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02-4243
COME4~C~NWEALTH OF PENNSYLVANIA COURT OF COMMON PLEAS OF CUMBERLAND COUNTY JUDIC~A£ D~STRICT NOTICE OF APPEAL FKOM DISTRICT JUSTICE JUDGMENT COMMON PLEAS No. ~)~ NOTICE OF APPEAL Notice is given that the appellant has filed in the above Court of Common Pleas an appeal from the judgment rendered by the District Justice o~ the date and in the case mentioned below. KEELEY & COMPANY 09-3-04 TNOMAS A. PLACEY P.O. BOX 7100 MECHANICSBURG PA 17055 8/09/02 A. THOMAS NOFFECKER, ET AL. I(EELEY & COMPANY This block will be signed ONLY when this notation is required under Pa. R.C~°J.P. Nc~ 1008B. This Notice of Appeal, when received by the D/strict Justice, w~ll operate as a SUPERSEDEAS ~o the judgment for possession in this case Signature of Prothonotary or Deputy If appellant was CLAIMANT (see Pa. R.C.P.J.P No. 1001 (6) in action before D/strict Justice, he MUST FILE A COMPLAINT within twenty (20) days after filing his NOTICE of APPEAL. PRAECIPE TO ENTER RULE TO FILE COMPLAINT AND RULE TO FILE (This section of form to be used ONLY when appel/ant was DEFENDANT (see Pa. R.C.P.J.P. No. 1001(7) in action before D/strict Justice. IF NOT USED, de~ach from copy of notice of appeal to be served upon appellee). PRAECIPE: To Prothonotary Enter rule upon A. THOM_AS NOFFECKER, ET AL. , appellee(s), to file a complaint in this appeal Name of appellee(s) (Common Pleas No ~(~-- ~,~/o~/ C~ C~'~'/L/ ) within twenty (20) days after~e~)vice of rule or sof(~l' entry of judgment of non pros. RULE: To A. THOMAS HOFFECKER, ET AL. , appellee(s). Name o! appellee(s) (1) You are notified that a rule is hereby en~red upon you to file a complaint in this appeal within twenty (20) days after the date of serv/ce of this rule upon you by personal service or by certified or registered mail. (2) If you do not file a complaint within this time, a JUDGMENT OF NON PROS WILL BE ENTERED AGAINST YOU. (3) The date of service of this rule if service was by mail is the date of mailing. COURT FILE TO BE FILED WITH PROTHONOTARY PROOF OF SERVICE OF NOTICE OF APPEAL AND RULE TO FILE COMPLAINT (This proof of service MUST BE FILED WITHIN TEN (10) DA YS AFTER filing the notice of appeal. Check applicable boxes) COMMONWEALTH OF PENNSYLVANIA COUNTY OF ; ss AFFIDAVIT: ~ hereby swear or affirm that I served [] a copy of the Notice of Appeal, Common Pleas No , upon the District Justice designated therein on (date of service) , 19 , [] by personal service [] by (certified) (registered) mail, sender's receipt attached hereto, and upon the appellee, (name) , on ,19 ~ by personal service I--I by (certified) (registered) mail, sender's receipt attached hereto. [] and further that i served the Rule to File a Complaint accornpanying the above Notice of Appeat upon the appellee(s) t° wh°m the Rule was addressed on 19 . [] by personal service [] by (certified) (registered) mail, sender's receipt attached hereto. SWORN (AFFIRMED) AND SUBSCRIBED BEFORE ME THIS DAY OF-- , 19.-- Signature of affiant Signature of official before whom affidavit was made Title of official My commission expires on 19 , COMMONWEALTH OF PENNSYLVANIA COUNTY OF: CUI~ERL2~-D Mag Dist No: 09-3-04 THOMAS A. PLACEY Address: 104 S. SPORTING HILL P~D. M~CHANICSBU~G, PA Telephone: (717) 761-8230 17050 ATTOP, NEY DEF PRIVATE : JOSEPH D. BUCKLEY, ESQ. 1237 HOLLY PIKE CARLISLE, PA 17013 NOTICE OF JUDGMENT/TRANSCRIPT PL^INTIFF: CIVIL CASE NAME and ADDRESS ~OFFECKER, A THOMAS, ET AL. ~ 1022 WANSFOP~D P~D MECHANICSBURG, PA 17050-9131 VS. DEFENDANT: NAME and ADDRESS ~KEELEY & COMPANY ~ P.O. BOX 7100 MECHANICSBU~G, PA 17055 L Docket No.: CV- 0000264 - 02 Date Filed: 5/20/02 THIS IS TO NOTIFY YOU THAT: Judgment: [] Judgment was entered for: (Name) ['~ Judgment was entered against: (Name) in the amount of $ R:19_1 . Ro on: Defendants are jointly and severally liable. Damages will be assessed on: This case dismissed without prejudice. Amount of Judgment Subject to Attachment/Act 5 of 1996 $ [] Levy is stayed for days or [] generally stayed. ]Objection to levy has been flied and hearing will be held: (Date of Judgment) (Date & Time) Amount of Judgment $ 8,000.0 Judgment Costs $ 121.5 Interest on Judgment $ .0 Attorney Fees $ .00 Total $ 8,121.5 Post Judgment Credits Post Judgment Costs Certified Judgment Total Date: Place: Time: ANY PARTY HAS THE RIGHT TO APPEAL WITHIN 30 DAYS AFTER THE ENTRY OF JUDGMENT BY FILING A NOTICE OF APPEAL WITH THE PROTHONOTARY/CLERK OF THE COURT OF COMMON PLEAS ,CIVI'I~' Div~,~I~ON YOU MUST..O.UDEA COPY OF OF FO.M '% ¢'~* Date ~ ~ ~ / '*/ ,District of the p&eedings cont~ng t~ judgment: My commission expires first Monday of JanUary, 200~ SEAL' AOPC 315-99 PROOF OF SERVICE OF NOTICE OF APPEAL AND RULE TO FILE COMPLAINT (This proclf'of service 'MUST ~E FILED WITHIN TEN COMMON~ffEA1.TN OF PENNSYLVANIA COUNTY OF ~,~t~/~/Z~.~-x/~ · ss AFFIDAVIT: I hereby swear or affirm that I served 10) DAYS AFTER filing the notice of appeal. Check applicable boxe~) SWORN (AFFIRMED) AND SUBSCRIBED BEFORE ME My~mi~ione~res:~. ,-- ,~ ,19 _ . . .-: J~ copy of the NotiCe if,Appeal, Common Pleas No ~ 2.' - ~--~Z ~/2~'~'~ upon the Di~rict Justice ~signated therein ~,n (~te of servia) ~. ~ , 1~ ' ~y p~nal service ~ by (ce~ified) (regiStered) mail sender s r~l~ atta~h~'~et~,'and upon ~e~ppeltee, ~am~): '"':~* ' ...... - ' ·" '* * , on , . . · 1~ ~by ~rsonal service ~ by (certified) (registered) mail, sender's receipt attached hereto. ~and further ~at i ~rved ~e RuJe to. Fi Jena Complaint accompanying t~ above Notice ~f Ap~al u~,~ppell~s)to w~om the Ruie was addressed on ~~ ~ ~ D by personal service ~y (certified) (registered) mail. sender s receipt attached hereto .... ~ ---~ ;. ,_ · I Sent To ~u~[ A. Thomas Hof_ecker r~r~ [~';~'xb'c~/;:j'~;'F6i~;i'J0~,~1022 !.Tansford Rd. ........................................................... m/i/i~,- ~/~ i;;'~t'~;'~/ ............................................................................ r~ ~ nnlc ~r~.. PA 17050-9131 [2~ ~.~:,:,.,,. ~,~,,,, ~ ............................ A. THOMAS HOFFECKER and, KlM LEE KENAWELL-HOFFECKER, Plaintiffs KEELEY & COMPANY, WILLIAM D. KEELEY and KYM A. KEELEY, Defendants : 1N THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA : NO. 02-4243 : CIVIL ACTION - LAW : JURY TRIAL DEMANDED You have beer following pages, you ] served, by entering a ~ court your defenses m fail to do so the case r court without further ~ relief requested by the NOTICE sued in court. If you wish to defend against the claims set forth in the aust take action within twenty (20) days after this complaint and notice are critten appearance personally or by attorney and filing in writing with the objections to the claims set forth against you. You are warned that if you ray proceed without you and a judgment may be entered against you by the otice for any money claimed in the complaint or for any other claim or plaintiff. You may lose money or property or other rights important to yOU. YOU SHOULD TA~ THIS PAPER TO YOUR LAWYER AT ONCE. W YOU DO NOT ~VE A ~WYER OR CANNOT AFFO~ ONE, GO TO OR TELEPHONE HELP. 2UMBERLAND COUNTY BAR ASSOCIATION 2 LlBERTY AVENUE Carlisle, Pennsylvania 17013 (717) 249-3166 A. THOMAS HOFFECKER and, KlM LEE KENAWELL-HOFFECKER, Plaintiffs KEELEY & COMPANY, WILLIAM D. KEELEY and KYM A. KEELEY, Defendants : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA : NO. 02-4243 : CIVIL ACTION - LAW : JURY TRIAL DEMANDED COMPLAINT 1. Plaintii ?s are A. Thomas Hoffecker and Kim Lee Kenawell-Hoffecker, husband and wife, whose reside at 022 Wansford Road, Mechanicsburg, Cumberland County, Pennsylvania, 17050-9131 (hereinafl er collectively referred to as "Plaintiffs"). 2. Defend ants William D. Keeley and Kym A. Keeley, are husband and wife, residing at 512 Partridge Coat, C~p Hill,,, Cumberland County, Pennsylvania 17011. (Defendants are collectively referred t~ as Keeley ). 3. Defendant William D. Keeley does business as Keeley & Company and all 1 r 11 ' ' ...... Defendants a e co ect~vely designated as Sellers of the property transferred to Plmnt~ffs, which is the basis of this law~ uit. 4. On or Plaintiffs, designated; constructed a two - st A copy of the Agreem bout November 8, 1997, the Defendants, designated as Sellers, and the Purchasers, entered in to an agreement to purchase land and to have ry brick and frame residence with attached garage erected on the property. mt is attached hereto as Exhibit "A" and incorporated herein by reference. 5. The total price of the construction and land purchase was Two Hundred Fifty-Five Thousand Seven Hundred Eleven Dollars and 00/100 ($255,711.00). 6. Work was to be completed on or before April 30, 1998, subject to modification for weather delays. 7. Work tas to be completed pursuant to specifications f~r ionstruction and certain drawings. A copy or,he specifications are attached hereto as Exhibit B and are incorporated herein by reference. ~he drawings are too voluminous and are not attached hereto but are in the possession of the Defendants. 8. Work (~n the house commenced on or about November 17, 1997 and continued through, when settlement on the home occurred. 9. Throu items of construction' good and workmanlik codes and regulations, described in paragrapt 10. At or n hout the course of construction, Plaintiffs advised Defendant of certain Yhich were below industry standard and which were not completed in a ; manner, not completed in accordance with BOCA and/or other Township or were in violation of the parties' construction contract documents s 4 and 7 above. ~ar the time of settlement, Plaintiffs provided to Defendant Keeley with a 2 list of construction problem items which were to be addressed. 11. Defendant assured the Plaintiffs, as a condition of settlement, that these items would be completed prior to the completion of the one (1) year warranty period. 12. In reliance on the representation of Defendant, the settlement concluded. 13. Plaintif[s have fulfilled all the provisions of the contract on their part. 14. Defenc~ants have not fulfilled the provisions of the agreement to be performed. 15. Despit~ year period, Defendan by necessary implicati, 16. Additic since completion of th 17. Items c since settlement are as a) repeated demands during the initial and even second construction warranty has wholly neglected to perform certain things which were expressed, or ~n required, to be done and performed pursuant to the parties' agreement. nally, certain items of construction have proved to be faulty or defective settlement. f incorrect construction or which have proven to be defective or faulty follows: The construction experienced significant cracking in the concrete basement fl " ' walls, some in excess o /8 , allowing water to penetrate into the interior basement; b) c) d) e) g) h) i) J) 18. Defend despite Plaintiffs repea 19. Plaintif deficient work by the Significant warping and separation of caulking from the crown moldings and wood trim throughout the house between the moldings and drywall surfaces; Significant nail popping due to incorrect d~vall installation; Deterioration of concrete adjoining the front door pad to the house construction due to improper construction of the pads being set on i separate bearings without appropriate dowel or other attachment; Significant cracking on the garage floor pad in excess of 1/8", including water ponding. The problems were incurred due to faulty construction in I not providing for expansion; Deterioration and disintegration of the concrete apron at the curb cut of the property adjoining the street, as well as disintegration of the sidewalk surfaces due to improper construction techniques or faulty materials; Improper construction of the aluminum cladding over the freeze board on the rear of the home warped and wrinlded; Various areas of warping and other unevenness on interior doors and cabinetry, specifically in the upstairs bedrooms and the kitchen pantry; Incorrect installation of the Jacuzzi in the master bath contrary to manufacturers specifications which has caused cracking and the failure of the cover piece to fit; and Rusted lintels on lower windows due to improper installation and painting. tnt has failed and refused and still refuses to cure the aforesaid breaches, ted demand. 'has secured estimates to determine the reasonable cost of the repair of the )efendant. The cost of these repairs are as follows: g. h. Correct the cracking in the basement walls $ 975.00 Correct warping at crown molding, correct nail popping and repainting by removal of cracked caulking, recaulking, replacing outside comer beads and nail pops and repainting home $13,025.00 Demolish and reinstall concrete pad at front door, sidewalk, apron and curbing $ 7,670.00 Correct cracking of pad in garage floor and reinstalling rain $ 1,950.00 Repair garage ceiling from roof leak $ 895.00 Correc[ cladding on freeze board $ 100.00 Correcl warping on doors and cabinetry $ 600.00 CorrecI Jacuzzi installation and damaged drywall $ 350.00 Repain[ rusted lintels $ 300.00 20. The to construction by Defen ($24,110.00). 21. The av 22. Defend Plaintiffs. al costs to Plaintiffs to repair ail items of defective and deficient Jant is Twenty-Four Thousand One Hundred Ten Dollars and 00/100 COUNT I. BREACH OF CONTRACT ~'rments of paragraphs 1 through 20 are incorporated herein by reference. ant has breached the express and implied terms of the contract with 23. performance. Plaintiffs have been damaged as a result of Defendant's failure or faulty WHEREFORE, Plaintiffs request judgment in the amount of Twenty-four Thousand One Hundred Ten Dollars ($24,110.00) plus interest and costs of suit. COUNT H. BREACH OF WARRANTY 24. 25. which warranty is atta 26. The va which areas of work a Defendant since settle 27. Despit, made. 28. Defeni 29. Defend construction by its we The averments of paragraphs 1 through 23 are incorporated herein by reference. Pursua ~t to the parties' contract, an express warranty was provided by Defendant, :hed as Exhibit "C" 'ious items of defective or inappropriate work set forth in paragraph 17, re incorporated herein by reference, should have been corrected by nent pursuant to Section III of the express warranty. : Plaintiffs requests and Defendants promises to perform, no work has been ant has breached the express terms of the warranty to Plaintiffs. ant has breached the implied warranty of good and workmanlike quality :k on this construction. 