1
LIMITED WARRANTY AGREEMENT
I. Introduction
Quality Builders Warranty Corporation (“QBW”) administers a program whereby homebuilders registered with
QBW enroll homes they construct in the program. Although homeowners, residential maintenance companies, or rental
agencies are responsible for the regular maintenance of the newly-constructed home, this program allows Builders to
warrant the new home will be free from specified deviations from the Warranty Standards set forth in Part V of this
Agreement and from structural defects as defined in Part II of this Agreement.
NOTE: This Limited Warranty Agreement includes a procedure for informal settlement of disputes,which
includes binding arbitration. The Parties each agree that the provisions of the Limited Warranty Agreement
involves and concerns interstate commerce. The binding arbitration provisions of this Limited Warranty
Agreement shall be governed by the procedures of the Federal Arbitration Act (9 U.S.C. § 1, et seq.).
Homeowners should read this entire Agreement carefully in order to understand the protection which it
provides, the exclusions which are applicable to it, and the Warranty Standards according to which the
Builder’s compliance will be measured. Any dispute as to whether any item is warrantable, or exceeds
warranty standards, shall be resolved through the Complaint and Claim Procedure set forth in Part VI of the
Limited Warranty Agreement. It is agreed that Part VI shall be the exclusive method to resolve any claim,
complaint or controversy arising from, or in any way relating to the Limited Warranty Agreement. For additional
information, contact QBW at (800) 334-9143.
The following pages describe in detail the QBW Limited Warranty Agreement. Part II defines the transactional
terms used in the Agreement. Part Ill sets out the problems and defects not covered by this Agreement. Part IV
highlights the protection provided by the Agreement, the rights and responsibilities of the parties, and other general
terms and conditions that affect coverage under the Agreement.
Part V sets forth the technical Warranty Standards against which the Builder’s compliance will be measured. Part
VI details the procedure for filing complaints under the Agreement. Homeowners should carefully review the complaint
procedure in order to preserve their rights under thisAgreement.
Finally, this Agreement contains the Enrollment Form to be completed by the parties who want to take advantage
of the protection offered through this Limited Warranty Agreement. The Enrollment Form must be signed by the parties
and returned to QBW with the proper warranty fee or the warranty will not be ineffect.
Homeowners should note this warranty is automatically transferable without cost to subsequent
Purchasers of the home during the life of the Agreement. This warranty is non-cancelable by QBW or its
Insurer.
II. Definitions
For the purpose of this Agreement, and as used in this Agreement, the following definitions shall apply:
A. Purchaser. The Purchaser shall include the first person and/or entity to whom the home is sold and any and all
successors in title, lessees having a leasehold interest in the home of at least 50 years, and a mortgagee in
possession.
B. Builder. The person, corporation, partnership or other entity which is a participating member of QBW, who is
a named insured under the Insurer’s policy.
C. Insurer. The established insurance company which insures the performance of warranty obligations at the
time this Agreement is executed.
D. Home. A single-family dwelling unit or a two-or-more unit structure which may be conveyed as a single unit.
As used in
the Agreement, the common elements which comprise the building in which a condominium unit is
situated are also included in the definition of “Home.”
E. Major Structural Defects. Only actual physical damage to the following load bearing segments of the home
and only such damage caused by failure of such load bearing segments which affect their load bearing
functions to the extent that the home becomes unsafe or unlivable:
1. Columns;
2. Bearing walls and partitions;
3. Floor systems (structural slabs, joists and trusses only);
4. Roof framing members and systems (rafters and trusses only);
5. Foundation systems and footings (which are an integral part of the home and structurally attached);
