QBW Warranty Book 11-23 VA : simplebooklet.com

-1-(VA 11/23) LIMITED WARRANTY AGREEMENT I. IntroductionQuality Builders Warranty Corporation ("QBW") administers a program whereby homebuilders registered withQBW enroll homes they construct in the program. Although homeowners are responsible for the regular maintenance of the newly-constructed home, this program allows Builders to warrant that 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 this Agreement. 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 in effect. 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. DefinitionsFor 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 to whom the home is sold and any and all successorsin 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 isa named insured under the Insurer's policy.C. Insurer. The Liberty Mutual Insurance Co. which insures the performance of warranty obligations, hereinafterreferred to as "Company".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 issituated are also included in the definition of "Home".E. Major Structural Defects. Only actual physical damage to the following load bearing segments of the homeand only such damage caused by failure of such load bearing segments which affects their load bearingfunctions 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);6. Load bearing beams;7. Girders;8. Lintels (other than lintels supporting veneers).

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-2-Examples of non-load bearing elements which are not considered major structural segments include, but are not limited to: 1. Brick, stucco, or stone veneer;2. Finish flooring material and floor coverings;3. Plaster, lathes, or drywall;4. WaIl tile or paper and other wallcoverings;5. Non-load bearing partitions and walls;6. Doors, windows, trim, cabinets, hardware, insulation, paint, stains;7. Appliances, fixtures or items of equipment;8. Heating, cooling, ventilating, plumbing, electrical, and mechanical systems;9. Roof shingles, tar paper, all sheathing and other surfacing material;10. Any type of exterior siding;11. Concrete floors;12. Decks and porches;13. Water seepage in basement or crawl space after the first year of coverage.F. Warranty Administrator. QBW administers the program under which this Limited Warranty Agreement isissued on behalf of the Builder. QBW is not the Warrantor of the Limited Warranty Agreement, nor is it theInsurer of the Builder's performance under the terms of the Limited Warranty Agreement. It is only theAdministrator of the QBW Warranty Program (hereinafter also referred to as "The Program"). Only theCompany is responsible for performance of the Limited Warranty Agreement in the event of Builder Defaultunder the Limited Warranty Agreement.G. Soil Movement. Subsidence, expansion, erosion, lateral, or any other movement of the soil, but excludingfloods and earthquakes.H. Fixtures, Appliances and Equipment. Water heaters, pumps, refrigerators, compactors, garbage disposals,stoves, ranges, dishwashers, washers, dryers, bathtubs, sinks, commodes, faucets and valves, lights andfixtures, switches, outlets, circuit breakers, thermostats, furnaces and oil tanks, humidifiers, oil purifiers,ventilating fans, air conditioning material and similar items.I. Electrical System. All wiring, electrical boxes, and connections up to the public utility connection.J. Plumbing System. All pipes, supply and waste, and their fittings, including septic tanks and their pipe drainfields, on-site wells as well as gas supply lines and vent pipes.K. Cooling, Ventilating and Heating Systems. All ductwork, refrigerant lines, steam and water pipes, registers,convectors and dampers.Ill. Exclusions In addition to the non-load bearing elements excepted from the definition of Major Structural Defects, the following damages, losses, deficiencies or defects are not covered by this Agreement (in addition to those named on the Enrollment form of this Agreement): A. Damages or losses not caused or created by the Builder or its employees, agents or subcontractors, butresulting from accidents, riots, civil commotion, acts of God or nature, including but not limited to, fire,explosion, smoke, water escape, changes in the underground water table (underground springs, etc.), windstorms, hail, lightning, fallen trees, aircraft, vehicles, floods, earthquakes, mudslides, wind driven water,reflection of the sun or volcanic eruptions.B. Any deficiencies in or damage caused by material or work supplied by anyone other than the Builder or itsemployees, agents, or subcontractors.C. Loss or damage resulting from the Purchaser's failure to minimize such loss or damage or to notify Builder orQBW or the Insurer, as provided herein.D. Normal deterioration or normal wear and tear.E. Losses or damages to or resulting from