6 WHEREFORE, Plaintiffs request judgment in the amount of Twenty-Four Thousand One Hundred Ten Dollars and 00/100 ($24,110.00), together with interest and costs of suit. Dated: October 30, 2003 Respectfully submitted, Barbara Sumple-Sullivan, Esquire 549 Bridge Street New Cumberland, PA 17070-1931 (717)-774-1445 Supreme Court ID #32317 Attorney for Plaintiffs 7 EXI~BIT "A' 'Ibis A(jREEMI~NI' OF SAI.E FOR RF. SIDENTIAI. REA[, ESTATE made this 8th day of November 1997. WITNESSETH that Km.~v nno Co~*nv. Wn.[.~a~ D. K~m.nv. Bun.o~n ~o KY~ A. KnEL~Y. gnnl.~n. A.T.I.M.A., as Seller, Owner and Builder, their heir, successnrs and assigns agree to sell to ~_ Thomas Hoffockcr and Kim ~e Kenaweii. Joint Tcnan~ with ~e Right of Su~ivorship, parW{i~s) of ~e second pa~ hereinafter called "~rcha~rs", who agree to purchase a lot si~ate in Ham~en Township, Cumberland Count, Pennsylvania, being Lot No. 401· aka 1022 Wansford Road. M~h,nicsbure. Pcn~lv~ia 1~055. Upon which Seller ~ill complete cons~ction of a two-sto~ brick a~ ~me dwel~ng with fi~ched garage and will complete itBs set loth in specifications which are a~ched hereto and become a pa~ ~er~f. 1. CONSIDERATION. Upon ~e execution of this Agreement (receipt is acknowledged u~m payment of check) ............................... ~ to be held by Builder Cash and/or financing at p~vailing rate and term ................................ ~ Total Price .................. ~ This Agreement is not contingent on the Purchasers securing financing, or upon ~e Purchasers ~tng pre- qualified by a local lending ]insfitution. The Seller will obtain a ~ instruction moflgage not to exceed $2~,~.~ to fund ~e aforementioned improvements. Upon whic the ~rchasers shall be required to pay ~e inter~ from ~e purchase of the lot nntil settlement of house, aterest shall be calculated at prime plus 2% ~d may v~ from time to time, exact interest rate shall be c etermined by Orrstown Bank, except that the first $25,~.~ to be advanced will he calculated at 6%, but n be adiusted to follow prime. To~l amount subject to interest paymenLs by ~rchasers being $225,~0. ~. Pnrchasers' shall be invoiced at the end of ~ch ~on~ and same shall be due and payable by the fifteenth (15th) of the following mon~. The tbllowing draw schedule shall apply tbr purposes of calculating interest payable to ~e Contractor by ~rchasers: $25,000.00 Upon · 20% of $200,000.00 When · 35 % of $200,000.00 When - 20% of $200,000.00 Rnugh and ro 20% of $200,000.00 Dryw~ and br 5% of $200,000.00 Cabim heen ;ettlement of lot purchased by Contractor; [oundatkm is complete; t'raming is complete, roof papered in, windows and &)ors set in place; plumbing, rough electrical, rough heating installed, sidewall inflation installed *d shingled. complete, interior trim complete except cabinets and hand rails, exterior siding ck complete; ~, paint, floor covering, counters, etc. complete. Certificate of occupancy has ,leased by Township. Page 1 of 6 Property from the market, h the sale. If Seller shall reta without further liability by options, colors, etc. or beca accordingly at no conseque default, any and all legal fee Purchasers. A grace perle settlement into their schedul~ 2. SET'rLEMENT. Settlement to be made on or before April 30. 1998. Time shall be of the essence with respect to the date and settlement and all of the terms and conditions of the Agreement except as hereafter provided. Settlement shall occur on or before the date set forth unless extended by the mutual consent of the parties, in writing, endorsed herein. In anticipation of uncertain weather conditions because of the time of year that bnilding shall commence, Seller shall offer Purchasers 60 days advance notice before completion/settlement date, of exactly when settlement shall occur~ Ul~m the failure of Purchasers to pay the purchase price, in full, on or before the time set for settlement the amount paid by Purchasers upon the execution of this-Agreement ;hall be retained by Seller to compensate Seller, in part for the removal of the gal expenses, accounting fees and other expenses directly or indirectly related to n said fimds, then the Agreement shall be null and void and of no furthelr effecf either party to the other. Any delays created by the Purchasers in selecting ~se of adverse weather conditions that will cause settlement time to be extended me to the Seller. Further, Purchasers agree that in the event of a pUrchaser associated with Seller recovery of legally entitled monies, shall be borne by the of up to twenty (20) days may be used by the Purchasers to accommodate Utilization of said grace period shall not place the Purchasers in default. 3. POSSESSIO q. Possession shall be delivered by Seller to Purchasers of the real estate at the time of settlement. Seller ~ eserves the right to continue to show said property prior to settlement and will assume full responsibility fo' any damage(s) that may occur as a direct result of said action. Seller ag%es not to install a lockbox at the dy 'elling for use by other real estate agents, but will only show the home himself to assist in establishing the qua ity of his product. 4. TITLE. SellOut shall furnish good and marketable title to this Property, such as can be insured by a licensed title insurance company doing business in the state of Pennsylvama, and shall be conveyed by )f all liens and encumbrances, subject to easements and restrictions of t:ecord, special warranty deed free except as herein stated. If all money paid on account, loss or expense Purchasers 5. REPRESEN' entire Agreement between obligations, covenants, repr~ concerning this sale. Neith~ undersigned parties ackno~ Agreement shall not be alt~ hereto. This is a legally bi~ they should consult with an 6. REALTY TI the realty transfer taxes asse 7. ADJUSTME township and school district the calendar or fiscal year ~ actual date of settlement and 8. RECORDIN of Cumberland County or m eller is unable to provide the quality of title required, Purchasers shall be repaid ncluding interest paid to Seller, and Seller shall be released from liability for any filers thereby. Formal tender of deed and tender of monies is waived. ?ATION. This offer and Agreement executed in triplicate contains the final and the parties except as otherwise provided herein. There are no other terms, ~sentations, statements or conditions, verbal or otherwise of any kind whatsoever r party to this Agreement may sell nor assign his interest herein to annther. The ledge receipt of a fully executed copy of this Agreement. Furthermore, this red, amended, changed or modified, except in writing executed by the parties ~ding Agreement and if the Purchasers do not comprehend the statements iherein, lttorney prior to signing this document. tANSFER TAXES. Seller and Purchasers each agree to pay one-half 0/2) of sed in connection with this conveyance. NTS AT SETTLEMENT. Seller reserves the option, to pro rate the gounty, real estate taxes assessed against the Property at the time of settlement based on if the taxing authority. Purchasers will only be responsible for taxes from the final occupancy. 21. This Agreement shall not be recorded in the Office of the Recorder of Deeds ' other public record. Page 2 of 6 9. SPECIAL CONI)ITIONS. See attached Schedule I. 10. CONSTRUCTION OF DWELLING. Construction of the dwelling started or shall start on before D__e._c_e~ and substantial completion shall occur on or before Anril 30- 1998. Sub~antial completion means that the dwelling is habitable and has been issued a Certificate 6f Occupancy by Hamlxlen Township. I) ITEMS OF WORK. If at time of settlement there are items of work that are 'ecs to pa), tu the Seller the purchase price, in full, plus the cost of any exh'as the , accepting th,e. Seller's written certification that the unfinished items of work materials become available tlr when weather and soil conditions permit; and the Purchasers or the Purchasers' agent shall be placed in escrow to guarantee ~. If, because of unfavorable weather and/or soil conditions the Contractor has ~jor exterior items i.e., driveway, sidewalls, lawn and exterior painting, the { equal to the value of the uncompleted work to be held by the lender, p~'ovided ~'d a written release of said funds from the lender to the Contractor and the cd in writing tu release escrowed monies directly and exclusively to the of said work. Said items will be completed at no additional cost to the within 60 days of settlement unless Contractor is unable to do so because of fil conditions. In the absence of such written certification it will be presumed ;ned by the Seller has been completed satisfactorily before settlement occurs. 12. WARRANT'S. DWELLING WILL BE REGISTERED IN THE RESIDENTIAL WARRANTY PROGRAM I RWC). THIS IS THE ONLY WARRANTY ON THE SUBJECT DWELLING. PURCHASERS AGREE T(' ACCEPT IT AS SUCH. If, because of failure of any part of the dwelling, or because of repairs necessita ed by some failure tlr fault, or for any reason it becomes necessary to refinish any interior wall or woodwcrk surfaces, the Seller will assume such responsibility only if walls or woOdwork to be refinished are DURO N paint, "Keeley Coventry White" for walls and c~ilin[gs, w~hite on ~!.m.: .No resl×msibility for repapering nor for repainting other than areas using DURON Kee~ey Loventry white or white for trim as the case m ~' be will be assumed by the Seller. In the event of a dispute between the Seller nstmction as well as al~ter completion and settlement, RWC standards will serve and the Purchasers, during ¢ as the mechanism in resolvi~ such disputes. 13. Seller will su ~ply executed Release of Mechanics Lien at settlement. 14. In the, event ithat a Realtor Agreement is used as an addendum to this Agreement or this Agreement becomes an adddndum to a Realtor Agreement, the understandin~ created in this Agreement shall prevail over and supersede ,~,e Realtor Agreement without regard to chronology. I/We understand that I/we may be forfeiting certain legal rights by signing this Agreement. This is a legally binding contract; if 1/we do not understand, I/we ma~consult an atturney. i I. IJNFINISltE unfinished the Purchasers ag Purchasers may have ordere will be completed as soon: agrees that no money of eith the perfurmance of said wot been unable to complete m Contractor will permit a su~ the Purchasers have execut Purchasers lender has agn Contractor, upon completic Purchasers by the Contract{ unfavorable weather and/or that all the work to be perfo~ Page 3 of 6 15. In the event any one portion of this Agreem,ent shall be deemed unlawful, only that portion of lhe Agreement shall be excluded. All other portions of this Agreement shall remain in effect. IN WITNESS WHEREOF, THE PARTIES HERETO, each intending to be legally hound hereby, have caused this Agreement of Sale for Residential Real Estate to be executed the day and year first above written. WITNESS: WITNESS: WITNESS: /')j~ ' ~.,~ ~ (,SEAL) ' I//lV~rn/(. Keeled, Seller~ '~Villi~am D~l~eeley, S~ller SCHEDULE I SPECIAl. CONDITIONS (PARAGRAPH 9) · . . e that before any work is performed at their request by a Contractor other than the A. Purchasers agre · - - : - :-'- '~ ~qor that relieves the Seller from Seller, the Purchasers' contractor must enter into an agreement wmt Ul, o~, ,~ s~bfii . liahilit~ and/or payment for the work performed. If at the time of settlement, the a..ny .and ali resp?n. :' ~_L _..~ -.:~--tantiall,, com,qeted his work, thus preventing set[lement.,..th.e. Purc~h~s_e_m_ talrcnasers contractor nan nu ,~m,,~ j t, ' . · · ' . s~ ered in defaul[ This paragraph refers, although ts not hmtted to the tnstalmuon or noor shall be c{m d . f .... : ......~ ewimmine nools are not covered by the warranty coverings and swimming pool . ~altl ltOOr covermg~ anu ........... ,~ . issued by the Seller nor has ~Sbuilding permit been issued to the Seller for the installation of a swimming pool. B. Notice tu Purchasers IRegarding Radon Gas. 1. Radon has always [been present in the air; consequently varying levels of radon gas may be found in virtually all homes.: 2. Radon is a radioa&ive gas produced naturally in the ground by the normal decay of uranium and radium. Uranium andradium are widely distributed in trace amounts in the earth's crust. Decedents of radon gas are callgd radon daughters, or radon .progeny. Several radon daughtem emit alpha radiation, which has h~gh energy but short range. 3. Studies indicate the result of extended expusure to high levels of radon gas/radon daughters~ may be an increased risk of lung cancer. . n as ori in~tes in soil or rocks It diffuses, as does any gas and flows along the path of 4 Rado g' ' g ~ .... ~'- ......... ~-~ ~omos,,here Beino a gas, radon can also least resistance,to the~urtace ot me grouno anu men u~ um a~ , ~, - o ' move into any air spale, such as basements, crawl spaces and living area~s. 5. If a house has a ~don problem, it can usually be cured by (a) increased ventilation and/or (b) preventing radon entry. 6. The EPA advises picocuries/liter. EPJ NOT a reliable meas~ measnrement result i: an annual average are 7. Further informat 17120; Call 1-800-23 Builder certifies that Builder install a passive subslab vent any other radon mitigation single family dwelling. Purchasers acknowledges re~ corrective action if the annual average exposure to radon daughters exceeds 4 ~ further advises that in most cases, the short term.~sc.r, een~g_,m,_e_aSU~r~.~ ~re of the annual average radon level of exposure. 1~ me stunt t~,n ~ ~ 4 picocuries/liter to 20 picocuries/liter, follow up measurements to determine recommended. on can be secured from DER Radon Office, P.O. Box 2063, Harrisburg, PA RADON or (717) 787-3594. has no knowledge concerning the presence or absence of radon. Builder will lation system, which is vented to the outside, during construction. Testing, or be at Purchasers sole cost and expense subsequent to the completion of the pt of notice as set forth above. Page 5 of 6 RELEASE The Purchasers hereby releases, quit-claim and fnrever discharge Builder, Builders agents, su.b. agents, empk~yees and any officers and any one of them and any persons, fi~m, or corporation who may be habile by or through them, from any and all claims, losses or demands, including personal injuries, and all ot the consequences thereof, where known or not, which may arise from the presence of radnn in the single family dwelling to be constructed up~)n tile lot. WIT~ESS: (William 1~.. l~eeley~eller Page 6 of 6 SPECIFICATIONS OWNER/PURCHASER: Kim Lee Kenawell and A. Thomas Hoffecker PROPERTY: Lot 401. 