morgans been aware of water damage and resultant mold infestation in the Property, the Morgans would not have executed the written contract with Triple Crown for the purchase of the Property. 33. Triple Crown also breached the written contract with the Morgans by failing to provide the Morgans with a seller's disclosure pursuant to the Real Estate Disclosure Law, 68 Pa.C.S.A. §7301 et. seq. 34. Triple Crown further breached the contract with the Morgans by failing to obtain a use and occupancy permit for the Property at any time after the Morgans execution of the written contract. 35. As a direct and proximate result of Triple Crown's breach of the written contract, the Morgans have suffered damages in an amount in excess of $26,000.00, including, but not limited to, $7,500.00 placed in escrow toward the purchase price, $10,000.00 paid for upgrades to the home, $2,000.00 in storage expenses, the loss of opportunity to take advantage of the Federal tax credit in the amount of $6,500.00, along with costs and attorney's fees incurred in prosecuting this action to recover these funds. WHEREFORE, Plaintiffs, Brandon R. Morgans and Julianne M. Morgans hereby demand judgment in their favor in the amount in excess of $50,000.00 along with such other further relief which the Court may deem just and proper. COUNT II. RESCISSION 36. The Morgans hereby incorporate the preceedings paragraphs of their complaint as though 6 fully set forth at length herein. 37. Based upon Triple Crown's failure to disclose the above described material defect with the Property prior to the execution of the written contract, the Morgans are entitled to equitable rescission of the written contract so as to return the parties, as nearly as possible, to their original positions prior of the execution of the written contract. 38. The Morgans were induced to enter into the written contract by a material misrepresentation in a nature of a failure to disclose a material defect by Triple Crown. 39. Triple Crown had knowledge of the material defects in the nature of water damage and mold infestation of the Property prior to the Morgans execution of written contract, which Triple Crown intentionally concealed from the Morgans. 40. Triple Crown's failure to disclose the defective conditions to the Property is grounds for recession of the contract. 41. This concealment by Triple Crown was calculated to deceive the Morgans and to induce them to enter into the written contract described above. 42. This misrepresentation in the nature of a failure to disclose is of such a character that, had the Morgans been aware of the water damage and mold infestation, they would not have entered into the written contract. 43. This Honorable Court should exercise its equitable powers to rescind the written contract between the Morgans and Triple Crown and, further, compel Triple Crown to disgorge all funds paid by the Morgans in order to return the parties the status quo before execution of the contract. WHEREFORE, Plaintiffs, Brandon R. Morgans and Julianne M. Morgans hereby demand judgment in their favor in an amount in excess of $50,000.00, along with such other and further relief which the Court may deem just and proper. 7 COUNT III. FRAUD (FRAUDULENT INDUCEMENT) 44. The Morgans hereby incorporate the preceeding paragraphs of their complaint as though fully set forth at length herein. 45. As set forth above, Triple Crown made a misrepresentation to the Morgans in the nature of concealment of facts calculated to deceive the Morgans and/or failed to disclose the material defect in the Property to the Morgans upon which the Morgans relied in executing the written contract. 46. The nature of the defective condition of the Property which Triple Crown failed to disclose was material to the transaction at issue, i.e. the contract for sale and purchase of the real estate. 47. Triple Crown failed to disclose the defective condition of the Property with the intent of misleading the Morgans and inducing them to execute the written contract. 48. The Morgans justifiably relied upon the statements made by Triple Crown as to the condition of the Property being free from material defects and habitable. 49. As a direct and proximate result of Triple Crown failure to disclose the defective nature of the Property, the Morgans have suffered damages which were proximately caused by their reliance upon the misrepresentation of Triple Crown. 50. As a direct and proximate result of the Morgans reliance upon the misrepresentation made by Triple Crown, the Morgans have suffered damages as more particularly set forth above. WHEREFORE, Plaintiffs, Brandon R. Morgans and Julianne M. Morgans hereby demand judgment in their favor in an amount in excess of $50,000.00, along with such other further relief which the Court may deem just and proper. 8 COUNT IV. VIOLATION OF THE UNFAIR TRADE PRACTICES AND CONSUMER PROTECTION ACT 73 P S &201 et sea 51. The Morgans hereby incorporate the preceeding paragraphs of their complaint as though fully set forth at length herein. 52. Pursuant to the Pennsylvania Unfair Trade Practices and Consumer Protection Law (hereinafter "UTPCPL") the Morgans are individuals who executed a written agreement to purchase residential real estate from Triple Crown and, as such, the Morgans have standing to bring a private action to recover damages caused by the practices declared unlawful by the UTPCPL. 53. Triple Crown's failure to disclose the defective nature of the Property prior to the execution of the written contract by the Morgans constitutes engaging in fraudulent or deceptive conduct, which caused a likelihood of confusion or misunderstanding, which is an unfair or deceptive act or practice under the UTPCPL. (See 73.P.S. §201-2(4)(xxi)). 54. Triple Crown further violated the UTPCPL by representing that their goods and services were of a particular standard, quality or grade, when they were, in fact, of another. 55. Triple Crown further violated the UTPCPL by making repairs, improvements or replacement on real property of a nature or quality inferior to or below the standard of that agreed to in writing. 56. As a direct and proximate result of Triple Crown's violation of the UTPCPL, the Morgans have suffered damages in an amount in excess of $26.000.00, as more particularly set forth above. 57. Under the UTPCPL, the Morgans are entitled to recover, in addition to the damages set forth above, their attorney's fees incurred in prosecuting this matter, as well as treble damages against Triple Crown. 9 WHEREFORE, Plaintiffs, Brandon R. Morgans and Julianne M. Morgans hereby demand judgment in their favor and against Triple Crown Corporation in an amount in excess of $50,000.00, along with attorney's fees and costs incurred in prosecuting this matter and treble damages pursuant to the Pennsylvania Unfair Trade Practices and Consumer Protection Law. COUNT V. VIOLATION OF THE PENNSYLVANIA DISCLOSURE LAW 68 Pa.C.S.A. 47301 et. sep 58. The Morgans hereby incorporate the proceeding paragraphs of their complaint as though fully set forth at length herein. 59. The Pennsylvania Real Estate Disclosure Law 68 Pa.C.S.A. §7301 et. seq., requires a seller of real estate to publish a disclosure to the buyer of real estate including defective conditions or issues that would interfere with the use and enjoyment of the property. 60. Triple Crown failed to provide a seller's disclosure to the Morgans disclosing the material defective of the Property in the nature of water damage and mold infestation. 61. As a direct and proximate result Triple Crown's to disclose the above described defective condition with the Property prior to the Morgans execution of the written contract, the Morgans have suffered damages in excess of $26,000.00 as more particularly set forth above. WHEREFORE, Plaintiffs, Brandon R. Morgans and Julianne M. Morgans hereby demand judgment in their favor and against Triple Crown Corporation in an amount in excess of $50,000.00, along with attorney's fees and costs incurred in prosecuting this matter and trouble damages pursuant to the Pennsylvania Unfair Trade Practices and Consumer Protection Law. Dated: c! / By: 10 DAVIS, BUCCO & ARDIZZI, R:\MORGANS, BRANDON & JULIE (M-2563)\M-2563-A TRIPLE CROWN CORPORATION\Pleadings\Complaint (v2).doc 11 VERIFICATION I, Julianne M. Morgans, hereby acknowledge that I am the Plaintiff in the foregoing action and hereby aver that the facts set forth in the foregoing Plaintiffs' Complaint are true and correct to the best of my knowledge, information and belief. This Verification is made subject to the penalties of 18 Pa. C.S.A. §4904 relating to the falsification of unsworn statement to authorities. Dated: I o KY), JU NNE M. MORGANS VERIFICATION I, Brandon R. Morgans, hereby acknowledge that I am the Plaintiff in the foregoing action and hereby aver that the facts set forth in the foregoing Plaintiffs' Complaint are true and correct to the best of my knowledge, information and belief. This Verification is made subject to the penalties of 18 Pa. C.S.A. §4904 relating to the falsification of unsworn statement to authorities. Dated: ` BRANDON R. ORGANS EXHIBIT A l 1: By this Agreement, dated march 11 2010 2 Seller hereby agrees to sell and conv 3 2 ey to Buyer, who agrees top chase, the ides ' roe . . PURCEASE PRICE AND DEPOSITS (1- t t3' 4 (A) Purchase Price S 7 323 5 ? .6. C 7 1. Deposit at si 1 U.S. Dollars), to be paid 8 fining of this 2 Agreement $ by Buyer as follows: 9 . Deposit within days of the Execution Date of this 3. Agreement: S 10 4. Remaining balance will be paid at settlement S 11 (B) All funds paid by Buyer, including deposits, will be paid by check, cashier's check or wired funds. All funds paid Byr 12 within 30 DAYS of settlement, including funds paid at settlement, will be by cashier's check or wired funds, but not not byp per- 13 sonal check - 14 15 (C) Deposits, regardless of the form of payment and the person designated as 16 (unless otherwise stated here. pay es, will be paid in U.S. Dollars to Broker for Seller who will retain deposits in an escrow account in conformity 1:11, all applicable laws and 111111 ons until con ) 17 urination of this Only sssmrnatson or ter- 18 Agreement Onl real estate brokers are required to hold deposits in accordance with the rules and regulations of the State Real Estate Commission. Checks tendered as deposit monies b may be held uncasbed pending the execution of this 19 Agreement ?ctl1` 20 3. SELLER ASSIST (If Applicable) (1-10) ?]u 21 Seller will par S_ R U , tl ,p ? • Jor % (0 if not Buyer's costs, as permitter by the mortgage lender; if any, Seller . only obligated to PY ay up of to Purcthehase Price amount or percn specified) w toward 23 approved by mortgage lender. 24 4. SETTLE Peetage which is 1?TE1VT AND POSSESS ON 1-10) 25 (A) Settlement Date is A 1 () . 26 (B) Settlement will, occur in the county w ere - thProperty , or before if Buyersnd Seller agree, is 27 Buyer and Seller or in an adjacent county, during normal business hours, unless 28 agree otherwise. (C) At time of settlement, the following will be pro-rated on a daily basis between Buyer and Seller, reimbursing where applicable: 29 current taxes (see Notice Regarding Real Estate Taxes); rents, interest on mortgage 30 owner association fees; water and/or sewer fees, together with any other [ieuable municipal service fees. All charges will be pre 32 pay up to and including the date of settlement and Buyer will pay for dl days follow- 33 ing settlement, unless otherwise stated hero: 34 (D) Conveyance from Seller will be by fee simple deed of 35 special warranty unless otherwise stated here: 36 (E) Payment of transfer taxes will be divided equally between B 37 uyta and Seller unless otherwise stated here 38 (F) Possession is to be delivered de 39 broom-cl y ed, ?4ag keys and physical possession to a vacant Property fret of debris, wi6 all structures 39 oar, at day and time of settlement, unless Seller, before signing this Agreement, has identified in wrttin is subject to a lease. g t6t the property 41 (G) If Seller has identified in writing that the Property is subject to a lease, possession is to be delivered by deed, existing keys 42 assignment of existing leases for the Property, together with security deposits and interest, if any, at day and time of ssltlement Serer will not enter into any new leases, nor extend existing leases, for the Property without the written consent of B 44 acknowledge existing 1 s ales. Buyer will 45 ?) by iendu g the lease(s) at the execution of this Agreement, unless otherwise stated in bis A ? Tenant-Occupied Property Addendum (PAR Form TOP) is attached. BleCment 46 5. DATESMME IS OF THE ESSENCE (1-10) 47 (A) Written acceptance of all parties will be on or before: 48 (B) The Settlement Date and all other dates and times identi ed for the performance of an obli 49 essence and are binding. Y gations of this Agreeftt are of the 50 (C) The Execution Date of this Agreement is the date when Buyer and Seiler have indicated full acceptance of.this..4grestieat .by sign- ing and/or initialing it For purposes of this Agreement, the number of days will be cQuated from the Execution Ilse 52 the day this Agreement was executed and including the last day of the time period, All change I to this Agreement ' excluding . 53 tialed and dated. should be ini- 54 (D) The Settlement Date is not extended by any other provision of this Agreement and may only be extended, by mutualvr6en 55 mart oftb0 parties, agree- 56 (E) Certain terns and time periods are pre-printed in this 57 and time periods are negotiable and Agreement as a convenience to the gayer. and Seller. Al[ preprinted terms 58 to all parties. may changed by striking out the pre-printed text and inserting different taste acceptable 59 6. ZONING (1-10) 60 Failure of this Agreement to contain the zoning classification ex 61 vidable} is zoned solely or primarily to ( ? in cases where the property {and each parcel thersot; if subdi- 62 void permit single-family dwellings) will reader this Agreement voidable at Buyer's- cd, any deposits tende?ne Buyer will be returned to the Buyer without any. requirement for court action. won, and, if 63 . Zoning Classification. , 64 Buyer Initials; AIII, Seller Prodxed wnh Wom* by zipl o x 18070 Faeen Mile Road, Fmw, VINP, 48026 www.zia ere mm ASR Page f of 19 3 MORGANS riit STANDARD AGREEMENT FOR THE SALE OF REAL ESTATE ASR +pprund for, but na restricted to ate by, fie members of the Pennryivania Associadon ofREALTORM (PAR). PARTIES BUYER(S): Brandon aabert xoaaANs, Juliaaae xaliada MORGANS SELLER(S): BUYER'S MAILINGADDRESS: SELLER'S MAILINGADDRES 8600 Pine Meadows Drive, Odenton, MD 21113 1)c? PROPERTY ADDRESS ZIP 17050 in the municipality of Silver Spring , County of Cumberland in the School District of Cumberland , in the Commonwealth of Pennsylvania Identification (e.g., Tax ID #; Parcel #; Lot, Block; Deed Book, Page, Recording Date): BUYER'S RELATIONSHIP WITH PA LICENSED BROKER ? No Business Relationship (Buyer is not represented by a broker) Broker (Company) 4jeword H a Company Address 5137 Devonshire Road, Harriabur , PA 17112 Company Phone (717) 652-7260 Company Fax (717) 652-9261 Broker is: ® Buyer Agent (Broker represents Buyer only) ? Dual Agent (See Dual and/or Designated Agent box below) Licensee(s) (Name)K=QSLEY JATTO Direct Phone(s) (717)433-8040 Cell Phone(s) (717)433-8040 Fax Email Licensee(s) is: ? Buyer Agent with Designated Agency ? Buyer Agent without Designated Agency ? Dual Agent (See Dual and/or Designated Agent box below) ? Transaction Licensee (Broker and Licensee(s) provide real estate services but do not represent Buyer) SELLER'S RELATIONSHIP WITH PA LICENSED BROKER _ O No Business Relationship (Seller is not represented by a broker) Broker (Company) Company Address .:Company Phone Company Fax Broker is: w, ? Seller Agent (Broker represents Seller only) O Dual Agent (See Dual and/or Designated Agent box below) . Licensee(s) (Name) Direct Phone(s) Cell Phone(s) Fax Email _ Licensee(s) is: ? Seller Agent with Designated Agency ? Seller Agent without Designated Agency ? Dual Agent (See Dual and/or Designated Agent box below) ? Transaction Licensee (Broker and Licensee(s) provide real estate services but do not represent Seller) DUAL AND/OR DESIGNATED AGENCY A Broker is a Dual Agent when a Broker represents both Buyer and Seller in the same transaction. A Licensee is a Dual Agent when a Licensee represents Buyer and Seller in the same transaction. All of Broker's licensees are also Dual Agents UNLESS there are separate Designated Agents for Buyer and Seller. If the same Licensee is designated for Buyer and Seller, the Licensee is a Dual Agent. By signing this Agreement, Buyer and Seller each acknowledge having been previously informed of, and consented to, dual agency, if S applicable. Buyer ASR Page 1 of 19 'PI I Pennsylvania Association of REALTORS' Reed 1110 COPYRIGHT PENNSVLvANIA Seller Howard ]Matins Red Estate Services 31j7 DevonsWn Road Harrisburg. PA 17112 Phmc 717.632.7260 Fait 717.6S2.9261 a:inv* 7aao GRI . Produced with ZipFo n* try zipLoObc 19070 Fifteen We Road. Fraseh', Midhfpen 49026 wMm.zio! orr& mn ALTOR3® 2010 1/10 MORGANSAuwood 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 8o 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 . 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 7. FIXTURES AND PERSONAL PROPERTY (1-10) (A) INCLUDED in this sale are all existing items permanently installed in the Property, free of liens, and other items including plumbing; heating; radiator covers; lighting fixtures (including chandeliers and ceiling fans); pool and spa equipment (including covers and cleaning equipment); electric animal fencing systems (excluding collars); garage door openers and transmitters; tele- vision antennas; unpotted shrubbery, plantings and trees; any remaining heating and cooking fuels stored on the Property at the time of settlement; smoke detectors and carbon monoxide detectors; sump pumps; storage sheds; fences; mailboxes; wall to wall carpeting; existing window screens, storm windows and screen/storm doors; window covering hardware, shades and blinds; awnings; built-in air conditioners; built-in appliances; the rangetoven, unless otherwise stated; and, if owned, water treatment sys- tems, propane tanks, satellite dishes and security systems. Also included: (B) The ollowing items are LEASM not own by Seller). Contact the prove er nor r more i ormation e.g., water treatment systems, propane tanks, satellite dishes and security systems): (C) EXCLUDED fixtures and items: 8. MORTGAGE CONTINGENCY (1-10) ? WAIVED. This sale is NOT contingent on mortgage financing, although Buyer may obtain mortgage financing and/or the par- ties may include an appraisal contingency. ? ELECTED. (Al This sale is contingent upon Buyer obtaining mortgage financing First Mortgage on the Property LoanAmount $ '?%(o t nnn Minimum Term 'R years Type of mortgage .fie'iawT1= AJ_ Loan-To-Value (LTV) ratio: For non-FHA/VA logns LTV ratio n to exceed % Mortgage lender Interest rate - %; however, Buyer agrees to accept the interest rate as may be committed by the mortgage lender, not to exceed a maximum interest rate of %. Discount points, loan origination, loan p acemcnt and other fees charged by the lender as a percentage of the mortgage loan (exclud- ing any mortgage insurance premiums or VA funding fee) not to exceed % (0% if not specified) of the mortgage loan. (B) (C) (D) (E) The interest rate(s) and fee(s) Wo P h wcoraing to me roiiowrng terms: Second Mortgage on the Property LoanAmount a Minimum Term years Typo of mortgage Loan-To-Value (LTV) ratio: For non- AL loans LTV ratio not to exceed % Mortgage lender Interest rate %; however, Buyer agrees to accept the interest rate as may be committed by the mortgage lender, not to exceed a maximum interest rate of %, Discount points, loan origination, loan placement and other fees charged by the lender as a percentage of the mortgage loan (exclud- ing any mortgage insurance premiums or VA funding fee) not to exceed % (0% if not specified) of the mortgage loan. pro ns in err Wcv 8(A) are sausuea u me mortgage lender(s) gives Buyer the right to guar- antee the interest rate(s) and fee(s) at or below the maximum levels stated. If lender(s) gives Buyer the right to lock in the inter- est rate(s), Buyer will do so at least 15 days before Settlement Date. Buyer gives Seiler the right, at Seller's sole option and as permitted by law and the mortgage lender(s), to contribute financially, without promise of reimbursement, to the Buyer and/or the mortgage lender(s) to make the above mortgage term(s) available to Buyer. Within days (7-if not specified) from the Execution Date of this Agreement, Buyer will make a completed, written mort- gage application (including payment for and ordering of appraisal and credit reports without delay, at the time required by lender(s)) for the mortgage terms and to the mortgage lender(s) identified in Paragraph 8(A), if any, otherwise to a responsible mortgage lender(s) of Buyer's choice. Broker for Buyer, if any, otherwise Broker for Seller, is authorized to communicate with the mortgage lender(s) to assist in the mortgage loan process. Buyer will be in default of this Agreement if Buyer furnishes false information to anyone concerning Buyer's financial and/or employment status, fails to cooperate in good faith with processing the mortgage loan application (including delay of the appraisal), fails to lock in interest rate(s) as stated in Paragraph 8(B), or otherwise causes the lender to reject, refuse to approve or issue a mortgage loan commitment,- . 1. Mortgage Commitment Date: 41k IL.. It -?-,mo..... ..._ . ..Upon receiving a mortgage commitment, Buyer will promptly deliver a copy of the commrtlnent to tier. 2. If Seller does not receive a copy of the.. mortgage commitment(s) by the Mortgage Commitment Date, Seller may terminate this Agreement by written notice to buyer.. Seller's-right. to terminate continues until Buyer delivers.a mortgage commitment to Seller. Until Seller terminates this Agreement, Buyer is obligated to make a good-faith effort to obtain mortgage financing. 3. Seller may terminate this Agreement by written notice to Buyer after the Mortgage Commitment Date if the mortgage commitment T a. Does not satisfy the terms of Paragraph 8(A), OR b. Contains any condition not specified in this Agreement (e.g., the Buyer must settle on another property, an appraisal m be-received by the lender, or the mortgage commitment is not valid through the Settlement Date) that is not satisfied and/or removed in writing by the mortgage lender(s) within 7 DAYS after the Mortgage Commitment Date in Paragraph 8(Exl), or any extension thereof, other than those coaditioas that are customarily satisfied at or near settlement (e.g., `, 4. obtaining insurance, confirming employment). 3 IRV or . Buyer will be responsible for any costs incurred by Buyer for any inspections or certifications obtained according to the terms of this Agreemen; and any costs incurred by Buyer for: (1) Title search, title insurance and/or mechanics' lien insurance, or any fee for cancellation; (2) Flood insurance, fire insurance, hazard insurance, mine subsidence insurance, or any fee for cancel- lation; (3) Appraisal fees and charges paid in advance to mortgage lender(s). Buyer Initials: INA ASR Page 3 of 19 Seller Initials: Revised 1/10 "yo_ Produced with ZipFwnS by tipLogix 16070 Fdben ANk Road. Fraser. IWchigen +eaze MORGANS 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 9, 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 (F) If the mortgage lender(s), or a property and casualty insurer providing insurance required by the mortgage lender(s), requires repairs to the Property, Buyer will, upon receiving the requirements, deliver a copy of the requirements to Seller. Within 5 DAYS of receiving the copy of the requirements, Seller will notify Buyer whether Seller will make the required repairs at Seller's expense. 1. If Seller makes the required repairs to the satisfaction of the mortgage lender and/or insurer, Buyer accepts the Property and agrees to the RELEASE in Paragraph 24 of this Agreement. 2. If Seller will not make the required repairs, or if Seller falls to respond within the stated time, Buyer will, within 5 DAYS, notify Seiler of Buyer's choice to: a. Make the repairslimprovements at Buyer's expense, with permission and access to the Property given by Seller, which will not be unreasonably withheld, OR b. Terminate this Agreement by written notice to Seller, with all deposit monies returned to Buyer according to the terms of Paragraph 22 of this Agreement. If Buyer fails to respond within the time stated in Paragraph 8(F)(2) or fails to terminate thic Aar"m."t by w aeuer wrznm rnar nme, Buyer will accept the Property and agree to the RELEASE in Paragraph 24 of this Agreement. ^ FHA/VA,EFAPPLICABLE (G) It is expressly agreed that notwithstanding any other provisions of this contract, Buyer will not be obligated to complete the pur- chase of the Property described herein or to incur any penalty by forfeiture of earnest money deposits or otherwise unless Buyer has been given, in accordance with HUD/FHA or VA requirements, a written statement by the Federal Housing Commissioner, Veterans Administration, or a Direct Endorsement Lender setting forth the appraised value of the Property of not less than $ (the Purchase Price as stated in this Agreement). Buyer will have the privilege and option of proceeding with consummation of the contract without regard to the amount of the appraised valuation. The appraised valuation is arrived at to determine the maximum mortgage the Department of Housing and Urban Development will insure. HUD does not warrant the value nor the condition of the Property. Buyer should satisfy himselflherself that the price and condition of the Property are acceptable. Warning: Section 1010 of Title 18, U.S.C., Department of Housing and Urban Development and Federal Housing Administration Transactions, provides, "Whoever for the purpose of ... influencing in any way the action of such Department, makes, passes; utters or publishes any statement, knowing the same to be false shall be fined under this title or imprisoned not more than two years, or both." (H) U.S. Department of Housing and Urban Development (HUD) NOTICE TO PURCHASERS: Buyer's Acknowledgement ? Buyer has received the HUD Notice "For Your Protection: Get a Home Inspection." Buyer understands the importance of getting an independent home inspection and has thought about this before signing this Agreement. Buyer understands that FHA will not perform a home inspection nor guarantee the price or condition of the Property. m Certification We the undersigned, Seller(s) and Buyer(s) party to this transaction each certify that the terms of this contract for purchase are true to the best of our knowledge and belief; and that any other agreement entered into by any of these parties in connection with this transaction is attached to this Agreement airy y LSD DT. DOL. C.yr?,T• n.te»,n . (A) Radon Testing and Remediation (See Notice Regarding Radon) Seller has no knowledge about the presence or absence of radon unless checked below: ? I. Seller has knowledge that the Property was tested on the dates and by the methods (e.g. charcoal canister, alpha track, etc.), which produced the results indicated below: Date Type of Test Results (picoCuries/hter or working levels) Name of Testing Service ? 2. Seller has knowledge that the Property had radon removal systern(s) installed as indicated below: Date Installed Type of System Provider Copies of all- available test reports will be delivered to Buyer with this Agreement. Seller does not warrant the meth- ads or the results of radon tests: (B) Status of Water S ller represents that the Property is served by: Public Water ? Community Water ? On-site Water ? None ? - (C) tatus of Sewer . „ ... . Seller represents that the Property is served by: Public Sewer ? Community Sewage Disposal System ? Ten-Acre Permit Exemption (see Sewage Notice 2) Individual On-lot Sewage Disposal System (see Sewage Notice 1) ? Holding Tank (see Sewage Notice 3) ? Individual On-lot Sewage Disposal System in Proximity to Well (see Sewage Notice l; sex Sewage Notice 4, if applicable) ? None (see Sewage Notice]) ? None Available/Permit Limitations in Effect (see Sewage Notice 5) (D) Historic Preservation Seller is not aware of historic preservation restrictions regarding the Property unless otherwise stated here: 194 Buyer Initials: ASR Page 4 of 19 Revised 1/10 Produced wah ZipFormfD by mpLogix 1 aom Moen WW Road, Fraser. Midipan 49026 MMW, g ram Seller Initials: MORGANS 195 (E) ? Property,. or a portion of it, is preferentially assessed for tax purposes under the following Act(s) (see Notices Regarding Land 196 Use Restrictions): 197 ? Farmland and Forest Land Assessment Act (Clean and Green Program; Act 319 of 1974; 72 P.S. § 5490.1 et seq.) 198 ? Open Space Act (Act 442 of 1967; 32 P.S. § 5001 et seq.) 199 O Agricultural Area Security Law (Act 43 of 1981; 3 P.S. §901 et seq.) 200 ? Other 201 (F) Seiler represents that, as of the date Seller signed this Agreement, no public improvement, condominium or homeowner associa- 202 lion assessments have been made against the Property which remain unpaid, and that no notice by any government or public 203 authority has been served upon Sella or anyone on Seller's behalf including notices relating to violations of zoning, housing, 204 building, safety. or fire ordinances that remain uncorrected, and that Seller knows of no condition that would constitute a viola- 205 lion of any such ordinances that remain uncorrected, unless otherwise specified here: 206 207 (G) Seller knows of no other potential notices (including violations) and/or assessments accept as follows: 208 209 (Ii) Access to a public road may require issuance of a highway occupancy permit from the Department of Transportation. 