defects in improvements which are not part of the house, defects inoutbuildings, such as detached garages and carports, swimming pools, detached recreational buildings andfacilities, defects in driveways, walkways, streets, street creep, patios, decks, boundary and retaining walls,bulkheads, fences, lawn sprinkler/irrigation systems, and landscaping of all types, including damage to trees,etc. during the course of construction, French drains, sink holes and dry rot.F. Soil Movement, including subsidence, expansion or lateral movement of the soil, which is covered by anyother insurance or for which compensation is granted by legislation or public funds. Any loss or damagecaused by buried debris or other conditions which were not reasonably foreseeable on a building site. Anydamage resulting from any defect which is covered by any other insurance or for which recovery is grantedby legislation or public funds.G. Following year one, loss or damage resulting to or from stairs, concrete floors of basements, attached garagesand chimneys and other structural elements of the home that are not part of the load bearing structure of thehome, also excluded after year one are losses or damages resulting to or from all components of structurallyattached decks, balconies, patios, porches, porch roofs, porticos and truss uplift.(VA 11/23)

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-3-H. Any loss or defect which arises when the home is used for nonresidential purposes.I. Losses resulting from damages to real property other than to the home itself.J. Damage caused by insects, squirrels or other animals or rodents.K. Loss or damage resulting from, or aggravated by, changes to the real property by anyone.L. Any claim reported to QBW or Company after an unreasonable delay or later than thirty (30) days after theexpiration of this warranty on that item, or not filed in the manner set forth in this Limited Warranty Agreement.M. Loss or damage resulting from, or aggravated by, or occurring to, modifications or additions to the homemade after occupancy (other than those performed to meet the obligations of this Agreement).N. Personal property damage or bodily injury or punitive damages and/or legal fees.O. Loss or damage resulting from failure to maintain proper humidity levels in the home, or aggravated bydampness or condensation caused by the Purchaser not maintaining proper ventilation.P. All consequential damages, including but not limited to costs of shelter, transportation, food, moving, storageor other incidental expenses related to relocation during repair. Excluded consequential damages alsoinclude damage resulting from non-covered or expired items, such as wood rot from water infiltration reportedto QBW after year one.Q. Any defect which does not result in actual physical damage to the home.R. Any defect, damage or loss which is caused or aggravated by failure of anyone other than the Builder, itsagents, employees or subcontractors to comply with the manufacturers' warranty requirements concerningappliances, fixtures or equipment.S. Failure of the Builder to complete construction of the home or any part of the home on or before the effectivedate. An incomplete item is not considered a defect.T. Loss or damage resulting from toxic or carcinogenic or suspected carcinogenic fumes or substances, suchas, but not limited to, acids in the soil, radon, radon gas, radon daughters, or mold.U. Water infiltration into a basement or crawl space after year one.V. Loss or damage resulting from, or aggravated by, negligent maintenance or operation.W. Any loss or damage resulting from the weight and/or performance of any type of waterbed or other furnitureexcessive in weight or other abnormal loading of floors.X. Any loss or damage resulting from a loss in the water supply, or potability or clarity of water supply.Y. Solar panel systems or their installation or operation.Z. Standing or ponding water on the property which does not directly affect the immediate area surrounding thefoundation of the home.AA. Following the first year of this Agreement, any deficiencies in the installation of fixtures, appliances, and items of equipment, whether or not components of the cooling, ventilating, heating, electrical, plumbing or in-house sprinkler systems. Coverage for fixtures, appliances, and items of equipment (including attachments and appurtenances) is limited to the manufacturer's written warranty period unless otherwise stated in the Warranty Standards. The Builder hereby assigns to you any rights of the Builder under the manufacturer’s warranties. Damage caused by improper maintenance or operation, negligence, or improper service of such systems by the Purchaser or its agents will not be covered by this Agreement. BB. Loss or damage resulting from a condition