1022 W~-~ford Road. Mech~nicsburg. PA 17055 CONTRACTOR/SELLER: Keelev and Comnanv. William D. Keelev. Builder and K~m A. Keelev. Realtor: A.T.I.M.A. These specifications, along with the attached building plans, shall become a part of an Agreement dated November 8. 1997, between the parties hereto. W~E PLANS AND SPECIFICATIONS ARE NOT SPECIFIC, OR WHK~E THEY ARE CON'£~u%DICTORY OB INCOMPLETE, T~ECON'£~ACTOR/SRT3.RRSH~T3. HAVET~E OPTION ASTOT~ MATERIAL, PLAN, DESIGN ANDWORENANSHIPTO BE USED, AND TO SUBSTIT~ ANY SPECIFIC ITEM FOR LIKE OR EQUAL MAT~.'<IALS AND/OR~T~ODS. : EXCAVATION AND Nil top soil from im~.ediate area of the building .and FOOTERS: a~proximately 30' (thirty feet) around shall .... be scraped ~nd pi%ed on the lot away from the building site. ~xcavatlon for footers shall extend to solid, undisturbed earth below local frost level. Concrete ~ooters will be 3000 P.S.I., and comply with township Regulations. ~AS]~E~TWAT.T.~A~D ~OUNDATIONS: ASEMENT WALL will be constructed of 10" (ten inch) oured concrete 9'0" high. Exterior of wall will be oated with asphalt. FOUNDATION WALLS (not excavated) ill be 8" (eight inch) block. Sump pump with cover ill be installed in the basement and used in onjunction with permanent footer forms that are erforated and channel water into the sump pit for vacuation by the pump. FRAMING CARPENTRY: ROOF CONSTRUCTION: 11 framing lumber: Hem-Fir or Spruce or equal. SILLS: x4 to 2x10. STEEL BEAM: Size 5x8, supported by: 4" teel columns. FLOOR JOISTS: First floor 2x10, 2nd loor 2x10; 16" o/c or prebuilt floor trusses, 16"0/c. TUDS: 2x4, 16" o/c. WALLPLATES: 2 top, 1 bottom. LOORING: 3/4" T&G Plywood, glued and nailed to joists. RIDGING: Steel or wood 10' o/c. EXTERIOR SHEATHING: /2" insulated sheathing. 7/16" OSB will be used! on orners and certain other areas for strength. 3/4" .lywood and wood "sleeper" joist will be installed on op of a concrete floor and serve as the sub floor for he powder room and laundry. IRUSSES of 2x4 construction with g~s~ets, 24" o/c OR ONVENTIONAL ROOF with 2x6 ceiling ]o~st and 2x6 ~oof afters with appropriate ties. SUB-ROOF: 7/16" OSB or qual with edge clips. 1 of 6 STAIRS: ~INDOWS: EXT~IOR ATTIC VENTTT~TION: EX'£~RIOR TRIM: COLORS: ROOFING: S~ET ~£AL: CHIMNEYS: PLUMBING: Manufactured by Durawood Products or equal. Oak treads for stairs between first and second floor. By Caradco, Low-E, double hung tilt and casement windows used will be double glazed. SCREENS: Yes. Aluminum-clad exterior. All window and door grills will be in between the two panes of glass. 1-3/4" steel insulating door. OVERHEAD GARAGE DOORS: Wayne - Dalton, steel insulated, raised panel. Ventilated soffit and ridge vent covered with shingles. ATTIC FAN: No. W~od trim will be aluminum clad where practicable. .W~od to be stained will not be clad. SHUTTERS: Front e~evation only. SOFFITTS: Aluminum or vinyl. W~ND~WS: Caradco French Vennella. double huna. tilt. a+umlnum clad exterior. S~3TTERS AND FRONT DOOR: Black V~NYL: Wolverine Weatherstone d~uble 4. wood arain.~ W~cker with 50 year warranty as issued by manufacturer. BRICK: Droha~ oversize #450 MQRTAR: Lehigh #72A A~i exterior colors approved by Contractor/Seller. ~DERLAY: 15 lb. felt. 25 year architectural f~berglass shingles installed with nails, shingle color will be Tamko Weathered Wood. G~TTERS/DOWNSPOUTS/FLASHING: Al,~m~num CHIMNEY. I FIREPLACE, gas with outside vent and gas log. Brick surround and flush hearth. ATER SUPPLY: public EWAGE DISPOSAL: Public ATER LINES: CopDer ASTE LINES: plastic ENT STACKS: As needed AS WATER HEATER: 75 ~allon wo (2) self-draining, exterior hose bibs. alves for each sink and commode. n garage. Shut off French floor drain COMFORT COBTKOL: INSULATION: DR~ItAT.T.: II/TE~/OR GAS FURNACE with electric central air conditioning for heating and cooling: York high efficiency, manually adjusted variable speed, minimum 10 S.E.E.R. gas furnace with two programmable thermostats. York Care Home Comfort Plan (10 year manufacturer's service contract). POWER HUMIDIFIER: NO. ELECTRONIC AIR CLEANER: N__O. TWo zone heat/air: YES. EXterior air conditioner will be placed on a concrete pad. Gas furnace (indoor unit) will have condensate pump to sanitary sewer or as required by code. 00 AMP service with circuit breaker. Total number of utlets including convenience outlets, switches, TV, hone and lights: 175 Allowance for lighting ixtures including recessed light housings, all ixtures, dimmers and door chimes at Builders cost: 1,800.00. Also included two (2) exterior electrical utlets and one (1) outlet at panel box in basement. ght (8) porcelain pull chain/keyless fixtures will be pplied by contractor. iUTLET/SWITCH TYPE: UTLET/SWITCH COLOR: Toqqle XTERIOR WALLS: 3-1/2" rated R-13. Ceilings of nfinished areas in the basement will be fiberglass ated R-19. OVERHEAD (2nd floor): Fiberglass is blown n to an average thickness of 14". Fourteen inches of iberglass will result in R-38. Ceiling of garage under living area in bedroom #3) will have fiberglass -19. All penetrations within exterior walls, as Well s around windows and doors, are sealed with foam. ottom and top of walls and corners will be caulked ~nternally before installing drywall. /2" drywall will be glued and nailed to interior walls nd ceilings. GARAGE will be drywalled, trimmed and ainted. OORS: fibre colonial 6 panel. DOOR KNOBS: Kwikset or qual lever style. CASING at windows and doors: 2-1/4" ood Colonial design. Baseboard 3-1/2" wood. IREPLACE mantles are job made of wood. LOSET SHELVES: Plastic coated wire with integral rod. ALLPAPER allowance for labor and material: NONE ,ak hand rail, sub rail and newel post with pine ~alusters. c-.'~K&C%hof~Xana\Sp~c.d~c 3 of 6 MOULDINGS: KITc~K~: CEILING MOULDING in room #: 3 piece Crown 1-2-3 BEA~tED CEILING in room #: NONE WAINSCOT in room #: NONE C~AIR RAIL in room #: 2 WOOD PANEL BOXES UNDER CHAIR RAIL in room #:. 2 USE THESE ROOM NUMBERS FOR ABOVE 1.Living Room 2.Dining Room 3.Foyer 4~Kitchen 5.Family Room 6.Bathrooms 7.Powder Room 8.Bedrooms 9.Sunroom 10.Stairway il.Master Bedroom V R C S K R D D T M E %NITIES & CABINETS: Allowance $6,618.00 EFRIGERATOR CABINET: Yes; 36" x 24" 3UNTER TOP: Swanstone. with 4" x 1/2" back splash! £NK: Double Bowl - Swanstone undermount £TCHEN FAUCET: Delta #400 Chrome ~NGE: Appliance Allowance $1,800.00 [SHWASHER: [SPOSER: SupPlied bv Builder RASH COMPACTOR: None ICROWAVE OVEN: EFRIGERATOR: XHAUST FAN: Yes, built into microwave, ASHER: NONE. Dl~,mh~n~ included RYER: NONE. outside vent installed vented outside NE PIECE FIBERGLASS TUBS: ! - White with curtain rod. ANITIES: With man-made marble tops and integral 0wls, standard cost color to be selected by urchasers; 9 with single bowl, 2 with double bowls. NE PIECE STALL SHOWER: 1 - White with curtain rod. 0MMODES: 3 - Kohler Wellworth round front, - olor White IRRORS: Over each vanity EDICINE CABINETS: None HIRLPOOL TUB: In Master Bath. Jacuzzi Torino With kirt. Color White. Faucet Delta #612 chrome. XHAUST FANS: Included in Electrical Fixture Allowance ABINETS (Bathroom Vanities): Included in Cabi!net l~owance. edestal sink: 1 - St. Thomas/Charleston - Whi~e. anity & Pedestal faucets: Delta #522 chrome. ub/shower faucet: Delta #642 chrome. bower faucet: Delta #622 chrome. towel bar and 1 paper holder, both surface mount,' in ach bathroom. Allowance per bathroom $22.00 labor and aterials. 4 of 6 PAINT: A check for $8,610.00 will be given to the Purchaser at time of settlement or deducted from the final draw for floor coverings. It will be the Purchaser's responsibility to contract with and pay floor covering dealer(s) of their choice for the installation of all floor coverings including labor and material. Seller's responsibility shall be limited to installation of wood or concrete sub-floor and to have them broom clean. Seller assumes no liability or responsibility for said floor coverings. These floor coverings will not be covered in the warranty. EXTERIOR WOODWORK AND/OR TRIM: 2 coats latex enamel. PLYWOOD SIDING: (rough textured) and TRIM: 1 coat rain. Overhead garage door will be painted. ~utters will be factory colored. ~TERIOR WALLS AND CEILINGS: Contractor will aPPlY two ~ coats of DURON Latex Flat Paint on walls and c~ilinas and two (2~ coats DURON oil based Semi-GlOss Enamel on trim. All walls and ceilinas "Kelley CgventrvWhite." Trim: "White." LANDSCAPE: EXTERIOR PAVING: ~I SC~ .T .~iN~OUS: .~lowance to spread topsoil, finish grade, seed lot and i~stall foundation plants: $3.000.00. P~BLIC SIDEWALKS: SIDEWALKS: ~rlveway. ASPHALT DRIVEWAY: ~ound included. YES Concrete from the front door to !the Allowance 1000 s~uare feet. turn rGE YES. with two (2~ remote DOOR OPENER: ators and an obstruction sensor and hardwire switch o~house. ~ENTR3J.~VACUU~ COMPLETE: NO ENTRAL VACUUM ROUGH-IN ONLY: NO ECURITY SYSTEM: NO ECURITY SYSTEM ROUGH-IN ONLY: AILBOX: NO ATIO: NO ECK: NO IAD BOLTS: YES Four ~4~. single cvlinder CLEANING: Dwelling unit will be broom clean with stickers removed from windows. 1. Grapevine jeint on brick. 2. Wire candle light package on front windows to include bedroom #3 and garage. 3. Provide and install whole house fan with variable speed control ventilating into attic. 4. Garage floor to be re-enforced with welded wire fabric. 5. All bedrooms, bonus room and kitchen to have an electric box in ceiling to support a ceiling fan with light. 6. Purchasers ~o retain all residual vinyl siding in excess of 6', full pieces~not included. . 7. Install pa.s~ive sub-slab .ventilation system. 8. Exterior wlBdow screens will come factory colored to match the. windows. 9. Seller will provide to Purchasers, at no additional charge, si~ (6) shingles, twenty (20) bricks and two (2) full pieces of vilnyl siding. Additional supplies may be purchased, if desired. 10. Install three (3) wood panel boxes on each side of front door in recess. 11. Total 2,800 square feet using exterior di .~nsions. 12. Install 24" round Fypon louv~er above wing ~ in bedroom #5. A. Thomas Hoffe~}~er ~.~.~1/1 l~a~~, S e 11 e r (SEAL) ~/~ym A.' Kee~e~, ~ller (SEAL) EXHIBIT "C" I 10 Year New Home Warranty I RESIDENTIAL WARRANTY CORPORATION PRESENTS ThE bMITm W^R N V 10 Y~n~ WRI'I-I'EN WARRANTY FOR NEW HOMES IMPORTANT Warranty Validation No. 1427350052298 Any addenda listed below are integral parts of the RWC Warranty applicable to this home. A T. HOFFECKER 1022 WANSFORD RD MECHANICSBURG, PA 17055 This Limited Warranty does no¢ cover consequential or incidental damages. The Warrantor's total aggregate liability of this Limited Warranty is limiled to the Final Sales Price listed on the .4pplication For Warranty form. The Builder makes no housing ~erchant implied warranty or any other warranties, express or implied, in connection with the attached sales contractor the warranted Home, and ali such warranties are excluded, except as expressly provided in this Limited Warranty. There are no warranties which extend beyond the face of this Limited Warranty. Some states do not allow the e~clusion or limitation of incidental or consequential damages by the Builder so all of the limitations or exclusions of ~his Limited Warranty may not apply to you. For your Limited Narranty to be in effect, you should receive the following documentation: · Limited Warran #319 · Application For Warranty form #316 ° Validation Sticker #385 ° Insurer: Western Pacific Mutual Insurance Company, A Risk Retention Group RESIDENTIAL WARRANTY CORPORATION 5300 Derry Street, Harrisburg, PA 17111-3598 (717) 561-4480 FAX (717) 561-4494 TABLE OF CONTENTS Section I. Definitions ............................................ 1 Section II. The Limited Warranty ........................... 3 Section III. Warranty Standards .............................. 7 Section IV. Requesting Warranty Performance ..... 18 Section V. Addenda .............................................. 20 A. Newark, Delaware B. Maryland C. State of New York D. State of Indiana E. HUD (Applicable to VA/FHA financed homes only) page 319.1 ~_;~~ A. Introduction ~ To help you better understand your Limited Warranty, re- ~[~ fer to the following list of definitions which apply in this I~.".~rt book. B. Definitions 1. Administrator Residential Warranty Corporation (RWC) is the Ad- ministrator 0f this Limited Warranty. RWC is neither Warrantor nor Insurer. 2. Appliances and Items of Fquipment, including Attachments and Appurtenances Water heaters, pumps, stoves, refrigerators, corn- 5o pactors, gar washers and faucets, light furnaces and conditioning and similar it Application The form sit and your Bu Effective Da Price of the e ~age disposals, ranges, dishwashers, dryers, bathtubs, sinks, commodes, fixtures, switches, outlets, thermostats, oil tanks, humidifiers, oil purifiers, air materials, in-house sprinkler systems ;or Warranty ned at closing by you, the Purchaser, lder which identifies the location, the Ie Of Warranty and the Final Sales urolled Home. Arbitrator A representa ive of the National Academy of Con- ciliatqrs or a rather independent arbitration service agreed upon ~y you, the Purchaser, and the Admin- istrator to d~ termine coverage on an Unresolved Warranty Isst e. Builder l person, 4orporation, partnership or other entity The which participates in the RWC Limited Warranty Program and ~as obtained this Limited Warranty for you. 6. Building Codes The following codes are acceptable to the Insurer of the Limited Warranty: a. Building Codes (1) CABO 1 & 2 Family Dwelling Code (2) National Building Code (BOCA) (3) Standard Building Code (SBCCI) (4) Uniform Building Code (ICBO) b. Mechanical Codes (1) CABO 1 & 2 Family Dwelling Code (2) National Mechanical Code (BOCA) (3) Standard Mechanical Code (SBCCI) (4) Uniform Mechanical Code (ICBO) c. Plumbing Codes (1) CABO 1 & 2 Family Dwelling Code (2) International Plumbing Code (3) National Plumbing Code (BOCA) (4) Standard Plumbing Code (SBCCI) (5) Standard Gas Code (SBCCI) (6) Uniform Plumbing Code (ICBO) d. Electrical Codes (1) CABO l & 2 Family Dwelling Code (2) National Electrical Code (BOCA) 7. Consequential Damages All consequential damages including, but not lim- ited to, damage to the Home that is caused by a warranted Defect but is not itself a warranted Defect and costs of shelter, transportation, food, moving, storage or other incidental expenses related to relo- cation during repairs. B. Cooling, Ventilating and Heating Systems All ductwork, refrigerant lines, steam and water pipes, registers, convectors and dampers. 