210 10. WAIVER OF CONTINGENCIES (9-05) 211 If this Agreement is contingent on Buyer's right to inspect and/or repair the Property, or to verify insurability, environmental 212 conditions, boundaries, certifications, zoning classification or use, or any other information regarding the Property, Buyer's 213 failure to exercise any of Buyer's options within the times set forth in this Agreement is a WAIVER of that contingency and 214 Buyer accepts the Property and agrees to the RELEASE in Paragraph 24 of this Agreement. 215 11. INSPECTIONS (1-10) (See Notices Regarding Property and Environmental Inspections) 216 (A) Rights and Responsibilities ' 217 1. Seller will provide access to insurers' representatives and, as may be required by this Agreement or by mortgage lender(s), to 218 surveyors, municipal officials, appraisers and inspectors. All parties and their real estate licence(s) may attend any inspections. 219 2. Buyer may make a pre-settlement walk-through inspection of the Property. Buyer's right to this inspection is not waived by? 220 any other provision of this Agreement l 221 3. Seller will have heating and all utilities (including fuel(s)) on for all inspectionslappraisals. \ 222 4. All inspectors, including home inspectors, are authorized by Buyer to provide a copy of any inspection Report to Broker for Buyer. 223 5. Seller has the right, upon request, to receive a free copy of any inspection Report from the 224 (B) Buyer waives or elects at Buyer's P?•Y for whom it was prepared, expense to have the following Inspections, certifications, and investigations (referred to as qjdo 225 "Inspection" or "Inspections") performed professional #P!°se , home inspectors, engineers, architects #bshet-p I_F_r* • , 226 . If the same inspector is inspecting more than one system, the inspector must corn-;* 227 ply with the Home Inspection Law. (See Notice Regarding the Home Inspection Law) 228 (C) For elected Inspection(s), Buyer will, within the •Contingency Period(s) stated in Paragraph 12(A), complete Inspections, obtain any 229 Inspection Reports or results (referred to as "Report" or "Reports'.'), and accept the Property, terminate this Agreement, or submit a 230 Written Corrective Proposal(s) to Seller, according to the terms- of Paragraph 12(B). 231 Home/Property Inspections and Environmental Hazards (mold, eta) 232 Elect ? Buyer may conduct an inspection of the Property's structural components; roof, exterior windows and exterior Waived 233 / Zlyt doors, exterior siding, Exterior Insulation and Finish Systems, fascia, gutters- and downspouts; swimming pools, hot / 234 tubs and spas; appliances; electrical systems, interior and exterior plumbing; public sewer systems; heating and cool- 235 ing systems; water penetration; electromagnetic fields; wetlands and -flood plain delineation; structure square 236 footage; mold and other environmental hazards (e.g., fungi, indoor air quality, asbestos, underground storage-tanks, 237 etc.); and any other items Buyer may select If Buyer elects to have a home inspection of the Property, as defined in 238 • the Home Inspection Law, the home inspection must be performed by a full member in,good standing of a national 239 home inspection association, or a person supervised by a full member of a national home inspection association, in 240 accordance with the ethical standards and code of conduct or practice of that association, or by a properly licensed 241 or registered engineer or architect (See Notice Regarding the Home Inspection Law) 242 Wood Infestation 243 Elected Buyef may obtain a written "Wood-Destroying Insect Infestation Inspection Report" from an inspector certified as . Waived 244 ! a wood-destroying pests pesticide applicator and will deliver it-and-all supporting documents and drawings pravid--• •--- 245 ed by the inspector to Seller. The Report is to be made satisfactory to and in compliance with applicable laws, mort- 246 gage lender requirements, and/or Federal Insuring and Guaranteeing- Agency requirements. The Inspection is. to be 247 limited to all readily-visible and accessible areas ofall structures on the Property, except fences. If the Inspection 248 reveals active infestation(s), Buyer, at Buyer's Expense, may obtain a Proposal from a wood-destroying pests pes- 249 ticide applicator to treat the Property. If the Inspection reveals damage from active or previous infestation(s), Buyer 250 may obtain a written Report from a professional contractor, home inspector or structural engineer that is limited to 251 structural-.damage to.the Property caused by wood-destroying organisms and a Proposal to repair the Property. 252 Radon 253 Elected Buyer may obtain a radon test of the Property from a certified inspector. The U.S. Environmental Protection Waived 254 RAUL /? Agency (EPA) advises corrective action if the average annual exposure to radon is equal to or higher than 0.02 / 255 working levels or 4 picoCuries/liter (4pCi/L). 256 Water Service 257 Elected Buyer may obtain an Inspection of the quality and quantity of the water system from a properly licensed or otherwise Waived 258 / qualified water/well testing company. If and as required by the inspection company, Seller, at Seller's expense, will 259 locate and provide access to the on-site (or individual) water system. Seller will restore the Property to its previous 260 condition, at Seller's expense, prior to settlement. 261 Buyer Initials:--&ASR Page 5 of 19 Seller Initials: Revised 1/10 Produced with ZlpFonnV by ApLogix 1 9070 Fifteen Mile Road, Fraser, Michigan 411025 yowakLookcain MORGANS 262 On-lot Sewage (If Applicable) 263 Elected Buyer may obtain an Inspection of the individual on-lot sewage disposal sal system from a ualifi / inspector. If and as required q ?. Professional ?WAai 264 I 265 required by the inspection company, Seiler, at Seller's expense, will locate, provide access to, _t.?.[k/? and empty the individual on-lot sewage disposal system. Seller will restore the Property to its previous condition, 266 at Seller's expense, prior to settlement. See paragraph 12(C) for more information regarding the Individual On-lot 267 Sewage Inspection Contingency. i 268 Property Insurance 269 Elected Buyer may determine the insurability of the Property by making application for property and casualty insurance for Waiv 270 / the Property to a responsible insurer. Broker for Buyer, if any, otherwise Broker for Seller, may communicate with 271 the insurer to assist in the insurance process. If the Property is located in a flood plain, Buyer may be required to 272 carry flood insurance at Buyer's expense, which may need to be ordered 14 days or more prior to Settlement Date. 273 Property Boundaries I 274 Elected Buyer may engage the services of a surveyor, title abstractor, or other qualified professional to assess the legal ?, W?`a!' 275 / description, certainty and location of boundaries and/or quantum of land. Most Sellers have not had the Property ?n 276 surveyed as it is not a requirement of property transfer in Pennsylvania. Any fences, hedges, walls and other natural 277 or constructed barriers may or may not represent the true boundary lines of the Property. Any numerical represen- 278 tations of size of property are approximations only and may be inaccurate. 279 Deeds, Restrictions and Zoning 280 Elected Buyer may investigate easements, deed and use restrictions (including any historic preservation restrictions or ordi- Waived 281 / nances) that apply to the Property and review local zoning ordinances. Buyer may verify that the present use of the 282 Property (such as in-law quarters, apartments, home office, day care) is permitted and may elect to make the 283 Agreement contingent upon an anticipated use. Present use: 284 bead-Based Paint Hazards (For Properties prior to 1978 only) 285 Elected Before Buyer is obligated to purchase a residential dwelling built prior to 1978, Buyer has the option to conduct a Waived 286 / risk assessment and/or inspection of the Property for the presence of lead-based paint and/or lead-based paint haz- / 287 ards unless Buyer waives that right.. Regardless of whether this inspection is elected or waived, the Residential 288 Lead-Based Paint Hazard Reduction Act requires a Seller of property built prior to 1978 to provide the 289 Buyer with an EPA-approved lead hazards information pamphlet titled Protect Your Family from Lead in 290 Your Home, along with a separate form, attached to this Agreement, disclosing Seller's knowledge of lead- 291 based paint hazards and any lead-based paint records regarding the Property. (See Notices Regarding 292 Residential Lead-Based Paint Hazard Reduction Act) 293 Other 294 Elected Waived 1 295 f / 296 297 The Inspections elected above do not apply to the ollowing existing conditions and/or items: 298 299 300 12. YNSPDMON G CY (1-10) 301 (A) The Contingency Period is days (10 if not specified) from the Execution Date of this Agreement for each Inspection elect 302 ed in Paragraph I I (C), except the following: 303 304 Contingency Peri)t 3? 17 305 days 117 306 da307 d 308 Except as stated in Paragraph 12(C) if the result of any Inspection elected in Paragraph 11(C) is unsatisfactory to. Bayer, Buyer 309 will, within"the stated Contingency Period: -`310- 1. Accept the Property with the-information stated in the Report(s) and agree to the RELEASE in. Paragraph 24 of this Agreement, OR 3.11.. _ _... 2:. Terminate 'this'Agreement"by written notice to Seller, with all deposit -monies.. returned to Buyer according to the terms of 312 Paragraph 22 of this Agreement, OR 313 ' 3. Present the to Seller with a Written Corrective Proposal ("Proposaf0 listing corrections and/or credits dsstred by Buyer. '314' The Proposal may, but is not required to, include the name(s) of a properly licensed or qualified professional(s) to perform.the cor- 315 rections requested in the Proposal, provisions for payment, including retests, and a projected date for completion of the correc- 316: tions. Buyer agrees that Seller will not be held liable for corrections that do not comply with mortgage lender or governmental 317 requirements if performed in a workmanlike manner according to the terms of Buyer's Proposal. 318 a. No later than days (5 if not specified) from the end of the Contingency Period(s), Seller will inform Buyer in writ- 319 ing that Seller will: 320 (1) Satisfy all the terms of Buyer's Proposal(s), OR 321 (2) Not satisfy all the terms of Buyer's Proposal(s), OR 322 (3) Negotiate a mutually acceptable written agreement with Buyer, providing for any repairs or improvements to the - 323 Property and/or any credit to Buyer at settlement, as acceptable to the mortgage lender, if any. 324 b. If Seller agrees to satisfy the terms of Buyer's Proposal or Buyer and Seller enter into a mutually. acceptable written agree- 325 ment, Buyer accepts the Property and agrees to the RELEASE in . Paragraph 24 of this Agreement 326 Buyer Initials: V1F?'1 ASR Page 6 of 19 Seller Initials: LAM& Revised 1/10 Produced with ZIPFOrm® by zipl.o& 18070 Fat m Mile Road. Fraser. Michigan 48028 www zioLagk com MORGANS 327 c. If Seller chooses not to satisfy all the terms of Buyer's Proposal and if Buyer and Seller do not enter into a mutually 328 acceptable written agreement, or if Seller fails to choose any option within the time given, Buyer will, within days 329 (2 if not specified): 330 (1) Accept the Property with the information stated in the Report(s) and agree to the RELEASE in Paragraph 24 of this 331 Agreement, OR 332 (2) Terminate this Agreement by written notice to Seller, with all deposit monies returned to Buyer according to the terms 333 of Paragraph 22 of this Agreement. 334 If Buyer fails to respond within the time stated in Paragraph 12(B)(3)(c) or fails to terminate this Agreement by 335 written notice to Seller within that time, Buyer will accept the Property and agree to the RELEASE in Paragraph 336 24 of this Agreement. 337 (C) If a Report reveals the need to expand or replace the existing individual on-lot sewage disposal system, Seller may, within 338 days (25 if not specified) of receiving the Report, submit a Proposal to Buyer. The Proposal will include, but not be limited to, the 339 name of the company to perform the -expansion or replacement; provisions for payment, including retests; and a projected com- 340 pletion date for corrective measures. Within 5 DAYS of receiving Seller's Proposal, or if no Proposal is provided within the 341 stated time, Buyer will notify Seller in writing of Buyer's choice to: 342 1. Agree to the terms of the Proposal, accept the Property and agree to the RELEASE in Paragraph 24 of this Agreement, OR 343 2. Terminate this Agreement by written notice to Seller, with all deposit monies returned to Buyer according to the terms of 344 Paragraph 22 of this Agreement, OR 345 3. Accept the Property and the existing system and agree to the RELEASE in Paragraph 24 of this Agreement. If required by any 346 mortgage lender and/or any governmental authority, Buyer will correct the defects before settlement or within the time required 347 by the mortgage lender and/or governmental authority, at Buyer's sole expense, with permission and access to the Property given 348 by Seller, which may not be unreasonably withheld. If Seller denies Buyer permission and/or access to correct the defects, Buyer 349 may, within 5 DAYS of Seller's denial, terminate this Agreement by written notice to Seller, with all deposit monies returned 350 to Buyer according to the terms of Paragraph 22 of this Agreement. 351. If Buyer fails to respond within the time stated in Paragraph 12(C) or fails. to terminate this Agreement by written notice 352 to Seller within that time, Buyer will accept the Property and agree to the RELEASE in Paragraph 24 of this Agreement. 353 13. NOTICES, ASSESSMENTS AND MUMCIPAL REQUIREMENTS (1-10) • 354 (A) In the event any notices, including violations, and/or assessments are received after Seller has signed this Agreement and before 355 settlement, Seller will within 5 DAYS of receiving the notices and/or assessments provide a copy of the notices and/or assess- 356 ments to Buyer and will notify Buyer in writing that Seller will: 357 1. Fully comply with the notices and/or assessments, at Seller's expense, before settlement. If Seller fully complies with the 358 notices and/or assessments, Buyer accepts the Property and agrees to the RELEASE in Paragraph 24 of this Agreement, OR .359 2. Not comply with the notices and/or assessments. If Seller chooses not to comply with the notices and/or assessments, or fails 360 within the stated time to notify Buyer whether Seller will comply, Buyer will notify Seller in writing within 5 DAYS 361 that Buyer will: 362 a. Comply with the notices and/or assessments at Buyer's expense, accept the Property, and agree to the RELEASE in 363 Paragraph 24 of this Agreement, OR 364 b. Terminate this Agreement by written notice to Seller, with all deposit monies returned to Buyer according to the terms of 365 Paragraph 22 of this.Agreement. 366 If Buyer fails to respond within the time stated In Paragraph 13(A)(2} or fails to terminate this Agreement by written notice 367 to Seller within that time, Bayer will accept the Property and agree to the RELEASE in Paragraph 24 of this Agreement. 368 (B) If required by law, within 30 DAYS from the Execution Date of this Agreement, but in no case later than 15 DAYS prior 369 to Settlement Date, Seller will order at Seller's expense a certification from the appropriate municipal department(s) "disclosing 370 notice of any uncorrected violations of zoning, housing, building safety or fire ordinances and/or a certificate permitting occu- 371 pancy of the Property. If Buyer receives a notice of any required repairs/ Improvements, Buyer will promptly deliver a copy of 372 the notice to Seller. 373 1. Within 5 DAYS of receiving notice from the municipality that repairs/improvements are required, Seller will deliver a 374 copy of the notice to Buyer and notify Buyer in writing that Seller will: 375 a. Make the • required mpairstimprovements to the satisfaction of,, the., ,municipality.., If, Seller.'.makes . the.. required 376 rep aftWimprovements,-Buyer accepts the Property and agrees to th"M- EASE in-Paragraph 24 of this Agreement, OR ..-: - 377 b. Not make the required repairs/improvements. If Seller chooses not to make the required repairst.improvements, Buyer will 378 notify Seller in writing within 5 DAYS that Buyer will:. ,., 379 (1) Make the repairs/improvements buyer's expense, with parnission.and access to the Property given by Seller, which 380 will not be unreasonably withheld, OR 381 (2) Terminate this Agreement by written notice to Seller, with all deposit monies returned to Buyer according to. the terms 3 82 of Paragraph 22 of this Agreement. 383 If Buyer fails to respond within the time stated in Paragraph 13(B)(1)(b) or fails to terminate this Agreement by 384 written notice to Seller within that time,. Buyer will accept the Property and agree to the RELEASE in Paragraph 385 24 of this Agreement, and Buyer accepts the responsibility to perform the repairs/improvements according to the 386 terms of the notice provided by the municipality. 387 1. If Seller denies Buyer permission to make the required repairstimprovements, or. does not provide Buyer access before 388 Settlement Date to make the required repairs/improvements, Buyer may, within 5 DAYS, terminate this Agreement by 389 written notice to Seller, with all deposit monies returned to Buyer according to the terms of Paragraph 22 of this Agreement. 390 2. If repairs/improvements arc required mid Seller fails to provide a copy of the notice to Buyer as required in this Paragraph, Seller 391 will perform all repairsrmprovements as required by the notice at Seller's expense. Paragraph 13(B)(3) will survive settlement. 392 Buys' Initials: M ASR Page 7 of 19 Seller Initials Revised 1/10 Produced with ZoForm® by zipLogk IW70 Fifteen We Road, Fraser, A4Mgan 48M wawa1cLoohccom MORGANS 393 14. CONDOMINIUMIPLANNED COMMUNITY (HOMEOWNER ASSOCIATIONS) RESALE NOTICE (1-10) 394 Property is NOT a Condominium or part of a Planned Community unless checked below, 395 ? CONDOMIIUM The Property is a unit of a condominium that is primarily run by a unit owners' association. Section 3407 of the 396 Uniform Condominium Act of Pennsylvania (see Notice Regarding Condominiums and Planned Communities) requires Seller to 397 furnish Buyer with a Certificate of Resale and copies of the condominium declaration (other than plats and plans), the bylaws and 398 the rules and regulations of the association. 399 ? PLANNED COMMUNITY (HOMEOWNER ASSOCIATION). The Property is part of a planned community as defined by the 400 Uniform Planned Community Act (see Notice Regarding Condominiums and Planned Communities). Section 5407(x) of the Act 401 requires Seller to. fumish Buyer with a copy of the Declaration (other than plats and plans), the bylaws, the rules and regulations 402 of the association, and a Certificate containing the provisions set forth in section 5407(a) of the Act. 403 THE FOLLOWING APPLIES TO PROPERTIES THAT ARE PART OFACONDOMINIUM OR A PLANNED COMMUNITY. 404 (A) Within 15. DAYS from the Execution Date of this Agreement, Seller, at Seller's expense, will request from the association a 405 Certificate of Resale and any other documents necessary to enable Seller to comply with the relevant.Act. The Act provides that 406 the association is required to provide these documents within 10 days of Seller's request. 407 (B) Seller will promptly deliver to Buyer all documents received from the association. Under the Act, Seller is not liable to Buyer for 408 the failure of the association to provide the Certificate in a timely manner or for any incorrect information provided by the asso- 409 ciation in the Certificatc. 410 (C) The Act provides that Buyer may declare this Agreement VOID at any time before Buyer receives the association documents and 411 for 5 days after receipt, OR until settlement, whichever occurs first Buyer's notice to Seller must be in writing; upon Buyer 412 declaring this Agreement void, all deposit monies will be returned to Buyer according to the terms of Paragraph 22 of this 413 Agreement. 414 (D) If the association has the right to buy the,Property (right of first refusal), and the association exercises that right, Seller will reim- 415 burse Buyer for any costs incurred.by Buyer for any inspections .or certifications obtained according to the terms of the Agreement, 416 and any costs incurred by Buyer for: (1) Title search, title insurance and/or mechanics' lien insurance, or any fee for cancellation; 417 (2) Flood insurance, fire insurance, hazard insurance, mine subsidence insurance, or any fee for cancellation; (3) Appraisal fees 418 and charges paid in advance to mortgage lender. 419 15. TITLES, SURVEYS AND COSTS (1-10) - 420 (A) The Property will be conveyed with good and marketable title that is insurable by a reputable title insurance company at the reg- 421 ular rates, free and clear of all liens, encumbrances, and easements, excepting however the following: existing deed restrictions; 422 historic preservation restrictions or ordinances; building restrictions; ordinances; easements' of roads; easements visible upon the 423 ground; easements of record; and privileges or rights of.public service companies, if any. 424 (B) Buyer will pay for the following: (1) Title search, title insurance and/or mechanics' lien insurance, or any fee for tancellation; 425 (2) Flood insurance, fire insurance, hazard insurance, mine subsidence insurance, or any fee for cancellation; (3) Appraisal fees 426 and charges paid in advance to mortgage lender, (4) Buyer's customary settlement costs and accruals. 427 (C) Any survey or surveys required by the title insurance company or the abstracting company for preparing an adequate legal 428 description of the Property (or the correction thereof) will be obtained and' paid for by Seller. Any survey or surveys desired by 429 Buyer or required by the mortgage lender will be obtained and paid for by Buyer. 430 (D) If Seller is unable to give good and marketable title that is insurable by a reputable title insurance company at the regular rates, as 431 specified in Paragraph 15(A); Buyer may terminate this Agreement by written notice to Seller, with all deposit monies returned to 432 Buyer according to the terms of Paragraph 22 of this Agreement. Upon termination, Seller will reimburse Buyer for any costs 433 ' incurred by Buyer for any inspections or certifications obtained according to the terms of this Agreement, and for those items spec- 434 ifiedIn Paragraph IS(B) items (1), (2), (3) and in Paragraph 15(C). 435 (E) Seller is not aware of the status of oil, gas•and mineral rights for Property unless otherwise stated below: 436 ? Seller does not own all subsurface rights to the property. 437 ? Oil, Gas and Mineral Rights Addendum (PAR Form OGM) is attached. 438 (I) COAL NOTICE (Where Applicable) 439 THIS DOCUMENT MAY NOT SELL, CONVEY, TRANSFER, INCLUDE OR INSURE THE T1Z1.E TO THE COAL AND RIGHTS OF SUPPORT UNDERNEATH 440 THE SURFACE LAND DESCRIBED OR REFERRED TO HEREIN, AND THE OWNER OR OWNERS OF SUCH COAL MAY HAVE THE COMP M LEGAL, 44}..._.. .._ RIGHT.TO.-REMOVE ALL.SUCH.COAL AND IN.THAT GOIVNE MON, DAMAGE MAY. RESULT TO THE SURFACE OF THE LAND AND ANY HOUSE, -- 442"'""-""""':'BUILDING OROTI>ER STRUCTURE ON OR IN SUCH LAND.. (This notice is set forth in the manner provided., in Section l., of the Act of 443 July 17, 1957, P.L. 984.) "Buyer acknowledges that he may not be obtaining the right of protection against subsidence resulting 444---.- from- coal mining operations, and that the property described herein -may be protected from damage d1,y ..tp mine..spbsidoncc by a. 445, -private- contract with the owners of the economic interests in the coal. This acknowledgement is made. for the purpose. of.com- 446 plying. with the provisions of Section 14 of the Bituminous Mine Subsidence and the Land Conservation Act of April 27, 1966." 447 Buyer agrees to sign the deed from Seller which deed will contain the aforesaid provision. 448 (G) The Property is not a "recreational cabin" as defined in the Pennsylvania Construction Code Act unless otherwise stated here (see 449 - - . Notice Regarding Recreational Cabins); 450 16. MAINTENANCE AND RISK OF LOSS (1-10) ' _ 451 (A) Seller will maintain the. Property, grounds, fixtures and personal property specifically listed in this Agreement in its present con- 452 dition, normal wear and tear excepted. 453 (B) If any system or appliance included in the sale of Property fails before settlement, Seller will: 454 1. Repair or replace the failed system or appliance before settlement, OR 455 2. Provide prompt written notice to Buyer of Seller's decision to: 456 a. Credit Buyer at settlement for the fair market value of the failed system or appliance, as acceptable to the mortgage lender, 457 if any, OR 458 b. Not repair or replace the failed system or appliance, and not credit Buyer at settlement for the fair market value of the 459 failed system or appliance. 460 Buyer Initials- 154 ASR Page 8 of 19 Seller Initials: Revised 1/10 Produced Will ZipFonn® by zKoplx 18070 Fifteen Mile Road, Freer, Michigan 48026 7 x.cam .. MORGANS . 461 3. If Seller does not repair or replace the failed system or appliance or agree to credit Buyer for its fair market value, or if Seller 462 fails to notify Buyer of Seller's choice, Buyer will notify Seller in writing within 5 DAYS or before Settlement Date, 463 whichever is earlier, that Buyer will: 464 a. Accept the Property and agree to the RELEASE in Paragraph 24 of this Agreement, OR 465 b. Terminate this Agreement by written notice to Seller, with all deposit monies returned to Buyer according to the terms of 466 Paragraph 22 of this Agreement. 467 If Buyer fails to respond within the time stated In Paragraph 16(B)(3) or fails to terminate this Agreement by written 468 notice to Seller within that time, Buyer will accept the Property and agree to the RELEASE in Paragraph 24 of this 469 Agreement. 470 (C) Seller bears the risk of loss from fire or other casualties until settlement. If any property included in this sale is destroyed and not 471 replaced prior to settlement, Buyer will: 472 1. Accept the Property in its then current condition together with the proceeds of any insurance recovery obtainable by Seller, OR 473 2. Terminate this Agreement by written notice to Seller, with all deposit monies returned to Buyer according to the terms of 474 Paragraph 22 of this Agreement. 475 17. HOME WARRANTIES (1-10) 476 At or before settlement, either party may purchase a home warranty for the Property from a third-party vendor. Buyer and Seller under- 477 stand that a home warranty for the Property does not alter any disclosure requirements of Seller, will not cover or warrant any pre- 478 existing defects of the Property, and will not alter, waive or extend any provisions of this Agreement regarding inspections or certifi- 479 cations that Buyer has elected or waived as part of this Agreement. Buyer and Seller understand that a broker who recommends a home 480 warranty may have a business relationship with the home warranty company that provides a financial benefit to the broker. 481 18. RECORDING (9-05) 482 This Agreement will not be recorded in the Office of the Recorder of Deeds or in any other office or place of public record. If Buyer 483 causes or permits this Agreement to be recorded, Seller may elect to treat such act as a default of this Agreement. 484 19. ASSIGNMENT (1-10) 485 This Agreement is binding upon the parties, their heirs, personal representatives, guardians and successors, and to the extent assigns- 486 ble, on the assigns of the parties hereto. Buyer will not transfer or assign this Agreement without the written consent of Seller unless 487 otherwise stated in this Agreement. Assignment of this Agreement may result in additional transfer taxes. 488 20. GOVERNING LAW, VENUE AND PERSONAL JURISDICTION (9-05) 489 (A) The validity and construction of this Agreement, and the rights and duties of the parties, will be governed in accordance with the 490 laws of the Commonwealth of Pennsylvania 491 (B) The parties agree that any dispute, controversy or claim arising under or in connection with this Agreement or its performance by 492 either party submitted to a court shall be filed exclusively by and in the state or federal courts sitting in the Commonwealth of 493 Pennsylvania 494 21. REPRESENTATIONS (1-10) 495 (A) All representations, claims, advertising, promotional activities, brochures or plans of any kind made by Seller, Brokers, their 496 licensees, employees, officers or partners are not a part of this Agreement % unless expressly incorporated or stated in this 497 Agreement. This Agreement contains the whole agreement between Seller and Buyer, and there are no other terms, obligations, 498 covenants, representations; statements or conditions, oral or otherwise, of any kind whatsoever concerning this sale. This 499 Agreement will not be altered, amended, changed or modified except in writing executed by the parties. 