not resulting in actual physical damage to the home, including un-inhabitability or health risk due to the presence or consequences of unacceptable levels of radon, formaldehyde, carcinogenic substances or other pollutants and contaminants; or the presence of hazardous or toxic materials. CC. Loss or damage caused directly or indirectly by flood, surface water, waves, tidal water, overflow of a bodyof water, or spray from any of these (whether or not driven by wind), water which backs up from sewers ordrains, changes in the water table which were not reasonably foreseeable, or water below the surface of theground (including water which exerts pressure on or seeps or leaks through a building, sidewalk, driveway,foundation, swimming pool, or other structure), wetlands, springs or aquifers.DD. Violations of applicable building codes or ordinances, original dwelling plans and specifications.EE. Soil erosion and run-off caused by failure of the Purchaser to maintain the properly established grades,drainage structures and swales, stabilized soil, sodded, seeded and landscaped area. FF. Any defects caused by or resulting from improper design of the home. GG. Any storm water or soil erosion/sedimentation control requirements, which are approved previously by the local governing jurisdiction for development. HH. Any glass breakage or failure of Builder to perform any type of clean-up. II. Violations of local or National Building Codes and Ordinances.JJ. Loss or damage caused by or to roof sheathing after one year from the effective date of warranty.KK. Since this warranty covers only those defects which first occur during the Warranty Term, any homeowner- acknowledged, pre-existing conditions, such as "walk through" or "punch list" items are not covered. LL. The removal and or replacement of items not originally installed by the Builder where removal andreplacement are required to repair a defect.(VA 11/23)

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-4-IV. General Terms and Conditions/Rights and ResponsibilitiesA. Coverage Provided. This Agreement provides the following protection, effective as of the date on theEnrollment form:1. During the first year of this Agreement, and subject to the terms and conditions listed herein, your Builderwarrants your home against faulty workmanship and materials, defects in the installation of appliances,fixtures and equipment, defects in wiring, piping and duct work in the electrical, plumbing, heating, cooling,ventilating and mechanical systems, and Major Structural Defects (see Definitions, Section ll-E) due tonon- compliance with the Warranty Standards.2. During the second year of this Agreement, and subject to the terms and conditions listed herein, yourBuilder warrants that the installation of your home's cooling, heating, and ventilating, electrical andplumbing systems (exclusive of the installation of appliances, fixtures and equipment-coverage is oneyear.) will be free from defects due to non-compliance with the Warranty Standards set forth in Section Vof this document. Your Builder further warrants your home will have no Major Structural Defects in thatperiod (see Definitions, Section ll-E).3. In years three through ten of this Agreement, your Builder warrants your home will be free from any MajorStructural Defects as and only as that term is defined in Section lI-E of the Limited Warranty Agreement.Please review the definition since all structural defects are not covered, only Major Structural Defects asdefined. In order to qualify as a Major Structural Defect there must be:a. Actual physical damage;b. To one of the eight identified load bearing portions of the Home;c. And only such damage caused by failure of such load bearing portions that affect their load bearingfunctions;d. To the extent that the Home becomes unsafe or otherwise unlivable.All four portions of the definition must be met to be considered a Major Structural Defect under the terms of the Limited Warranty Agreement. 4. The Builder is the warrantor. The Company provides insurance coverage insuring the Builder'sperformance. QBW administers the Limited Warranty Agreement program for participating Builders andthe Company.B. Rights and Responsibilities. If any defect subject to the terms and conditions of this Agreement occurs andfails to meet the Warranty Standards, within the first two years, your Builder will repair, replace or pay you thereasonable cost of repairing or replacing the defective item. If your Builder fails to perform, Company willperform in accordance with the Warranty. Company will repair or replace, or pay you the reasonable cost ofrepairing or replacing, the defect or item determined to be a Major Structural Defect in years three throughten. In any case, actions to correct Major Structural Defects will be