9. Defect A condition of any item warranted by this Limited Warranty which exceeds the allowable tolerance specified in this Limited Warranty. Failure 0o com- plete construction of the Home or any portio~t of the Home, in whole or in part; is not considered a De- fect. 10. Effective Date Of Warranty The date coverage begins as specified on the Appli- cation For Warranty form.* 11. Electrical Systems All wiring, electrical boxes and connections up to the house side of the meter base. 12. Home The single family dwelling, identified on the Appli- cation For Warranty form, which may be a townhome, condominium or duplex. Insurer Western Pacific Mutual Insurance Company, a Risk Retention Group (WPIC). Limited Warranty The terms and conditions contained in this book in- cluding any applicable addenda. 13. 14. page 319.1 Rev I/1/97 Major Structural Defects (MSD) All of the following conditions must be met to con- stitute a Major Structural Defect: a. actual physical damage to one or more of the following specified load-bearing segments of the home; b. causing the failure of the specific major struc- tural components; and c. which affects its load-bearing function to the degree that it materially affects the physical safety of the occupants of the home. Load-bearing components of the home deemed to have MSD ,otential: (1) roof i'aming members (rafters and trusses); (2) floor framing members (joists and trusses); (3) beari ~g wails; (4) colin ms; (5) linte s (other than lintels supporting veneers); (6) gird( rs; (7) load~bearing beams; and (8) foun~lation systems and footings. Examples of non-load-bearing elements deemed not to have Major stru6~l D~fect potential: (1) non- oad-bearing partitions and walls: (2) wall (3) plasl (4) floo~ (5) bricl (6) any (7) roof (8) heat elec (9) appl (10) do?l para 16. Owner See Purch~ 17. Plumbing All pipes 1, including t tile or paper, etc.; :r, laths or drywall; ing and subflooring material; , stucco, stone or veneer; ype of exterior siding; shingles, sheathing* and tar paper; ng, cooling, ventilating, plumbing, rical and mechanical systems; ances, fixtures or items of equipment; and s, trim, cabinets, hardware, insulation, : and stains. Der. Systems ,cared within the Home and their as supply lines and vent pipes. fittings, 18. Purchaser You. The Purchaser includes the first buyer of the warranted Home and any and all subsequent owners ~vho take title within the warranty period. 19. Residence See Home. 20. Sewage Disposal System (Private or Public) l'his system includes, but is not limited to, all waste, drainage, sewer pipes and lines, cleanouts, tanks, pumps, drain fields and seepage pits, outside and beyond the exterior wall of the Home. 21. Structurally Attached An integral part of the Home being structurally sup- ported by footings, block walls or reinforced concrete and connected to the foundatiOn of the Home. 22. Unresolved Warranty Issue All requests for warranty performance, demands, disputes, controversies and differences that may arise between the parties to this Limited Warranty that cannot be resolved among the parties. An Unre- solved Warranty Issue may be a disagreement regarding: a. the coverages in this Limited Warranty; b. an action performed or to be performed by any party pursuant to this Limited Warranty; c. the cost to repair or replace any item covered by this Limited Warranty. 23. Warrantor Your Builder in Years 1 and 2; the Insurel' in Years 3 through 10 and in Years 1 and 2 if yotlr Builder defaults. 24. Water Supply System (Private or Public) This system includes, but is not limited to, all sup- ply and distribution pipes, fittings, valves, pumps and wells, outside the exterior wall of the Home, which supply water to the Home. page 319.2 el996 u~.i~b~g, P^ *FHA/VA Homeowners, refer to HUD Addendum, Section V.E. Rev I/I/97 ~ A. Introduction to the Limited Warranty ~ I. This book provides specific details, conditions and ~ limitations of the Limited Warranty including pro- ~ cedures for requesting warranty performance and ~ for binding arbitration, in accordance with the pro- ~ cedures of the Federal Arbitration Act. Additional ~ information may be received by calling RWC at (717) 561-4480. Read this document in its entirety to undemtand the protection it affords, the exclu- sions applicable to it, the Warranty Standards which determine its interpretations and operation and your responsibilities. 2. This is NOT an insurance policy, a maintenance agreement o~ a service contract. It is an explanation of what yo~, the Purchaser, can expect from this Limited Wan'anty. 3. Appliances are not wart may be cow the manufac passed on tc separate rrm 4. You are res Home. Gen~ required to [ 5. This Limitec to subsequer Limited Wa~ 6. This Limite quired by vt as well as s additions no End Equipment included in the Home mted under this Limited Warranty, but red by separate warranties provided by ~rer or supplier. These warranties are you by your Builder at chising and are t this Limited Warranty. ~onsible for maintenance of your new ral and preventative maintenance are rolong the life of your new Home. Warranty is automatically transferred t Owners during the ten-year term of this t Warranty is subject to changes re- rious regulating bodies. FHA and VA, )me local agencies have mandated the ed in the Addenda Section of this Lim- ired Warranty book. Notations throughout indicate where the A~denda apply. B. The Limite~Warranty 1. Actions taken to cure Defects will NOT extend the periods ~f specified coverages in this Limited 2. Only warranl hated in the Limited Wan 3. The Warran pay the rea,, ranted items and are not 4. If a warran tion IV, the ranted MSD the MSD to i ~'d elements which are specifically desig- Warranty Standards are covered by this or has the choice to repair, replace or onable cost to repair or replace war- which do not meet Warranty Standards rcluded in the Limited Warranty. :d MSD occurs during the appropriate iod, and is reported as required in Sec- Warrantor will repair, replace or pay ,nable cost to repair or replace the war- limited to actions necessary to restore ls load-bearing capacity. C. Warranty Coverage 1. ()sE YEAR COVERAGE: Your Builder warrants that lbr a period of one (1) year after the Effective Date Of Warranty, warranted items will function and op- e:rate as presented in the Warranty Standards of Year 1, Section III.A. Coverage is ONLY available where specific Standards and Actions are repre- sented in this Limited Warranty.* 2. Two YEAR COVERAGE: Your Builder warrants that fbr a period of two (2) years from the Effective Date Of Warranty, specified portions of the heating, cooling, ventilating, electrical and plumbing sys- tems, as defined in this Limited Warranty, will timction and operate as presented in the Warranty Standards of Years 1 and 2 only, Section III.B.: 3. TEN YEAR COVERAGE: Major Structural Defects (MSD) are warranted for ten (10) years from the Effective Date Of Warranty. Y'our Builder is the Warrantor during Years 1 and 2 of this Limited Warranty and the Insurer is the War- rantor in Years 3 through 10. 4. CONOOmmUM COVERAGE: This Limited Warranty shall only apply to warranted common elements. Warranted common elements are those portions of ~e defined electrical, heating, ventilating, cooling, plumbing and structural systems which serve two (2) or more residential units, and are contained wholly within a residential structure. Warranty cov- erage for common elements shall be for the same periods and to the same extent as similar or compa- rable items in individual residential units. Examples of common elements which are covered by this Limited Warranty are hallways, meeting rooms and other spaces wholly within the residential s~tructure designated for the use of two (2) or more units. page 319.3 m096 Uam~b~. e^ *FHA/VA Homeowners, refer to HUD Addendum, Section V.E. Rev I/I/97 "3~P[C#319 :Homeowners in Indiana, refer to State of Indiana Addendum, Section V.D. Examples of common elements which are not cov- ered under this Limited Warranty are club houses, recreational buildings and facilities, exterior struc- tures, exterior walkways, decks, balconies, arches or any other non-residential structure which is part of the condominium. D. Conditions* 1. This Limited Warranty provides coverage only in excess of coverage provided by other warranties or insurance, Whether collectible or not. This Limited Warranty is binding on the Builder and you and your heirs, executors, administrators, successors apd assigns. 3. This forced in which the 4. This your amended in Warranty shall be interpreted and en- with the laws of the state in is separate and apart from and/or other sales agreements with It cannot be affected, altered or way by any other agreement which 5. This or amended instrument; ministrator. 6. If any prov mined by validity of t 7. All notices must be in age prepaid Applicatior dress the re 8. If actions b this Limitel yond its co until the de Such event God, acts 10. :1 Warranty cannot be modified, altered in any way except by a formal written igned by you, your Builder and the Ad- sion of this Limited Warranty is deter- court of competent jurisdiction to be lc, that determination will not affect the ~e remaining provisions. required under this Limited Warranty ~riting and sent by certified mail, post- to the recipient's address shown on the For Warranty form, or to whatever ad- :ipient may designate in writing. , the Warrantor on any obligations under [ Warranty are delayed by an event be- ~trol, such performance will be excused aying effects of the event are remedied. ~ include, but are not limited to, acts of ff the common enemy, war, riot, civil commotion/or sovereign conduct, or acts or omis- sions by yo~or any other person not a party of this Limited Warranty. If your Builder fails to complete any part of the Home that s reasonably foreseeable to cause struc- tural damage to the Home, then it is your responsibil ty to complete such parts of the Home to avoid the s rucmral damage. If you fail to complete the work, hen any resulting structural damage is not coverer under this Limited Warranty. Costs incm red for unauthorized repairs to warranted items are ~ot reimbursable. Written authorization prior to in~Urnng expenses must be obtained from the Adminiltrator. Il. Whenever appropriate, the use of one ge,der in- cludes all genders and the use of thc singular includes the plural. 12. Under this Limited Warranty, the Warramor is not responsible for exact color, texture or finish matches in situations where materials arc ~eplaced or repaired, or for areas repainted or whca original materials are discontinued. 13. Your Builder must assign to you all manufacturers' warranties on products included in the ][:inal Sales Price of your Home. The Insurer shall not be liable for your Builder's failure to do so. 14. You are responsible for establishing a written, final walk-through inspection list of items in need of ser- vice prior to occupancy or closing, whichever is first. This list must be signed and dated by you and your Builder. Keep a copy for your records. Y. Exclusions The following are NOT covered under this Limited Warranty: 1. Loss ordamage: a. to land. b. to the Home, persons or property directly or indirectly caused by insects, birds, vermin, ro- dents, or wild or domestic animals. c. which arises while the Home is used primarily for non-residential purposes. d. caused by soil movement, including subsid- ence, expansion or lateral movement ol the soil which is covered by any other insur:mce or for which compensation is granted by lel~islation.* e. resulting directly or indirectly from th)od, sur- face water, waves, tidal water, ove~ flow of a body of water, or spray from any of these (whether or not driven by wind), water which backs up from sewers or drains, chan~¢s in the water table which were not reasonabl~ foresee- able, water below the surface of thc ground (including water which exerts pressure on or seeps or leaks through a building, s~dewalk, driveway, foundation, swimming pool. or other structure), wetlands, springs or aquifct:s. page 319.4 ©1996 H~c~l~rR. PA *FHA/VA Homeowners, refer to HUD Addendum, Section V.E. Rev 1/I/97 page 319.5 f. from normal deterioration or wear and tear. g. caused by material or work supplied by anyone other than your Builder or its employees, agents or subcontractors, including the items listed as additional exclusions on the Applica- tion For Warranty form. h. from your or the condominium association's failure ~o perform routine maintenance on the Home, common areas, common elements or your or the condominium association's grounds. i. after Year 1, to, resulting from, or made worse by all components of structurally attached decks, ~alconies, patios, porches, porch roofs and porticos. j. after Yehr 1, to, resulting from, or made worse by elem+nts of the Home which are constructed separate from foundation walls or other struc- tural el0munts of the Home such as, but not limited,o, chimneys and concrete floors of basements and attached garages. k. to wiring, to and between communication de- vices fro~., the source of power, whether or not cormecte~ to the interior wiring system of the Home. ~uch devices shall include, but not be limited to, telephone systems, television cable and sec~ include, conduct~ junction Loss or dame a. changes roundin~ Builder { tors. b. changes c. modifica property the Effe changes of this Li intercom systems, computer systems rity systems. Sources of power shall ~ut not be limited to, service entrance rs, switches, outlets, receptacles and 30xes. ge resulting from, or made worse by: in the grading of the property sur- the Home by anyone except your r its employees, agents or subcontrac- n grading caused by erosion. :ions or additions to the Home, or Jnder or around the Home, made after :tive Date Of Warranty (other than nade in order to meet the obligations nited Warranty). intrusion of water into crawl spaces.