500 (B) Unless otherwise stated in this Agreement, Buyer has inspected the Property (including fixtures and any personal prop- 501 erty specifically listed herein) before signing this Agreement or has waived the right to do so, and agrees to purchase the 502 Property IN ITS PRESENT CONDITION, subject to Inspeetion contingencies elected in this Agreement. Buyer acknowl-. 503 edges that Brokers, their licensees, employees, officers or partners have not. made an independent examination or deter- 504 mination of the structural -soundness of the Property, the age or condition of the components, environmental conditions, 505 the permitted uses, nor of conditions existing In the locale where the Property is situated; nor have they made a mechan- 506 ical inspection of any of the systems contained therein. 507 (C) Any repairs required by this Agreement will be completed in a workmanlike manner. 508 (D) Broker(s) have provided or may provide services to assist unrepresented parties in complying with this Agreement 509 22. DEFAULT, TERMINATION AND RETURN OF DEPOSITS (1-10) 510 A Where Buyer terminates this' . Agreerrietft pursuant to any right granted-°by- this--Agreement;,: Buyer will . be -entitled to a -return . of. , ?.. .. 511 all deposit monies paid on account of Purchase Price pursuant to 'the terms of Paragraph 22(B), and this Agreement will be 512 VOID. Termination of -this Agreement may occur for other reasons giving rise. -to claims ;by,•Buyer.and/or Seller for the deposit. 513 monies. 514 (B) Regardless of the apparent entitlement to 'deposit monies, Pennsylvania law-does nqt. allow a Broker holding deposit monies to 515 determine who is entitled to the deposit monies when settlement does not occur. Broker can only release the deposit monies: 516 1. If this Agreement is terminated prior to settlement and there is no dispute over entitlement to the deposit monies. A written 517 agreement signed by both parties is evidence that there is no dispute regarding deposit-monies.... . 518 2. If, after Broker has received deposit monies, Broker receives a written agreement that is signed by Buyer and Seller, direct- 519 ing Broker how to distribute some or all of the deposit monies. 520 3. According to the terms of a final order of court 521 4. According to the terms of a prior written agreement between Buyer and Seller that directs the Broker how to distribute the 522 deposit monies if there is a dispute between the parties that is not resolved. (See Paragraph 22(C)) 523 Buyer Initials: ASR Page 9 of 19 Seller Initials: Revised 1/10 PMduced With ZIPForm® by zipLWix 18070 Fiaew We Road. Fraser, WdOW 48026 www. p com MORGANS 524 (C) Buyer and Seller agree that if there is a dispute over the entitlement to deposit monies that is unresolved 365 days after 525 the Settlement Date stated in Paragraph 5(A), or any written extensions thereof; the Broker holding the deposit monies will, with- 526 in 30 days of receipt of Buyer's written request, distribute the deposit monies to Buyer unless the Broker is in receipt of verifi- 527 able written notice that the dispute is the subject of litigation. If Broker has received verifiable written notice of litigation prior 528 to the receipt of Buyer's request for distribution, Broker will 'continue to hold the deposit monies until receipt of a written distri- 529 button agreement between Buyer and Seller or a final court order. Buyer and Seller are advised to initiate litigation for 'any por- 530 lion of the deposit monies prior to any distribution made by Broker pursuant to this paragraph. Buyer and Seller agree that the 531 distribution of deposit monies based upon the passage of time does not legally determine entitlement to deposit monies, and that 532 the parties maintain their legal rights to pursue litigation even after a distribution is mach 533 (D) Buyer and Seller agree that Broker who holds or distributes deposit monies pursuant to the terms of Paragraph 22 or Pennsylvania 534 law will not be liable. Buyer and Seller agree that if any Broker or affiliated licensee i3 named in litigation regarding deposit 535 monies, the attorneys' fees and costs of the Broker(s) and licensee(s) will be paid by the parry naming them in litigation. 536 (E) Seller has the option of retaining all sums paid by Buyer, including the deposit monies, should Buyer: 537 1. Fail to make any additional payments as specified in Paragraph 2, OR 538 2. Furnish false or incomplete information to Seller, Broker(s), or any other party identified in this Agreement concerning 539 Buyer's legal or financial status, OR 540 3. Violate or fail to fulfill and perform any other terms or conditions of this Agreement 541 (I) Unless otherwise checked in Paragraph 22(G), Seller may elect to retain those sums paid by Buyer, including deposit monies:. 542 1. On account of purchase price, OR 543 2. As monies to be applied to Seller's damages, OR . 544 3. As liquidated damages for such default. 545 (G) ® SELLER IS LIMITED TO RETAINING SUMS PAID BY BUYER, INCLUDING DEPOSIT MONIES, AS LIQUIDATED 546 DAMAGES. 547 (H) If Seller retains all sums paid by Buyer, including deposit monies, as liquidated damages pursuant to Paragraph 22(F) or (G), 548 Buyer and Seller are released from further liability or obligation and this Agreement is VOID. 549 (1) Brokers and licensees are not responsible for unpaid deposits. 550 23. MEDIATION (1-10) 551 Buyer and Seller will submit all disputes or claims that arise from this Agreement, including disputes and claims over deposit monies, 552 to mediation. Mediation will be conducted in accordance with the Rules and Procedures of the Home Sellers/Home Buyers Dispute 553 Resolution System, unless it is not available, in which case Buyer and Seller will mediate according to the terms of the mediation sys- 554 tem offered or endorsed by the local Association of REALTORSO. Mediation fees, contained in the mediator's fee schedule, will be 555 divided equally among the parties and will be paid before the mediation conference. This mediation process must be concluded before 556 any party to the dispute may initiate legal proceedings in any courtroom, with the exception of filing a summons if it is necessary to 557 stop any statute of limitations from expiring. Any.agreement reached through mediation and signed by the parties will be binding (see 558 : Notice Regarding Mediation). Any agreement to mediate disputes or claims arising from this Agreement will survive settlement . 559 24. RELEASE (9-05) 560 Buyer releases, quit claims and forever discharges -SELLER, ALL BROKERS, their LICENSEES, EMPLOYEES and any 561 OFFICER or -PARTNER of any one of them and any other PERSON, FIRM or CORPORATION who may be liable by or 562 through them, from any and all claims, losses or demands,. including, but not limited to, personal injury and property dam- 563 age and all.of the consequences thereof; whether, known or not, which may arise from the presence of termites or other wood- 564 boring insectsi radon, lead-based paint hazards, mold, fungi or -indoor air quality,. environmental hazards, any defects in the 565 individual on-lot sewage disposal system or deficiencies in the on-site water service system, or any defects or conditions on the 566 Property. Should Seller be in default under the terms of this Agreement or in violation of any Seller disclosure law or regula- 567 tion, this release does. not deprive Buyer of any right to pursue any remedies that may be available under law or equity. This 568 release will survive settlement. 569 25. REAL ESTATE RECOVERY FUND (9-05) 570 A Real Estate Recovery Fund exists to reimburse any persons who have obtained a final civil judgment against a Pennsylvania real 571 estate licensee (or a licensee's affiliates) owing to fraud, misrepresentation, or deceit in a real estate transaction and who have been 572 unable to collect the judgment after exhausting all legal and equitable remedies. For complete details about. the Fund, call (717) 783- " 573 .3658 or (800} 822-2-1.13 (within Pennsylvania) and (717) 7334854 (outside Pennsylvania). . 574' 26:-C0NIMUNTCATIONSVNITH BUYER•AND/OR SELLER (1-10) - 575 Wherever this Agreement contains a provision that requires or allows conimunication/delivcry to a Buyer, that provision "shall be satis- • $76 fied?,by,,rommunication/delivery -to the Broker for Buyer,. if any, except for documents required to. be delivered_pRr$A* .to , 577 Paragraph 14. If there is no Broker for Buyer, those provisions may be satisfied only by communication/delivery being made direct 578 ly to the :Buyer,- unless otherwise agreed to by the parties. Wherever this Agreement contains a provision that requires or allows com 579 munioation/delivery 'to 'a Seller, that provision shall be satisfied by communication/delivery to the Broker for Seller, if any. If there is 580 no Broker for Seller, those provisions may be satisfied only by communication/delivery being made directly to the Seller, unless other- 581 • wise agreed to by the parties. 582-27. SPECIAL CLAUSES (1=10) 583 (A) The" following are part of this Agreement. if checked: 584 Q Sale & Settlement of Other Property Contingency Addendum (PAR Form SSP) 585 ? Sale & Settlement of Other Property Contingency with Right to Continue Marketing Addendum (PAR Form SSP-CM) 586 Settlement of Other Property Contingency Addendum (PAR Form SOP) 587 Short Sale Addendum to Agreement of Sale (PAR Form SHS) 588 ? Appraisal Contingency Addendum (PAR Form ACA) 589 ? 590 ? 591 ? 592 Bayer Initlals:-?a ASR Page 10 of 19 Seller Initials: Revised VIO Produced with ZlpForroe by zipLogix 18070 Fifteen We Road, Fraser, Miadgsn 48026 V.Nya? MORGANS 593 (B) Additional Terms: 594 j 595 596 Q.? fAdc?e a A 0 k3r- '1/r to cvt? 597 598 I S 110 599 1- ? N?IPlHrt? 3S !-,cTt,aG & IqArUu I-5 141144- 60 601 602 603 ;4 7*6 e)e M?? / 604 ,'f 605 t Q,I(c Tz?/y?, 7/?M IN(l lli2 sf"A4z- 4W -,tlrlw 5 400 606 --f- 607 608 ..._ ???/Jj??'??4?1?'i7/1'f? OA/ 609 610 611 612 613 614 615 Buyer and Seller acknowledge receipt of a copy of this Agreement at the time of signing. 616 This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original and which coun 617 terparts together shall constitute one and the same Agreement of the Parties. 618 NOTICE TO PARTIES: WHEN SIGNED, THIS AGREEMENT IS A BINDING CONTRACT. Parties to this transaction are 619 advised to consult a Pennsylvania real estate attorney before signing if they desire legal advice. 620 Return of this Agreement, and any addenda and amendments, including return by electronic fransmission, bearing the signatures 621 of all parties, constitutes acceptance by the parties. 622 -W 13. Buyer has received the Consumer Notice as adopted by the State Real Estate Commission at 49 Pa. Code 623 814q 1414A 624 1J / V Nt Buyer has received a statement of Buyer's estimated closing costs before signing this Agreement. 625 / Buyer has read and understands the notices and explanatory information in this Agreement. 0 7/! ?? m Buyer has received a Seller's Property Disclosure Statement before signing this Agreement, if required by law p11,, (see Information Regarding the Real Estate Seller Disclosure Law). 628 nrri / Buyer has received the Deposit Money Notice (for cooperative sales when Broker .for Seller is holding deposit 629 money) before signing this Agreement.' 630/ Bu as eived the Lead- ed Paint Hazards Disclosure, which is attached to this Agreement of Sale, and 631 a pamphl + tect You o d in Your Home (for properties built prior to 1978) 632 WITNESS R TE 3 lit ho'. B aadon Rol ert MOR TIE 633 WITNESS' R MrdaDA aam nda• RGANS 634 WITNESS _ DYER _ _._,- --- ._......_...,:_.... 635 Seller has received the Consumer Notice as'adopted by the State Real Estate Commission`at'49 Pa. C6de•§••35336. 636 Seller has received a statement of Seller'-estimated closing costs before signing this Agreedneiit:.:.-.::....... 637, Seller lias read and understa s th notices and explanatory.infordnation in this A eement 638 WITNES SELLER DATE ?S Q 639 WITNESS SELLER DA'Z'E 640 WITNESS SELLER DATE ASR Page 11 of 19 Revised 1/10 Produced wMh ZipForrn® by zOLopbc 18070 FlBeen M46 Road, Fraser, fthipan 48026 MORGANS (, 1 `12 ?ncc c?fJc?v?dlo? pip-R,? , foe* ?) ?? f ?r? Q a4ko CEo ???S?w EXHIBIT B SETTLEMENT OF OTHER PROPERTY CONTINGENCY ADDENDUM TO AGREEMENT OF SALE 'this form recommended and approved for, but not restricted to use by, the members of the Pennsylvania Assooiation of REALTORS® (PAR). 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 PROPER SOP SELLER BUYER n t Morainnis, 1'iimq Melinda Mon an DATE OF AGREEMENT a Z ut e 1. This sale is contingent upon the settlement of Buyers property at:?O?CJ Buyers property is under an Agreement of Sale, with settlement to take place on or before v A copy of the Agreement of Sale for Buyer's property is attached hereto. 2. If settlement of Buyers property does not occur by the settlement date specified above, Seller may terminate the Agreement by writ- ten notice to Buyer and alI deposit monies paid on account of purchase price will be returned to Buyer. Buyer and Seller agree to extend the date by which settlement must occur until Seller terminates this Agreement by written notice to Buyer. 3. The tams of this Addendum change and prevail over the provision of the Mortgage Contingency Clause giving Seller the right to terminate the Agreement of Sale if Buyer's mortgage commitment is conditioned upon the sale and settlement of Buyers Property. All other terms and conditions of the Agreement of Sale remain unchanged and in full force and effect. ?/ WITNESS BUYER DATE -O-Zo jO Brandon Robert Morgans WITNESS BUYER DATE - Y 2010 Julianne Melinda Morg s WITNESS BUYER DATE WITNESS SELLER DATE WITNESS SELLER DATE WITNESS SELLER DATE n3 Pennsylvania Association of COPYRIGHT PENNSYLVANIA ASSOCIATION OF REALTORS9 '2006 bix REALTORS" - 05/06 nr was w NOW e.uaa m r..rnroft Howard Hanna Real Estate Services 5137 Devonshire Road, Harrisburg, PA 17112 Phone: (717) 652 - 7260 874 Fax: (717) 652 - 9261 Kingsley Jatdo ORI MORGANS Produced with ZipFortn® by zipLogix 18070 FUteen Mile Road, Fraser, Michigan 48026 www.zioLookoom EXHIBIT C FOXWOOD PRE-PLANNED HOME ADDENDA TO AGREEMENT OF SALE Agreement for the Sale and Purchase of Real Estate by and between Brandon Robert Morgans Julianne Melinda Morgans the Buyer(s), and Seller, dated March 11. 2010 concerning the real property commonly known as 14 Foxwood Boulevard. Mechanicsburg PA 17050, Phase # /I , home-site No. #11 in "Foxwood" in Silver Spring Township. ADDENDUM "A" - PROCEDURES The undersigned Buyer and Seller hereby agree to the following: 1. Buyer understands and agrees that Buyer will deliver to Seller a signed, dated and completed copy of Addendum B (Construction Order Form with Selections) within 10 days of contract acceptance. If the Addendum B Custom Home Worksheet is not presented within the allotted time frame to Seller, the house will not be started and all construction planning will cease until the Addendum B is submitted - IF APPLICABLE 2. If Buyer does not perform his obligations under paragraph 1 hereof, Buyer then agrees to move the settlement date back one (1) working day for each and every day the Addendum B is not executed within the prescribed time frames. - IF APPLICABLE 3. All changes to the property, addenda, contingencies, extras, or special requests, whether incorporated in the Purchase Contract or not, will be executed or re-executed on Seller's Change Orders and signed by all parties. NO CHANGE WILL BE MADE ON THE HOME UNTIL FULL PAYMENT FOR THAT CHANGE HAS BEEN RECEIVED BY SELLER OR FINANCED. (If applicable). ALL BUYER ORIGINATED CHANGE ORDERS RECEIVED AFTER THE ORIGINAL CONTRACT DATE WILL BE SUBJECT TO A $250.00 ADMINISTRATIVE FEE IN ADDITION TO THE WORK BEING PERFORMED. Seller reserves the right to adjust the settlement date in a reasonable manner to accommodate completion of said Change Order. 4. Buyer understands and agrees that any excavation to lot requiring "rock removal" will be charged to the buyer at $35.00 per cubic yard as an extra to the contract. (If Applicable) . 5. Due to township building codes, future finished basements that do not have a means of egress may be required to do so by code. An approved means of egress would be a bilco door, escape window well or exposed walkout basement if the building site allows. All of these would be options that the Buyer must select and pay for while completing their Addendum B. This Addendum is herewith made an integral p of the aforementioned Agreement of Sale PURCHASER(S) RMIAIS Updated: 3/15/2010 ADDENDUM "B" - SELECTION SHEET ON SEPARATE DOCUMENTS - IF APPLICABLE Buyer(s) will have 10 days from contract acceptance to complete all selections on the home. This Addendum is herewith made an integra art of the aforementioned Agreement of Sale PURCHASER(S) INITIALS ADDENDUM "C" - NOTICE REG G RADON GAS Seller will construct and provide piping under the concrete slab which will be capped for availability for a future connection to an exhaust system if desired by Buyer should it be determined that Radon level exceeds safe limits. The expense and installation of any such exhaust system or any other measures taken concerning Radon shall be the sole expense of the Buyer. In consideration for the installation of said piping, Buyers hereby release, quitclaim and forever discharge Seller. Seller's Agent, Employees and Sub-Contractors and any officer or partner or any one of them and any person firm or corporation, who may be liable by or through them from any and all claims, losses or demands, including personal injuries, and all of the consequences thereof, whether now known or not, which may arise from the presence of Radon in any building which is the subject of this Agreement. It is further agreed that the limited warranty provided in the Agreement is in lieu of all other warranties, expressed or implied, including any warranties of merchantability or fitness for a particular use, and in no event shall the Seller be liable for respect to the existence of or levels of Radon gas or Radon daughters or any other indoor air pollutants. Buyers acknowledge receipt of notice regarding Radon Gas, as indicated in the sub-paragraphs below. Radon is a radioactive gas produced naturally in the ground by the normal decay of uranium and radium.. Uranium and radium are widely distributed in trace amounts in the earth's crust. Descendants of Radon gas are called Radon daughters, or Radon progeny. Several Radon daughters emit alpha radiation, which has high energy but short range. 2. Studies indicate the result of extended exposure to high. levels of Radon gas/Radon daughters is an increased risk of lung cancer: Radon gas originates in soil,and rocks. It diffuses, as does any gas, and flows along the path of least resistance to the surface of the ground and then to the atmosphere. Being a gas, Radon can also move into any air space, such as basements, crawl spaces and permeate throughout the home. 4. If a house has a Radon problem, it can usually be cured by increased ventilation and or preventing Radon entry. The EPA advises corrective action if the annual average exposure to Radon daughters exceeds 0.02 working levels (4 pico curies per liter). 6. . Further information can be secured from the DEP Radon Project Office, 1100 Gosser Road, Gilbertsville, Pa 19525; Call 1-800-23RADON or (215) 369-3590. Updated: 3/15/2010 . 2 This Addendum is herewith made an integral part of the aforementioned Agreement of Sale PURCHASER(S) INITIALS ?LY.1_- ADDENDUM "D"-ENDO?R/SE?MENT 4 AGREEMENT OF SALE It is understood and agreed that the above Agreement of sale shall be endorsed as follows: Agent(s) or Sub-Agent(s), if any, are representing Seller. not the Buyer. 2. The Pennsylvania General Assembly has established a Real Estate Recovery Fund. The purpose of the Fund is to compensate persons to obtain a judgment because of the fraud, misrepresentation or deceit of an Agent. For information, call (717) 783-3658 or 1-800- 822-2113. This Addendum is herewith made an integral part of the aforementioned Agreement of Sale PURCHASER(S) INITIALS 'I lll? 1 ADDENDUM "E" - INSPECTIONS CCESS/1VIEETINGS The undersigned Buyer and Seller agree to the following: WHEREAS Buyer understands and agrees that, due to constraints placed upon Seller and its insurance carrier, Buyer will not enter the above premises during the construction period and agrees to the following: 1. Buyer will be contacted by Seller's representative to schedule the following construction inspections and Buyer will be accompanied on the job site by Seller's representative during said inspections and strictly adhere to Seller's Safety Policies and Procedures: All meetings will be held at 10 AM on the scheduled day. a. A pre-construction meeting held and conducted by a Seller representative with buyer(s), Realtor(s), and Design/Estimating to confirm correctness on all details of the house - IF APPLICABLE b. Inspection scheduled and conducted. by.. Construction. Superintendent at completion of Framing, Rough Plumbing, Rough Electric and Insulation and prior to drywall - IF APPLICABLE c. Inspection at Final completion/Home Orientation scheduled by the Sales Department and conducted by the Construction Superintendent (or Management Representative) d. Buyers should direct all inquiries or concerns directly to the Community Managers. e. Buyers may schedule a visit to the lot and construction site ONLY upon scheduling with an authorized agent of Seller. However, it is understood that at no time during such visit, or at any other. time, shall buyer give written or verbal instructions, orders, directions or questions to sub contractors or Seller Employees. Updated: 3/15/2010 2. Seller may at his sole discretion extend the settlement date 30 days without penalty or cause of action for damages by Buyer. (If applicable) This Addendum is herewith made an inte of the aforementioned Agreement of Sale PURCHASER(S) INITIAIS_5?-- ADDENDUM "F" - LIMITED W ACKNOWLEDGMENT The only warranties provided by the Seller are those expressly provided for in this Addendum "F". Buyer hereby acknowledges receipt of Seller's Limited Warranty Policy and Warranty Standards Booklet which provides ;-M and complete description of the standards applicable to Seller's limited one year warranty. Other than the limited one-year warranty subject to the applicable standards set forth in the Warranty Booklet Seller hereby offers and is selling the property in an "as is" condition. Buyer has been advised by Seller's Agent that Seller is registered with American eBuilder Warranty Corporation and that the Builder will purchase an additional ten year limited warranty on Buyer's behalf at settlement. BY EXECUITON OF THIS AGREEMENT, BUYER ACCEPTS SELLER'S ONE-YEAR LI MTM WARRANTY SUBJECT TO THE STANDARDS APPLICABLE IN THE WARRANTY STANDARDS BOOKLET AGREES TO T B E TTlR1V>LS AND CONDITIONS TBEREIN. BUYER AGREES THAT EXCEPT AS SET FORTH ABOVE, THERE ARE NO WARRANTIES OR REPRESENTATIONS OF ANY HIND, EXPRESSED OR EWLIED INCLUDING BUT NOT LP4]TEn TO MERCHANTABUZ Y, HABTTABELHY, OR FITNESS FOR A PARTICULAR PURPOSE. This Addendum is herewith made an integral p of the aforementioned Agreement of Sale PURCHASER(S) INITIALS ADDENDUM G - PRE-APPROVAL/ ART DEPOSIT The undersigned Buyer and Seller hereby agree to the following: 1. Buyer ids and agrees that iaespecdm ofthe contract settlemm t date, ..will deliverto Seller a left from Buyer's proposed lender indicating B s Pter val Commitment for the mortgage loan indicabad in Buyer's cotrtact with ben 10 of of Sale date. 2 Buyer ages to pace a nan-= n?dable start deposit in the amount of the purchase price x 3944 ofaU ims-on account with Se11ei : Builder Said deposit will be applied to the down paymen 0closing cats of the subject propetty at the time of sett. >n the event that sederuent does not occur due to kAre to perfonn on the part of the Buyer, said deposit will be forfeited in full to Seller as liquidated damages. This Addendum is herewith made an integral part of the aforementioned Agreement of Sale PURCHASER(S) INITIALS Updated: 3/15/2010 4 ADDENDUM "H" - SETTLEMENT Buyer(s) choose to use Secured Land Transfers Inc., as their Title Company (485 St. John's Church Road, Shiremanstown, PA 17011, (717) 901-8342). Secured Land will guarantee the Builder Rate on all Title Insurance. The Builder Rate is the lowest applicable rate allowed by law and is the re-issue rate less 10%. All settlements will take place at Seller's main office at 5351 Jaycee Avenue, Harrisburg, PA 17112, (717) 657- 5729. If Buyer chooses an Attorney or another Title Company to issue title insurance for them then, Buyer agrees to pay any disbursement fees charged by their Attorney or Title Company and pay Seller a $250 Administrative fee. This Addendum is herewith made an integral part of the aforementioned Agreement of Sale PURCHASER(S) INITIALS ADDENDUM "I"- PROPERTY CO INGENCY - IT APPLICABLE "If Buyer(s) do not release their property contingency within 60 days of signed contract, Seller at its option may adjust the base price of the home to reflect the pricing that Seller is using at that time." If the property contingency is released within 60 days of the signed contract, the contract price will be honored and construction will begin provided all buyer's selections are made and a completed "B" addendum is delivered to Seller. An amended completion date and settlement date will be delivered to buyers when construction schedule has been confirmed. ADDENDUM "X'- PRIVACY POLICY What this Privacy Policy Covers • This Privacy Policy covers Seller's treatment of non public personally identifiable information that we collect when you, the "customer" or "consumer", the purchase of a home through us. This policy also covers our treatment of any nonpublic- personally identifiable information that our business partners share with us. • This policy does not apply to the practices of non-affiliates of Seller. Information Collection and Use • We collect nonpublic personal information about you from the following sources: ¦ Information we receive from you on Sales Agreement or other forms; ¦ Information about your transactions with us, our affiliates, or others; and ¦ Information we receive from a consumer reporting agency. Information Sharing and Disclosure Updated: 3/15/2010 We do not disclose any nonpublic personal information about our customers or former customers to anyone, except as permitted by law. Confidentiality and Security • We restrict access to nonpublic personal information about you to those employees who need to know that information to provide products or services to you. This Addendum is herewith made an integral part of the aforementioned Agreement of Sale PURCHASER(S) INITIALS ADDENDUM "K" -YARD ENCROACHMENTS The Builder is responsible for blending in the home sites that are adjacent you your home site. If the home site you have chosen has an undeveloped lot next to your, once that home site is developed, the builder will have the right to encroach on your property to blend in the yards. This will include additional topsoil and seeding where necessary. The Builder will make every attempt to restore your home site to its original condition. This Addendum is herewith made an integral part of the aforementioned Agreement of Sale PURCHASER(S) Initials %A A W1 ' ADDENDUM "L" - CONSTR TION, SITE AND UTILITIES 1. Buyer recognizes that the location of all utility meters, driveways, walk ways, patios, grading, planting, landscaping, including the disposition of existing trees, control of water flow, the inclusion or exclusion of retaining walls, and other site and job conditions are subject to change at the reasonable discretion of Seller, depending upon site or job conditions encountered or any government authority having jurisdiction. 