limited to those necessary to restore loadbearing capacity or to repair any defects which make the home unlivable. While undertaking any repairs, theBuilder or Company is not responsible for color variation or discontinued items.C. General Conditions. Notwithstanding your Builder's responsibility to maintain the standards established bythis Agreement, the following conditions will apply:1. You must make your home available for inspections and repairs during normal working hours. Failure toprovide such access to the Builder and/or QBW, may relieve the Builder and/or QBW of its obligationsunder this Agreement. The decision whether to repair or replace, or to pay the reasonable cost of repairor replacement, resides with the Builder or the Company, as applicable. (If the Builder or the Companyis not afforded the first right to repair or resolve, or if the Purchaser proceeds with repairs priorto using all steps of the Complaint and Claims procedure in section VI of this Agreement, nowarranty coverage will be effective on that item and no rights for any recovery or reimbursementshall be permitted. The choice of the method of repair resides with the Builder or Company.)2. If your Builder or Company performs its obligations under this Agreement, you agree that upon requestyou will assign the proceeds of any other insurance or warranty which you may own covering the samedefect to your Builder or Company, as the case may be. Such assignments shall not exceed the cost andexpenses to your Builder or Company to perform its obligations under this Agreement. If you receivepayment from any source other than Company, then Company shall be entitled to a setoff in that amount,irrespective of how any parties other than Company allocate the payment. In the event the Builder or theCompany repairs or replaces, or pays the Homeowner the reasonable cost of the repair or replacementof any defective item covered by this document, the Builder and the Company shall be subrogated to allof the Homeowner's right of recovery against any person or entity (including the Builder, if its obligationshereunder have been performed by the Company), and the Homeowner agrees to execute and deliverany and all instruments and papers and to take any and all other actions necessary to secure such rights,(VA 11/23)

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-5-including but not limited to, assignment of the proceeds of any other insurance or warranties to the Builder or the Company, as appropriate. The Homeowner shall do nothing to prejudice such rights of subrogation. 3. Neither the Builder nor Company will have any repair obligation unless it has been voluntarily assumedor liability has been determined under the Complaint and Claim Procedure set forth in Part VI.4. Actions taken to cure defects hereunder will not extend specified periods of coverage. Additionally, failureto discover a defect during any applicable warranty period will not extend warranty coverage, even if it isalleged that the defect was a latent defect. If QBW does not receive notice of your complaint within 30days after the expiration of the warranty on the item, the complaint cannot be honored.5. The total liability of this Warranty Agreement is limited and shall not exceed the sales price of your homeas stated on the Enrollment form of this Agreement.6. If your Builder does not fulfill their obligations for years one and two, as determined through the Complaintand Claim Procedure in Part VI of this Agreement, Company will be responsible for their obligations,subject to the deductible in Section IV-C-8, infra.7. In years three through ten, or in years one and two if the Builder fails to perform, the decision whether torepair or replace, or to pay you the reasonable cost of repairing or replacing, resides with QBW on behalfof the Company. The choice of the method of repair resides with QBW, on behalf of Company.8. Company's liability hereunder is subject to a deductible of $500 per claim. Payment of such deductibleis a condition precedent to Company's performance pursuant to this Agreement.9. When the Builder finishes repairing or replacing a defective item or prior to the Builder paying you thereasonable cost of doing so, you must sign and deliver to the Builder a full and unconditional release ofall legal obligations with respect to the defect. If the Company fulfills such obligations of the Builder, youmust sign and deliver to QBW, on behalf of the Company, a full and unconditional release of all legalobligations of Company with respect to the defect when Company finishes repairing or replacing adefective item or prior to Company paying you the reasonable cost of doing so.10. Other than the Expressed Warranties contained herein, there are no other warranties expressedor implied including Implied