* the weight and/or performance of any type of waterbed or any other furnishing which ex- ceeds the load-bearing design of the Home. the presence or consequence of unacceptable levels of radon, formaldehyde, carcinogenic substances or other pollutants and contami- nants; or the presence of hazardous or toxic materials resulting in tminhabitability or health risk within the Home. acts or omissions by you, your agents, employ- ees, licensees, invitees; accidents, riots, civil commotion, nuclear hazards, acts of God or na- ture, fire, explosion, blasting, smoke, water escape, windstorms, hail, lightning, ice, snow, falling trees, aircraft, vehicles, flood, mud slides, sinkholes, mine subsidence, faults, crev- ices, earthquake, land shock waves or tremom occun'ing before, during or after a volcanic eruption. your failure to perform routine maintenance. your failure to minimize or prevent such loss or damage in a timely manner. defects in, but not limited to: recreational fa- cilities; driveways; walkways; patios, porches and stoops not structurally attached; decks and balconies which are not bolted to or cantile- vered from the main structure of the boundary and/or retaining walls; bulkheads fences; landscaping, sodding, seeding, shrubs trees and plantings; subsurface drainage sys- tems (other than footer drains); lawn sprinkler systems; off-site improvements, including stxeets, sidewalks, adjacent property and the like; or any other improvements not part of the Home itself. defects in detached garages or outbuildings (ex- cept those which contain plumbing, electrical, heating, cooling or ventilating systems serving the Home, and then only to the extent where Defects would affect these systems). A de- tached garage is one which is constructed on its own foundation, separate and apart from the foundation of the Home. A breezeway, fence, utility line or similar union shall not cause a garage or outbuilding to be considered at- tached. negligent maintenance or operation of the Home and its systems by anyone other than your Builder or its agents, employees or sub- contractors. any portion of a Water Supply System, private or public, including volume and pressure of water flow.* quality and potability of water. any portion of a Sewage Disposal System, pri- vate or public, including design.* *FHA/VA Homeowners, refer to HUD Addendum, Section 3. Failure of your Builder to complete construction of the Home or any part of the Home on or before the Effective Date Of Warranty or damages arising from such failure. An incomplete item is not consid- ered a Defect, although your Builder may be obligated to complete such items under separate agreements ibetween you and your Builder. 4. Any deficiency which does not result in actual physical damage or loss to the Home. 5. Any Consequential Damages. 6. Personal property damage or bodily injury. 7. Violation Of applicable Building Codes or ordi- nances unlbss such violation results in a Defect which is ot ranty. Und, the Wan:al only be to the Home, conform to Any reques the Admin later than cable wan: Warranted written autl Any damag whether lo, result of i~ ment, main terwise covered under this Limited War- r such circumstances, the obligation of tor under this Limited Warranty shall epair the defective warranted portion of ~ut not to restore or bring the Home to :ode. ! for warranty performance submitted to strator after an unreasonable delay or 0 days after the expiration of the appli- ~ty period~ Defects that you repair without prior orizatiun of the Administrator. :s to, or resulting from a swimming pool :ated within or outside the Home, as a s construction, placement, use, equip- enance, etc. 1 l. The removal and/or replacement of items specifi- cally excluded from coverage under this Limited Warranty, such as landscaping or personal property, items not originally installed by your Builder, such as wallpaper, where removal and replacement arc required to execute a repair. 12. Any Defect caused by moisture, rot, mildew or rust. 13. Sound transmission and sound proofing between rooms or floor levels. 14. Appliances and Equipment included in the Home are not warranted under this Limited Warranty, but may be covered by separate warranties provided by the manufacturer or supplier. These warranties are passed on to you by your Builder at closing and are separate from this Limited Warranty.* F. Limitation of Liability 1. The Warrantor's liability and obligations are limited to the repair, replacement or the payment Of the rea- sonable cost of repair or replacement of Warranted items not to exceed an aggregate equal to'the Final Sales Price of the Home listed on the Application For Warranty form. The choice to repair, replace or make payment is the Warrantor's. 2. All other warranties, express or implied, including, but not limited to, all implied warranties of fitness, merchantability or habitability, are disclahned and excluded to the extent allowed by law. page 319.6 Homeowners in the State of blew York, refer to State of New York Addendum, Section V.C. The following Warranty Standards are applicable only to warranted items stated in Section II of tb.,.'MLimited Warranty. Read Section II to determine if the following Warranty Standards apply.* CATEGORY OBSERVATION ACTION REQUIRED COMMENTS I BASE~VmNT ] 1.1 NO action required. control joints. 1.2 Pit, depression or areas of unevermess in areas designed for living purposes. [ CRAWL SPACE page 319.7 1.3 Cracks in poured con- crete t'oundation wails. 1.4 Crack's in block or The expansion/contraction joint is placed to control cracking. This is not a deficiency. 1.5 Builder will correct those areas in which Defect exceeds 1/4 in. within a 32 in. measurement. Builder will correct any crack which exceeds I/8 in. in width. Builder will correct cracks which exceed 1/4 in. in width. In rooms not initially designed as finished living areas or where a floor or a portion of a floor surface has been designed for specific drainage purposes, a slope which exceeds 1/4 in. within a 32 in. measurement is not a deficiency. Shrinkage cracks are common and should be expected. Surface patching and epoxy injection are examples of acceptable repair methods. Some cracks are common through masonry and mortar juints. Crocks 1/4 in. or less are 1,6 Leak: resulting in actua flow or trickling of wa :er through wall or fie >r, causing an accur ~ulation. Disin egration of the concr ~te floor surface. Builder will correct. Builder will correct disintegrated surfaces caused by improper placement of concrete. considered routine Owner maintenance. A one-time occurrence may not indicate a Defect. Owner must maintain proper grading around the Home and maintain any surface water control systems installed by Builder. Dampness and condensation are normal conditions and are not covered by this Limited Warranty. Disintegration caused by erosion dye to salt, chemicals, implements used and other factors beyond Builder's control is not a warranted deficiency. 1.7 Crack whict s in concrete floor rupture or signif- icantl t impair perfor- 1.8 Cond, nsation on walls, joists: support columns and o her components ofba~ .'merit area. 1.9 Cracl~; in poured con- crete i)undntion walls. 1.10 Crack.~ in block or venee~ wall. 1.11 Inade, uate ventilation. Builder wilI correct so Defect is not readily noticeable when floor covering is in place. No action required. Builder will correct any crack which exceeds 1/8 in. in width. Builder will correct cracks greater than 1/4 in. in width. Minor impressions in floor covering are not considered significant imperfections. Maintaining adequate ventilation and moisture control is considered Owner maintenance. Surface patching and epoxy injection are examples of acceptable repair methods. Shrinkage cracks of 1/8 in. or less are common and should be expected. nsation on walls, support columns aer components :rawl space area. Builder wili install properly sized louvers or vents. Surface patching and epoxy injection are examples of acceptable repair methods. Shrinkage cracks of 1/4 in. or less are common and should be expected. Maintaining adequate ventilation and moisture control, including seasonal 1.12 Condl joists, and el of the No action required. adjustment of vent openings, is considered Owner maintenance. Maintaining adequate ventilation and moisture control, including seasonal adjustment of vent openings, is considered Owner maintenance. Homeowners in the State of New York, refer to State of New York Addendum, Section V.C. Ii! CATEGORY SLAB or~ G~o~ CEILING !i! [ FLO0~ J 2.2 The following Warranty Standards are applicable only to warranted items stated in Section II of this Limited Warranty. Read Section II to determine if the following Warranty Standards apply. OBSERVATION joifits. 1.14 Pits, depressions or areas of anevermess in areas designed for living purposes. 1.15 Disintegration of con- crete floor surface. ACTION REQUIRED COMMENTS 1.16 Cr~k in concrete floor which ruptures or signifi- can[ly impairs perfor- mance of floor covering. 1.17 Cracks in attached garage slab. 1.18 Cr~ :ks in concrete floor ofl nfinished area (no flo, r covering) or in areas not designed for living. 1.19 Crt :ks in visible face of fou ~dation. 2.3 [ R~F ] 2.4 WALL ] 2.5 No action required. Builder will correct areas in which Defect exceeds 1/4 in. within a 32 in. measurement. Builder will correct disintegrated surfaces caused by improper placement of concrete. Builder will correct so Defect is not readily noticeable when floor covering is in place. Builder will correct cracks which exceed 1/4 in. in width or vertical displacement. Builder will correct cracks which exceed 1/4 in. in width or vertical displacement. Builder wifi correct cracks in excess of 1/8 in. in width. Expansion/contraction joint is placed to control cracking. This is not a deficiency. In moms not initially designed as finished living areas or where a floor or a portion of a floor surface has been designed for specific drainage purposes, a slope which exceeds 1/4 in. within a 32 in. measurement is acceptable. Disintegration caused by erosion, due to salt, chemicals, implements usedi and other factors beyond Builder's control is not a warranted deficiency. Minor impress ons in floor covering are not considered significant imperfections. Surface patching and epoxy injections are examples of acceptable repair methods. Shrinkage cracks are common and should be expected. Surface patching and epoxy inje(ltions are examples of acceptable repair methods. Shrinkage cracks are common arid should be expected. Surface patching and epoxy injeotions are examples of acceptable repair mothods. Shrinkage cracks are common and should be expected. High and low areas. Builder will correct if unevenness exceeds 1/4 in. within a 32 in. measurement. Builder will correct if high or low be expected. Some minor framing imperfections should areas exceed 1/4 in. within a 32 in. be expected. page 319.8 Rev. 1/1/97 Flo~r squeaks. Spl4t or warped raRers or trusles. Builder will correct if caused by a defective joist or improperly installed subfloor. No action required. A squeak-proof floor cannot be guaranteed. Lumber shrinkage as well as temperature and humidity changes may cause squeaks. Some splitting and warping is normal and Bo~ ~ or bulge. 2.60utlof-plumb. 2.7 Wall is out-of-square. Builder will correct if bow or bulge is caused by high temperature ef~cts on lumber. Minor framing imperfections should be exceeds I/4 in. within 32 in. horizontal or vertical measurement. expected. Builder will correct where out-of- plumb condition exceeds 3/4 in. within 8 fL vertical measurement. Minor flaming imperfections should be expected. No action required. A wall out-of-square is not a DefeCt. The following Warranty Standards are applicable only to warranted items stated in Section II of )his Limited Warranty.Read Section H to determine if the following Warranty Standards apply. CATEGORY OBSERVATION ACTION REQUIRED COMMENTS DOOR STRUCTURALLY AI~ACHED WOOD DECKS 3.1 Wood, twisting, warping or splitting. Builder will correct only if due to improper installation. Twisting, warping or splitting of wood deck material is normal due to exposure to the elements. Owner maintenance is required. 3.2 Settlement. Builder will correct slope of deck which exceeds a ratio of 2 in. in a 10 fi. measurement. Some slope is often provided to allow for water drainage. 3.3 Loosei railing or post. Builder will correct if due to improper installation. Owner maintanance is required. 3.4 Binds4sticks or does not lal~ch, by faulty workmanship or materials, expand and contract, and are usually ROOFING J 3.5 Woodldoor panel shrink~. 3.6 warpihg. Builder will correct if caused Seasonal changes may cause doom to 3.7 Split ih panel. 3.8 Separ{tion between do~r ~ad weather- stripping. 3.9 Scree~ meshis torn or damaged. 3.10 Overh{ad garage door fails t~operate or allows rain or snow to leak through. 3.11 Roof and roof flashing No action required. Builder will correct warping which exceeds 1/4 in., measured vertically, horizontally or diagonally. Builder will correct if split allows the entrance of elements. Builder will correct if daylight is visible or if entrance of elements occurs under normal conditions. Builder will correct only if damage is documented prior to occupancy. Builder will correct garage doors which do not fit or operate properly. Builder will correct if leak occurs temporary conditions. Panels will shrink and expand and may expose unfinished surfaces. Seasonal changes may cause doors to expand and contract, and are usually temporary conditions. Splits which do not allow the entrance of elements are considered normal. Owner maintenance is required. Even with properly installed weather stripping, some movement of the door, when closed, may be expected. Owner maintenance is required for minor alterations to adjustable thresholds and other parts of the door. Owner is responsible for establishing a pre-closing walk-tkrough inspection list. Some entrance of elements can be expected and is not considered a deficiency. If Owner installs a garage door opener, Builder is not responsible for operation of door. No action is required if leak is due to snow page 319.9 3.12 Lifted~torn or curled shingles. 3.13 InadeqCate ventilation. 3.14 Water ~tays in gutters. 3.15 Gutter er downspout leaks. ] under normal conditions. Builder will correct if due to poor installation. Builder will provide adequate ventilation. Builder will correct to limit standing water depth at I in. Builder will correct leaks at connections. or ice build-up, high winds or driving rains. Owner maintenance is required. Moisture accumulation in attics which are not adequately vented is a deficiency. It is Owner's responsibility to keep existing vents clear of obstructions to promote air flow. Owner is responsible for keeping gutters and downspouts clean. Owner is responsible for keeping gutters and downspouts clean. Guttgrs may over- flow during heavy rains. The following Warranty Standards are applicable only to warranted items stated in Section II of this Limited Warranty. Read Section II to determine if the following Warranty Standards apply. CATEGORY OBSERVATION ACTION REQUIRED COMMENTS I SITE Woe.