2. Seller reserves the right to make such changes or substitutions in the constructions, materials and equipment with respect to the work, as may be required. If required, together with such other reasonable changes as Seller may deem necessary by reason of unavailability of certain materials or equipment or by reason of peculiar construction requirements or topography of the lot. Seller reserves the right to modify the location of mechanical and electrical equipment such as HVAC, water heater, sump pump, etc. as required to meet engineering, construction, best use, equivalent function or code requirements. This Addendum is herewith made an integral part of the aforementioned Agreement of Sale Purchaser(s) Initials 411__ - THE HEREINABOVE VfTRITTENN ADDENDA: A . B _,C ?D ? E I J _K L ARE ACKNOWLEDGED, ACCEPTED AND APPROVED AND ARE Updated: 3/15/2010 INCORPORATED IN THE REFERENCED AGREEMENT OF SALE AS IF THEREIN WRITTEN IN FULL. IN WITNESS WHEREOF, we have hereunto set our hands and seals the day of , 20 Agent/Witness as to Buyer(s) Date Date Z e- Buyer Ad A. Buy ' SELLER BY: Triple Crown Co n BY: - wy Updated: 3/15/2010 7 EXHIBIT D ADDENDUM/ENDORSEMENT TO AGREEMENT OF SALE ASA PROPERTY 14 Foxwood Boulevard Mechanicsburg, PA 17050 SELLER Triple Crown Corporation BUYER Brandon R. Morgans & Julianne M. Morgans DATE OF AGREEMENT 11 March 2010 Buyers and Seller agree to amend the Contract Purchase Price to reflect the addition of Buyer selected options and upgrades. The Original Purchase Price of $388,000 will be revised to $403,323. Buyers have tendered a total of $17,500 to serve as deposit. Buyers agree and authorize Seller to transfer $10,000 from the Triple Crown Corporation Real Estate escrow account to the general account of Triple Crown Corporation, Builder as a non-refundable deposit on the above referred options and upgrades. The $10,000 deposit will be applied to the down paymenttelosing costs of the subject property at the time of settlement. In the event that settlement does not occur, the $10,000 deposit will be forfeited in full to Triple Crown Corporation as liquidated damages., unless it is caused by a Seller default. Completion of construction to include any options and upgrades chosen by the Buyers will begin upon receipt of the above mentioned deposit. All other terms and conditions of the Agreement of Sale remain unc anged and in 1 force and effect. WITNESS BUYER DATE Z? U WITNESS BUYER1 WITNESS WITNESS BUYER SELLER DATE DATE WITNESS SELLER WITNESS DATE SELLER DATE .10 Pennsylvania Association of it aLTORS' COPYRIGHT PENNSYLVANIA ASSOCIATION OF REALTORSO IM 09/02 Form 8erwratad by TrveForMC from REVEAL ft SYSTEMS, inc. 800499-8812 EXHIBIT E 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 CHANGE IN TERMS ADDENDUM TO AGREEMENT OF SALE CTA This form raaoehmended and approved for, but not restricted to use by, the nrmbas of the Pmarylvanis Association of REALTORStO (PAR). PROPERTY ILA 9g1,r,,J Vi1V,4 ,I0@4,r,,n Ic.sLgd4Q faIdr Pam SELLER _ r,'0V-F' C"roww Coy'-' 0 BUYER 1 adon Robert MORG S Julianne Melinda MORGANS DATE O AGREEMENT March 11f 10 The following terms of the Agreement of Sale are changed as stated below: 1. SETTLEMENT DATE ]? J Settlement date is changed fromIL 2-G4' 2 Olt) to 2. PURCHASE PRICE Purchase price is changed from $ to S 3. MORTGAGE AMOUNT (A) First mortgage amount is changed from S to $ (B) Second mortgage amount is changed from S to S 4. MORTGAGE LENDER (A) First mortgage lender is changed to (B) Second mortgage lender is changed to (C) Buyer will submit a completed, written mortgage application to the identified lancer(s) according to the terms of the Mortgage Contingency paragraph of the Agreement of Sale on or before: 5. MORTGAGE COMMITMENT DATE Mortgage commitment date is changed from to 6. SELLER ASSIST Seller Assist is changed to S , or % of the Purchase price, maximum, toward Buyer's costs as permitted by the mortgage lea der, t any. 7. TIME PERIODS The time period in paragraph , line of the Agreement of Sale is changed to The time period in paragraph , line of the Agreement of Sale is changed to The time period in paragraph , line of the Agreement of Sale is changed to The time period in paragraph , line of the Agreement of Sale is changed to The time period in paragraph , line of the Agreement of Sale is changed to The time period in paragraph , line of the Agreement of Sale is changed to 8. OTHER All other terms and conditions of the Agreement, including all other time lionods, remain u change and in full force and effect WITNESS BUYER DATE Id WITNESS BUYER Z= W ? L- a DATE a O1 JfAiann* Melinda MORONS 50 WITNESS BUYER 51 WITNESS SELLER 52 WITNESS SELLER 53 WITNESS SELLER DATE DATE DATE DATE Pennsylvania Association of COPYRIGHTPENNSYLVAMAASSOCIATIONOFREALTOP.M200S REALTORS* o9ros TM VNv? Mlwllrr?e YlwgITr11? Hoard Hrra Reeh.Fatate Services 5137 Daveaddre Rod Haeisbsry. PA 17112 INwoe: 717652.7260 Fee 717.6529261 MORGANS foxwoo Kkwdw Jeea ORt PMdt=sd wtah apFonne by ripLn0x 1W?0 Fifteen Mae Road, Fraser, MWNW 48028 ,WMM 1pL0*=M HOME INSPECTION SUMMARY REPORT Listed below are the MAJOR problems identified during the home inspection. For the purposes of this report, problems are considered MAJOR if they constitute an existing or potential material defer or are possible alli(ptv or health hazards. Material defect is defined as a problem that could significantly affect the value of the house. The home MaoaWon is not a code Insnedion or aoora" for the orooerty. Caution -- Even minor problems, if left unattended, can develop into more serious conditions rather quicidy. It is also possible that what appears visually as a minor problem may turn out to be more serious on further evaluation. It is therefore very important that all problems identified in the report, not just those listed on this summary page, be evaluated and understood by all interested parties and attended to as soon as possible. Inspected Property: 14 FOXWOOD BLVD MECHANICSBURG, PA 17050 E7 Major : EW*icai EXPOSED LIVE WIRES. 1 L 4 Major : Main Windows-Operation-Damw : LEFT REAR BEDROOM WINDOW HAS CRACKED PANE-SEVERAL WINDOWS NOT SQUARE MOST WINDOWS HAVE WARPE F - D RAMES-AMATUER CAULKING OF WINDOWS-RIGHT FRONT BEDROOM WINDOW EXTERIOR TRIM CRACKED. le Major : Doom-Sub : FRONT DOOR WARPED. DOOR KNOBS AND STRIKERS DO NOT MATCH DOOR HINGES. MASTER BATHROOM TOI ET DOOR WARPED MASTER B T L . A HROOM DOOR WARPED. MASTER BEDROOM CLOSET(WITHOUT WINDOW) DOOR WARPED. LAUNDRY ROOM DOORS WARPED. 2ND FLR HALL BATHROOM DOOR DOES NOT LATCH. FRONT BEDROOM CLOSET DOORS DO NOT LATCH. SLIDWG GLASS DOOR STOP BROKEN. K1 Major : AppBanoe Awm : NO APPLIANCES INSTALLED40TCHEN UNFINISHED. P1 Major : Water Supply Not Turned On : WATER SHUT OFF-PLUMBING UNFINISHED-NOT TESTED OR INSPECTION.INSPECTED You must read the report in its entirety Induding the follow up text for a thorough understanding of the rsport Copydght 2007 EXTERIOR ® Main Roof 2 Years ® SOW ? Chimney Material Material: ASPHALT SHINGLE ® Vinyl ® Brick ? Stone ? Garage Roof Years ? AluMrwm ? Wood ? Block Material: ? Corrvosti:e ? Stone ? Brick ? Porch Roof Years ? Saxim ? EIFS Other: Material: Other: ? Chhnney Location ? Other Roof Years ® Gutters & Downspouts ? Eve Material: ? Vinyl ? Copper ? Gable ® Inspwdm (Method ® Aluminum ? Bawd ? Ridge ® Binoculars ? Waked ? Galvanized ? Leaf Guard Other: ? Viewed from edge ? undergrotaxl Drains ® Window Walls No: 30430102 ? Sky Lights ? curbed ? Rush ® Driveway Material ? CWaete ? Dirt ® Asphalt ? Stone Other: ? Retaining Wall ? Foxe ? In ground ? Above Ground 1 .. ..M5 A F terioi I Roe; Access Restricted : ;!`leather / Stoop / Other m on o XZ Roofing Shingle / (Material: Deteriorated / Nlissinri / Cracked / Nail mops/ Rust / lnstailaticn / Sheathing Visible / Aged / Dunnage X X3 Roe, : lnconsis:ent / Sagging / SucHiA / Damaged X4 Roo` / Siding: Asklestos-l_Ae Matesiai X5 Flashing / Valley/ Vent Collars : Deteriorated / Loose / Missing / Installation / Rust / Damage XG Soffit / : asda :9311 / Loos; ! Missing / ast-nage X7 Siding/ Trim: Deteriorated I Buckled / Loose/ Missing / Ground Contact I Damage X XB EIFS / Stucco : Deteriorated / Bulged / Cracked / Darnage X9 Driveways : Deteriorated / Bulging / Sinking / Cracked / Drainage X10 Walkways / ratios: Deteriorated / Bulging / Sinking / Cracked / Drainage / Hazard X11 Porch I Deck I Stoop : Deteriorated / Structural / Rot I Rails / Stairs / Settlement / Damage X X12 Paint / Caulk : Deteriorated / Cracked I Peeling I Wood Exposed I Lead? X13 Retaining Wall: Deteriorated / Weep Holes / Structural/ Safety / Damage X14 Masonry / Brickwork : Deteriorated if Loose / Structural / Stains / Weep Holes / Point / Parge X X15 Vines / Trees / Shrubs: Too Close to Hous / Overhanging Limbs X16 Chimney : Deteriorated / Height / Cap / Leaning/ Cricket/ Damage X17 Landscape : Drainage / Steep Slope / Negative Grading X18 Gutters / Downspouts : Alignment I Clogged / Missing I Loose/ Extension Short if Damage X19 Evidence of Retrofit / Evidence of Repair X20 Amateur Workmanship 9XTEPIOREX1?1?QMS X2 X7 Minor : Roofing Shingle : SHINGLES OVERHANG DRIP EDGE. Minor : Siding-I oose : LOOSE PIECE OF SIDING ON REAR SIDE OF HOUSE. HOLE IN SIDING ON LEFT SIDE OF HOUSE ABOVE 2ND FLR X7 E WINDOW . Minor : TdmZamaW : FRONT WINDOW EXTERIOR TRIM DAMAGED. DRIP EDGE BUCKLED IN SEVERAL AREAS. X11 Minor : Deck : DECK HAS SPLINTERED AND KNOTTY WOOD. X14 Minor : Masonry: CRACK IN FOUNDATION WALL ON RIGHT SIDE OF HOUSE. You must road the - report In ft entirety Including the follow up text for a thorough understanding of the report. Copyright 2007 INTERIOR 0 Flooring ® Wood ® Vinyl Tile ? Carpet ? Stone ? Composite Other. ® Ceilings & walls; ? Plaster 0 Drywall E] Paneling ? Wood ? Dropped Tile ? Acoustic Tile Other. ® Again Windows ? Wood ? Metal ® Vinyl El Fiberglass Panes: DOUBLE ® Single Hung ? Double Hung ? Casement p Awning ? Storm Wridows p Wood ? Metal Other. ? Storm Doors ? Fireplaces" ? Wood ? Gas ? Insert Number: ? Smoke Detectors ? Security system ? Control Vacuum p Pans E3 Ceiling ? Bath ? Whole House ? Attic Themtostat Other. No: 30430102 ? Garage Door Opener ? Fire Wails ? Garage p Basement ? Attic ? Crawl Space Other. ® Attic Insulation ® Loose p Batts Inches: 12+ ? Attic Ventilation ? Soffits ? wan Grilles ? Through Roof ? Ridge ? Windows item INTERIOR PROBLEMS ' Major Mkw Noted Il Flooring : Cracks/ Stains/ Wet / Sagging / Damage x 12 %Nalls : Cracks/ Stains/ Wet / 8uiging / (Vail Pops/ tankage Is Ceding : Cracks/ Stains/ Wet / Sagging / Nall Pops / Damage x 14 Main Windows : Operation / Seals / Panes / Stuck / Hardware/ Screens / Damage x 15 Storm Windows : Operation / Missing / None / Drain Holes / Damage 16 Doors : Operation / fulissing / Seals / Closure / Damage x 17 Smoke Detectors : None/ Quantit, / Out/ Not Tested / Damage IS Paint/. Caulk : Cracks/ Stains/ Peeling / Deteriorating/ Lead? 19 Fans : Operation / Out/ Not Tested / Noisy / installation 110 Fireplace : Cracks / Dirty/ Damper / Hearth ! Lining / Danger Ill Fire Door/ Firewails : None/ Improper Material / Placement 112 Possible Asbestos Material 113 Evidence Of : Mold? / Wood Rot / Moisture 114 Stale : Risers / Structural / Railing/ Leaning/ Damage x 115 Interior Access : Partial/ Restricted 116 Insulation: Insufficient / Placement / Danger / Damage 117 Attic Ventilation : None/ Inadequate/ Screening/ Grilles 118 Garage Doors : Operation I Out / Noisy I Reversing / Safety Cables x 119 Central Vacuum : Operation / Out/ Not Operated 120 Evidence of Retrofit / Evidence of Repair 121 Amateur Workmanship Item INTMOR COMMENTS AND D TiONS 14 Major : Main W age : LEFT REAR BEDROOM WINDOW HAS CRACKED PANE-SEVERAL WINDOWS NOT SQUARE-AAOST WINDOWS HAVE WARPED FRAMES~TUER CAULKING OF WINDOWS-RIGHT FRONT BEDROOM WINDOW EXTERIOR TRIM CRACKED. You must read the report in its and" Including the follow, up text for a thorough understanding of the report. Cq*WV t2007 16 Major : Doors-Seats : FRONT DOOR WARPED. DOOR KNOBS AND STRIKERS DO NOT MATCH DOOR HINGES. MASTER BATHROOM TOILET DOOR WARPED MASTER B O . ATHROOM D OR WARPED. MASTER BEDROOM CLOSEt(WITHOUT WINDOW) DOOR WARPED. LAUNDRY ROOM DOORS WARPED. 2ND FLR HALL BATHROOM DOOR DOES NOT LATCH. FRONT BEDROOM CLOSET DOORS DO NOT LATCH. SLIDING GLASS DOOR STOP BROKEN. 19 Mina : Celling-Cracks-Nall Pops : FOYER CEILING CRACKED. LEFT REAR BEDROOM CEILING HAS SEVERAL NAIL POPS. DINING ROOM CEILING TRIM NOT FINISHED. 114 Minor : Stairs-Rainng : EXTERIOR BASEMENT STEPS LACK HANDRAIL. 118 Minor : Garage Doors : RIGHT GARAGE DOOR DAMAGED AT LOWER RIGHT CORNER. TOP SUPPORT BRAKET ON BOTH GARAGE DOORS BENT. 11 Noted : Flooring : SOME FLOORING UNFINISHED. Wood stoves & Fireplaces are not tested. Interior of chimney flues win not be inspected; requires specai evaitiation. You must read the report in Its en"indudtng the follow up tuft Tor a thorough tafdsrstonk9ng of the report. Copyrigtbt 2007 KITCHEN Ambfigm*_ ? ReMgeraW ? Ioemaker O yes O no ? Range ? Sect is ? Gas O yes O no ? cooktop ? Electric ? Gas O yes O no ? wan ova, ? sectric ? Gas O Yes Ono ? Exhaust ran ? Extemal Discharge ? Recirculating O yes O no ? Microwave ? DWnrd w ? Garbage Disposal ? Trash Comp aw ? Instant Hot O yes O no O yes O no O yes O no O yes O no O yes O no 5 Ye O High ar Ranlseem Pic O Medium ant O Low O High O Medium O Low O High O Medium O Low O High O Medium O Low O High O Medium O Low O High O Medium O Low O iTigh O Medium O Low O High O Medium O Low O High O Medium O Low O High O Medium O Low No: 30430102 ? Wabor FIRW ? Original ? Remodeled ® counderbop ? Formica ? wood ® Solid ? Metal Other: Item KnXHEN MOBLEMS Major Misr Noted K1 Appliance Access : Not Operated / Restricted X K2 Renigerator : Stains / Out / Noisy / Icemaker / Freezer / Aged/ Damage K3 Range : Out / E!ement / burner. / Igniter/ Closure / Dirty I Aged / Damage K4 Cooktcp : Out / Element / Burner / igniter/ Dirty/ Aged / Damage K5 Wall Oven : Out / Element / Igniter I Closure I Dirty / Aged / Damage K6 Dishwasher : Operation / Out / Noisy / Leaks / Rust / Aged / Damage K7 I'Acrowave : Operation I Out/ Noisy I Aged/ Damage K8 Trash Compactor : Operation / Out/ Noisy I Aged I Damage K9 Disposal : Operation / Out/ Noisy / Leaks/ Rust / Switch / Aged K10 Instant Hot : Out / Leaks K31 Exhaust Fan : Operation / Out I Noisy / Discharge / Aged I Damage K12 Countertop : Stains / Loose I Delaminated I Damage K13 Sink : Stains / Leaks I Seals I Rinse Hose / Hardware I Damage K14 Cabinet : Loose I Delaminated I Hardware / Damage X K15 Under Sink : Stains / Moisture/ Buckled / Damage K16 Main Floor : Stains / Delaminated / Buckled I Uneven I Damage K17 Electric Supply K18 Evidence of Retrofit / Evidence of Repair K19 Amateur workmanship Item KITCHEN COMMENTS AND DESCRIPTIONS K1 Msjor : Appliance Access : NO APPLIANCES INSTALLED4UTCHEN UNFINISHED. K14 Minor : Cabinet : SEVERAL CABINET DOORS WARPED-LOW QUALITY. • Appuanaes are tested for basic operation only. Tuners, lights, oven sag-cleaning cyder, ioemakere, defrost cycles, portable dishwashers, thermostats, etc. are not tasted. Full operational tests should be undertaken prior to, or during final waNdhrough. You must read do report in its entirety Including fine follow up text for a Uwrough understanding of the report. Copyright 2007 ELECTRICAL ® Service ? Overhead ® Underground ? Service Amps ? 200 ? 150 ? 100 ? 60 Other: ? Upgraded Service ? Grounding ? Metal Plumbing ? Gas Pong ? Rod Outer: ® Main Panel Locatlon ® Basement ? Garage Other: ® Breakers ® Main Panel ? Sub Panel ?Fuses ? Main Panel ? sub Panel 0 Main Dhwonned ? Upgraded Main Panel ? Sub Panel ? Basement ? Garage ? Melt lien Other: Number: ® Garterat VArbV ® Romeo ? Ungrounded Romex ? Knob & Tube ? Copper ? Aluminum No: 30430102 ® Receptades ? 2 Hole ® 3 Hole ? Upgraded ? Adapters ® Ground Fardt Devloss ? Bathroom ? Garage ? Exterior ? Pool ? Basement ? Panel ® Kitdtert Other: Itern ELECTRICAL PROBLEMS Major Misr Noted E1 Electrical SerAoe : Not on at tinie o: Inspection / Inadequate X E2 Entrance Cable: Undersized/ H2nging too love / Drip Leg Loop / Frayed / Obstructed / Loose E3 Meter Base : Sea! / Location / Loose / Rust E4 Access : Restricted / None E5 Main Panel! Suss Panel: Direct Wired 1 Multiple Taps / Blown =uses I Tripped Breakers I Over Fusing I Labels I Expansion Room E6 Plain Panel / Sub Panel : Water I Moisture I Rust Evidence / Damage E7 Fixtures/ Boxes : Operation / Broken / Open to Weathe / Covers ! High Hat Lights EIS GFCI Device : Operation / Lack Of E9 Grounding Straps / Rod : Missing / Broken/ Loose E10 Wiring : Bunt/ Frayed / Improper Splicing E11 Knob and Tube Wiring System E12 Aluminum General Lighting Circuits E13 Receptacles : Dead/ Broken/ Ungrounded / Reversed Polarity/ Covers! Burnt/ Painted/ Poor Connections/ Loose E14 Receptacles : Distribution / Three Hole Ungrounded E15 Switches / Dimmers : Operation / Broken/ Covers E16 Doorbell : Operation / Broken E17 CONTACT HAZARD ElS Evidence of Retrofit / Evidence of Repair E19 Amateur Workmanship >> ALL ELECTRICAL WORK SHOULD BE PERFORMED BY A PROFESSIONAL ELECTRICIAN << Tbem : .: ELEC[RICAL OOMMENTS AND. DESCRIPTIONS E1 Melor: EW96cal Service : ELECTRICAL COMPONENTS UNFINISHED-NUMEROUS EXPOSED LIVE WIRES. You must read the report in kc entlroty Induding the follow up text for a thorough understanding of the report Copyright 2007 PLUMBING ? Public Water ? Private well ® main Shutoff Location ® Basement ? Utility Room Other. ? main Supply Piphg ? Plastic ? Brass ? Copper ? Galvanized Other. ? Treatment System' ? Control unibfflolves* ® internal Supply Lines ® Plastic ? Brass ? Copper ? Galvanized Other. ® Haas Bibbs ? Standard ® Frost Proof ? Fbduve Shut off ? Yes ? No ? Some ? Water Heater Electric ? Natural Gas ? Propane ? oil Other. Gal=: ® Drain/Vent material © P"M ? Cast ? Copper ? Galvanized Other: No: 30430102 ? Sews" ? Public ? Private ? Pump ? Alarm ? Bathroom materms ? Ceramic ? Fiberglass ? Enamel ? Vinyl Other. ? washer- 0 DrYer." ? On ? Electric P1 Water Supply Not Turned On at Time of Inspection X P2 trdater iMain Shutoff : Leai,.s / Corroded/ Galvanized/ Access P3 Water Purnp / Water'l"a nk : Operation / }lust 1 Corroded / Aged P4 date: Pressure Low : Throughout / Localized P5 Slow Drain : Sink/ Bathtub / Shower Sta.i P6 1 oii0i : Stains I Leaks I Loose / Hardware I Flush / Floor/ Damage P7 Shmver / Tub / Whirlpool : Stains / Leaks/ Access / Door / Floor/ Damage PS Sinks : Stains / Leaks / Loose / Damage P9 Fixtures / Pop-up / Diverter: Leaks I Loose / Missing/ Hot and Cold Reversed / Damage P10 Bathroom Tile : Grout / Caulk / Damage P11 Bath Fan : Operation / Noisy / Exhaust / None P12 Traps : Leaks / Corroded / Missing / Installation / S-Traps P13 Supply Pipes / Valves / Hose Bibb : Leaks / Corroded / Material/ Water Hammer/ Hangers P14 Drain Pipes : Leaks I Corroded / Loose I Slope / Vent / Damage P15 Water heater : Leaks I Rust I Vent / Back Draft / Aged / Size / Access I Noisy / TP Valve & Extension / Drip Pan P16 Dryer Vents : Installation / Length / Material / Damage P17 Washer / Dryer: Not Tested / Operation / Drip Pan P18 Supply and Waste System Crossover P19 Freeze Hazard : Exterior Hose Bibbs I Pipes I Valves P20 Lead Piping ? : Supply / Waste P21 Evidence of Retrofit / Evidence of Repair P22 Amateur Workmanship You must read the report M ils eatlrogr including the follow up text for s fhorouph carder of the report. Copyrthf 2007 'Requires special testing. Not tested as part of the home kapedbn. "Only tested If requested. Full testing should be under talaen prior to, or during, final wakthrough. Pdmav Heat 0 Furnace ? Oil ? Coal ®Gas ?LP ? Wood Other. ? Heat PUMP ? Air ? Geothermal ? Electric Bade-up ? Hydrokinetic Other. ? Electric Resistance ? Solar- F1 Combination System HEATING / COOLING Heat Distribution Awdliaw Hed ® central unit ? Space Heater ® Basement ? Garage ? Electric ? Gas ? Utilily Room ? Oil ? LP Other. ATTIC Other ® Air Duct ? Wood/Coal Stove" ? Gravity ® Forced Air Mina ? "or ® Hod Pump ? Steam ? Water ? Wall Unit ? Radiators ? Baseboard ? Window Unit ? Graft ? Pumps ® Central Air Unit Other ® Basement ? Radiant ? Crawl SPA ® Attic ? Multiple Zone, Other. No: 30430102 Miscellaneous ® Fuel Tank ? Inside ® Outside ? LP ? 01 ? Buried ® Main Fuel Shutoff ? Basement ? UtI ty Room ® F.tderior Otter. ? HumIdMw ® Thermostrtt control ? Central E0 Multiple ? CO Detector" Hi Equipment Not Operated : Heat / Space Heater/ Air Cond rimer / Other H2 Hea; Purnp: Operation / Noisy / Leal<z / Corroded / Dirty/ No Backup / Condenser / Fan / Location / Rust / Aged H3 Furnace : Opara icn. / Noisy / Leaks / Corroded / Diryl Firebox / Surner /treat Exchanger / Fan / High CO / Danger / Rust I Aged H4 Boiler : -Operation / Leaks / Dirty / Rust l Aged H5 Air Conditioner : Operation / Noisy I Corroded I Darryl Drain / Condenser / Drip Pan / Fan / 'lust / Aged H6 Circulator Pump/ Condensate Pump : Operation I Noisy I Leaks H7 Space Heater : Operation / Noisy I Corroded I Dirty/ Rust / Danger 98 Humidifier: Corroded /Dirty/ Rust H9 Wood Stove : Clearances / Materials / Damper / Rust H10 Fuel Tank : Leaks/ Placement / Condition / Abandoned Air Filter : Missing / Dirty/ Not Viewed / Electric Out x Hit Ducts I Registers : Placement / Not Visible I Noisy / Missing / Damage H13 Flues : Installation / Unsafe / Damper / Bade Draf / Rust / Damage H14 Heat Distribution / Cooling Distribution: None/ Inadequate/ Uneven H15 Thermostats / Controls : Operation / Broken/ Missing I Loose I Location H16 Switches / Wiring : Operation / Bumt/ Broken/ Missing/ Loose H17 Valves / Pipes / Gauges : Operation / Missing / Corroded / Damage H18 Radiators / Baseboards : Handles / Leaks/ Covers H19 CO Detectors : None/ Location / Quantity H2O Evidence of Retrofit / Evidence of Repair H21 Amateur Workmanship F H11 I fAnor: Air Filter : ATTIC AIR FILTER LACKS DOOR. • Solar systems will not be triispeectedd: requires special evaluation. " CO (Carton Monoxide) detectors are not tested. " Wood stoves & Fireplaces are not tested. Interior of dikriney flues will not be inspected: roWti es special evaluation. You must read the report in its entirely including the follow up text for a thorough undenimnding of the report. Copyr/ght 2007 STRUCTURAL ? Slab ® Foundation Floor ® Framing Material O crawl Space ® Concrete ® wood ? Full ? Storrs ? Metal ? Partial ? Dirt ? fY ® Basement Outer Other ®Full 0 Support Columns ® Floor Framing ? Partial ? Brock ? Tnnses ® Foundation Walls ? Brldc ® lolsts Poured ? Metal ? Combination ? Pnefab ? Wood Other ? Block Odff ? Log Home ? Stone ? Etriderroe of Wood rxher Pest Treatment No: 30430102-...4 1,----'1' ® ttoof Sbvcwm ® Trusses ? Ratters ? Combination ? Attic Floor Sheathing Outer ® Atdc Aooess ? Hatch ? Stairs ® Pull Down Stairs Odw S1 Foundation / Floor Framing Access : Restricted/ Nose S2 Siab : -Cracks / heaved / Settled / La-rage Basement Floor I Cr-nvi Space Floor : Cracks / Heaved I Settled / Damage S4 Basement Wall/ Crawl Space Wall : Cracks I Bulge I Settled / Damage X SS F^o':i; : Rotation / Unstable / Erosion / Damage S6 Support Caiumns : Unstable/ Cracks/ Warped/ Base/ Deterioration / Unarchored / Rust S7 Floor Jr,!sts / Trrsses : Cracks/ Deterioration/ Deflection / Span SS Sub=boor / Sill plate : Rot / Delaminating S9 Wall Framing : Deterioration / Deflection / Bulge S10 Lintel: Cracks/ Deterioration/ Deflection Sii Beam : Cracks/ Deterioration/ Deflection / Span/ Cut 512 Roof Rafters I Roof Trusses : Cracks I Deflection / Size / Span / Repair 513 Roof Sheathing : Deterioration / Delaminating / Sagging / Warped 514 Evidence of Wood Boring Pests S15 Evidence Of : Rot/ Moisture / Condensation / Mold? S16 Attic Access : Restricted/ None 517 Evidence of Retrofit / Evidence of Repair S1S Amateur Workmanship S4 I Noted : Baaemerd ABOVE GRINDER PIT You must read the reportan its entirety Including the MOW uP text for a thorough understanding °f the mporL Copyright 2007 EXHIBIT F 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 1$ 19 20 21 22 23 24 25 2'6 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 CTA CHANGE IN TERMS ADDENDUM TO AGREEMENT OF SALE Thus form recommended and approved for, but not restricted to use b% the members of the Pennsylvania Association of REALTORS® (PAR). PROPERTY 1? FOXWOOD BLVD NECHANICSBURG PA 17050 SELLER %'RiFLE - CROWN.. . . BUYER Brandon Robert WRGANS,. Julianne Melinda mRGANS. DATE OF AGREEMENT March_ 11. 2010 The following terms of the Agreement of Sale are changed is stated below: 1. SETTLEMENT DATE Z? Settlement date is changed from may 14 2010 to Maw 3a2010 2. PURCHASE PRICE Purchase price is changed from S to S 3. MORTGAGE AMOUNT (A) First mortgage amount is changed from S to S (B) Second mortgage amount is changed from to S 4. MORTGAGE LENDER (A) First mortgage lender is changed to (B) Second mortgage lender is changed to (C) Buyer will Submit a completed, written mortgage application to the ide-niified lender(s) according to the tarms of the Mortgage Contingency paragraph of the Agreement of Sale on or before: 5. MORTGAGE COMNtITNINT DATE Mortgage commitment date is changed from to 6. SELLER ASSIST Seller Assist is changed to S. , or % of the Purchase price, maximum, toward Buyer's costs as permitted by the mortgage lender, i any. 7. TI t PERIODS The time period in paragraph , line of the Agreement of Sale is changed to . The time period in paragraph , line of the Agreement of Sale is changed to The time period in paragraph , line of the Agreement of Sale is changed to The time period in paragraph , line of the Agreement of Sale is changed to The time period in paragraph - , line of the Agreement of Sale is changed to The time period in paragraph , line of the Agreement of Sale is changed to 8. OTHER All other terms and conditions of the Agreement, including all other time enods, rem ' u nd in full force and effect WITNESS BUYER Zzlcyl, DAT E S G-Ld/ don Robert MOR S TE S^ l O ? 1 D laran WITNESS _ BUYER ;A JA A, A J ianne me in MOR" WITNESS BUYER DATE 51 WITNESS SELLER DATE TRIPLE CROWN 52 WITNESS SELLER DATE 53 WITNESS SELLER Pennsylvania Association of REALTORSO T11f wNeR M br lft?N M fwiRSyM?i DATE COPYRIGHT P$NNSYLVANIA ASSOCIATION OF REALTOPM 2005 09105 Howad Hanna RW FA= Semen 5137 Vev6nsWre Rbad ff1Msbort, PA 17112 Phone. 717.652.7260 Fax: 717.652.9X1 MORGANS toxRxa Kuitisiq Jaw GRI Produced with IIpFom* by zlpLopbc 18070 Pdtirerr Mile Road; Fraser, Michigan 48028 aeenR >int neix mm EXHIBIT G 11e ER Inspections --- uc Brandon d; Julie Morgans P .O. Box 136 New Kingston, Pa. 17072 may 11, 2010 RE: Air tests Exterior and. Interior Basement, Kitchen and Muster Bathroom 14 Foxwood Bind Mechanicsburg, Pa. 17050 To Whom It May Concern: As you requested we performer) an air test to test for the ptesence of elevated mold spores in the Basement,. Kitchen and Master Bathroom at:the above referenced property on May 5, 2010. This test was performed by using an air-O-Cell to sample the air in the interior of the basemwk kitohen and master bathroom then for comparison purposes an Air-O-Cell sample of the outside environment was taken. This test was limited to visible areas, no wall or wall cavity samples or tests were performmd. No "suspect" mold was observed. by the inspector at the time of air tests. The attached report Identifies some elevated mold spore counts In basement, kitchmt and master bathroom. The report Indicates some of the mohl.spore counts are higher inside the basement, kitchen and matter bathroom when compared to the outside environment. Some of the mold spores found may be toxic or cause an allergic reaction to anyone inhabiting tie prop". This probability is lacrearsod for anyone that has a known smAtivity to a specific mold spore noted In the report. It is recommended that the ages be repaired by emtecting a mold remedisticm specialist who works under tlheguldeli es of an industrial.hyg enist. A post remediation mold test should be performed to insure the mold spore counts in the house have been lowered. Please understand that this is a first stage test. A more expensive sad thorough testing process can be performed to separate the 1'enicillium and As ergdlus?spores, It is our opinion however that the test performed to date is enough information to warrant repairs.: Additional testing can and should be performed if anyone has a known sensitivity to any of the elevated mold spores found on this test. This mold test represents the conditions that existed on the date and time of this teat. It should be understood that Tillery Inspections makes no guarantees that future mold tests would produce the same results. Recommend using$ dehumidifier in the basement to lower the humidity level. Temperature and humidity have a large affect on mold growth. Any water leakage should be repaired and dried within 24 hours to reduce the passibility of mold growth. Please feel free to contact us at 717-221-1004 with any questions or concerns. Since ly, Kath Remsnyder office Manager CC. Kingsley Jatto 2943 -1004 Owe 1 717°221-1005 fax [ Rattan i Tmob I Watos 1 MWTeating t Laboratory A W Smmary Labore t * Project ID: 1005070 Page 3 of 3 Alrborme Mold Spore Analysis by Optical Microscopy' Chent Sample ID: Ak-O.VA #699840 - iaterior McAter Batlu'oom Collection Date: 05/OSIIO Lab Sample ID: 100607044 Air Volume (L): 160 .:: ' % Of & oief <27 - - diem . 1 27 7 _ lera ^? <27 ... <27 -? - - <27 rsu 2 63 4 --- <27 --- <g7 -- <27 - - <27 --- 1 27 2 <27 <27 - - <27 -- bp --- <27 - Q7 M _ <27 52 1590 93 - , 56 1#90 -- <27 Dade , god Analysis Date: 05/1 MO Analyst: btu SsMp10 comments.. Bx$puund debris is an ;indication of the amount of non-biological P*rtladete matter present on the yule and is Waded • from high to low, NO amounts of bound debris may obscure mull spores moh as the Peniciilium/ group. The results of sampl+as contOkft anx of baclcWmnd debris should be tegeuded as minimum M06. Also, duo to roundbv of the individual pemmtage of molt spore . 9+ the mmmanon of tine pementages My not add up to 100%. 4359 i.,iNGLEST OWN ROAD ? HARRISBURG, PA 17112 TELEPHONE: (7 17) 65147?c1il www.AMeUCA"WE crec"XM -FA7t: (717) 6574r7'R L.abar klry ResWt ,wnMIary tAbOrGtotg PrOfOdID. t05070 Inge 2 of 3 Airborne Mold Spore Aad I"ifi `by Qp cod Microscopy Client Semple ID: Air y-Cell #6"839 - Interior KltcbM Collection Date: 05/05/10 Lab Sample ID: 1005070-0Z Air Volume (L): 150 now . e _ t S . 9fi +ar1: <27 - dtrun <27 1 27 2 <27 <27 7 --- <27 <27 -- 4 107 9 <27 <27 w <27 -- <27 <27` A 1 27 2 .. <27 - <27 _? <27 --- lC?i?lcosia,;li1 ? <27 .-- <27 --- <27 --- <27 1810 fi 1170 - <27 Anah*b Date: M11f10 Analysis SES 5amp a 0400"Ats: I&Woxwd debris U an indication of the amount of non-b? pie matter p vseat on the slide anduvraded from high to low. Hah amounts of badgmad debris may ob=n small, spct?s such as the Penic ft s soup. The results of sat»ptas coWWWW amounts of b wlWound debris shoUkl;be morded as mialmum ma*. Also, due to rounding oar the iniiivlduai pamftw of maid spores, thewnmation of the:peroenteW my riot. add up to 100%. 435 UN(;Lj '1`* RoAD ? HARl±ili3E3li m, Pry. tTi 12 TEL 9PHt7 NF-* (7 t 7) 65140700 WWW.AM Gf?N MrOM.fiOM FAX: (717) GV7*M La oratory umMary Lnbocntoo Project ID: '1005070 Paga I of 3 Contact: Kathy Remsnyder Tillezy lospeattons, LLC R d Project Name: Pr of Number. Ittus 14Poxwood'BW oa 4359 Un*stmm HareArwg, PA 17112 Pumhase Order Number: N/A Sampled By; Kevin S%W t w Date Received: 050/10 Time Received: 08:33 Altbor Mold Spore AnaWS by OPUCa1 Mlam.OCOPy Mat Sample D. AfrA4e11 #6998" -- tnWOr BaOement Collection Date 0"5/10 L.ab;Sampie lD: 1005070-0 Air Volume M: 150 e e Rehr t=Count f2zeow % of ree ,M <27 ?