Warranty of Merchantability, Implied Warranty of Habitability orImplied Warranty for Particular Purpose, which implied warranties are specifically excluded.D. Condominium Coverage. If your claim involves a common element in a condominium, it may be made onlyby an authorized representative of the condominium association. Subject to that limitation, however, coveragewill include common elements of the condominium structure contained wholly within the structure, such ashallways, meeting rooms or other spaces, and any part of the cooling, ventilating, heating, electrical orplumbing systems that service two or more residential units. Common elements will be covered for the sameperiods and to the same extent as comparable items which are part of individual homes. The deductible for acondominium coverage is $500 per unit affected by the common elements defect. Major Structural Defectcoverage for common elements shall commence on the date of occupancy or date of closing of the first unit inthe building, whichever is sooner.E. General Terms Governing Interpretation and Operation. Certain generally applicable terms and conditionswill govern the interpretation and operation of this Agreement. These terms and conditions are:1. It is intended that the use of one gender herein includes all genders and the singular includes the plural.2. This Agreement includes the entire agreement of the parties, and cannot be modified, altered oramended in any way except by a formal written instrument signed by all of the parties hereto.3. Should any provision of this Agreement be determined by a court of competent jurisdiction to beunenforceable, that determination will not affect the validity of the remaining provisions.4. This Agreement is separate and apart from your contract with your Builder. It cannot be altered oramended in any way by any other agreement which you have. Contractual disputes shall not involveQBW or Company.5. Your Builder must assign to you and provide you copies of all manufacturers' warranties in theirpossession on products included in the sales price of your home.6. All notice required hereunder must be in writing and sent by certified mail, or other carrier that provides areceipt of delivery, postage prepaid, to the recipient at the respective address shown on this Agreement,or to whatever other address the party may designate in writing.7. This Agreement is deemed to be binding on the Builder, QBW, Company and the Purchaser, their heirs,executors, administrators, successors and assigns.8. Whatever timely performance is called for hereunder, the time therefore shall be extended to the extentperformance is delayed by an event not caused by the conduct of the person obligated to perform. Suchevents include acts of God or the common enemy or riot, civil commotion or sovereign conduct.(VA 11/23)

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-6-V. Warranty StandardsA. The applicability of these Warranty Standards is conditioned upon the Purchaser's proper maintenance of thehome to prevent damage due to neglect, abnormal use or improper maintenance. Common elements will becovered for the same periods and to the same extent as comparable items which are part of individual homes.B. The applicability of these Warranty Standards is conditioned upon the fact that your home is constructed incompliance with the local building codes as well as one of each group of the following model codes or theMinimum Property Standards of the U.S. Department of Housing and Urban Development:International Building Code International Residential Code One and Two Family Dwelling Code BOCA Basic Building Code Standard Building Code, Southern Building Code Congress Uniform Building Code National Building Code International Mechanical Code BOCA Basic Mechanical Code Uniform Building Code, Volume 11, Mechanical Standard Mechanical Code, Southern Building Code Congress Electrical Code for One and Two Family Dwelling National Electrical Code International Plumbing Codes BOCA Basic Plumbing Code Uniform Plumbing Code Standard Plumbing Code, Southern Building Code Congress C. The description below establishes the standards by which it will be determined whether your home has aproblem or defect covered by this policy and whether it is the obligation of your Builder, or QBW or Companyto correct these defects. Where specific standards and obligations are not set forth, the standards shall be thegenerally accepted industry practice for workmanship and materials._ WARRANTY STANDARDS AND COVERAGE FOR YEAR ONE ONLY A. LOT GRADING AND DRAINAGE(1) Ground settlement around foundation and utility trenches.(a) Standard. Ground settlement should not disrupt water drainage away from the structure although somesettlement may occur.