~ water within 10 dt. of the foundation. Builder will correct water which stands for more than 24 hours, or more than 48 hours in swales. Standing water beyond the I0 ft. perimeter of the foundation is not covered by this Limited Warranty. Owner is responsible for establishing and maintaining adequate ground cover. 3.17 Settling of ground arOUnd foundation walls, utitty trenches or other fil][~d areas on property where there has been excmvation and backfill which affected foumdation drainage. 3.18 Se~lement, heaving or mOvement. If final grading was performed by Builder, he will replace fill in excessively settled areas only once.* Builder will correct if movement If settlement does not exceed 6 in., it is Owner's responsibility to fill affected areas. The party responsible for establishing the final grade shall provide for positive drainage away fxom foundation. Owner is responsible for establishing and maintaining adequate ground cover. Stoops, porches and patios which are exceeds 1 in. from the Home for stoops, porches and patios which are structurally attached. poured separately and simply abut the house are not covered by this Limited Warranty. 3.19 Cc ~crete splatters on ad2 acent surfaces. Builder will correct only if damage is documented prior to occupancy. Owner is responsible for establishing a pre-closing walk-through inspection list. STRUCTURALLY ATTACHED STOOP, PORCh/ & PATIO w Lcov, I 3.20En tfu sid rance of elements >ugh separations of ng or Wim joints, or aration between trim surfaces of ~onry or siding. 1 3.21 Cr~cks in stucco, cement am~ plaster Surfaces. 3.22 Sic lng materials deteriorate, delaminata or 4:omc loose. 3.23 Pai~. t or. stain peels or ~eterlorates. 3.24 Paint splatters and smgars on other surfaces. 3.25 FaUlty application of sPai~urratcO~.wall and trim 3.26 Kn )t holes bleed thr ~ugh paint or stain. 3.27 Ve ~t or louver leaks. page 319.10 Builder will correct entrance of elements or separations exceeding 3/8 in. by caulking or other methods. Any separations 3/8 in. or less a~e considered routine Owner maintenance. Builder will correct cracks which exceed 1/8 in. in width. Hairline cracks are common. Builder will correct affected area if due to improper workmanship or materials. Separated, loose or delaminated siding can also be due to improper maintenonce. Wavy siding may be due to temperature changes and can be expected. o Builder will correct. If 75 '/, of a particular wall is affected, entire wall will be corrected. Some fading is normal and is caased by weathering. Mildew and fungus on siding are caused by climatic conditions and are considered routine maintenance. Varnish or lacquer will deteriorate quickie' and is not covered by this Limited Warranty. Builder will correct only if damage is documented prior to occupancy. Owner is responsible for establishing a pre-closing walk-through inspection list. Builder will correct affected area. If greater than 75% of wall or trim piece is affected, entire surface will be corrected. Some minor imperfections such as over- spray, bmshmarks, etc., are common and should be expected. Builder will correct affected areas where excessive bleeding of knots appear. Knot holes will be apparent depending on the quality of material used. Builder will correct if caused by improper installation. Properly installed louvers or vents may at times allow rain or snow to enter under strong wind conditions and is not a deficiency. *FHA/VA Homeowners, refer to HUD Addendum, Section V.E. The following Warranty Standards are applicable only to warranted items stated in Section II of thislfimitedJffarranty. Read Section II to determine if the following Warranty Standards apply. CATEGORY OBSERVATION ACTION REQUIRED COMMENTS WALL COVEI~ING 3.28 Cracl~s in masonry, (CONTL~Cr~n) veneea', stone, etc. Builder will correct cracks which exceed 1/4 in. in width. Some cracks are common through masonry and mortar joints. Cracks 1/4 in. or less are considered routine Owner maintenance. I wt oows I3.29 Condensation or frost on interior window 3.30 Clou~ing or conden- sation~ between panes ofgla~s. 3.31 Glass]breakage. 3.32 ExceSsive drafts and leaks. close No action required. Builder will correct only if damage is documented prior to occupancy. Builder will correct only if damage is documented prior to occupancy. Builder wili correct poorly fined windows. Builder will correct. Condensation is relative to the quality and type of windows. Temperature differences in high levels of humidity along with indivi- dual living habits will cause condensation. Owner is responsible for establishing a pre-closing walk-through inspection list. Owner is responsible for establishing a pre-closing walk-through inspection list. Relative to the quality and type of windows, some drafts are normally noticeable around windows, especially during high winds. It may be necessa~ for the Owner to have storm windows installed to provide a satisfactory solution in high wind areas. All caulking materials expand and contract due to temperature variation and dissimilar materials. Maintenance of weather stripping is Owner's responsibility. Windows should open, close and lock with reasonable pressure. DOORS 4.1 Latch loose or rattles. No action required. Some minor movement should be 4.2notBinds~iCkSla . or does 4.3 Warping. 4.4 Exce~iveopeinng at bottom. 4.5 Rubs,,n carpet. Builder will correct if due to faulty workmanship and materials. Builder will correct warping which exceeds 1/4 in., measured vertically, horizontally or diagonally. Builder will correct gaps in excess of 1-1/2 in. between bottom of passage door and finished floor or 2 in. between bottom of closet door and finished floor. Builder will correct. expected. Seasonal changes may cause doors to expand and contract, and is usually a tempora~ condition. Seasonal changes may cause doors to expand and contract, and are usually temporary conditions. Gaps under doors are intended for mr flow. Builder is not responsible if Owner installs carpet. page 319.11 CATEGORY SURFACES, FINISHES The following Warranty Standards are applicable only to warranted items stated in Section Il of this Limited Warranty. Read Section II to determine if the following Warranty Standards apply. OBSERVATION ACTION REQUIRED COMMENTS 4.6 CraCks and separations Builder will correct cracks ui excess Minor seam separations and cracks, along in d~ywall, lath or plaster; nail pops. 4.7 Peeling of wallpaper. 4.8 Separated seams in wallpaper. 4.9 Lu~ ps, ridges and nail po!: in wallboard which apg ar after Owner has wa] coveting installed by timself or others. 4.10 Sm Yace deficiencies in finJ shed woodwork. 4.11 Ga between trim and adj ent surfaces, and gat at trim joints. 4.12 Cn'cks in ceramic grout joi tts. 4.13 Ceramic tile cracks or becomes loose. 4.14 Cracking or detenoratmn of ~:aulking. 4.15 Wall or trim surfaces vis!ble through paint. of 1/8 in. in width. Builder will correct nail pops which have broken finished surface. Builder will correct if not dne to Owner neglect or abuses. Builder will correct if wall surface is readily visible. No action required. Builder will correct readily apparent splits, cracks, hammer marks and exposed nail heads, only if documented prior to occupancy. Builder will correct gaps in excess of 1/8 in. at trim joints and 1/4 in. between trim and adjacent surfaces. Builder will correct cracks in excess of 1/8 in. one time only. Builder will correct only if docu- mented prior to occupancy. No action required. Builder will correct affected area. If greater than 75% of wall, trim piece, or ceiling is affected, entire surface will be corrected. with other slight imperfections, are common and should be expected. Minor depressions and slight mounds at nail heads are not Defects. Builder is not responsible for wallpaper installed by Purchaser. Owner is respon- sible for maintaining adequate ventilation in areas of high humidity, such as kitchens and bathrooms. Minor imperfections can be expected. Owner should insure that surface~to be covered is suitable for installatio~ of wall covering. Owner is responsible for establishing a pre-closing walk-through inspection list. Some separation due to lumber shrinkage is normal and should be expected. Cracking of grout joints is common and is considered routine Owner maint*nance unless excessive. Owner is responsible for establishing a pre-closing walk-through inspection list. All interior caulking shrinks an~ deterior- ates. Owner maintenance is required. Some minor imperfections such as over- spray, bmshmarks, etc., are common and should be expected. page 319.12 The following Warranty Standards are applicable only to warranted items stated in Section II of ~ited_Warranty. Read Section II to determine if the following Warranty Standards apply. CATEGORY OBSERVATION ACTION REQUIRED COMMENTS FLOOR COVERING* L SuB-FLOORING I 4.16 Resilient flooring comes loose at edge. 4.17 Fades stains or discolors. 4.18 Premamrewearing ofcarpet. 4.19 Visible gaps at carpet 4.20 CarpeI becomes loose or buckles. Builder will correct. Builder will correct stains or spots only if documented prior to occupancy. No action required. Builder will correct gaps. Builder will correct. Owner maintenance is required. Fading is not a deficiency. Owner is responsible for establishing a pre-closing walk-through inspection list. Excessive wear in high-traffic areas such as entryways and hallways is normal. Wearability is directly related to quality of carpet. Seams will be apparent. Owner maintenance is required. Some stretching is normal. Owner should exercise care in moving furniture. 4.21 Gaps ~t seams of resilient flooring. 4.22 Fastener pops through . resilielat flooring. 4.23 DepreSsions or ridges in rasilie~t flooring at seams of sub-flooring. 4.24 Cuts and gouges in any floor lovering. I 4.25 Loose sub-flooring. Builder will correct gaps of similar materials in excess of 1/8 in., and 3/16 in. where dissimilar materials abut. Builder willcorrectwhere fastener has brokenthrough floor covering. Builder will correct depressions or ridges which exceed 1/8 in. in height or depth. Builder will correct only if documented prior to occupancy. Minor gaps should be expected. Sharp objects such as high heels, table and chair legs, can cause similar problems, and are not covered by this Limited Warranty. This is determined by placing a 6 in. straight edge over ridge or depression, with 3 in. on either side, and measuring height or depth at sub-flooring seam. Owner is responsible for establishing a pre-closing walk-through inspection list. Builder will correct if due to a defective joist or improper fastening. Lumber shrinkage as well as tempemiure and humidity changes may cause loose sub-flooring. page 319.13 ~1~6 [tarnsbllrg~ PA *FHA/VA Homeowners, refer to HUD Addendum, Section V.E. CATEGORY The following Warranty Standards are applicable only to warranted items stated in Section II of this Limited Warranty. Read Section I1 to determine if the following Warranty Standards apply. OBSERVATION ACTION REQUIRED COMMENTS ELECTmCAL t 5.1 CLmmt breakers tap Budder will correct if tripping Ground Fault Circuit Interrupters (GFCI) excessively. are intended to trip as a safety factor. 5.2 Outlets, switches or fixtures malfunction. Builder will correct if caused by defective workmanship or materials. Owner should exercise routine care and maintenance. Replacement of light bulbs is Owner's responsibility. I H~x,NG & COOL~G I 5.3 Condensation lines clog No action required. Condensation lines will clog under normal ii¸ 5.4 No!sy duct work. 5.5 Ins ~fficient heating. 5.6 Insnfficient cooling. 5.7 Rel 'igerant line leaks· 5.8 Pip~ freezes and bursts. conditions. Continued operation of drain line requires Owner maintenance. Builder will correct oil canning noise if caused by improper installation. When metal heats and cools, ticking and cracking may occur and are not Covered by this Limited Warranty. Builder will correct if heating system cannot maintain a 70 degree Fahrenheit temperature, under normal operating and weather conditions. Temperature shall be measured at a point 5 ft. above center of floor in affected area. On extremely cold days, a 6 degree difference between actual inside temperature and thermo- stat setting is acceptable. All rooms may vary in temperature by as much as 4 degrees. Orientation of the Home, location of rooms and location of vents will also provide a temperature differential· There may be periods when outdoor temperatnse falls below design temperature thereby lowering temperature in the Home. Certain aspects of the Home including, but not limited to, expansive stairways, open foyers, sunrooms or cathedral ceilings may cause abnormal variation from these Standards and are not covered by this Limited Warranty. Builder will correct if cooling system cannot maintain a 78 degree Fahrenheit temperature, under normal operating and weather conditions. Temperature shall be measured at a point 5 ft. above center of the floor in the affected room. On excessively hot days, where outside temperature exceeds 95 degrees Fahrenheit, a difference of 17 degrees from outside temperature will be difficult to maintain. All rooms may vary in temperature by as much as 4 degrees. Orientation of the Home, location of rooms and location of vents will also provide a temperature differential. There may be periods when outdoor temperature rises above design temperature thereby raising temperature in the Home. Certain aspects of the Home including, but not limited to, expansive stairways, open foyers, sunrooms or cathedral ceilings may cause abnormal variation from these Standards and are not covered by this Limited Warranty. Builder will con'ect. Owner maintenance is required on the system. Builder will correct if due to faulty workmanship or materials· Proper winterization of pipes is considered routine maintenance and Owner should maintain suitable temperatures inside the Home. 5.9 Noi ~y water pipe. 5.10 Plm thing fixtures, app iances and