- <27 <27 <27 <27 <27 .,<27 --- --- <27 KM -- <27 - - <27 - - <27 - - --- <27 _ --- <27 ?.. <27 rr J 1as 1t 320 13 - <27' dum . , ` <2'7 R*Wx <27 --- t??rlicoma, M <27 --- <27 TOXVIO ' --- <27 - CA <27 --- 81 2160 89 ILION ft" 93 2480 ..._ <27 13earis AWO* Date: 05/1VIU PONY= as SSD*e CQalmeAite: dod • BadWomd debris is an indkation of ft amount Of non-biO i partir;ubate matter present on the lade and is Wa from high to law. High amounts of badamund debds roay obmo small spores such as the Pena Mum/ group. The mutts of samples ca rrtainlrrg amounts of bacWwund.d sbds should be regnrded as-minimum courds. Also, due to rounding of the irrdivldual:perc: tme of mold spores, the summation of the pearc¢ntages may not add up to 100%. 4359 UNGLESTOWN'ROAD ? HARMsOURG, PA 17112 TM"f40WE: 07173 6St4YM www.Iatt> WCANWOMM-COM FAX, C717) 867-0752 Laboratory Results, Sm, ary Labor "ry Project IDs 1005070 Pa w'4 of 3 Airborne Mold Spore Ana'Ws by Optical Mficarosopy Cherd Swapte ID: Air-0-Coll #69306 - Eshnior Collection Date: 0"5/10 Lab Semple ID: 1Op5070-04 Air Volume (L} 150 909-ft T q9"# ' -- <27 - <27 6 160 16 <27 <27 --- <27 <27 <27 .? 3 <27 1 27 3 <27 <27 .--. <27 --- --- <27 --- <27 --- <27 --- <27 Pspricoauia <27 .-- <27 --- <27 --- --- <27 _ <27 38 1010 - 1 17 Egan" LOW Analysts Dale: 05/11/10 Analyst: 5t Brie Commits: • Baokround debris is an ktdlmdon of the amount at noon-blolo l Mrttdate matter PUMA on the slide and is< waded from hh* to low. Hkh amounts of bac>gound debris may oobscure email spores such as the t ctnt{?et?itlus wpup. The resulbof mmpw oxdwntrqamounts of baclvround debate should.be ceperd®d as tnhtimum ouuntL Also, due to rounding of then dtW ps ge of mold spores, the wom ation of the percentages may not add up to 100%. 4359 LJtdCoLZSTCl1tl N RoAt) 4 H^Rmsoum, PA 1.7112 TEL 0440NI C (717) 05,14 wwW.AMiMWJV4lis?9STECI4-C0M FAX: (717) -07= Laboratory I;ts Summary L+s}iox*tej' Project ID: 1005070 Page 5 of 3 Report Cotamf3+nte: All samples were'anal$"d "Os mcelved* from the diem. American Wo4ach Inc. can a assume oW all samples were collected and submitted by the ajMqT following the expropriate protocols set #octh by the Mpklory rmqutrements. his document shall not be reproduced; except In full, without the written approval of American Weatech Inc. Lsbc"tory Certiftcatione: . NELAP ao"dtted by the NJDEP for vw4ow solid waste parameters (PA019) PADEP accredked for drlnWag water microbiology (22-0057$) Reviewed esd Approved Sr. Date Realewod +frd Approved: ` 1fMium W_ dr. Ltb? r *I -Q 4359 Linglestown Rd Harrisburg, PA 17112 Customer Name Brandon & Julie Morgans 14 Foxwood Blvd Mechancisburg, PA 17050 th. voice vale invoice 5/5/2010 1803 Terms Ftep Access Credit Card on file KS Lockbox ?-l I Description Agent Name Kingsley Jatto Howard Hanna CompanY 5137 Devonshire Rd. Harrisburg, Pa 17112 Time 1:00 Air to Air Mori Test 3 samples Total Requested Agent Amount $400,001 n Date Invoice # s gEini P 4130/2010 1669 4359 Linglestown Rd Harrisburg, PA 17112 Customer Name Agent Name Brandon & Julie Morgans Kingsley Jatto 14 Eaxwood Blvd Howard Hanna Company Mechancisburg, PA 17050 5137 Devonshire Rd Harrisburg, PA 17112 Terms Rep Access Time Requested Credit Card on file KS Agent 430 Agent Amount Qea+?ription 175.00 Home Inspection Partial Inspection 100.00 E-Perm' Radon Test Total' eh p?A,YNI TS / R L?UI~ ON $ITE IN A ANC OED INSP1CTION. Name on Card ,Fount # EXHIBIT H Corrective Prouosal The Morgans family wants the home located at 14 Foxwood Blvd, Mechanicsburg, PA 17050 remediated by a professional mold remediation company of their choice. They want the house gutted, treated & repaired e na good chance the oted throughout the home. The Morgans walls/floors/etc due to the extent of mold family requires the home to be re-inspected by a different mold remediation company of their choice 48 hours after the remediation process is complete with the results proving there are no mold spores in the home prior to taking possession of the property. The Morgans family wants the home re-inspected for mold on all four levels of the home every three months for a period of two years to guarantee that mold has not returned. All expenses incurred regarding the remediation, treatment, repairs, and subsequent tests of the mold will be paid for by Triple Crown Corporation directly. All repairs and re- inspection, with documentation supporting the fact that there are no known mold spores, of the mold remediation process must be complete by the seller (Triple Crown Corporation) by the time of the final walkthrough on said date of the morning of May 20"', 2010. 14 9 P Buyer: D Witness: Buyer: Date: S l - 0 Witness Seller: Date:--. witness: SHERIFF'S OFFICE OF CUMBERLAND COUNTY ?? Ronny R Anderson I%LC-OFFICE Sheriff O- sal _ PROT"JNHOTAR at5tilr of Gzr3nt+cr/? Jody S Smith Chief Deputy iL/?I~10r CkOU?l " Richard W Stewart F Fr ilJ i-?'?Tfl Solicitor Brandon R. Morgans Case Number vs. Triple Crown Corporation, Inc. 2010-5740 SHERIFF'S RETURN OF SERVICE 09/08/2010 Ronny R. Anderson, Sheriff who being duly sworn according to law states that he made a diligent search and inquiry for the within named defendant, to wit: Triple Crown Corporation, but was unable to locate them in his bailiwick. He therefore deputized the Sheriff of Dauphin County, PA to serve the within Complaint and Notice according to law. 09/13/2010 10:03 AM - Dauphin County Return: And now September 13, 2010 at 1003 hours I, Jack Lotwick, Sheriff of Dauphin County, Pennsylvania, do herby certify and return that I served a true copy of the within Complaint and Notice, upon the within named defendant, to wit: Triple Crown Corporation, Inc. by making known unto Jessica Morrison, Human Resource Assistant for Triple Crown Corporation, Inc. at 5351 Jaycee Avenue, Harrisburg, PA 17112 its contents and at the same time handing to her personally the said true and correct copy of the same. SHERIFF COST: $37.00 September 17, 2010 SO ANSWERS, RON R ANDERSON, SHERIFF (C, C, il[',r';]UICf he:' } '(e't?:JS'J'}. I":t;. ., of the S11or- Mary Jane Snder Real Estate Deputy William T. "Cully Solicitor r® Dauphin County Harrisburg, Pennsylvania 17101 ph: (717) 780-6590 fax: (717) 255-2889 Jack Lotwick Sheriff Commonwealth of Pennsylvania County of Dauphin Charles E. Sheaffer Chief Deputy Michael W. Rinehart Assistant Chief Deputy BRANDON R MORGANS VS TRIPLE CROWN CORPORATION INC. Sheriff s Return No. 2010-T-2944 And now: SEPTEMBER 13, 2010 at 10:03:00 AM served the within NOTICE & COMPLAINT upon TRIPLE CROWN CORPORATION INC. by personally handing to JESSICA MORRISON 1 true attested copy of the original NOTICE & COMPLAINT and making known to him/her the contents thereof at 5351 JAYCEE AVENUE HARRISBURG PA 17112 OTHER COUNTY CASE # 20105740 HR ASSISTANT So Answers, Deputy: W CONWAY Plaintiff: BRANDON R MORGANS Sheriffs Costs: $49.25 9/10/2010 Out Of County Cost: Sheriff of Dauphin County, Pa. Swom to and subscribed before me this d rA) Ve NOTARY DAUPHI COUNTY ROTHO OMMISSION $X IRES IST MONDAY JANUARY, 20.,. Steven J. Schiffman, Esquire PA I.D. No. 25488 Merritt C. Reitzel, Esquire PA I.D. No. 92069 SERRATELLI, SCHIFFMAN & BROWN, P.C. 2080 Linglestown Road, Suite 201 Harrisburg, PA 17110 (717) 540-9170 sschiffman)a,ssbc-law.com mreitzelgssbc-law.com Counsel for Defendant BRANDON R. and JULIANNE M. MORGANS, husband and wife, Plaintiffs V. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA No. 10-5740 CIVIL TERM TRIPLE CROWN CORPORATION, Defendant NOTICE TO PLEAD You are hereby notified to file a written response to the enclosed Preliminary Objections within twenty (20) days from service hereof, or a default judgment may be entered against you. Date: September 30, 2010 77 L t I, C ?- t7 TA L' Li "-Z }.Yri 1 z? Steven J. Schiffman, Esquire PA I.D. No. 25488 Merritt C. Reitzel, Esquire PA I.D. No. 92069 SERRATELLI, SCHIFFMAN & BROWN, P.C. 2080 Linglestown Road, Suite 201 Harrisburg, PA 17110 (717) 540-9170 sschiffmanna,ssbc-law.com mreitzel@ssbc-law.com Counsel for Defendant BRANDON R. and JULIANNE M. IN THE COURT OF COMMON PLEAS OF MORGANS, husband and wife, CUMBERLAND COUNTY PENNSYLVANIA Plaintiffs V. : No. 10-5740 CIVIL TERM TRIPLE CROWN CORPORATION, Defendant DEFENDANT'S PRELIMINARY OBJECTIONS TO PLAINTIFFS' COMPLAINT AND NOW comes Defendant, Triple Crown Corporation, by and through its attorneys, Serratelli, Schiffman & Brown, P.C., and files its Preliminary Objections to Plaintiffs' Complaint, and in support thereof avers as follows: PRELIMINARY OBJECTION TO COUNT I OF PLAINTIFFS' COMPLAINT LEGAL INSUFFICIENCY OF A PLEADING (DEMURRER) PA.R.CIy.P.1028(a)(4) 1. Plaintiffs initiated this action by the filing of a Complaint against Defendant ("the Complaint") on September 7, 2010, as evidenced by the time-stamp appearing on the Notice to Defend attached to the Complaint. 2. The Complaint was served on Defendant Triple Crown Corporation on September 10, 2010. 3. Pursuant to Pa.R.Civ.P. 1028(a)(4), a trial court may sustain a demurrer, and thereby dismiss a claim, when it appears with certainty that the law will not permit the plaintiff to recover based on the facts alleged in the complaint. See e.g., Huddleston v. Infertility Ctr. of Am., Inc., 700 A.2d 453, 456 (Pa. Super. 1997) (demurrer proper where it is clear based on facts alleged that law will not permit recovery by plaintiff). 4. Count I of Plaintiffs' Complaint alleges Defendant failed to disclose a defective condition of certain real estate purchased by Plaintiffs from Defendant ("the Property"), which failure Plaintiffs assert constitutes a material breach of the written contract between the parties since Plaintiffs would not have executed the written contract if they had been aware of the alleged defect. 5. As the parties had not yet executed a contract and were not in a contractual relationship at the time when Plaintiffs assert the disclosure should have been made with respect to the alleged damage to the Property, the law will not permit Plaintiffs to recover on its breach of contract claim as set forth in Count I. 2 6. Count I further avers that in addition, Defendant further breached the written contract by failing to provide Plaintiffs with a written seller's disclosure pursuant to the Pennsylvania Real Estate Disclosure Law, 68 Pa.C.S. § 7301 et seq., ("Disclosure Law"). 7. Defendant was ready, willing, and able to proceed to settlement with respect to the Property and performed all conditions precedent to proceed with closing on the Property. 8. The Disclosure Law applies to all residential real estate transfers, except transfers of new residential construction that has not been previously occupied provided: (i) the buyer has received a one-year or longer written warranty covering such construction; (ii) the dwelling has been inspected for compliance with the applicable building code or, if there is no applicable code, for compliance with a nationally recognized model building code; and (iii) a certificate of occupancy or a certificate of code compliance has been issued for the dwelling. 9. Because Plaintiffs received a one-year written warranty covering such construction, and as the dwelling was inspected and a certificate of occupancy was issued with respect to the property, and as the transfer of the Property involved new construction that had not been previously occupied, the Disclosure Law is inapplicable here, and Defendant was required by statute to provide Plaintiffs with a written seller's disclosure with respect to the property. 10. Even if the facts alleged in Count I of the Complaint are accepted as true, the law will not permit recovery. WHEREFORE, Defendant respectfully requests that this Honorable Court sustain its Preliminary Objection and that Count I of Plaintiffs' Complaint be dismissed with prejudice. 3 PRELIMINARY OBJECTION TO COUNT V OF PLAINTIFFS' COMPLAINT LEGAL INSUFFICIENCY OF A PLEADING (DEMURRER) PA.R. CIy.P.1028(a)(4) 11. The preceding paragraphs 1 through 10 are hereby incorporated by reference as if fully set forth herein. 12. Count V of Plaintiffs' Complaint alleges Defendant failed to disclose a defective condition of the Property, which failure constitutes a violation of the Disclosure Law. 13. The Disclosure Law applies to all residential real estate transfers, except transfers of new residential construction that has not been previously occupied, provided: (i) the buyer has received a one-year or longer written warranty covering such construction; (ii) the dwelling has been inspected for compliance with the applicable building code or, if there is no applicable code, for compliance with a nationally recognized model building code; and (iii) a certificate of occupancy or a certificate of code compliance has been issued for the dwelling. 14. Because Plaintiffs received a one-year written warranty covering such construction, and as the dwelling was inspected and a certificate of occupancy was issued with respect to the property, and as the transfer of the Property involved new construction that had not been previously occupied, the Disclosure Law is inapplicable here, and Defendant was not required to provide Plaintiffs with a written seller's disclosure with respect to the Property. 15. As such, the law will not permit Plaintiffs to recover based on the facts alleged in Count V of the Complaint. WHEREFORE, Defendant respectfully requests that this Honorable Court sustain its Preliminary Objection and that Count V of Plaintiffs' Complaint be dismissed with prejudice. 4 Respectfully submitted, SERRATELLI, SCHIFFMAN & BROWN, P.C. Attorney ID #92069 Steven J. Schiffman, Esq. Attorney ID 425488 sschiffmanL& ssbc-law. com 2080 Linglestown Road, Suite 201 Harrisburg, PA 17110 Phone: (717) 540-9170 Fax: (717) 540-5481 Attorneys for Defendant Date: September 30, 2010 VERIFICATION I, John M. DiSanto, state that I am President of Triple Crown Corporation Inc., that I am authorized to make this Verification on its behalf and that the facts set forth in the foregoing pleading are true upon my personal knowledge, information and belief. I understand that my statements are made subject to 18 Pa.C.S. § 4904 providing for criminal penalties for unsworn falsification to authorities. CROWN C-Oi;?RQRATION INC. Date q)36 16 By John M. DiSanto, President I • CERTIFICATE OF SERVICE I, Merritt C. Reitzel, Esquire, do hereby certify that on this day I served a copy of the foregoing Preliminary Objections by first-class mail, postage prepaid, in the Post Office at Harrisburg, Pennsylvania, to the following person(s): Service via U.S. mail: David S. Makara, Esq. DAVis, BUCCo & ARDizzi 10 E. 6th Avenue, Suite 100, Conshohocken, PA 19428 Date: September 30, 2010 'p ~'~~.~D-OFFICE Z~JI~ C~CT 22 P~ 3~ ~? DAMS, BUCCO & ARDIZZI ~° E~ ~i ~ E ~ ~ ~ ~~ ~ ~.~ ~~ ~ ,{, By: David S. Makara, Esquire ~, r ~ ~ 4i ~ ~~ ~ ~ ~ w ~ , Attorney Id. No. 78241 10 E. 6 Avenue, Suite 100 Conshohocken, PA 19428 (610) 238-0880 Attorneys for Plaintiffs IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA BRANDON R. AND JULIANNE M. MORGANS (~), JURY TRIAL DEMANDED vi. Plaintiffs, No. 10-5740 TRII'LE CROWN CORPORATION, CIVIL ACTION-LAW Defendant. PLAINTIFFS' ANSWER TO DEFENDANT'S PRELIMINARY OBJECTIONS Plaintiffs, Brandon R. and Julianne M. Morgans, by and through their undersigned counsel, Davis, Bucco & Ardizzi, hereby responds to the Preliminary Objections raised by Defendant, Triple Crown Corporation as follows: 1. Admitted. 2. Admitted. 3. Denied. The allegations set forth in this paragraph of Defendant, Triple Crown Corporation's (hereinafter "Triple Crown") Preliminary Objections constitute conclusions of law to which no response is required by Plaintiffs' Brandon R. and Julianne M. Morgans (hereinafter "the Morgans"). 4. Denied. Plaintiffs' Complaint constitutes a written document which speaks for itself and any characterization thereof by Triple Crown is specifically denied with strict proof thereof demanded at trial, if relevant. 5. Denied. The allegations set forth in this paragraph of Triple Crown's Preliminary Objections constitute conclusions of law to which no response is required by the Morgans. 6. Denied. The allegations set forth in this paragraph of Triple Crown's Preliminary Objections constitute conclusions of law to which no response is required by the Morgans. 7. Denied. The allegations set forth in this paragraph of Triple Crown's Preliminary Objections constitute conclusions of law to which no response is required by the Morgans. 8. Denied. The allegations set forth in this paragraph of Triple Crown's Preliminary Objections constitute conclusions of law to which no response is required by the Morgans. 9. Denied. The allegations set forth in this paragraph of Triple Crown's Preliminary Objections constitute conclusions of law to which no response is required by the Morgans. 10. Denied. The allegations set forth in this paragraph of Triple Crown's Preliminary Objections constitute conclusions of law to which no response is required by the Morgans. WHEREFORE, Plaintiffs' Brandon R. and Julianne M. Morgans hereby respectfully request this Honorable Court overrule the Preliminary Objections raised by Defendant Triple Crown Corporation. 11. This paragraph of Triple Crown's Preliminary Objections constitutes incorporation language to which no response is required by the Morgans. 12. Denied. Plaintiffs' Complaint constitutes a written document which speaks for itself and any characterization thereof by Triple Crown is specifically denied with strict proof thereof demanded at trial, if relevant. 13. Denied. The allegations set forth in this paragraph of Triple Crown's Preliminary Objections constitute conclusions of law to which no response is required by the Morgans. 14. Denied. The allegations set forth in this paragraph of Triple Crown's Preliminary Objections constitute conclusions of law to which no response is required by the Morgans. 15. Denied. The allegations set forth in this paragraph of Triple Crown's Preliminary Objections constitute conclusions of law to which no response is required by the Morgans. WHEREFORE, Plaintiffs' Brandon R. and Julianne M. Morgans hereby respectfully request this Honorable Court overrule the Preliminary Objections raised by Defendant Triple Crown Corporation. DATED: R:VvIORGANS, BRANDON & JUL[E (M-2563)V~I-2563-A TRIPLE CROWN CORPORATION~Pleadings~Answer to PO's (vl).doc Respectfully submitted, VERIFICATION I, David S. Makaza, Esquire, hereby acknowledge that I am the attorney for the Plaintiffs and that the facts and law set forth in foregoing Answer to Preliminary Objections aze true and correct to the best of my knowledge, information and belief based upon the information provided to me. This Verification is made subject to the penalties of 18 Pa. C.S.A §4904 relating to the falsification of unsworn statements to authorities. DAVIS, BUCCO & ARD By: Date: ~~ ~~ DAVIS, BUCCO & ARDIZZI By: David S. Makara, Esquire Attorney Id. No. 78241 10 E. 6 Avenue, Suite 100 Conshohocken, PA 19428 (610) 238-0880 Attorneys for Plaintiffs IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA BRANDON R. AND JULIANNE M. MORGANS (~)~ JURY TRL~I. DEMANDED vii. Plaintiffs, No. 10-5740 TRIPLE CROWN CORPORATION, CIVIL ACTION-LAW Defendant. CERTIFICATE OF SERVICE I, David S. Makara, Esquire, hereby certify that a true and correct copy of the foregoing Answer to Defendant's Preliminary Objections was served upon counsel listed below via U.S. first class mail, postage pre-paid, and via email, at the following address: Steven J. Schiffman, Esquire Merritt C. Reitzel, Esquire Serratelli, Schiffinan & Brown, P.C. 2080 Linglestown Road, Suite 201 Harrisburg, PA 17110 Email: sschiffinanna,ssbc-law.com mreitzelLa7,ssbc-law.com DAVIS, BUCCO & ARDIZZI By: Dated: !0 ~ / DAVIS, BUCCO & ARDIZZI By: David S. Makara, Esquire: Attorney Id. No. 78241 10 E. 6 Avenue, Suite 100 Conshohocken, PA 19428 (610) 238-0880 FILED-OFFICE `OF THE: HR i HO TA Y 2010:."-4 '11.1 ,4t laG?? a 3 CU-' UY. ,1I Attorneys for Plaintiffs IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA BRANDON R. AND JULIAN E M. MORGANS JURY TRIAlL DEMANDED Plaintiffs, No. 10-5740 V. TRIPLE CROWN CORPORATION, CIVIL AC. ION-LAW Defendant. TO THE PROTHONOTARY. Kindly substitute the attached Verification for the P'laintiffs' Answer to Defendant's Preliminary Objections. DAVIS, BUCCO S By: Verification attached to Date: // / VERIFICATION I, Brandon R Morgans, hereby acknowledge that I am the Plaintiff in the foregoing action and hereby aver that the facts set forth in the foregoing Plaintiff ' Answer to Defendant's Preliminary Objections are taste and correct to the best of my knowledge, information and belief. This 'verification is made subject to the penalties of 18 Pa. C, .A. §4904 relating to the falsification of unworn statement to authorities. r? T)ated- 0112- r2 of p •? BRANDON RE,. RGANS VERIFICATION I, Julianne M. Morgans, hereby acknowledge that I am the in the foregoing action and hereby aver that the facts set forth in the foregoing Plaintiffs Answer to Defendant's :Preliminary Objections are Inc and correct to the best of my knowledge, information and belief This Verification is made subject to the penalties of 18 Pa. falsification of unworn statement to authorities.- Dated: `{ - 1 ) I L) o M. §4904 relating to the DAVIS, BUCCO & ARDIZZI Ely: David S. Makara, Esquire Attorney Id. No. 78241 10 E. 6 Avenue, Suite 100 Conshohocken, PA 19428 0610) 238-0880 IN THE COURT OF COMMON PLEAS OF CUMBERL PENNSYLVANIA BRANDON R. AND JULIATNE M. MORGANS (HIW), JURY TRIG vi. Plaintiffs, 'TRIPLE CROWN CORPORATION, CIVIL ACTION-LAW CERTIFICATE OF SERVICE 1, David S. Makara, Esquire, hereby certify that a true and c Praecipe to Substitute Verification was served upon counsel listed postage pre-paid, and via email, at the following address: Steven J. Schiffman, Esquire :Merritt C. Reitzel, Esquire Serratelli, Schiffman & Brown, P.C. 2080 Linglestown Road, Suite 201 :Harrisburg, PA 17110 Email: sschif(mankssbc-law.com mreitzel(&ssbc-law.com copy of the foregoing via U.S. first class mail, DAVIS, BUCCO &? ARDIZZI By: Attorneys for Plaintiffs kND COUNTY, DEMANDED No. A0-5 40 Elated: f ® f 0 k PRAECIP2R ISTING CASE FOR ARGUMENT (Must be typewritten and submitted in triplicate) TO THE PROTHONOTARY OF CUMBERLAND COUNTY: (List the within matter for thnexf-? Argument Court.) cp " Z rn - -----_____________?_-------------------____-- z r- - CAPTION OF CASE "- rn (entire caption must be stated in full) r--C„ r CA) Q 4 Brandon and Julianne Morgans ;r 3 CD- C> 5(= X- F3 Co M vs. _ Triple Crown Corporation 2010 5740 No Term 1. State matter to be argued (i.e., plaintiffs motion for new trial, defendant's dem urrer to complaint, etc.): Defendant's Preliminary Objections to Plaintiffs' Complaint 2. Identify all counsel who will argue cases: (a) for plaintiffs: David S. Makara, Esq., 10 E. 6th Avenue, Suite 100, Conshohocken, PA 19428 (Name and Address) Steven J. Schiffman, Esq., 2080 Linglestown Road, Suite 201, Harrisburg, PA 17110 (b) for defendants: (Name and Address) 3. 1 will notify all parties in writing within two days that this case has been listed for argument. 4. Argument Court Date: January 14, 2011 `- ` Sign ur?-,' Stev ra?J ;41chiffman Print your name Defendant 12-3-2010 Attorney for Date: INSTRUCTIONS: 1. Original and two copies of all briefs must be filed with the COURT ADMINISTRATOR (not the Prothonotary) before argument. 2. The moving party shall file and serve their brief 12 days prior to argument. 3. The responding party shall file their brief 5 days prior to argument. 4. If argument is continued new briefs must be filed with the COURT ADMINISTRATOR (not the Prothonotary) after the case is relisted. V , SERRATELLI, SCHIFFMAN & BROWN, PC Steve J. Schiffman, Esquire Jeni S. Madden, Esquire Attorney ID Nos. 25488 & 209536 2080 Linglestown Road, Suite 201 Harrisburg, PA 17110-9670 (717) 540-9170 (717) 540-5481 facsimile com sschiffinan@lsbc-law.com imadden&sbc-law. com Attorney for Defendant 2I1 1-17P 14 PI°1 C! CUM ? l ,rid U P ENNSYl.`vAN"Ii". BRANDON R. and JULIANNE M. MORGANS, husband and wife, IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA Plaintiffs V. No. 10-5740 CIVIL TERM TRIPLE CROWN CORPORATION, Defendant NOTICE TO PLEAD To: Brandon and Julianne Morgans c/o David S. Makara, Esquire 10 E. 6"' Avenue Suite 100 Conshohocken, PA 19428 YOU ARE HEREBY NOTIFIED to file a written response to the enclosed New Matter of Defendant Triple Crown Corporation to Plaintiffs' Complaint within twenty (20) days from service hereof or a judgment may be entered against you. Date: February 14, 2011 Respectfully submitted, SERRATELLI, SCHIFFMAN & BROWN, PC / A Je ' S. Madden, Esquire P ID No. 209536 80 Linglestown Road, Suite 201 Harrisburg, PA 17110-9670 (717) 540-9170 telephone (717) 540-5481 facsimile Attorney for Defendant Steven J. Schiffman, Esquire PA I.D. No. 25488 Jeni S. Madden, Esquire PA I.D. No. 209536 SERRATELLI, SCHIFFMAN & BROWN, P.C. 2080 Linglestown Road, Suite 201 Harrisburg, PA 17110 (717) 540-9170 sschiffman&ssbc-law.com j maddenks sbc-law. com Counsel for Defendant BRANDON R. and JULIANNE M. MORGANS, husband and wife, Plaintiffs V. TRIPLE CROWN CORPORATION, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA No. 10-5740 CIVIL TERM DEFENDANT TRIPLE CROWN CORPORATION'S ANSWER AND NEW MATTER TO PLAINTIFFS' COMPLAINT Defendant, Triple Crown Corporation (hereinafter "Defendant"), by and through its counsel Serratelli, Schiffnan & Brown P. C, files its Answer and New Matter to Plaintiffs Brandon and Julianne Morgan's Complaint (hereinafter collectively "Plaintiffs"), and in support therefore avers as follows: 1. Denied. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the truth of the averments in Paragraph 1 of Plaintiffs' Complaint and thus said averments are deemed denied and strict proof of the same is demanded. 2. Admitted. 3. Admitted. 4. Admitted in part and denied in part. It is admitted that at some point, David Shuey, a former employee of Triple Crown, gave a tour of the Property to Plaintiffs. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the truth of the remaining averments in Paragraph 4 of Plaintiffs' Complaint and thus said averments are deemed denied and strict proof of the same is demanded. 5. Admitted. 6. Admitted. 7. Denied. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the truth of the averments in Paragraph 7 of Plaintiffs' Complaint and thus said averments are deemed denied and strict proof of the same is demanded. 8. Denied. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the truth of the averments in Paragraph 8 of Plaintiffs' Complaint and thus said averments are deemed denied and strict proof of the same is demanded. 9. Admitted in part and denied in part. It is admitted that at some point a meeting was held between Plaintiffs and a representative of Defendant. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the truth of the remaining averments in Paragraph 9 of Plaintiffs' Complaint and thus said averments are deemed denied and strict proof of the same is demanded. 10. Admitted in part and denied in part. It is admitted that after purchasing the Property through the December 9, 2009 Cumberland County Sheriff Sale, Defendant 2 discovered mold in the basement and master bedroom of the Property. It is further admitted that drywall had been replaced to rectify the situation. By way of further reply, to the best of Defendant's knowledge, replacing the drywall at the Property had completely resolved all issues with the mold. The mold at issue in this matter is unrelated to that which was originally caused by the water damage. The mold at issue was caused by the Property being unoccupied and the HVAC system not being used during a hot and humid summer. It is specifically denied that mold was found in the master bathroom. To the contrary, the mold was limited to the basement and master bedroom. After reasonable investigation, Defendant is without knowledge as to the remaining allegations in Paragraph 10 of Plaintiffs' Complaint and strict proof of the same is demanded. 11. Denied. The report from Tillery Inspections is a written document that speaks for itself. 12. Admitted. By way of further reply, Plaintiffs' "corrective proposal" was extreme and not commercially reasonable. Plaintiffs demanded that all the drywall at the Property be removed and replaced and further demanded that Defendant produce proof that all traces of mold had been eliminated. As mold is a naturally-occurring substance which appears in all homes to some extent, it would have been impossible for Defendant to comply with Plaintiffs' "corrective proposal." 13. Admitted. 14. Admitted in part and denied in part. It is admitted that at some point, Plaintiffs contacted Defendant with questions regarding Defendant's corrective action proposal. After reasonable investigation, Defendant is without knowledge or information 3 sufficient to form a belief as to the truth of the remaining averments in Paragraph 14 of Plaintiffs' Complaint and thus said averments are deemed denied and strict proof of the same is demanded. 15. Admitted in part and denied in part. It is admitted that Defendant requested a face-to- face meeting with Plaintiffs. It is denied that Defendant ever stated that "there is a lot at stake for all involved." To the contrary, such a statement was never made. 16. Admitted in part and denied in part. It is admitted that on or about May 19, 2010, Plaintiffs met with Ms. Trout and Bill Manna. It is further admitted that, during said meeting, Plaintiffs gave to Mr. Manna several documents. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the truth of the remaining averments in Paragraph 16 of Plaintiffs' Complaint and thus said averments are deemed denied and strict proof of the same is demanded. 17. Admitted. 18. Denied. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the truth of the averments in Paragraph 18 of Plaintiffs' Complaint and thus said averments are deemed denied and strict proof of the same is demanded. 19. Denied. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the truth of the averments in Paragraph 19 of Plaintiffs' Complaint and thus said averments are deemed denied and strict proof of the same is demanded. 20. Denied. It is specifically denied that that Defendant is liable to Plaintiffs for any 4 moving/storage costs. To the contrary, Defendant provided temporary housing and storage, free of cost, for Plaintiffs prior to the scheduled closing. Plaintiffs took the benefit of said housing and storage and then breached their Agreement with Defendant and left the housing without any notice to Defendant. 21. Admitted. 22. Admitted. By way of further answer, Defendant has refused to return the funds to Plaintiffs because Plaintiffs are in breach of their Agreement with Defendant. 23. Admitted. It is admitted that no certificate of occupancy was issued prior to the settlement date or the Plaintiffs' "termination" of the Agreement. By way of further answer, however, a Certificate of Occupancy was available to be issued prior to the date of closing. The Certificate of Occupancy was only not issued because Plaintiffs breached the Agreement prior to the date of closing. 24. Admitted. By way of further answer, Defendant did not provide Plaintiffs with a disclosure because no disclosure was required by the Real Estate Disclosure Law, as this was a transfer of new residential construction and was therefore exempt from the requirements of the Real Estate Disclosure Law. 25. Denied in part. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the truth of the averments in Paragraph 25 of Plaintiffs' Complaint and thus said averments are deemed denied and strict proof of the same is demanded. 26. Denied. It is specifically denied that Defendant defaulted under the terms of the Agreement. To the contrary, it was Plaintiffs whom breached the Agreement by terminating the Agreement without cause. It is further denied that any action by Defendant deprived Plaintiffs of electing to use the Federal tax credit. To the contrary, had Plaintiffs not breached the Agreement, the Federal tax credit would have been available for their use. It is further denied that Defendant was unable to provide a moisture and mold free, habitable condition prior to settlement on May 20, 2010. To the contrary, Defendant presented Plaintiffs with a remediation plan which was rejected by Plaintiffs. Said remediation plan would have remedied all mold issues at the Property. As proof of this, an inspection conducted by Analytical Laboratory Services, Inc. on May 27, 2011, a true and correct copy of which is attached hereto as Exhibit "A," revealed that there were no abnormal levels of mold and/or fungus and in fact revealed that the spore counts at the Property were significantly lower than any of those in the outside air samples. The remainder of the averments contained in Paragraph 26 of Plaintiffs' Complaint are legal conclusions to which no response is required. COUNT I. BREACH OF CONTRACT 27. Incorporation paragraph. No response required. 28. Denied. The Agreement which Plaintiffs have attached to their Complaint as Exhibit "A" is a written document that speaks for itself. 29. Paragraph 29 of Plaintiffs' Complaint is a legal conclusion to which no response is required. 30. Admitted in part and denied in part. It is admitted that Plaintiffs discovered, after purchasing the Property through the December 9, 2009 Cumberland County Sheriff Sale, that there was some limited water damage in the master bedroom and basement of the Property. By way of further answer, this damage was fully repaired and 6 therefore, to the best of Defendant's knowledge, all issues related to any mold and/or water damage at the Property had been fully resolved prior to execution of the Agreement. It is specifically denied that Defendant had knowledge of any "harmful mold" at the Property prior to entering into the Agreement. To the contrary, mold is a naturally occurring substance and an inspection conducted by Analytical Laboratory Services, Inc. established that the spore counts at the Property were significantly lower than any of those in the outside air samples. 31. Denied. It is specifically denied that Defendant had any knowledge of any "defective condition" that it was required to be disclosed to Plaintiffs. To the contrary, as previously stated herein, to the best of Defendant's knowledge, all issues related to any mold and/or water damage at the Property had been resolved prior to execution of the Agreement. 32. Denied. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the truth of the averments in Paragraph 32 of Plaintiffs' Complaint and thus said averments are deemed denied and strict proof of the same is demanded. 33. Paragraph 33 of Plaintiffs' Complaint is a legal conclusion to which no response is required. By way of further answer, as previously stated herein, Defendant did not provide Plaintiffs with a disclosure because no disclosure was required by the Real Estate Disclosure Law, as this was a transfer of new residential construction and was therefore exempt from the requirements of the Real Estate Disclosure Law. 34. Denied. It is denied that no Certificate of Occupancy has been issued for the Property. To the contrary, a Certificate of Occupancy was issued for the Property in 7 August, 2010 and the Property is presently occupied. Moreover, a Certificate of Occupancy was available to be issued prior to the date of closing; the Certificate of Occupancy was not issued by that date because Plaintiffs breached the Agreement. The remainder of the averments contained in Paragraph 35 of Plaintiffs' Complaint are legal conclusions to which no response is required. 35. Denied. It is denied that Plaintiffs have suffered damages in excess of $26,000.00 in damages. To the contrary, Defendant is not liable to Plaintiffs for the deposits made on the Property because, pursuant to the Agreements, Defendant was permitted to retain the deposit as liquidated damages due to Plaintiffs' breach of the Agreement. Moreover, Defendant is not liable to Plaintiffs for storage expenses because, as previously stated herein, Defendant provided temporary housing and storage, free of cost, for Plaintiffs prior to the scheduled closing. Plaintiffs took the benefit of said housing and storage and then breached their Agreement with Defendant. Lastly, Defendant denies that it is liable to Plaintiffs for their loss of opportunity to use the Federal Tax Credit because the loss of opportunity arose from Plaintiffs' decision to breach the Agreement with Defendant. To the contrary, had Plaintiffs not breached the Agreement, the Federal Tax Credit would have been available for their use. The remainder of the averments contained in Paragraph 35 of Plaintiffs' Complaint are legal conclusions to which no response is required. WHEREFORE, Defendant, Triple Crown Corporation, requests that this Honorable Court enter judgment in its favor and against Plaintiffs, dismiss Plaintiffs' Complaint with prejudice and further award Defendant all such other relief as is proper and just. 8 COUNT II RESCISSION 36. Incorporation paragraph. No response required. 37. Denied. It is specifically denied that Defendant failed to disclose any "material defect" to Plaintiffs. To the contrary, as previously stated herein, to the best of Defendant's knowledge, all issues related to any mold and/or water damage at the Property had been completely resolved prior to execution of the Agreement. The remainder of the averments contained in Paragraph 37 of Plaintiffs' Complaint are legal conclusions to which no response is required. 38. Paragraph 38 of Plaintiffs' Complaint is a legal conclusion to which no response is required. 39. Denied. It is specifically denied that Defendant had any knowledge of any "material defect" that it was required to disclose to Plaintiffs. To the contrary, as previously stated herein, to the best of Defendant's knowledge, all issues related to any mold and/or water damage at the Property had been completely resolved prior to execution of the Agreement. 40. Paragraph 40 of Plaintiffs' Complaint is a legal conclusion to which no response is required. 41. Denied. It is denied that Defendant concealed any information related to the Property in an effort to induce Plaintiffs to enter into the Agreement. To the contrary, Defendant disclosed everything it was required to disclose pursuant to Pennsylvania law. As previously stated herein, to the best of Defendant's knowledge, all issues related to any mold and/or water damage at the Property had been completely resolved prior to execution of the Agreement and therefore did not need to be 9 disclosed to Plaintiffs. Further, the Agreement specifically permitted Plaintiffs to conduct inspections of the Property as Defendant had nothing to hide. The remainder of the averments contained in Paragraph 41 of Plaintiffs' Complaint are legal conclusions to which no response is required. 42. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the truth of the remaining averments in Paragraph 42 of Plaintiffs' Complaint and thus said averments are deemed denied and strict proof of the same is demanded. 43. Paragraph 43 of Plaintiffs' Complaint is a legal conclusion to which no response is required. WHEREFORE, Defendant, Triple Crown Corporation, requests that this Honorable Court enter judgment in its favor and against Plaintiffs, dismiss Plaintiffs' Complaint with prejudice and further award Defendant all such other relief as is proper and just. COUNT III, FRAUD (FRAUDULENT INDUCEMENT) 44. Incorporation paragraph. No response required. 45. Denied. It is denied that Defendant made a misrepresentation in the nature of concealment of facts calculated to deceive the Plaintiffs and/or failed to disclose a material defect in the Property. To the contrary, as previously stated herein, to the best of Defendant's knowledge, all issues related to any mold and/or water damage at the Property had been completely resolved prior to execution of the Agreement and therefore did not need to be disclosed to Plaintiffs. Further, the Agreement specifically permitted Plaintiffs to conduct inspections of the Property as Defendant 10 had nothing to hide. The remainder of the averments contained in Paragraph 45 of Plaintiffs' Complaint are legal conclusions to which no response is required. 46. Paragraph 46 of Plaintiffs' Complaint is a legal conclusion to which no response is required. 47. Denied. It is denied that Defendant failed to disclose a defective condition of the Property with the intent of misleading the Plaintiffs. To the contrary, as previously stated herein, to the best of Defendant's knowledge, all issues related to any mold and/or water damage at the Property had been completely resolved prior to execution of the Agreement and therefore did not need to be disclosed to Plaintiffs. The remainder of the averments contained in Paragraph 47 of Plaintiffs' Complaint are legal conclusions to which no response is required 48. Paragraph 48 of Plaintiffs' Complaint is a legal conclusion to which no response is required. 49. Paragraph 49 of Plaintiffs' Complaint is a legal conclusion to which no response is required. 50. Paragraph 50 of Plaintiffs' Complaint is a legal conclusion to which no response is required. WHEREFORE, Defendant, Triple Crown Corporation, requests that this Honorable Court enter judgment in its favor and against Plaintiffs, dismiss Plaintiffs' Complaint with prejudice and further award Defendant all such other relief as is proper and just. COUNT IV VIOLATION OF THE UNFAIR TRADE PRACTICES AND CONSUMER PROTECTION ACT 73 P.S. 4201 et. seq. 51. Incorporation paragraph. No response required. 11 52. Paragraph 52 of Plaintiffs' Complaint is a legal conclusion to which no response is required. 53. Paragraph 53 of Plaintiffs' Complaint is a legal conclusion to which no response is required. 54. Paragraph 54 of Plaintiffs' Complaint is a legal conclusion to which no response is required. 55. Paragraph 55 of Plaintiffs' Complaint is a legal conclusion to which no response is required. 56. Paragraph 56 of Plaintiffs' Complaint is a legal conclusion to which no response is required. 57. Paragraph 57 of Plaintiffs' Complaint is a legal conclusion to which no response is required. WHEREFORE, Defendant, Triple Crown Corporation, requests that this Honorable Court enter judgment in its favor and against Plaintiffs, dismiss Plaintiffs' Complaint with prejudice and further award Defendant all such other relief as is proper and just. COUNT V VIOLATION OF THE PENNSYLVANIA DISCLOSURE LAW 68 Pa.C.S.A. 47301 et. seq. 58. Incorporation paragraph. No response required. 59. Paragraph 59 of Plaintiffs' Complaint is a legal conclusion to which no response is required. 60. Admitted. By way of further answer, Defendant did not provide Plaintiffs with a disclosure because no disclosure was required by the Real Estate Disclosure Law, as 12 this was a transfer of new residential construction and was therefore exempt from the requirements of the Real Estate Disclosure Law. 61. Paragraph 61 of Plaintiffs' Complaint is a legal conclusion to which no response is required. WHEREFORE, Defendant, Triple Crown Corporation, requests that this Honorable Court enter judgment in its favor and against Plaintiffs, dismiss Plaintiffs' Complaint with prejudice and further award Defendant all such other relief as is proper and just. NEW MATTER 62. The averments set forth in paragraphs 1 through 61 are incorporated by reference as if more fully set forth at length herein. 63. Plaintiffs breached the March 11, 2010 Agreement by terminating the Agreement without cause. 64. Pursuant to the terms of the Agreement, Defendant is entitled to retain the deposit as liquidated damages due to Plaintiffs' breach. 65. In Counts I and V of Plaintiffs' Complaint, Plaintiffs aver violations of the Pennsylvania Real Estate Disclosure Law, 68 Pa.C.S. § 7301 et seq., ("Disclosure Law") 66. The Disclosure Law does not apply in the present instance as it does not apply to transfers of new residential construction that have not been previously occupied provided: (i) the buyer has received a one-year or longer written warranty covering such construction; (ii) the dwelling has been inspected for compliance with the applicable building code or, if there is no applicable code, for compliance with a 13 nationally recognized model building code; and (iii) a certificate of occupancy or a certificate of code compliance has been issued for the dwelling. 67. Because the Property had not been previously occupied, the Plaintiffs were to receive a one-year written warranty under the Agreement, the dwelling was inspected for compliance with applicable building codes, and a certificate of occupancy was to be issued with respect to the Property had Plaintiffs not breached the Agreement prior to closing, the Disclosure Law is inapplicable here, and Defendant was not required by statute to provide Plaintiffs with a written seller's disclosure with respect to the Property. WHEREFORE, Defendant, Triple Crown Corporation, respectfully requests that this Honorable Court enter judgment in its favor and against Plaintiffs, dismiss Plaintiffs' Complaint with prejudice, and further award Defendant all such other relief as is proper and just. Respectfully submitted, SERRATELLI, SCHIFFMAN, & BROWN, P. C n Date: February 14, 2011 rIen J. Schiffinan, Esquire D No. 25488 Jeni S. Madden, Esquire Pa. ID No. 209536 2080 Linglestown Road, Suite 201 Harrisburg, PA 17110-9670 (717) 540-9170 telephone (717) 540-5481 facsimile Attorney for Defendant 14 VERIFICATION I, Mark X. DiSanto, state that I am President of Triple Crown Corporation Inc., that I am authorized to make this Verification on its behalf and that the facts set forth in the Answer and New Matter to Plaintiffs' Complaint are true upon my personal knowledge, information and belief. I understand that my statements are made subject to 18 Pa.C.S. § 4904 providing for criminal penalties for unsworn falsification to authorities. I0NI1NC. TRIPLE CROWN CORPqRAq Date ?)-1`t-1c By Mark X. CERTIFICATE OF SERVICE I, Jeni S. Madden, Esquire, do hereby certify that on this 14th day of February, 2011, 1 served a copy of the foregoing Defendant's Answer and New Matter to Plaintiffs' Complaint by United States Mail, First Class, postage pre-paid, to the following person(s): David S. Makara, Esquire 10 E. 6th Avenue Suite 100 Conshohocken, PA 19428 Counsel for Plaintiffs r? J i S. Madden, Esquire 16 SERRATELLI, SCHIFFMAN & BROWN, PC Steven J. Schiffman, Esquire Jeni S. Madden, Esquire Attorney ID Nos. 25488 & 209536 2080 Linglestown Road, Suite 201 Harrisburg, PA 17110-9670 (717) 5411=9776.1 (717) 540-5481 facsimile sschifman(tbssbc-law. com imaddennssbc-law. com Attorney for Defendant 'C'UMBERLAND COUNT' PENNSYLVANIA --fit BRANDON R. and JULIANNE M. MORGANS, husband and wife, IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA Plaintiffs V. No. 10-5740 CIVIL TERM TRIPLE CROWN CORPORATION, Defendant DEFENDANT'S MOTION FOR PARTIAL SUMMARY JUDGMENT AND NOW comes Defendant, Triple Crown Corporation, by and through its attorneys, Serratelli, Schiffman & Brown, P.C., and files its Motion for Partial Summary Judgment, and in support thereof avers as follows: 1. Statement of Issues Presented Herein 1. Defendant Triple Crown Corporation ("Defendant") presents this Motion for Partial Summary Judgment and moves this Court to dismiss Counts I and V of Plaintiffs' Complaint because Pennsylvania's Real Estate Disclosure Law, 68 Pa.C.S. § 7301 et seq., is not applicable in the present matter. II. Relevant Procedural History 2. Plaintiffs Brandon R. Morgans and Julianne M. Morgans ("Plaintiffs") commenced this action by filing their Complaint in the above-captioned matter on or about September 10, 2010. 1 ;. On September 30, 2010, Defendant filed its Preliminary Objections to Plaintiffs' Complaint. 4. On or about October 22, 2010, Plaintiffs filed their Answer to Defendant's Preliminary Objections. 5. On or about December 30, 2010, Defendant filed a brief in support of its Preliminary Objections. 6. On or about January 5, 2011, Plaintiffs filed their Memorandum of Law in Opposition to Defendant's Preliminary Objections. 7. On January 14, 2011, this Honorable Court heard argument regarding Defendant's Preliminary Objections. 8. On January 25, 2011, this Honorable Court issued an Order, denying Defendant's Preliminary Objections to Plaintiffs' Complaint. 9. On February 14, 2011, Defendant filed its Answer and New Matter to Plaintiffs' Complaint. 10. On March 22, 2011, Plaintiffs filed their Reply to Defendant's New Matter. 11. Discovery relevant to this Motion has been completed. 12. Defendant now files its Motion for Partial Summary Judgment. III. Standard for Summary Judgment 13. The standard for summary judgment in Pennsylvania is well settled. Pennsylvania Rule of Civil Procedure 1035.2 states: After the relevant pleadings are closed, but within such a time as not to unreasonably delay trial, any party may move for summary judgment in whole or part as a matter of law: 2 (1) whenever there is no genuine issue of material fact as to a necessary element of the cause of action or defense which could be established by additional discovery or expert report, or (2) if, after the completion of discovery relevant to the motion, including the production of expert reports, as adverse party who will bear the burden of proof at trial had failed to produce evidence of facts essential to the cause action or defense which in a jury trial would require the issues to be submitted to a jury. IV. Pennsylvania Real Estate Disclosure Law 14. Defendant Triple Crown Corporation was the owner of real property known as 14 Foxwood Boulevard, Mechanicsburg, Pennsylvania 17050 ("the Property"). 15. On or about March 15, 2010, Plaintiffs and Defendant entered into a written agreement whereby Plaintiffs agreed to purchase the Property for a specified sum ("the Agreement"). 16. Prior to settlement, on or about April 30, 2010, Plaintiffs had a home inspection performed on the Property. 17. Plaintiffs claim that the home inspection revealed excessive moisture in the structure on the Property. 18. On or about May 11, 2010, Plaintiffs had further tests conducted on the Property, which they claim revealed the presence of mold in the structure on the Property. 19. In Counts I and V of their Complaint, Plaintiffs are alleging that the Defendant violated the Pennsylvania Real Estate Disclosure Law, 68 Pa.C.S. § 7301 et seq., ("Disclosure Law") by allegedly failing to disclose previous problems at the Property with moisture and/or mold. 20. The Disclosure Law applies to all residential real estate transfers, except transfers of new residential construction that has not been previously occupied, provided: (i) the buyer has received a one-year or longer written warranty covering such construction; (ii) the dwelling has been inspected for compliance with the applicable building code or, if there is no applicable code, for compliance with a nationally recognized model building code; and (iii) a certificate of occupancy or a certificate of code compliance has been issued for the dwelling. 68 Pa.C.S. § 7302. V. Undisputed Facts Supporting Motion for Partial Summary Judgment 21. The Property was new residential construction that has not been previously occupied. See Exhibit "A," Deposition of David Shuey, N.T. 14,11.15-24. 22. Plaintiffs received a one-year or longer written warranty. See Addendum "F" to the Agreement, attached hereto as Exhibit "B." See also Plaintiffs' Answers to Defendant's Requests for Admissions, true and correct copies of which are attached hereto as Exhibit «C ] 23. The Property had been inspected for compliance with the applicable building code. A copy of the certificate of occupancy showing the date of said inspection as August 11, 2010, which was disclosed to Plaintiffs during discovery, is attached hereto as Exhibit "D." See also Exhibit "C." 24. A certificate of occupancy or a certificate of code compliance has been issued for the Property. See Exhibits "C" and "D." VI. Request for Relief 25. The pleadings are closed and time exists within which to dispose of this Motion without delaying trial. 26. The pleadings and the documents attached to this Motion establish that there is no 4 genuine issue of material fact to be tried. WHEREFORE, Defendant, Triple Crown Corporation, requests that this Court enter judgment in favor of-Defendant and against Plaintiffs, dismiss Count I and Count V of Plaintiffs' Complaint and grant Defendant any other relief the Court deems proper and just. Respectfully submitted, SERRATELLI, SCHIFFMAN & BROWN, PC ma Stev J. Schiffman, Esquire Pa. No. 25488 Jeni S. Madden, Esquire Pa. ID No. 209536 2080 Linglestown Road, Suite 201 Harrisburg, PA 17110-9670 (717) 540-9170 telephone Date: August 1, 2011 (717) 540-5481 facsimile Attorneys for Defendant CERTIFICATE OF SERVICE I, Jeni S. Madden, Esquire, do hereby certify that on this 1St day of August, 2011, I served a copy of the Defendant's Motion for Partial Summary Judgment via email and United States Mail, First Class, postage pre-paid, to the following person(s): David S. Makara, Esquire 10 E. 6th Avenue Suite 100 Conshohocken, PA 19428 dmakara@davisbucco. com Counsel for Plaintiffs ?"Moidc-I - Jeni . Madden, Esquire 6 ?X?i???? 14 DAVID SHUEY 1 the community rather than Altieri. As I remember, 2 Altieri ceased to exist. So we had no dealings with them 3 as an entity or any of the -- to my knowledge -- any of 4 the previous principals in that organization. 5 Q. So would it be accurate to say that prior to 6 Triple Crown's acquisition of these properties, they had 7 been foreclosed upon by the lender? 8 A. I presume that was what happened. Not knowing 9 the nature of the original development agreement, there 10 may have been a partnership rather than a foreclosure. 11 But I presume it was foreclosed upon. 12 Q. What was the condition of those homes, including 13 14 Foxwood Boulevard, when they were acquired by Triple 14 Crown? 15 A. Well, it varied because my recollection is that 16 each of the five homes was at a varying state or progress 17 in its construction when they suspended construction. 18 So all of the homes except for one -- and that one is not 19 the subject of this lawsuit -- 14 -- were closed up. In 20 other words, windows were closed, doors were locked, the 21 structures were closed to the elements. i. Different structures had varying--degk%:?es of 23 exterior finish work, and I don't believe that 14 was the 24 most finished of the five. 25 Q. Do you know whether 14 was enclosed or ELECTRONIC REPORTING STENOGRAPHIC AFFILIATES b7 FOXWOOD PRE-PLANNED HOME ADDENDA TO AGREEMENT OF SALE Agreement for the Sale and Purchase of Real Estate by and between B amdon Robert Mo rc_ Julianne Melinda Moraans the Buyer(s), and Seller, dated March 11. 2010 concerning the real property commonly known as 14 Foxwood Boulevard. Mechanicsburg PA 17050 Phase # // , home-site No. #11 in "Foxwood" in Silver Spring Township. ADDENDUM "A" - PROCEDURES The undersigned Buyer and Seller hereby agree to the following: 1. Buyer understands and agrees that Buyer will deliver to Seller a signed, dated and completed copy of Addendum B (Construction Order Form with selections) within 10 days of contract acceptance. If the Addendum B Custom Home Worksheet is not presented within the allotted time frame to Seller. the house will not be started and all construction planning will cease until the Addendum B is submitted - IF APPLICABLE 2. If Buyer does not perform his obligations under paragraph 1 hereof, Buyer then agrees to move the settlement date back one (1) working day for each and every day the Addendum B is not executed within the prescribed time frames. - IF APPLICABLE 3. All changes to the property, addenda, contingencies, extras, or special requests, whether incorporated in the Purchase Contract or not, will be executed or re-executed on Seller's Change Orders and signed by all parties. NO CHANGE WILL BE HAM ON THE HOME UNTIL FULL PAYMENT FOR THAT CHANGE HAS BEEN RECEIVED BY SELLER OR FINANCED. (If applicable). ALL BUYER ORIGINATED CHANGE ORDERS E[`1?i1fVii_ )i AFTER THE ORIGINAL CONTRACT DATE WILL BE SUBJECT TO A $250.00 POSTRATIVE FEE IN ADDITION TO THE WORK BEING P 3tFORME.D_ Seller reserves the right to adjust the settlement date in a reasonable manner to accommodate completion of said Change Order. 4. Buyer understands and agrees that any excavation to lot requiring "rock removal" will be charged to the buyer at $35.00 per cubic yard as an extra to the contract. (If Applicable) 5. Due to township building codes, future finished basements that do not have a means of egress may be required to do so by code. An approved means of egress would be a bilco door, escape window well or exposed walkout basement if the building site allows. All of these would be options that the Buyer must select and pay for while completing their Addendum B. This Addendum is herewith made an integral PKt of the aforementioned Agreement of Sale PURCHASER(S) DMAIS Updated: 3/15/1010 ADDENDUM "B" - SELECTION SHEET ON SEPARATE DOCUMENTS - IF APPLICABLE _ Buyer(s) will have 10 days from contract acceptance to complete all selections on the home. This Addendum is herewith made an Integra rt of the aforementioned Agreement of Sale PURCHASER(S)1NTI7ALS ADDENDUM "C" - NOTICE REG G RADON GAS Seller will construct and provide piping under the concrete slab which will be capped for availability for a future connection to an exhaust system if desired by Buyer should it be determined that Radon level exceeds saf exhaust e limits. The expense and installation of any such Buyersystem or any other measures taken concerning Radon shall be the sole expense of the . In consideration for the installation of said piping, Buyers hereby release, quitclaim and forever discharge Seller. Seller's Agent, Employees and Sub-Contractors and an officer or any one of them and any person firm or corporatiowho may be liable by or through thpartner or em from any and all claims, losses or demands, including personal injuries, and all of the consequences thereof, whether now known or not, which may arise from the presence of Radon in any building which is the subject of this Agreement. It is further agreed that the limited warranty the Agreement is in lieu of all other warranties, a provided in xpressed or implied, including any warranties of merchantability or fitness for a particular use, and in no event shall the Serer be liable for respect to the existence of or levels of Radon gas or Radon da Buyers acknowledge receipt of notice regarding or any other indoor air pollutants, below. gig Radon Gas, as indicated in the sub-paragraphs 1 • Radon is a radioactive gas produced naturally in the ground by the normal decay of uranium and radium.. Uranium and radium are widely distributed in trace amounts the earth's crust. Descendants of Radon gas are called Radon da several Radon da ughters, or Radon progeny. ughters emit alpha radiation, which has high energy but short range. 