(b) Repair Responsibility. If the final grading was performed by the Builder, they will replace fill inexcessively settled areas once. Builder is not responsible for removal or replacement of shrubs, grass,etc.(2) Poor lot drainage.(a) Standard. After normal rainfall, water should not stand in yard within 10 feet of dwelling for more than48 hours. These standards will vary upward due to frost, snow or saturation.(b) Repair Responsibility. The Builder is responsible for establishing the proper grades and swales; afterthat, the Purchaser is responsible for maintaining them.(3) Basement or crawlspace water dampness and leaks.(a) Standard. Basement or crawlspace should not leak. Dampness of newly constructed floors and wallsis common and not considered a deficiency.(VA 11/23)

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-7-Coverage for Year One (continued) (b) Repair Responsibility. Builder will correct leakage (actual flow and accumulation) into the basement orcrawlspace. Leaks caused by improper landscaping or failure to maintain proper grade are not covered.Where a sump pit has been installed by the Builder, but the sump pump was not contracted for or installedby Builder, no action is required until a properly sized pump is installed by the Purchaser.B. INSULATION(1) Inadequate insulation.(a) Standard. This warranty assures only that your insulation will meet the applicable energy coderequirements.(b) Repair Responsibility. Builder will install sufficient insulation to meet the applicable local coderequirements. Contractual Agreement for additional insulation shall not involve this warranty.(2) Air infiltration from electrical outlets.(a) Standard. This is common in new construction.(b) Repair Responsibility. None.C. ROOFING(1) Roof leaks.(a) Standard. The roof should not leak and no leaks should arise from flashings except where snow and iceare allowed to build up continually. Prevention of unusual snow and ice buildup is the Purchaser'sresponsibility.(b) Repair Responsibility. All roof and flashing leaks not caused by snow and ice buildup or other thanneglect by the Purchaser will be repaired. The Builder is not responsible for color variations.(2) Gutters and downspout leader leaks.(a) Standard. Gutters and leaders should not leak. However, during heavy rains, overflow should beexpected.(b) Repair Responsibility. Builder will correct leaks not caused by Purchaser's negligence or impropermaintenance. Ladders allowed to rest against gutters will cause deformation and will affect purpose.(3) Poor gutter drainage.(a) Standard. Some standing water should be expected within certain tolerances.(b) Repair Responsibility. Builder will repair so that, if free from debris, the standing water depth will notexceed 1 inch.(4) Insufficient attic or roof ventilation.(a) Standard. The applicable building codes will control.(b) Repair Responsibility. Builder will correct to meet the applicable code requirements.(5) Standing water on flat roof.(a) Standard. Water shall drain from flat roof except for minor ponding immediately following rainfall or whenthe roof is specifically designed for water retention.(b) Repair Responsibility. Builder will take corrective action to ensure proper drainage of roof.D. SIDING AND CAULKING(1) Siding, trim and masonry cracks and separation.(a) Standard. Separation between siding, masonry and trim should not exceed 3/8 inch. Siding, trim andmasonry should be capable of excluding the elements.(b) Repair Responsibility. Builder will repair by caulking or other methods.(2) Leaks due to snow or rain driven into the attic through louvers or vents.(a) Standard. Attic vents and/or louvers must be provided for proper ventilation of the attic space of thestructure.(b) Repair Responsibility. None.(3) Exterior Caulking shrinkage.(a) Standard. Since all caulking shrinks, Purchaser is responsible for maintaining caulking.(b) Repair Responsibility. All junctions and separations of wall surfaces will be caulked once to preventwater leakage. Any shrinkage thereafter will be the Purchaser's responsibility.(4) Delamination of veneer siding or joint separation.(a) Standard. All siding shall be installed according to the manufacturer's and industry's accepted standards.Separations and delaminations shall be repaired or replaced.(VA 11/23)