trim fitti s leak or malfunction. Builder will correct hammering noise if caused by improper installation. Builder will correct if due to faulty workmanship and materials. Some noise can be expected due ~o flow of water and pipe expansion. This is not a Defect. Owner maintenance is required. Scratches, tarnishing or marring must be noted on a pre-closing walk-through inspecth3n list. page 319.14 ©~09~ m,,ist~ ~A *FHA/VA Homeowners, refc-r to HUD Addendum, Section V.E. The following Warranty Standards are applicable only to warranted items stated in Section II of this Limited Warranty. Read Section II to determine if the following Warranty Standards apply. CATEGORY OBSERVATION ACTION REQUIRED COMMENTS BATHROOM I 6.1 Cabi et~aratos from Builder will correct separation in Some separation is normal. Caulking is an & Krrcn~N CHIMNEY & F1RgPLACE 6.2 6.3 6.4 6.5 6.6 6.7 6.8~ I6.9 wall 0r ceiling. Crack in door panel. Warping of cabinet door or drawer front. Door~ or drawers do not operate. Chipsi cracks, scratches on cotmtertop, cabinet fixmr~, fttting or appliahce. Delan~ination of count~rtop or cabinet. Crack! or chips in fixturo. Defective fixture, fitting Ior appliance. ExteriOr and interior ~;y veneer cracks. excess of 1/4 in. Builder will correct only if documented prior to occupancy. Builder will correct if warp exceeds 3/8 in. as measured from cabinet frame. Builder will correct. Builder will correct only if documented prior to occupancy. Builder will correct only if documented prior to occupancy. Builder will correct only if documented prior to occupancy. Builder will correct. Builder will correct cracks in acceptable method of repair. Owner is responsible for establishing a pre-closing walk-through inspection list. Seasonal changes may cause warping and may be a temporary condition. Owner maintenance is required. Owner is responsible for establishing a pre-closing walk-through inspection list. Owner is responsible for establishing a pre-closing walk-through inspection list. Owner is responsible for establishing a pre-closing watk-through inspection list. Owner maintenance is required. INSULATION mason 6.10 Firebo in chit 6.11 Chiran excess of 1/4 in. in width. mortar joints. Cracks 1/4 in. in width or color is changed; dation of residue mey or flue. No action required. less are considered Owner maintenance. Owner maintenance is required. ~y separates from the Hc 6.12 Smoke! in living area. 6.13 Water i~filtration into firebox from flue. 6.14 Firebri~ k or mortar joint crack: inl tration around 6.15 Air eIectri, d receptacles. Builder will correct separation in excess of 1/2 in. within 10 ft. Builder will correct if caused by improper construction or inadequate clearance. No action required. No action required. No action required. Newly built chimneys will often incur slight amounts of separation. Temporary negative draft situations can be caused by high winds; obstmctions such as tree branches too close to the chimney; the geographic location of the fireplace; or its relationship to adjoining walls and roof. In some cases, it may be necessary to open a window to create an effective draft~ Since negative draft conditions could be temp- orary, it is necessary that Owner substan- tiate problem to Builder by constructing a fire so the condition can be observe& A certain amount of rainwater can be expected under certain conditions. Intense heat may cause cracking. Air flow around electrical boxes is normal and is not a deficiency. page 319.15 The following Warranty Standards are applicable only to warranted items stated in Section II of this Limited Warranty. Read Section II to determine if the following Warranty Standards apply. CATEGORY ELECTRIC3J~ OBSERVATION I B.1 Wiring fails to carry specified load. ACTION REQUIRED Builder will correct if failure is due to improper installation or materials. COMMENTS Switches, outlets and fixtures are applicable to Year 1 Coverage Only. HEATING ~ COOLING PLUMBING B.2 Duct work separates. Builder will correct. Owner maintenance is required. I B.3 Pil~e leaks. Builder will correct. B.4 W~tter supply stops. B.5 ClOgged drain or sewer. Builder will correct if due to faulty workmanship or materials inside the Home. Builder will correct clog within structure caused by faulty workmanship or materials. Condensation on pipes does not constitute leakage. Faulty faucets, valves, joints and fittings am applicable to Year 1 Coverage Only. Drought or causes other than faulty workmanship and materials will,not be covered under this Limited Warranty. Clogs and stoppages beyond the; exterior wall are not covered by this Limited Warranty. Routine Owner maintenance and proper use is required. page 319.16 The following Warranty Standards are applicable only to warranted items stated in Section I1 of this Limited Warranty. Read Section II to determine if the following Warranty Standards apply. CATEGORY OBSERVATION ACTION REQUIRED COMMENTS MAJORDEFEcTsSTRUCTURAL I C.1 Major Structural Defects. The criteria for establishing the existence ora Major Structural Defect is set forth in Section I.B. 15 of this Limited Warranty Agreement. The Warrantor will correct Major StructuralDefects, limited to such actions as are necessary to restore the load~bearing capability of the component(s) affected by a Major Structural Defect. page 319.17 page 319.18 A. Notice to Warrantor in Years I & 2 1. If a Defect occurs in Years 1 and 2, you must notify your Builder in writing. Your request for warranty performance should clearly describe the Defect(s) in reasonable detail. 2. Request for warranty performance to your Builder does not c~)nstitute notice to the Administrator, and it will not extend applicable coverage periods. 3. If a request for warranty performance to your Builder does not result in satisfactory action within a reasonable time, written notice must be given to RWC, Administrator, 5300 Derry Street, Hams- burg, Pennsylvania 17111-3598, Attn: Warranty Resolutiod Department. This notice should describe each item in reasonable detail and should be for- warded by certified mail, return receipt requested. 4. Please not~ that a written request for warranty per- formance ~nust be postmarked no later than thirty (30) days ffter the expiration of the applicable war- ranty period. For example, if the i~em is one which is warranted under your Builder s ~vo-year war- ranty periqd, a request for warranty performance must be p, ,stmarked no later than thirty (30) days after the e~ d of the second year to be valid. B. Notice to ~Varrantor in Years 3-10 If ~ Defec related to a warranted MSD occurs in Years 3 th rough 10 of this Limited Warranty, you must notif, the Administrator to review the item. All such t otices must be presented in writing to RWC, Ad ninistrator, 5300 Deny Street, Harris- burg, Pen~tsylvania 17111-3598, Attn: Warranty Resolution Department, by certified mail, return re- ceipt req~ sted, within a reasonable time afier the situation m ises. Any such notice should describe the condition c f the MSD in reasonable detail. Requests for warran ~ performance postmarked more than thirty (30) days after the expiration of the term of this Limite. I Warranty will not be honored. C. Purchaser's Obligations 1. Your noti~ e to the Administrator must contain the followi tg information: a. Enrolh ~ent # and Effective Date Of Warranty; b. Your [ uilder's name and address; c. Your n ime, address and phone number (includ- ing hoJ he and work numbers); d. Reasor ably specific description of the warranty item(s) to be reviewed; e. A cop3 of any written notice to your Builder. f. Photog 'aph(s) may be required. 2. You have an obligation to cooperate with the Admiinstra ~)r's mediation, inspection and investi- gation of y ur warranty request. From time to time, the Admit strator may request information from you regard ~g an alleged defect. Failure by you or your appoi~ ted representative to respond with the requested it formation within thirty (30) days of the date of the kdministrator's request can result in the closing of your warranty file. D. Mediation and Inspection Within thirty (30) days following the Administrator's re- ceipt of proper notice of request for warranty performance, the Administrator may review and mediate your request by communicating with you, your Builder and any other indi- viduals or entities who the Administrator believes possess relevant information. If, after thirty (30) days, the Admin- istra%or has not been able to successfully mediate your request, or at any earlier time when the Administrator be- lieves that your Builder and you are at an impasse, then the Administrator will notify you that your request has become an Unresolved Warranty Issue. At any time following the receipt of proper notice of your request for warranty per- formance, the Administrator may schedule an inspection of the item. You must provide the Administrator reasonable access for any such inspection as discussed in Section IV.E.2. The Administrator, at its discretion, may schedule a subsequent inspection to determine Builder compliance. When a request for warranty performance is filed and the deficiency cannot be observed under nortual condi- tions, it is your responsibility to substantiate that the need for warranty performance exists including any cost involved. If properly substantiated, you Will be re- imbursed by the Warrantor. E. Arbitration 1. You begin the arbitration process by giving the Administrator written notice of your request for arbitration of an Unresolved Warranty Issue. Within twenty (20) days after the Administrator's receipt of your notice of request for arbitration, any Unresolved Warranty Issue that you have with the Warrantor shall be submitted to the National Acad- emy of Conciliators or to another independent arbitration service upon which you and the Adminis- trator agree. This binding arbitration is governed by the procedures of the Federal Arbitration Act, 9 U.S.C. 1 et. seq. If you submit a request for arbitration, you must pay the arbitration fees before the matter is sub- mitted to the arbitration service. After arbitration, the Arbitrator shall have the power to award the cost of this fee to any party or to split it among the parties to the arbitration. The arbitration shall be conducted in accordance with this Limited Warranty and the arbi- tration rules and regulations to the extent that they are not in conflict with the Federal Arbitration Act. Within one (1) year after an arbitration award, either party may apply to the U.S. District Court Where the Home is situated to confirm the award. The Admini- strator's receipt of a written request for arbitration in appropriate form shall stop the running of any statute of limitations applicable to the matter to be arbitrated until the Arbitrator renders a decision. The decision of the Arbitrator shall be final and binding upon all parties.* Since this Limited Warranty provides for mandatory binding arbitration of Unresolved WarranW Issues, if any party commences litigation in violation of this Limited Warranty, such party shall reimburse the other parties to the litigation for their costs and Homeowners in the State of New York, refer to State of New York Addendum, Section V.C. page 319.19 F. Condition~ 1. When expenses, including attomey fees, incurred in seek- ing dismissaI of such litigation.* In Years 1 & 2, the Builder shall have sixty (60) days from the date the Administrator sends the Ar- bitrator's award to the Builder to comply with the Arbitrator's decision. In Years 3-10, the Warrantor shall have sixty (60) days from the date the Admin- istrator receives the Arbitrator's award to comply with the Artfitrator's decision. Warranty compliance will begin as soon as possible and will be completed within the s~ty-day compliance period with the ex- ception of any repair that would reasonably take more than sixty (60) days to complete, including, but not limi :ed to, repair delayed or prolonged by inclement v eather. The Warrantor will complete such repair { r replacement as soon as possible with- out incarrin~ overtime or weekend expenses. You may r* quest a compliance arbitration within twenty (20) lays after the sixty-day compliance pe- riod has exp red by giving the Administrator written notice of yc ar request. You must pay the fees for the complim ce arbitration prior to the matter being submitted to the arbitration service. You must l: :ovide the Warrantor with reasonable weekday acc ~ss during normal business hours in or- der to perfc tm its obligations. Failure by you to access to the Warrantor may relieve the r of its obligations under this Limited fulfill its obliga- tions under Limited Warranty, the Admini- strator will warranty perfor- mance as in this Limited Warranty and · ' in Section IV.F. ' Performance s deter- mined to be aI the Warrantor reserves the right to repair or replace the warranted item, or to pay you the r~asonable cost of repair or replacement. In Years 1 ~nd 2, if your Builder defaults in its warranty obligations, the Administrator will process the request f~,r warranty performance provided you pay a warran prior to repai 3. In Years3 th 4. If the Admin than repair m service fee wi 5. If the Wan'an a warranted and to any each mortgagee of payment. make gagee where y service fee of $250 for each request or replacement.** ough 10 you must pay the Administra- service fee of $500 for each request.** strator elects to award you cash rather replace a warranted item, the warranty [1 be subtracted from the cash payment. or pays the reasonable cost of repairing payment shall be made to you or mortgagee's successor as provided that the ; notified the Administrator in writing interest in the Home prior to such ot have any obligation to t jointly to the Purchaser and mort- mortgagee has not notified your Builder or the Administrator in writing of its security interest in the Home prior to such payment. Any mortgagee shall be completely bound by any media- tion or arbitration relating to a request for warranty performance between you and the Warrantor.* 6. Prior to payment for the reasonable cost of repair or replacement of warranted items, you must sign and deliver to the Builder or the Administrator, as appli- cable, a full and unconditional release, in reanrdable form, of all legal obligations with respect to the warranted Defects and any conditions arising from the warranted items. 