2- Studies indicate the result of extended exposure to high. levels of Radon gas/Radon daughters is an increased risk of lung cancer. Radon gas originates in soil ,and rocks. It diffuses path of least resistance to the surface of the ? as does any gas, and flows along the gas, Radon can also move into an ground and then to the atmosphere. Being a permeate throughout air space, such as basements, crawl spaces and the home. 4• If a house has Radon problem, Preventing Radon entry it can usually be cured by increased ventilation and or . 5. The EPA advises corrective action if the annual average exposure to Radon daughters exceeds 0.02 working levels (4 Pico curies per liter). 6. . Further information can be secured from the DEP Radon project office, 1100 Gosser Road, Oilbertsville, Pa 19525; Call 1-800-23R.ADON or (215) 369-3590: Updated: VIS/2010 This Addendum is herewith made an integral part of the aforementioned Agreement of Sale PURCHASER(S) IMTIAIS ADDENDUM "D"-ENDORSEMENT 4AGREEMENT OF SALE It is understood and agreed that the above Agreement of sale shall be endorsed as follows: Agent(s) or Sub-Agent(s), if any, are representing Seller. not the Buyer. 2. The Pennsylvania General Assembly has established a Real Estate Recovery Fund. The purpose of the Fund is to compensate persons to obtain a judgment because of the fraud, misrepresentation or deceit of an Agent. For information, call (717) 783-3658 or 1-800- 822-2113. This Addendum is herewith made an integral part of the aforementioned Agreement of Sale PURCHASER(S) IMTIALS p ADDENDUM "E" - INSP?EJ'C?TIIOONS UCESS"/METINGS The undersigned Buyer and Seller agree to the following: WHEREAS Buyer understands and agrees that, due to constraints placed upon Seller and its insurance carrier, Buyer will not enter the above premises during the construction period and agrees to the following: 1. Buyer will be contacted by Seller's representative to schedule the following construction inspections and Buyer will be accompanied on the job site by Senses representative during said inspections and strictly adhere to Seller's Safety Policies and Procedures: All meetings will be held at 10 AM on the scheduled day. a. A pre-construction meeting held and conducted by a Seller representative with buyer(s), Realtor(s), and Design/Estimating to confirm correctness on all details of the house - IF APPLICABLE b. Inspection scheduled and conducted.. by.. !Construction. Superintendent at completion of Framing, Rough Plumbing, Rough Electric and Insulation and prior to drywall - IF APPLICABLE C. Inspection at Final completion/Home Orientation scheduled by the Sales Department and conducted by the Construction Superintendent (or Management Representative) d. Buyers should direct all inquiries or concerns directly to the Community Managers. e. Buyers may schedule a visit to the lot and construction site ONLY upon scheduling with an authorized agent of Seller. However, it is understood that at no time during such visit, or at any other. time, shall buyer give written or verbal instructions, orders, directions or questions to sub contractors or Seller Employees. updated: 3/15/2010 2. Seller may at his sole discretion extend the settlement date 30 days without penalty or cause of action for damages by Buyer. (If applicable) This Addendum is herewith made an int of the aforementioned Agreement of Sale PURCHASER(S) INITIALS„ ADDENDUM "F" - LIbIITED W ACKNOWLEDGMENT The only warranties provided by the Seller are those expressly provided for in this Addendum "F". Buyer hereby acknowledges receipt of Sellers Limited Warranty Policy and Warranty Standards Booklet which provides a full and complete description of the standards applicable to Seller's limited one year warranty. Other than the limited one-year warranty subject to the applicable standards set forth in the Warranty Booklet Seller hereby offers and is selling the property in an "as is" condition. Buyer has been advised by S, euees Agent that Seller is registered with American eBuilder Warranty Corporation and that the Builder will purchase an additional ten year limited warranty on Buyer's behalf at settlement. BY EXECUTION OF TffiS AGREEMENT, BUYER ACCEPTS SELLERS ONE-YEAR LEWTED WARRANTY SUBJECT' TO THE STANDARDS APPLICABLE IN TEE WARRANTY STANDARDS BOOKLET AGREES TO THE TERMS AND CONDITIONS THEREW. BUYER AGREES THAT EXCEPT AS SET FORTH ABOVE, THERE ARE NO WARRANTIES OR REPItESEWATIONS; OF ANY MM, EXPRESSED OR IMPLIED INCLUDING BUT NOT LEVU= TO NMCHANTABELM, HABIT'ABUM Y, ORFTTNESS FORA PARTICULAR PURPOSL This Addendum is herewith made any integral p of the aforementioned Agreement of Sale PURCHASER(S) INITIALS J.A ADDENDUM "G" - PRE-APP-T?ROV ? r AL/ VARTPOSIT The undersigned Buyer and Seller hereby agree to the following: 1. Buyer undustaods and agrees that inespeedw of the clad setdesnft wr71 dedivrr bo SeDer a left ft m Buyer's p gx)sed I=L-r indicating forthe mortgage IM indicated in Buyers oo9acd witlmft (10) days of of Sale cue, 2. Bwer agi+ = to place a n Hv imdaHe start deposit in I, amogaot of ibe purchase pie and M4 14Q -eptia+son aoornmt with Seer, Budder: Said dq t will be applied to the cbwn payme eckm bg co kaMe 10 sts of the subject property at the time of settlement. In the evaYt that settlemeiat does not ooaa due t0 pafann on the pact of the Buyer, said deposit wM be kdehed in full roc Seller as 4*1ded dmages. This Addendum is herewith made an integral part of the aforementioned Agreement of Sale PURCHASER(S) DMIALS Updated., 3115/2010 ADDENDUM "H" - SETTLEMENT Buyer(s) choose to use Secured Land Transfers Inc., as their Title Company (485 St. John's Church Road, Shiremanstown, PA 17011, (717) 901-8342). Secured Land will guarantee the Builder Rate on all Title Insurance. The Builder Rate is the lowest applicable rate allowed by law and is the re-issue rate less 10%. All settlements will take place at Seller's main office at 5351 Jaycee Avenue, Harrisburg, PA 17112, (717) 657- 5729. If Buyer chooses an Attorney or another Title Company to issue title insurance for them then, Buyer agrees to pay any disbursement fees charged by their Attorney or Title Company and pay Seller a $250 Administrative fee. This Addendum is herewith made an integral part of the aforementioned Agreement of Sale PURCHASER(S) IIVITIAIrS ADDENDUM "I" - PROPERTY CO I NGENCY - IF APPLICABLE "If Buyer(s) do not release their property contingency within 60 days of signed contract, Seller at its option may adjust the base price of the home to reflect the pricing that Seger is using at that time" If the property contingency is released within 60 days of the signed contract, the contract price will be honored and construction will begin provided all buyer's selections are made and a completed "B" addendum is delivered to Seller. An amended completion date and settlement date will be delivered to buyers when construction schedule has been confirmed. ADDENDUM "J" - PRIVACY POLICY What this Privacy Policy Covers • This Privacy Policy covers Seller's treatment of non public personally identifiable infomMation that we collect when you, the "customer" or "consumer", the purchase of e; home through us. This policy also covers our treatment of any nonpublic personally identifiable information that our business partners share with us. • This policy does not apply to the practices of non-affiliates of &Jer. Information Collection and Use • We collect nonpublic personal information about you from the following sources: ¦ Information we receive from you on Sales Agreement or other fb=; ¦ Information about your transactions with us, our affiliates, or others; and ¦ Information we receive from a consumer reporting agency. Information Sharing and Disclosure Updated: 3/15/2010 We do not disclose any nonpublic personal information about our customers or former customers to anyone, except as permitted by law. Confidentiality and Security • We restrict access to nonpublic personal information about you to those employees who need to know that information to provide products or services to you. This Addendum is herewith made an Integral part of the aforementioned Agreement of Sale PURCHASER(S) INITIALS 1 1 v ADDENDUM "K" -YARD ENCROACffiV1>CNTS The Builder is responsible for blending in the home sites that are adjacent you your home site. If the home site you have chosen has an undeveloped lot next to your, once that home site is developed, the builder will have the right to encroach on your property to blend in the yards. This will include additional topsoil and seeding where necessary. The Builder will make every attempt to restore your home site to its original condition. This Addendum is herewith made an Integral part of the aforementioned Agreement of Sale PURCHASER(S) Initials M..,, ADDENDUM "L" - CONSTR ION, SITE AND UTILITIES Buyer recognizes that the location of all utility meters, driveways, walk ways, patios, grading, planting, landscaping, including the disposition of existing trees, control of water flow, the inclusion or exclusion of retaining walls, and other site and job conditions are subject to change at the reasonable discretion of Se__•__IIer. depending upon site or job conditions encountered or any government authority having jurisdiction. 2. Seller reserves the right to make such changes or substitutions in the constructions, materials and equipment with respect to the work, as maybe required. If required, together with such other reasonable changes as S= may deem necessary by reason of unavailability of certain materials or equipment or by reason of peculiar construction requirements or topography of the lot. Seller reserves the right to modify the location of mechanical and electrical equipment such as HVAC, water heater, sump pump, etc. as required to meet engineering, construction, best use, equivalent function or code requirements. This Addendum is herewith made an integral part of the aforementioned Agreement of Sale Purchaser(s) Initials W*.-. THE HEREINABOVE WRITTEN ADDENDA: A __,_ B _,C ,,D . E F___, G H I J _K L ARE ACKNOWLEDGED, ACCEFMD AND APPROVED AND ARE Updated: 31152010 INCORPORATED IN THE REFERENCED AGREEMENT OF SALE AS IF THEREIN WRrITEN IN i FULL. IN WITNESS WHEREOF, we have hereunto set our hands and seals the day of _ .20 Agent/Witness as to Buyer(s) Date 17ate uyer JnA An Al I Buy SELLER BY: Triple Crown Co n BY: Updated: 3/15/2010 ?X? i??? Steven J. Schiffman, Esquire PA I.D. No. 25488 Jeni S. Madden, Esquire PA I.D. No. 209536 SERRATELLI, SCHIFFMAN & BROWN, P.C. 2080 Linglestown Road, Suite 201 Harrisburg, PA 17110 (717) 540-9170 sschiffman? ssbc-Iaw.com j madden(a., ssbc-law. com Counsel for Defendant BRANDON R. and JULIANNE M. IN THE COURT OF COMMON PLEAS OF MORGANS, husband and wife, Plaintiffs V. : CUMBERLAND COUNTY PENNSYLVANIA : No. 10-5740 CIVIL TERM TRIPLE CROWN CORPORATION, Defendant DEFENDANT'S REQUESTS FOR ADMISSION (First Set) DIRECTED TO PLAINTIFF, JULIANNE M. MORGANS AND NOW this 21St day of April, 2011, Defendant Triple Crown Corporation (hereinafter "Defendant") by its undersigned counsel, hereby serves the following Request for Admissions Directed to Julianne R. Morgans (hereinafter "Plaintiff") (First Set), by and through their counsel pursuant to Rule 4014 of the Pennsylvania Rules of Civil Procedure. INSTRUCTIONS 1. You are required to file answers under oath to the following Request for Admissions, pursuant to Rule 4014 of the Pennsylvania Rules of Civil Procedure and within 30 days after service upon you. 2. As used herein, the words "you" and "your" refer to Plaintiff Julianne R. Morgans, as well as Plaintiff's agents, representatives, attorneys and all other persons acting or purporting to act on behalf of Plaintiff. As used herein, "identify" or "identity", when, used in reference to an individual person or entity, means to state his or its name and address. 4. In responding to these Requests for Admission, you are requested to identify all documents or things in your possession, custody or control, or known or available to you, regardless of whether such documents or things are possessed directly by you or by your attorneys or their agents, employees, representatives or investigators. 5. Unless otherwise indicated in a specific Request for Admission, the relevant time period for these Requests for Admission is January 1, 2010 through the present. 6. If any Request for Admission cannot be responded to in full, respond to the extent possible, indicating what portion of any Request for Admission cannot be responded to and the reason therefore. 7. To the extent that you consider any of the following Request for Admissions objectionable, respond to so much of each Request for Admission and part thereof, as is not objectionable in your view and separately state that part of each Request for Admission as to which you raise objections and each ground for such objection. If you object to the identification of any document on the claim of attorney/client privilege, work product privilege, or any other privilege, identify the privilege claimed, as well as each document for which such privilege is claimed, together with the following information with respect to each such document: a. Date; b. Sender; c. Addressee; d. Subject; e. The basis on which the privilege is claimed; and 2 f. The full identification of all persons to whom copies of any part of the document were furnished, including each person's full address, phone number, present employer and job title. DEFINITIONS "Agreement" shall mean the written agreement between Plaintiffs Brandon R. and Julianne M. Morgans, and all addendums thereto, attached as Exhibits "A" through "E" to Plaintiffs' Complaint. 2. The words "and" and "or" shall mean "and/or." 3. The term "communication" means any writing, or oral conversation, including, but not limited to, emails, telephone conversations, meetings, letters, telegraphic and telex communications, and includes all information relating to all oral communications and "documents" (as herein above defined), whether or not any such document, or other information contained therein was transmitted by its author to any other person. 4. "Complaint" refers to the Complaint filed by Plaintiffs Brandon R. and Julianne M. Morgans and against Defendant in the Court of Common Pleas, Cumberland County, Pennsylvania at Docket No. 10-5740 CV. 5. "Copy" when used in reference to a document means any color, or black or white facsimile reproduction of a document, regardless of whether the facsimile reproduction is made by means of carbon papers, pressure sensitive paper, xerography or other means or process. 6. "Defendant" or "Defendant's" refers to Triple Crown Corporation. 7. The word "document" or "documents" refers to any printed, written, taped, recorded, graphic, electronic, computerized printout, or other tangible matter from whatever source, including computer disks, floppy disks, hard drives, CD-ROMs, tapes, cartridges, zip drives, or other computer data storage devices, however produced or reproduced, whether in draft 3 or otherwise, whether sent or received, or neither, including, but not limited to, the original, a copy (if the original is not available), and all non-identical copies (whether different from the original because of notes made on or attached to such copy or otherwise) of any and all writings, account statements, ledgers, bills, invoices, receipts, correspondence, letters, telegrams, cables, telexes, routing slips, contracts, proposals, agreements, minutes, acknowledgments, notes, marginalia, notations, memoranda, intra and interoffice communications, intra and interdepartmental communications, analyses, projections, work papers, books, papers, records, reports, diaries, journals, notes or recordings of telephone or other conversations, statements, questionnaires, schedules, computer programs or data, books of account, calendars, time cards, time sheets, graphs, charts, transcripts, tapes or recordings, photographs, pictures or film, ledgers, registers, work sheets, summaries, digests, financial statements, and all other information whether data, records or compilations, including all underlying, supporting or preparatory material now in your possession, custody or control, or available to you, your counsel, accountants, agents, representatives or associates. "Document" or "documents" specifically includes documents kept by individuals in their desks, at home or elsewhere. 8. "Identify" or "identity" when used in reference to: a. An individual, shall mean to state his or her full legal name and present or last known address (including zip code), phone number, and present or last known position or business affiliation (designating which), and the job description. b. A document shall mean to state the date, author, sender, recipient, type of document or some other means of identifying it, a description of the subject matter of the document, and its present location and custodian. In the case of a document within the possession, custody or control of the Plaintiff, please state whether the Plaintiff will make it available to Defendant's attorney for inspection and/or copying; and in the case of a document that was, but is no longer in the possession, custody or control of Plaintiffs, please state its present location. 4 C. A communication shall include any oral or written communications and shall mean to state with particularity the date, maker, recipient, and substance of the communication, including the identification of all persons present during the communication, or with knowledge of the communication. d. Use of the plural form of any word shall be deemed to include the singular form, and use of the singular form shall be deemed to include the plural form. 9. "Meeting" means any gathering, formal or informal, of two or more persons. 10. "Person" means any natural person, any business entity (whether a corporation, partnership, or other business association), any government or political subdivision thereof, or governmental body, commission, board, agency, bureau or department. 11. "Plaintiff' or "Plaintiff's" shall refer to Julianne R. Morgans. 12. "Plaintiffs" shall collectively refer to Brandon R. Morgans and Julianne M. Morgans 13. "Property" shall means the real property known as 14 Foxwood Boulevard, Mechanicsburg, Pennsylvania 17050. 14. The terms "refer to," "relate to," "relating to" and "with regard to" shall mean concern or concerning, pertain or pertaining, discuss or discussing, mention or mentioning, reflect or reflecting, assess or assessing, record or recording, comprise or comprising, consist of or consisting of, evaluate or evaluating, analyze or analyzing the specified subject. 15. "You", "your", or "Plaintiff" shall mean Julianne R. Morgans as well as his representatives, attorneys and all other persons acting or purporting to act on behalf of them. REQUEST FOR ADMISSIONS Request No. 1 As of the date of the Agreement, the Property had not been previously occupied. ANSWER: Request No. 2 Addendum "F" of the Agreement included a one (1) year warranty from Defendant to Plaintiffs. ANSWER: Request No. 3 Closing would not have occurred unless a Certificate of Occupancy was issued with respect to the Property. ANSWER: Request No. 4 Attached as Exhibit "A" to these Requests for Admissions is a copy of a Certificate of Occupancy which was issued for the Property. ANSWER: 6 Request No. 5 The Certificate of Occupancy attached as Exhibit "A" to these Requests for Admissions was issued by Silver Spring Township for the Property on August 11, 2010. ANSWER: Request No. 6 The Certificate of Occupancy which is attached as Exhibit "A" to these Requests for Admissions shows that the date of the final inspection by Silver Spring Township for the Property was August 11, 2010. ANSWER: Request No. 7 As of the date of the Agreement, the Property was subject to the requirements of the Uniform Construction Code. ANSWER: 7 Request No. 8 The Uniform Construction Code requires an inspection prior to the issuance of a Certificate of Occupancy. ANSWER: Respectfully submitted, SERRATELLI, SCHIFFMAN, & BROWN, P. C Date: April 21, 2011 . 1),2,46t, Stev J. Schiffman, Esquire Pa. No. 25488 Jeni S. Madden, Esquire Pa. ID No. 209536 2080 Linglestown Road, Suite 201 Harrisburg, PA 17110-9670 (717) 540-9170 telephone (717) 540-5481 facsimile Attorney for Defendant CERTIFICATE OF SERVICE I, Jeni S. Madden, Esquire, do hereby certify that on this 21St day of April, 2011, I served a copy of the foregoing Request for Admissions Directed to Julianne R. Morgans by Facsimile and United States Mail, First Class, postage pre-paid, to the following person(s): David S. Makara, Esquire 10 E. 6th Avenue Suite 100 Conshohocken, PA 19428 Counsel for Plaintiffs -/, -,1h.id,_ r. S. Madden, Esquire 9 Jan 03 11 03:18p Silver Spring Building De 7175919058 SILVER SPRING TOWNSHIP 6475 CARLISLE PIKE MECHANICSBURG, PA 17050 (717) 766-0178 (717) 766-1696 FAX GUMBERLAND COUNTY S S* PA UNIFORM CONSTRUCTION CODE CERTIFICATE OF OCCUPANCY p- 1 The following building, structure or facility has been inspected by Silver Spring Township and has been found to be in compliance with the Pennsylvania Uniform Construction Code Law (1999, November 10, P.L. 491, No. 45), for the applicable construction code edition. CO Number: Bldg. Permit Number: Permit Holder Description of Project Building/Structure Address: 7205 B-011076 TRIPLE CROWN CORPORATION SFD, FOXWOOD ESTATE - LOT 11 14 FOXWOOD BOULEVARD MECHANICSBURG 17050 Use and Occupancy Classification(s): R-3 Type of Construction: VB Tax Parcel Number: 38-08-0565-111- Date of Permit Issuance: 1011012007 Applicable Construction Code Edition 20061RC Board of Appeals Decisions: BOA Variance for Accessibility (U): Date of Final Inspection: 8/11/2010 Date of CO Issuance: 8/11/2010 Sprinkler Installed No Comments: ReAssign Contractor To TRIPLE OWN CORP., RESCHECK ENERGY CODE Building Code Offi This Certificate of Occupancy authorizes occupancy and use of the above named building, structure or facility as long as it is maintained in accordance with the Pennsylvania Construction Code Act 45, approved by the Township. Furthermore, the owner, operator or tenant of this building, structure or facility may not add, remove or alter any feature or element within or on the exterior of the building, structure or facility that has the potential to adversely affect the accesibility to the usability of the elements and features without first consulting with the building code official. DAVIS, BUCCO & ARDIZZI ATTORNEYS AT LAW May 4, 2011 VIA EMAIL (ssehiffman@ssbc-law.com;jmadden@ssbc-law.com) Steven J. Schiffman, Esquire Jeni S. Madden, Esquire Serratelli, Schiffinan & Brown, P.C. 2080 Linglestown Road, Suite 201 Harrisburg, PA 17110 TEL: 610-238-0880 FAX: 610-238-0244 dynakara@davisbucco.com Re: Brandon R. and Julianne M. Morgans v. Triple Crown Corporation Cumberland County CCP No. 10-5740 Dear Steve & Jeni: Enclosed please find Plaintiffs, Brandon R. Morgans and Julianne M. Morgans' Responses to Defendant, Triple Crown Corporation's Requests for Admissions in the above-captioned matter. Very truly yours, /S/ David S. Makara DSM:ds Enclosures cc: Brandon & Julianne Morgans (w/ encls.) 10 E. 6T11 Avenue, Suite 100, Conshohocken, PA 19428 DAVIS, BUCCO & ARDIZZI By: David S. Makara, Esquire Attorne Id. No. 78241 10 E. 6" Avenue, Suite 100 Conshohocken, PA 19428 (610) 238-0880 Attorney for Plaintiffs IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA BRANDON R. MORGANS And JULIANNE M. MORGANS (h/w), Plaintiffs, V. JURY TRIAL DEMANDED No. 10-5740 TRIPLE CROWN CORPORATION, CIVIL ACTION-LAW Defendant. PLAINTIFF, JULIANNE M. MORGANS' RESPONSE TO DEFENDANT'S REQUEST FOR ADMISSION (First Set) Plaintiff, Julianne M. Morgans hereby responds to Request for Admissions served by Defendant, Triple Crown Corporation as follows: 1. Denied. After reasonable investigation, Plaintiff, Julianne M. Morgans is without knowledge or information sufficient to form an opinion as to the truth or falsity and, as such, the allegation is denied, with strict proof demanded at trial if relevant. 2. Admitted. 3. Admitted in part and denied in part. Julianne M. Morgans admits that she would not have closed on the Property without a Certificate of Occupancy. It is unknown as to whether Defendant, Triple Crown Corporation would have gone to closing without a Certificate of Occupancy and, as such, to the extent that is the substance of the Request for Admission, it is denied. 4. Admitted. 1 5. Admitted. 6. Admitted. 7. Objection. Julianne M. Morgans objects to this Request for Admission as it calls for a legal conclusion on the part of the Answering Plaintiff and, as such, it violates the Pennsylvania Rules of Civil Procedure. 8. Objection. Julianne M. Morgans objects to this Request for Admission as it calls for a legal conclusion on the part of the Answering Plaintiff and, as such, it violates the Pennsylvania Rules of Civil Procedure. Dated: By: 2 DAVIS, BUCCO & ARDIZZI VERIFICATION I, Julianne M. Morgans, hereby acknowledge that I am the Plaintiff in the foregoing action and hereby aver that the facts set forth in the foregoing Plaintiffs' Complaint are true and correct to the best of my knowledge, information and belief. This Verification is made subject to the penalties of 18 Pa. C.S.A. §4904 relating to the falsification of unworn statement to authorities. Dated: r ti U ,I "I" E M. MORGANS Steven J. Schiffman, Esquire PA I.D. No. 25488 Jeni S. Madden, Esquire PA I.D. No. 209536 SERRATELLI, SCHIFFMAN & BROWN, P.C. 2080 Linglestown Road, _Suite 201 Harrisburg, PA 17110 (717) 540-9170 s schiffman@ssbc-law. com imadden@ssbc-law.com Counsel for Defendant BRANDON R. and JULIANNE M. IN THE COURT OF COMMON PLEAS OF MORGANS, husband and wife, CUMBERLAND COUNTY PENNSYLVANIA Plaintiffs V. : No. 10-5740 CIVIL TERM TRIPLE CROWN CORPORATION, Defendant DEFENDANT'S REQUESTS FOR ADMISSION (First Set) DIRECTED TO PLAINTIFF, BRANDON R. MORGANS AND NOW this 215 day of April, 2011, Defendant Triple Crown Corporation (hereinafter "Defendant") by its undersigned counsel, hereby serves the following Request for Admissions Directed to Brandon R. Morgans (hereinafter "Plaintiff") (First Set), by and through their counsel pursuant to Rule 4014 of the Pennsylvania Rules of Civil Procedure. INSTRUCTIONS 1. You are required to file answers under oath to the following Request for Admissions, pursuant to Rule 4014 of the Pennsylvania Rules of Civil Procedure and within 30 days after service upon you. 2. As used herein, the words "you" and "your" refer to Plaintiff Brandon R. Morgans, as well as Plaintiff's agents, representatives, attorneys and all other persons acting or purporting to act on behalf of Plaintiff. 1 As used herein, "identify" or "identity", when, used in reference to an individual person or entity, means to state his or its name and address. 4. In responding to these Requests for Admission, you are requested to identify all documents or things in your possession, custody or control, or known or available to you, regardless of whether such documents or things are possessed directly by you or by your attorneys or their agents, employees, representatives or investigators. Unless otherwise indicated in a specific Request for Admission, the relevant time period for these Requests for Admission is January 1, 2010 through the present. 6. If any Request for Admission cannot be responded to in full, respond to the extent possible, indicating what portion of any Request for Admission cannot be responded to and the reason therefore. 7. To the extent that you consider any of the following Request for Admissions objectionable, respond to so much of each Request for Admission and part thereof, as is not objectionable in your view and separately state that part of each Request for Admission as to which you raise objections and each ground for such objection. If you object to the identification of any document on the claim of attorney/client privilege, work product privilege, or any other privilege, identify the privilege claimed, as well as each document for which such privilege is claimed, together with the following information with respect to each such document: a. Date; b. Sender; c. Addressee; d. Subject; e. The basis on which the privilege is claimed; and 2 f. The full identification of all persons to whom copies of any part of the document were furnished, including each person's full address, phone number, present employer and job title. DEFINITIONS 1. "Agreement" shall mean the written agreement between Plaintiffs Brandon R. and Julianne M. Morgans, and all addendums thereto, attached as Exhibits "A" through "E" to Plaintiffs' Complaint. 2. The words "and" and "or" shall mean "and/or." 3. The term "communication" means any writing, or oral conversation, including, but not limited to, emails, telephone conversations, meetings, letters, telegraphic and telex communications, and includes all information relating to all oral communications and "documents" (as herein above defined), whether or not any such document, or other information contained therein was transmitted by its author to any other person. 4. "Complaint" refers to the Complaint filed by Plaintiffs Brandon R. and Julianne M. Morgans and against Defendant in the Court of Common Pleas, Cumberland County, Pennsylvania at Docket No. 10-5740 CV. "Copy" when used in reference to a document means any color, or black or white facsimile reproduction of a document, regardless of whether the facsimile reproduction is made by means of carbon papers, pressure sensitive paper, xerography or other means or process. 