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-8-Coverage for Year One (continued) (b) Repair Responsibility. Builder will repair or replace siding as needed unless caused by Purchaser'sneglect to maintain siding properly. Repaired area may not match in color and/or texture. For surfacesrequiring paint, Builder will paint only the new materials. The Purchaser can expect the newly paintedsurface may not match original surface in color.(5) Paint or stain peels or fades.(a) Standard. Fading caused by weathering is normal and should be expected within certain tolerances.Varnish or lacquer on the exterior will deteriorate quickly and is not covered by this warranty. Mildew andfungus on siding are caused by climatic conditions or nearby bodies of water and are not covered by thiswarranty.(b) Repair Responsibility. If paint or stain is defective Builder will refinish affected area. Builder is notresponsible for color variations.(6) Cracks in stucco wall finish.(a) Standard. Cracks in stucco wall finishes are common and should be expected within certain tolerances.(b) Repair Responsibility. Builder will repair (once) cracks in excess of 1/8 inch width.(7) Cracks in vinyl siding or dents in aluminum siding.(a) Standard. These defects can be caused by an object striking the siding.(b) Repair Responsibility. Builder will correct defects only if reported prior to occupancy. Builder notresponsible for color variations or discontinued patterns.(8) Cracking or delamination of wood on exterior-wooden decks, walks, porches, railings, shingles.(a) Standard. Wood exposed to the elements will react and crack. Certain types of wood should be paintedor stained or sealed continuously. This is considered a homeowner maintenance item.(b) Repair Responsibility. None.(9) Loose or fallen siding or veneer.(a) Standard. All siding or veneer which is not installed properly, so as not to come loose or fall off undernormal conditions, is a deficiency.(b) Repair Responsibility. The Builder will repair or replace improperly-secured siding or veneer. Builderis not responsible for fallen siding or veneer caused by unusual winds.(10) Cement board siding is cracked or chipped.(a) Standard. Cracks more than 3 inches in length and 1/4 inch in width are considered excessive. Chipsor dents not reported in writing prior to occupancy are not covered by this warranty.(b) Repair Responsibility. Cracked or chipped cement board will be repaired or replaced as necessary, asdetermined by the Builder.(11) Cement board or vinyl siding has joint separation.(a) Standard. Gaps at the ends of the siding boards or panels shall not exceed 3/8 inches in width.(b) Repair Responsibility. Builder shall repair or adjust siding to comply with this standard. Caulking is anacceptable repair for cement board gaps.E. MASONRY AND CONCRETE(1) Cracks in concrete walls.(a) Standard. Shrinkage or settlement cracks are common and should be expected within certain tolerances.(b) Repair Responsibility. Any cracks greater than 1/8 inch in width will be repaired by surface patching orpointing. Builder is not responsible for color variations.(2) Cracks in block or veneer walls.(a) Standard. Mortar shrinking cracks are common and should be expected within certain tolerances.(b) Repair Responsibility. Any cracks in the block greater than 1/8 inch in width will be repaired bysurface patching or pointing. Builder will not be responsible for color variations.(3) Cracks in concrete basement floors.(a) Standard. Hairline cracks due to shrinkage are common and should be expected within certaintolerances.(b) Repair Responsibility. Any cracks greater than 3/16 inch in width or 1/4 inch in vertical displacementwill be repaired by surface patching or comparable remedies.(4) Movements of concrete slabs at joints.(a) Standard. Concrete slabs are engineered to move at expansion and contraction joints.(b) Repair Responsibility. None.(5) Cracks in attached garage slab or structurally attached patio slabs.(a) Standard. Shrinkage cracks are common and should be expected within certain tolerances.(VA 11/23)

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-9-Coverage for Year One (continued) (b) Repair Responsibility. Cracks exceeding 1/4 inch in width or 1/4 inch in vertical displacement will berepaired by patching or other remedies.(6) Rough, uneven concrete floors in living areas.(a) Standard. Concrete may be pitched to facilitate drainage in basement and garage floors.(b) Repair Responsibility. Builder will correct unevenness which exceeds 1/4 inch in a 32 inchmeasurement in initially intended living areas only.(7) Concrete slab cracks causing finished floor coverings to rupture.(a) Standard. Cracks which rupture finish flooring shall be repaired.(b) Repair Responsibility. The problem will be corrected so that the defect is not readily noticeable.(8) Pitting, scaling or spalling of concrete work (excluding sidewalks and driveways).(a) Standard. Concrete surfaces shall not disintegrate to the extent that the aggregate is exposedand loosened under normal conditions of weathering and use.(b) Repair Responsibility. Builder will take whatever corrective action necessary to repair or replacedefective concrete surfaces. Builder is not responsible for deterioration caused by salt, chemicals,mechanical implements and other factors beyond its control.(9) Separation of stoops.