7. Upon completion of repair or replacement of a war- ranted Defect, you must sign and deliver to the Builder or the Administrator, as applicable, a fell and unconditional release, in recordable form, of all legal obligations with respect to the Defect and any conditions arising from the situation. The repaired or replaced warranted item will continue to be war- ranted by this Limited Warranty for the remainder of the applicable period of coverage. 8. If the Warrantor repairs, replaces or pays you the reasonable cost to repair or replace a warranted item, the Warrantor shall be subrogated to all your rights of recovery against any person or emity. You must execute and deliver any and all insfruments and papers and take any and all other actions neces- sary to secure such fights, including, but not limited to, assignment of proceeds of any insurance or other warranties to the Warrantor. You shall do nothing to prejudice these rights of subrogation. 9. /my Warrantor obligation is conditioned upon your proper maintenance of the Home, common olements and grounds to prevent damage due to neglect, ab- normal use or improper maintenance. I 0. Condominium Procedures: a. In the case of common elements of a condo- minium, at all times, owner(s) of each unit affected by the common elements in t~eed of warranty performance shall each be responsible to pay the warranty service fee ($250 in Years 1 and 2, $500 in Years 3 through 10) flor each request for warranty performance.** b. If a request for warranty performance under this Limited Warranty involves a common ele- ment in a condominium, the request may be made only by an authorized representative of the condominium association. If the Builder re- tains a voting interest in the association of more than 50%, the request may be made by unit owners representing 10% of the voting in- terests in the association. c. If a request for warranty performance under this Limited Warranty involves a common ele- ment affecting multiple units, and all affected units are not warranted by the RWC Warranty Program, the Insurer's liability shall be limited to only those units warranted by the RWC War- ranty. The limit of liability shall be prorated based upon the number of units warranted by this Limited Warranty. *FHA/VA Homeowners, refer to HUD Addendum, Section V.E. *Homeowners in Newark, De]aware, refer to Newark, Delaware, Addendum, Section V.A. ~ ~ A. Newark, Delaware, Addendum Two YEA~a COVERAGE -- Commencing on the Effec- page 319.20 The warranty service fee as described in Sections IV.F.2 and IV.F.3 will be waived for homes built in the city of Newark, Delaware. B. Maryland iAddendum You should contact the Administrator personally to verify the existence of your Warranty. Further, you should report any Warranty problems, which are not promptly resolved by your Builder, to the Adminis- trator. C. State of NOw York Addendum Except as ~xpressly provided in this Addendum, the warranties ~nd rights listed herein are in addition to, and are n~t exclusive of, any warranties or rights listed in this Limited Warranty. 1. Appliance; and Items of Equipment-- Subject to other term Warranty, Appliances Section II. apply durit term whet equipmem ingl heatinl the deficie~ of equipme by your Bu 2. Standards of this Lira than those more rigid are in confl 3. Alternativ, request for tion IV.E. obligation you have t{ in non-bi~ concernin Warranty before alet ther, if an ( obligations such litigati D. State of In¢ The warranties an and are not exclusi Notwithstanding printed form of th Warranty shall im tion II.C, and is m and conditions listed in this Limited he exclusion concerning deficiencies in and Items of Equipment described in E.14 of this Limited Warranty shall not g the first two (2) years of the warranty :ver (i) such appliances and items of are components of the cooling, ventilat- electrical or plumbing systems; and (ii) cies in such fixtures, appliances or items nt are the result of defective installation lder. -- Section III-- Should the provisions ted Warranty be more rigid or less rigid enacted by the State of New York, the requirements shall apply whenever they ct. Dispute Resolution -- When making a warranty performance pursuant to Sec- of this Limited Warranty, you have no o submit to binding arbitration, nor do pay any fee or charge for participation lng arbitration or any mediation process your request. However, any Unresolved ;sues must be submitted to arbitration al proceeding may be commenced. Fur- ~wner resorts to litigation, the rights and imposed by Section IV.E shall apply to )n. iana Addendum t rights listed above are in addition to, ye of, any warranties listed in this book. anything contained in the attached ~' RWC Limited Warranty, this Limited lude the following protection per Sec- ~ended to read as follows: tive Date of this Limited Warranty as specified on the Application For Warranty form, and subject to the terms and conditions listed herein, your Builder warrants that for a period of two (2) years your Home will be free from Defects due to nonconfor- mity with the Warranty Standards set forth in Section III of this Limited Warranty. With respect to fixtures, appliances and items of equipmem, the Warranty is for one (1) year or the manufacturer's written warranty, whichever is less. YEnus 3 n~o 4 COVERAGE O~[V -- During the third and fourth year following the Effective Date Of Warranty as specified on the Application For War- ranty form, and subject to the terms and conditions listed in this Limited Warranty, your home will be free from Defects caused by poor workmanship and materials in its roof and roof systems. E. HUD Addendum (Applicable to VA/FHA Financed Homes only) 1. Section I.B.12 Effective Date Of Warranty -- The following language is substituted: Thc Effec- tive Date Of Warramy will be the date on which ciosing or seffiemant occurs in connection with the initial sale of the Home. In no event will lhe Effec- tive Date Of Warranty be later than the date of FHA endorsement of your Mortgage on thc Home. 2. Section I.B.15 Major Structural Defects -- The following language is added: Delaminmion or rup- ture of roof sheathing shall be deemed a Major Structural Defect in need of warranty performance. 3. Section II.C.1 One Year Coverage -- The follow- ing language is added: Notwithstanding anything to the contrary contained in this Limited Warranty, during the first year of coverage, your Builder will repair or restore the reliable function of Appliances and Equipment damaged during installation or im- properly installed by your Builder. In addition, your Builder will correct Construction Deficiencies in workmanship and materials resulting from thc fail- ure of the Home to comply with standards of quality as measured by acceptable trade practices. Con- struction Deficiencies are Defects (not of a structural nature) in the Home that are att~butable to poor workmanship or to the use of inferior mate- rials which result in thc impaired functioning of the Home or some part of the Home. Defects resulting from your abuse or from normal wear and tear are not considered Construction Deficiencies. 4. Section H.C The following coverage is added for the State of Colorado ONLY: The builder's war- ranty for basement slabs in the State of Colorado is extended from the first through the fourth year. 5. Section II.D - The following statement is added: This agreement is non-cancelablc by the Warrantor. page 319.21 Section II.E.l.d -- The following language is sub- stituted: Loss or damage caused by soil movement, including subsidence, expansion or lateral move- ment of the soil which is covered by any other insurance or for which compensation is granted by state legislation. Section II.E.~.d is deleted. Section II.E.2.m -- The following language is sub- stituted: any lportion of a public Water Supply System, inchlding volume and pressure of water flow. Section lI.E.2.o -- The following language is sub- stituted: any portion of a public Sewage Disposal System, including design. Section III.A! a. SITE Wol~ -- The following language is sub- stituted: (1)3.17 (Ac4ion Required) If final grading was performe~ by the Builder, he will replace fill in excessively settled areas. b. FLoon C0wm~G - The following language is added: (1)4.26 (Ol~ finished Builder ,~ ceed l/I (Commei contract d Cracks an non-heati~ (2) 4.27 (O[ loose fini: Builder w in install flooring c on one sid and crowr to growth tree used. natural pr( conditions affect mo: ping or c nails or ar dition is control. (3) 4.28 (Ob ens. (Actie if docume~ Owner is r ing walk-~ C. PLUMBING 5.11 (Obs tion Requ is due to p~ are not in merit installatior 11. ~ervation) Gaps or cracks between floor boards. (Action Required) ill correct gaps or cracks which ex- 12. in. in width, one time only. ts) Finished wood floors expand and ~e to humidity changes in your home. t gaps which shrink and disappear in g seasons are considered normal. servation) Cupping, crowning or hed floor boards. (Action Required) 11 correct only if caused by a defect .tion. (Comments) Finished wood ~ps fi.om gaining or losing moisture : faster than the other. Some cupping ing should be considered normal due rings in the tree and the part of the The Builder is not responsible for perties of the product, or for climatic and personal living habits which can 13. sture content of floor boards. Cup- owning action may have loosened hesive. Owner is responsible if con- used by conditions beyond Builder's rvafion) ceraunc tile crocks or loos- a Required) Builder will correct only ted prior to occupancy. (Comraents) ,~spensible for establishing a pre-clos- 'ough inspection list. The following language is added: ~rvation) Septic system fails. (Ac- red) Builder ~vill correct if damage or workmanship or materials, which :onformance with Sewage Enforce- er's instructions as per design and only. (Comments) Builder is re- quired to abide by state or local requirements for the installation of on-site sewage disposal system. Any deficiency or failure which occurs or is caused by a condition other than faulty workmanship or materials, such as design, is not covered by this Limited Warranty. Owner is responsible for routine maintenance of system, which may include, but not be limited to: pumping the septic tank; adding chlorine to a chlorinator; and refraining from driving or parking vehicles or equipment on the system. Damages caused by freezing, soil saturation, underground springs, water nm-off, excessive use and an increase in level of water table are among causes not covered by this Limited War- Section IV, E.I Arbitration -- Because HUD does not require binding arbitration, the following is de- leted: Since this Limited Warranty provides for mandatory binding arbitration of disputes, if any party commences litigation in violation of this Lim- ited Warranty, such party shall reimburse tha other parties to the litigation for their costs and expenses, including attorney fees, incurred in seeking dis- missal of such litigation. Section IV.F.2 -- The following language is substi- tuted: In the first two (2) years, if your Builder does not fulfill its obligations under this Limited War- ranty, the Insurer will be responsible for your Builder's obligations, subject to a one-time war- ranty service fee of $250. The Insurer's liability in Years 3 through 10 under this Limited Warranty is subject to a warranty service fee of $250 per request for warranty performance. In each instance, you must pay the fee prior to the Insurer's repair or re- placement. In the event of payment, the fee will be subtracted from the cash paymem. In the case of the common elements of a condominium, the warranty service fee shall be $250 per home affected by each common element in need of service, limited to a maximum of $5,000 per free standing structure. Section IV.F.5 -- The following language is added: Where a warranted Defect is determined to exist and where the Warrantor elects to pay the reasonable cost of repair or replacement in lieu of performing such repair or replacemem, the cash offer must be in writ- hag. You will be given two (2) weeks to respond. Cash offers over $5,000 are subject to an on-site review by a HUD approved fee inspector (inspection costs will be paid by the Warrantor) unless: a. the cash offer is made pursuant to a binding bid by an independent third paxty contractor, which will accept an award of a contract from you pursuant to such bid; b. payment is being made in settlement of legal action; c. you are represented by legal counsel. A. THOMAS HOFFECKER and, KIM LEE KENAWELL-HOFFECKER, Plaintiffs KEELEY & COMPAIgY, WILLIAM D. KEELFfi/and KYM A. KEELEY, Defendants : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA : : : NO. 02-4243 : CIVIL ACTION - LAW : : JURY TRIAL DEMANDED VERIFICATION hereby certify that the of our knowledge, info are subject to penalties We, A. THOMAS HOFFECKER and KIM LEE KENAWELL HOFFECKER, 'acts set forth in the foregoing Complaint are true and correct to the best rmation and belief. We understand that any false statements made herein of 18 Pa. C.S.A. §4904 relating to unsworn falsification to authorities. /.2003 A. THOMAS HOFFECKER and, KIM LEE KENAWELL-HOFFECKER, Plaintiffs : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA : NO. 02-4243 KEELEY & COMPANY, WILLIAM D. KEELEY and KYIVl A. KEELEY, Defendants I, Barbara Sm foregoing Complain~ mail, postage prepaid Dated: October 30, 2p03 : CIVIL ACTION - LAW : JURY TRIAL DEMANDED CERTIFICATE OF SERVICE aple-Sullivan, Esquire, do hereby certify that on this date, I served the in the above-captioned matter upon the following individual by first class addressed as follows: Joseph D. Buckley, Esquire 1237 Holly Pike Carlisle, PA 17013 ~ -' g. Barbara ~3umple-Sullivan, Esquire 549 Bridge Street New Cumberland, PA 17070-1931 (717)-774-1445 Supreme Court ID #32317 Attorney for Plaintiffs A. THOMAS HOFFECKER and, KlM LEE KENAWELL-HOFFECKER, Plaintiffs : IN TI-DE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA : NO. 02-4243 KEELEY & COMPANY, WILLIAM D. KEELEY and KYM A. KEELEY, Defendants : CIVIL ACTION - LAW : JURY TRIAL DEMANDED PRAECIPE TO THE PROTHONOTARY: Please mark the above captioned matter : _,:2.~_~ settled and d~scomu~uud, with prejudice. DATE: March ff~_, 2004 5~B~b~~slulre~ New Cumberland, PA 17070-1931 (717) 774-1445 Supreme Court I.D. 32317 Attorney for Plaintiffs 1~~23 P ~ o~i,.y;~ey' ~/squire Carlisle, PA 17013 (717) 249-2448 Supreme Court I.D. Attorney for Defendants