6. "Defendant" or "Defendant's" refers to Triple Crown Corporation. 7. The word "document" or "documents" refers to any printed, written, taped, recorded, graphic, electronic, computerized printout, or other tangible matter from whatever source, including computer disks, floppy disks, hard drives, CD-ROMs, tapes, cartridges, zip drives, or other computer data storage devices, however produced or reproduced, whether in draft or otherwise, whether sent or received, or neither, including, but not limited to, the original, a copy (if the original is not available), and all non-identical copies (whether different from the original because of notes made on or attached to such copy or otherwise) of any and all writings, account statements, ledgers, bills, invoices, receipts, correspondence, letters, telegrams, cables, telexes, routing slips, contracts, proposals, agreements, minutes, acknowledgments, notes, marginalia, notations, memoranda, infra and interoffice communications, intra and interdepartmental communications, analyses, projections, work papers, books, papers, records, reports, diaries, journals, notes or recordings of telephone or other conversations, statements, questionnaires, schedules, computer programs or data, books of account, calendars, time cards, time sheets, graphs, charts, transcripts, tapes or recordings, photographs, pictures or film, ledgers, registers, work sheets, summaries, digests, financial statements, and all other information whether data, records or compilations, including all underlying, supporting or preparatory material now in your possession, custody or control, or available to you, your counsel, accountants, agents, representatives or associates. "Document" or "documents" specifically includes documents kept by individuals in their desks, at home or elsewhere. "Identify" or "identity" when used in reference to: a. An individual, shall mean to state his or her fall legal name and present or last known address (including zip code), phone number, and present or last known position or business affiliation (designating which), and the job description. b. A document shall mean to state the date, author, sender, recipient, type of document or some other means of identifying it, a description of the subject matter of the document, and its present location and custodian. In the case of a document within the possession, custody or control of the Plaintiff please state whether the Plaintiff will make it available to Defendant's attorney for inspection and/or copying; and in the case of a document that was, but is no longer in the possession, custody or control of Plaintiffs, please state its present location. 4 C. A communication shall include any oral or written communications and shall mean to state with particularity the date, maker, recipient, and substance of the communication, including the identification of all persons present during the communication, or with knowledge of the communication. d. Use of the plural form of any word shall be deemed to include the singular form, and use of the singular form shall be deemed to include the plural form. 9. "Meeting" means any gathering, formal or informal, of two or more persons. 10. "Person" means any natural person, any business entity (whether a corporation, partnership, or other business association), any government or political subdivision thereof, or governmental. body, commission, board, agency, bureau or department. 11. "Plaintiff' or "Plaintiff's" shall refer to Brandon R. Morgans. 12. "Plaintiffs" shall collectively refer to Brandon R. Morgans and Julianne M. Morgans 13. "Property" shall means the real property known as 14 Foxwood Boulevard, Mechanicsburg, Pennsylvania 17050. 14. The terms "refer to," "relate to," "relating to" and "with regard to" shall mean concern or concerning, pertain or pertaining, discuss or discussing, mention or mentioning, reflect or reflecting, assess or assessing, record or recording, comprise or comprising, consist of or consisting of, evaluate or evaluating, analyze or analyzing the specified subject. 15. "You", "your", or "Plaintiff' shall mean Brandon R. Morgans as well as his representatives, attorneys and all other persons acting or purporting to act on behalf of them. 5 REQUEST FOR ADMISSIONS Request No. 1 As of the date of the Agreement, the Property had not been previously occupied. ANSWER: Request No. 2 Addendum "F" of the Agreement included a one (1) year warranty from Defendant to Plaintiffs. ANSWER: Request No. 3 Closing would not have occurred unless a Certificate of Occupancy was issued with respect to the Property. ANSWER: Request No. 4 Attached as Exhibit "A" to these Requests for Admissions is a copy of a Certificate of Occupancy which was issued for the Property. ANSWER: 6 Request No. 5 The Certificate of Occupancy attached as Exhibit "A" to these Requests for Admissions was issued by Silver Spring Township for the Property on August 11, 2010. ANSWER: Request No. 6 The Certificate of Occupancy which is attached as Exhibit "A" to these Requests for Admissions shows that the date of the final inspection by Silver Spring Township for the Property was August 11, 2010. ANSWER: Request No. 7 As of the date of the Agreement, the Property was subject to the requirements of the Uniform Construction Code. ANSWER: 7 Request No. 8 The Uniform Construction Code requires an inspection prior to the issuance of a Certificate of Occupancy. ANSWER: Respectfully submitted, SERRATELLI, SCHIFFMAN, & BROWN, P. C Date: April 21, 2011 Ste n J. Schiffinan, Esquire P.M No. 25488 Jeri S. Madden, Esquire Pa. ID No. 209536 2080 Linglestown Road, Suite 201 Harrisburg, PA 17110-9670 (717) 540-9170 telephone (717) 540-5481 facsimile Attorney for Defendant CERTIFICATE OF SERVICE I, Jeni S. Madden, Esquire, do hereby certify that on this 21" day of April, 2011, I served a copy of the foregoing Request for Admissions Directed to Brandon R. Morgans by Facsimile and United States Mail, First Class, postage pre-paid, to the following person(s): David S. Makara, Esquire 10 E. 6t' Avenue Suite 100 Conshohocken, PA 19428 Counsel for Plaintiffs Jen' Madden, Esquire 9 Jan 03 11 03:18p Silver Spring Building De 7175919058 SILVER SPRING TOWNSHIP 6475 CARLISLE PIKE MECHANICSBURG, PA 17050 (717) 766-0178 (717) 766-1696 FAX CUMBERLAND COUNTY S S? PA UNIFORM CONSTRUCTION CODE CERTIFICATE OF OCCUPANCY P.1 The following building, structure or facility has been inspected by Silver Spring Township and has been found to be in compliance with the Pennsylvania Uniform Construction Code Law (1999, November 10, P,L. 491, No. 45), for the applicable construction code edition. CO Number: Bldg. Permit Number; Permit Holder. Description of Project; Building/Structure Address: 7205 B-011076 TRIPLE GROWN CORPORATION SFD, FOXWOOD ESTATE - LOT 11 14 FOXWOOD BOULEVARD MECHANICSBURG 17050 Use and Occupancy Classification(s): R-3 Type of Construction: VB Tax Parcel Number: 38-OB-0565-11i_ Date of Permit Issuance: 10/1012007 Applicable Construction Code Edition 2006IRC Board of Appeals Decisions: BOA Variance for Accessibility (U): Date of Final Inspection: 8/11/2010 Date of CO Issuance: 8/11/2010 Sprinkler Installed No Comments: ReAssign Contractor To TRIPLE 9,AOWN CORP., RESCHECK ENERGY CODE /f A Building Code 7!! This Certificate of Occupancy authorizes occupancy and use of the above named building, structure or facility as long as it is maintained in accordance with the Pennsylvania Construction Code Act 45, approved by the Township. Furthermore, the owner, operator or tenant of this building, structure or facility may not add, remove or alter any feature or element within or on the exterior of the building, structure or facility that has the potential to adversely affect the accesibility to the usability of the elements and features without first consulting with the building code official. DAVIS, BUCCO & ARDIZZI By: David S. Makara, Esquire Attorney Id. No. 78241 10 E. 6" Avenue, Suite 100 Conshohocken, PA 19428 (610) 238-0880 Attorney for Plaintiffs IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA BRANDON R. MORGANS And JULIANNE M. MORGANS (h/w), Plaintiffs, V. JURY TRIAL DEMANDED No. 10-5740 TRIPLE CROWN CORPORATION, CIVIL ACTION-LAW Defendant. PLAINTIFF, BRANDON R. MORGANS' RESPONSE TO DEFENDANT'S REQUEST FOR ADMISSION (First Set) Plaintiff, Brandon R. Morgans hereby responds to Request for Admissions served by Defendant, Triple Crown Corporation as follows: 1. Denied. After reasonable investigation, Plaintiff, Brandon R. Morgans is without knowledge or information sufficient to form an opinion as to the truth or falsity of this allegation and, as such, the allegation is denied, with strict proof demanded at trial if relevant. 2. Admitted. 3. Admitted in part and denied in part. Brandon Morgans admits that he would not have closed on the Property without a Certificate of Occupancy. It is unknown as to whether Defendant, Triple Crown Corporation would have gone to closing without a Certificate of Occupancy and, as such, to the extent that is the substance of the Request for Admission, it is denied. 4. Admitted. S. Admitted. 6. Admitted. 7. Objection. Brandon Morgans objects to this Request for Admission as it calls for a legal conclusion on the part of the Answering Plaintiff and, as such, it violates the Pennsylvania Rules of Civil Procedure. 8. Objection. Brandon Morgans objects to this Request for Admission as it calls for a legal conclusion on the part of the Answering Plaintiff and, as such, it violates the Pennsylvania Rules of Civil Procedure. Dated: a A _ By: 2 DAVIS, BUCCO & ARDIZZI -i VERIFICATION I, Brandon R. Morgans, hereby aver that the facts set forth in the foregoing Responses to Request for Admissions are true and correct to the best of my knowledge, information and belief This Verification is made subject to the penalties of 18 Pa. C.S.A §4904 relating to the falsification of unsworn statements to authorities. Dated: Sl?? °; ?t ?-? B ON R. MORGANS DAVIS, BUCCO & ARDIZZI By: David S. Makara, Esquire Attorne Id. No. 78241 10 E. 6" Avenue, Suite 100 Conshohocken, PA 19428 (610) 238-0880 rt Attorney for Plaintiffs IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA BRANDON R. MORGANS And JULIANNE M. MORGANS (h/w), Plaintiffs, V. JURY TRIAL DEMANDED No. 10-5740 TRIPLE CROWN CORPORATION, CIVIL ACTION-LAW Defendant. CERTIFICATE OF SERVICE I, David S. Makara, Esquire, hereby certify that a true and correct copy of the foregoing Brandon R. Morgans and Julianne M. Morgans Responses to Defendant's Requests for Admissions were served upon counsel listed below via U.S. first class mail, postage pre-paid and/or electronic mail to the parties as follows: Steven J. Schiffinan, Esquire Jeni S. Madden, Esquire Serratelli, Schiffman & Brown, P.C. 2080 Linglestown Road, Suite 201 Harrisburg, PA 17110 sschiffman@,ssbc-law.com imadden(i?ssbc-law. com DAVIS, BUCCO & ARDIZZI Dated: f j By:? ID S. AKARA, S IRE ???i??? 1/ jan 03 11 03:18p Silver Spring Building De 7175919058 p.1 SILVER SPRING TOWNSHIP 6475 CARLISLE PIKE MECHANICSBURG, PA 17050 (717) 766-0178 (717) 766-1696 FAX CUMBERLAND COUNTY S s' PA UNIFORM CONSTRUCTION CODE CERTIFICATE OF OCCUPANCY The following building, structure or facility has been inspected by Silver Spring Township and has been found to be in compliance with the Pennsylvania Uniform Construction Code Law (1999, November 10, P.L. 491, No. 45), for the applicable construction code edition. CO Number: Bldg. Permit Number: Permit Holder. Description of Project_ Building/Structure Address: 7205 B-011076 TRIPLE CROWN CORPORATION SFD, FOXWOOD ESTATE - LOT 11 14 FOXWOOD BOULEVARD MECHANICSBURG 17050 Use and Occupancy Classification(s): R-3 Type of Construction: Va Tax Parcel Number: 38-08-0565-111_ Date of Permit Issuance: 10/1012007 Applicable Construction Code Edition 20061RC Board of Appeals Decisions: BOA Variance for Accessibility (LI)., Date of Final Inspection: 8/11/2010 Date of CO Issuance: 8/11/2010 Sprinkler Installed No Comments: ReAssign Contractor To TRIPLE OWN CORP., RESCHECK ENERGY CODE Building Code Offr This Certificate of Occupancy authorizes occupancy and use of the above named building, structure or facility as long as it is maintained in accordance with the Pennsylvania Construction Code Act 45, approved by the Township. Furthermore, the owner, operator or tenant of this building, structure or facility may not add, remove or alter any feature or element within or on the exterior of the building, structure or facility that has the potential to adversely affect the accesibility to the usability of the elements and features without first consulting with the building code official. DAVIS, BUCCO & ARDIZZI C By: David S. Makara, Esquire Attorne Id. No. 78241 ` =rn z= C= W) -vM Avenue, Suite 100 10 E. 6 may, o Conshohocken, PA 19428 r (610) 238-0880 Attorney for Plaintiffsy IN THE COURT OF COMMON PLEAS OF CUMBERLAND COU , M o PENNSYLVANIA a w ? BRANDON R. AND JULIANNE M. MORGANS (H/W) JURY TRIAL DEMANDED Plaintiffs No. 10-5740 V. = TRIPLE CROWN CORPORATION CIVIL ACTION-LAW Defendant PLAINTIFFS' ANSWER TO DEFENDANT'S MOTION FOR PARTIAL SUMMARY JUDGMENT Plaintiffs, Brandon R. Morgans and Julianne M. Morgans, by and through their undersigned counsel, Davis, Bucco & Ardizzi, hereby respond to Defendant, Triple Crown Corporation's Motion for Partial Summary Judgment as follows: 1. STATEMENT OF ISSUES PRESENTED HEREIN 1. Denied. The allegations set forth in this paragraph of Defendant, Triple Crown Corporation's (hereinafter "Triple Crown") Motion for Partial Summary Judgment constitute conclusions of law to which no response is required by Plaintiffs, Brandon R. and Julianne M. Morgans (hereinafter "the Morgans"). II. RELEVANT PROCEDURAL HISTORY 2. Admitted. 3. Admitted. 4. Admitted. 1 III IV. 5. Admitted. 6. Admitted. 7. Admitted. 8. Admitted. 9. Admitted. 10. Admitted. 11. Denied. After reasonable investigation, the Morgans are without knowledge or information sufficient to form an opinion as to the truth or falsity of this allegation, and strict proof thereof is demanded at trial if relevant. 12. Admitted. STANDARD FOR SUMMARY JUDGMENT 13. Denied. The allegations set forth in this paragraph of Triple Crown's Motion for Partial Summary Judgment constitute conclusions of law to which no response is required by the Morgans. PENNSYLVANIA REAL ESTATE DISCLOSURE LAW 14. Admitted. 15. Admitted. 16. Admitted. 17. Admitted. 18. Admitted. 19. Denied. The referenced Complaint constitutes a written document which speaks for itself, and any characterization thereof by Triple Crown is specifically denied, with strict proof thereof demanded at trial if relevant. 2 20. Denied. The allegations set forth in this paragraph of Triple Crown's Motion for Partial Summary Judgment constitute conclusions of law to which no response is required by the Morgans. V. UNDISPUTED FACTS SUPPORTING MOTION FOR PARTIAL SUMMARY JUDGMENT 21. Denied. The referenced Complaint constitutes a written document which speaks for itself, and any characterization thereof by Triple Crown is specifically denied, with strict proof thereof demanded at trial if relevant. 22. Denied. The referenced Addendum constitutes a written document which speaks for itself, and any characterization thereof by Triple Crown is specifically denied, with strict proof thereof demanded at trial if relevant. 23. Admitted. By way of further answer, the inspection for compliance with the applicable building code was apparently performed long after the date for the Morgans' original settlement on the property at issue. 24. Denied. After reasonable investigation, the Morgans are without knowledge or information sufficient to form an opinion as to the truth or falsity of this allegation, and strict proof thereof is demanded at trial if relevant. VI. REQUEST FOR RELIEF 25. Admitted. 26. Denied. The allegations set forth in this paragraph of Triple Crown's Motion for Partial Summary Judgment constitute conclusions of law to which no response is required by the Morgans. 3 WHEREFORE, Plaintiffs, Brandon R. Morgans and Julianne M. Morgans, hereby respectfully request Your Honorable Court deny Defendant, Triple Crown Corporation's Motion for Partial Summary Judgment. DAVIS, BUCCO & ARD By: S, Date: Al _Z6 l 4 VERIFICATION We, Brandon and Julianne Morgans, hereby aver that the facts set forth in the foregoing Answer to Defendant's Motion for Partial Summary Judgment are true and correct to the best of our knowledge, information and belief. This Verification is made subject to the penalties of 18 Pa. C.S.A §4904 relating to the falsification of unworn statements to authorities. BRANDON MORGAN Jul" MORGANS Date: DAVIS, BUCCO & ARDIZZI By: David S. Makara, Esquire Attorney Id. No. 78241 10 E. 6t Avenue, Suite 100 Conshohocken, PA 19428 (610) 238-0880 Attorney for Plaintiffs IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA BRANDON R. AND JULIANNE M. MORGANS (H/W) Plaintiffs JURY TRIAL DEMANDED No. 10-5740 V. TRIPLE CROWN CORPORATION CIVIL ACTION-LAW Defendant CERTIFICATE OF SERVICE I, David S. Makara, Esquire, hereby certify that a true and correct copy of the foregoing Answer to Defendant's Motion for Partial Summary Judgment was served upon counsel listed below via U.S. first class mail, postage pre-paid, and/or e-mail, at the following address: Steven J. Schiffinan, Esquire Jeni S. Madden, Esquire Serratelli, Schiffinan & Brown, P.C. 2080 Linglestown Road, Suite 201 Harrisburg, PA 17110 sschiffman@ssbc-law.com jmadden@ssbc-law.com By: Dated: '0112-e b I DAVIS, BUCCO & ARDIZZI DA 6 041 P? PRAECIPE FOR LISTING CASE FOR ARGUMENT (Must be typewritten and submitted in tri ]ire r 1' ?{.+_ ?RO HONOTA l TO THE PROTHONOTARY OF CUMBERLAND COUNTY: (List the within matter for the next Argument Court.) 2-!J1 E U0 3p A I; : 2 CAPTION OF CASE (entire caption must be stated in full) CUMBERLAND COUNTY PENNSYLVANIA Brandon and Julianne Morgans vs. Triple Crown Corporation No. 2010 5740 Term 1. State matter to be argued (i.e., plaintiffs motion for new trial, defendant's demurrer to complaint, etc.): Defendant's Motion for Summary Judgment 2. Identify all counsel who will argue cases: (a) for plaintiffs: David S. Makara, Esquire, 10 E 6th Avenue, Suite 100, Conshohocken, PA 19428 (Name and Address) Jeni S. Madden, Esquire, 2080 Linglestown Road, Suite 201, Harrisburg, PA 17110 (b) for defendants: (Name and Address) 3. 1 will notify all parties in writing within two days that this case has been listed for argument. 4. Argument Court Date: October 7, 2011 Date: 8-29-2011 !?u C (l.L.e . Si ture J S. Madden, Esquire Print your name Defendant Triple Crown Corporation Attorney for INSTRUCTIONS: 1. Original and two copies of all briefs must be filed with the COURT ADMINISTRATOR (not the Prothonotary) before argument. 2. The moving party shall file and serve their brief 12 days prior to argument. 3. The responding party shall file their brief 5 days prior to argument. 4. If argument is continued new briefs must be filed with the COURT ADMINISTRATOR (not the Prothonotary) after the case is relisted. CERTIFICATE OF SERVICE I, Jeni S. Madden, Esquire, do hereby certify that on this 29th day of August, 2011, I served a copy of the Praecipe to List Matter for Oral Argument via United States Mail, First Class, postage pre-paid, to the following person(s): David S. Makara, Esquire 10 E. 6th Avenue Suite 100 Conshohocken, PA 19428 Counsel for Plaintiffs 4 Jeni Madden, Esquire BRANDON R. MORGANS AND JULIANNE M. MORGANS, PLAINTIFFS V. TRIPLE CROWN CORPORATION, DEFENDANT IN THE COURT OF COMMON PLEAS n CUMBERLAND COUNTY, PENNSYL lp;; '-n ?A C, z ' cry -a r o-n =CD ? C? y i i 10-5740 CIVIL TERM IN RE: DEFENDANT'S MOTION FOR PARTIAL SUMMARY JUDGMENT BEFORE OILER, J., GUIDO, J. AND MASLAND, J. ORDER OF COURT AND NOW, this day of November, 2011, the Defendant's motion for partial summary judgment, IS DENIED. By the Court, `L, f Albert. Masland, J. ? David S. Makara, Esquire For Plaintiffs Jeni S. Madden, Esquire 00plees For Defendant 11I410 ab :saa BRANDON R. MORGANS AND : IN THE COURT OF COMMON PLEAS OF JULIANNE M. MORGANS, : CUMBERLAND COUNTY, PENNSYLVANIA PLAINTIFFS V. TRIPLE CROWN CORPORATION, DEFENDANT : 10-5740 CIVIL TERM IN RE: DEFENDANT'S MOTION FOR PARTIAL SUMMARY JUDGMENT BEFORE OLER, J., GUIDO, J. AND MASLAND, J. OPINION AND ORDER OF COURT Masland, J., November 3, 2011:-- Before the court is Defendant Triple Crown Corporation's motion for partial summary judgment against Plaintiffs, Brandon R. and Julianne M. Morgans. Defendant seeks to dismiss Counts I and V of Plaintiff's Complaint claiming that the Pennsylvania Real Estate Disclosure Law is inapplicable in this matter. Plaintiffs seek damages and attorney fees under the statute. Following oral argument and briefing by the parties, Defendant's motion for partial summary judgment is denied. 1. Background Defendant Triple Crown Corporation was the owner of real property located at 14 Foxwood Boulevard, Mechanicsburg, PA 17050. On March 15, 2010 Plaintiffs and Defendant entered into a written contract whereby Plaintiffs agreed to purchase the property for a specified sum. Prior to settlement the Plaintiffs hired Tillery Inspections to perform a home inspection on the property. The inspection indicated that there was excessive moisture in the home. Further tests indicated 10-5740 CIVIL TERM that mold spores were present within the home and remediation work was recommended. The matter could not be resolved, and on or about May 20, 2010 the Plaintiffs gave Defendant a "termination of contract notice and release of deposit money" which terminated the Real Estate Sales Agreement. Plaintiffs claim that the Pennsylvania Real Estate Disclosure Law is applicable in this case and there exists a genuine issue of material fact as to whether this was violated as a certificate of occupancy was not issued during the time a contract existed between the parties. Defendant claims that the sale was not subject to the Real Estate Disclosure Law as a certificate of occupancy showing the date of inspection as August 11, 2010 was disclosed to Plaintiffs during discovery, and therefore both Counts I and V should be dismissed under Defendant's motion for partial summary judgment. We disagree. II. Discussion Summary judgment is properly granted only where the pleadings, depositions, answers to interrogatories and affidavits establish there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Pa. R.C.P. No. 1035. Here, Defendant's motion for partial summary judgment presents a question of statutory applicability and interpretation. The real question before the Court is whether a certificate of occupancy issued after the plaintiffs had terminated the agreement meets the statutory requirements so as to make the Real Estate Disclosure Law inapplicable. We believe that it does not. -2- 10-5740 CIVIL TERM A. Statute The Pennsylvania Real Estate Disclosure Law, 68 Pa.C.S. § 7301 et seq, provides, in relevant part, that it applies to all residential real estate transfers except transfers of new residential construction that have not been previously occupied, when: (i) the buyer has received a one year or longer written warranty covering such construction; (ii) the dwelling has been inspected for compliance with the applicable building code or, if there is no applicable code, for compliance with a nationally recognized model building code; and (iii) a certificate of occupancy has been issued for the dwelling. 68 Pa.C.S. § 7302. Restated, this section allows a plaintiff to recover under the statute when new construction, not previously occupied, does not meet all three elements. 1. Statutory Interpretation It is undisputed that the Plaintiffs received a one year or longer written warranty and that the building was inspected for compliance with the applicable building code. However, the parties disagree regarding the issuance of a certificate of occupancy. Defendant claims that the issuance of a certificate of occupancy on August 11, 2010 meets the exception of the statute, and the statute should not apply. Plaintiff claims that since the certificate of occupancy was issued after the postponed settlement date in May 2010, and after the plaintiffs formally terminated the Real Estate Sales Agreement on or about May 20, 2010, the certificate of occupancy would not apply to this claim. We agree. -3- 10-5740 CIVIL TERM The Pennsylvania Real Estate Disclosure Law was enacted in December 2000 after nearly twenty years of case law that provided buyers protection against fraudulent claims and misrepresentations in real estate transactions. Vaughn v. Drab, 73 Pa. D. & C. 4th 550, 555-57 (Pa. Com. Pl. 2005). Despite the previous protections, the legislature felt it necessary to enact the Real Estate Disclosure Law which expanded the seller's duties and the buyer's remedies. This law provided potential victims with greater access to material facts prior to sale, as well as made it easier for victims to seek justice and recover their losses. 68 Pa.C.S. § 7301. Therefore, "the only reasonable explanation to the enactment of the Disclosure Law was to provide broader relief to the buyers of residential real estate." Vaughn, 73 Pa. D. & C. 4th at 552. The Court shall adhere to this legislative purpose in following the plain meaning of the statute. The Pennsylvania Supreme Court has made clear that "[w]hen the language of a statute is plain and unambiguous and conveys a clear and definite meaning, there is no occasion for resorting to the rules of statutory interpretation and construction; the statute must be given its plain and obvious meaning." Davis v. Sulcowe, 205 A.2d 89, 92 (1969). Here, the plain meaning of the statute requires that all three elements be met for the exclusion to apply. The fact that the certificate of occupancy was not issued for the dwelling until August 2010 and was not available by the date of settlement or at the time the Real Estate Sales Agreement was terminated, cannot be reconciled with the statute. Given the statute's purpose in broadening buyers' relief, the court finds that the legislature intended the exclusion to apply -4- 10-5740 CIVIL TERM only when every element has been met in order to afford the most protection to a buyer. Because the only relevant time period for the issuance of the certificate of occupancy is the time prior to the termination of the Real Estate Sales Agreement, the third element of the statute has not been met. Therefore, the certificate of occupancy requirement for exclusion from the statute has not been met and the statute applies. III. Conclusion In sum, we conclude that the Pennsylvania Real Estate Disclosure Law applies to the instant transaction. Accordingly, the Defendant's motion for partial summary judgment is denied. ORDER OF COURT AND NOW, this. =-Z 'day of November, 2011, the Defendant's motion for partial summary judgment, IS DENIED. By the Court, s Albert . Masland, . David S. Makara, Esquire For Plaintiffs Jeni S. Madden, Esquire For Defendant saa -5- BRANDON R. MORGANS and JULIANNE M. MORGANS, Plaintiffs vs. TRIPLE CROWN CORPORATION,: Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 10-5740 CIVIL ORDER AND NOW, this /)$day of April, 2012, the appointment of Stephen Zawisky, Esquire, as a member of the Board of Arbitrators in the above-captioned case is VACATED. Kara Haggerty, Esquire, is appointed in his place. BY THE COURT, Kevin A. Hess, P. J. ? No V. Otto, III, Esquire Chairman ? Kara Haggerty, Esquire P ? Court Administrator :rlm Brandon R. and Julianne M. Morgans In the Court of Common Pleas of Cumberland Plaintiff Triple Crown Corporation County, Pennsylvania No. 10 _5740 Defendant Abom & Kutulakis Law Firm 2 W. High Street Address Carlisle, PA 17013 City, Zip Oath We do solemnly swear (or affirm) that we will support, obey and defend the Constitution of the United States and the Constitution of this Commonwealt}a and that we will discharge the duties of ou office with id ' Y. Signature Signature Sig tune No V. Otto III, Esquire Kara Hagge qui James DeCinti, Esquire Name (Chairman) Name Name Martson Law Offices Law Firm 10 East High Street Address Carlisle, PA 17013 City, Zip Pion Johnston Law Firm 355 N. 21st St., Ste. 102 Address Camp Hill, PA 17011 City, Zip Award We, the undersigned arbitrators, having been duly appointed and sworn (or affirmed), make the following award: (Note: If damages for delay are awarded, they shall be separately stated.) Ua`Y- G ! ??? ???ILIV? ?7 ?r?_ (C.O?!?_ CIZ I rte!.1 .Arbitrator, dissents. (Insert name if applicable.) Date of Hearing: April 23, 2012 Date of Award: q-2-3-1 7-- Civil Action - Law. ? )Ch oaGr, airman) Notice of Entry of Award Now, the c??3 day of , 20 /a , at /?7• $/ M., the above award was entered upon the docket an notice thereof given by mail to the parties or their attorneys. Arbitrator co satin to be paid upon appeal: $ By: Prothonotary Deputy iLLO 2092 APR 23 PM 12: 5 C LAND GOUNc , SYLVANIA 13 fGi ndG ?Gt14 K f /? • O/YQ,kt S. 1 Op, is it4a- ltd '-11a / a DAVIS, BUCCO & ARDIZZI i 1;'GF,r f By: David S. Makara, Esquire Fi R F cs y r ' 25 Attorney Id. No. 78241 10 E. 6 Avenue, Suite 100 LA NO Conshohocken, PA 19428 `_,fSYL ANI' ??T)" (610) 238-0880 Attorney forlaintiffs IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA BRANDON R. AND JULIANNE M. MORGANS (H/W) Plaintiffs JURY TRIAL DEMANDED No. 10-5740 V. TRIPLE CROWN CORPORATION CIVIL ACTION-LAW Defendant PRAECIPE TO SETTLE. DISCONTINUE AND END TO THE PROTHONOTARY: Kindly mark the above-captioned matter settled, discontinued and ended with prejudice. By: Date: 6 ,0 1Z- DAVIS, BUCCO & ARDIZZI