(a) Standard. Minor separation is normal.(b) Repair Responsibility. Builder will repair separation of more than 1 inch.(10) Efflorescence on masonry (brick, block, concrete).(a) Standard. Discoloration caused by the lime content in the mortar will occur.(b) Repair Responsibility. None.(11) Water absorption by exposed brick veneer.(a) Standard. Absorption varies in the type of brick/masonry chosen and cannot be controlled by Builder.(b) Repair Responsibility. None.F. CHIMNEYS AND FIREPLACES(1) Insufficient draw or down draft.(a) Standard. Trees too close to the chimney or high winds can cause down drafts. Some homes areextremely air-tight and a window may have to be opened slightly in order to maintain an effective draft.(b) Repair Responsibility. Builder will correct problems caused by improper construction or design.(2) Chimney separation from home.(a) Standard. Some minor separation is normal and should be expected within certain tolerances.(b) Repair Responsibility. Separation in excess of 1/2 inch in any 10 foot measurement will be correctedby caulking or other measures. This is a one year covered item and is not considered a structural item.(3) Firebrick cracks.(a) Standard. Heat will cause some cracking and should be expected.(b) Repair Responsibility. None.(4) Fireplace brick veneer cracks.(a) Standard. Some cracking is common and should be expected within certain tolerances.(b) Repair Responsibility. Cracks in brick greater than 1/4 inch in width will be repaired by pointing orpatching.(5) Creosote or resin build-up or creosote seepage through chimney.(a) Standard. Creosote seepage is caused by the burning of improperly seasoned wood or improperoperation of the fireplace.(b) Repair Responsibility. Builder will construct the chimney to meet code requirements. Since the Builderdoes not have control of the materials and methods used in operation of the fireplace, they are notresponsible for any defects caused by anything other than a code violation in construction.(6) Fireplace inserts and blowers.(a) Standard. Some types of fireplace inserts and blowers will alter the performance of standardfireplaces, causing extreme increases in heat in the fire chamber and creosote build-up.(b) Repair Responsibility. Builder is not responsible for damage and loss caused by fireplace inserts andblowers.G. WINDOWS AND DOORS(1) Warping of doors.(a) Standard. Some warping, especially of exterior doors, is normal and is caused by surface temperaturechanges. Such warping, however, should not cause the doors to become unusable or allow entrance ofthe elements, and should not exceed 1/4 inch measured corner to corner diagonally.(VA 11/23)

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-10-Coverage for Year One (continued) (b) Repair Responsibility. Defective doors will be repaired or replaced. Builder is not responsible forslight variations in finish.(2) Door panel shrinkage.(a) Standard. Expansion and contraction is normal and may cause unfinished surfaces to appear.(b) Repair Responsibility. None. This is a homeowner maintenance item.(3) Door panel splits.(a) Standard. Some splitting is normal and should be expected within certain tolerances.(b) Repair Responsibility. If the split allows the entrance of light, it will be repaired once. The Builder isnot responsible for slight variations in finish.(4) Glass breakage and scratches.(a) Standard. None.(b) Repair Responsibility. None. Must be reported prior to occupancy.(5) Garage door malfunctions.(a) Standard. Maintenance is Purchaser's responsibility.(b) Repair Responsibility. The door will be repaired and adjusted to function as designed except where aresult of Purchaser action or negligence.(6) Garage door-entrance of elements.(a) Standard. Even a door installed to manufacturer's specifications will allow some entrance of the elementsand should be expected within reason.(b) Repair Responsibility. The door will be adjusted to meet the manufacturer's specifications.(7) Windows do not operate.(a) Standard. Reasonable pressure should open and close windows.(b) Repair Responsibility. Builder will repair as required. Builder is not responsible for condensation orfrost caused by climatic and internal humidity conditions.(8) Air infiltration around doors and windows.(a) Standard. Some infiltration is normally noticeable around doors and windows, especially during highwinds. Poorly fitted weather stripping shall be adjusted or replaced. It may be necessary for the ownerto have storm doors and windows installed to provide satisfactory solutions in high wind areas.(b) Repair Responsibility. Builder will adjust or correct poorly fitted doors, windows and poorly fittedweather stripping.(9) Moisture or condensation on window glazing.(a) Standard. This is caused by atmospheric conditions and can be aggravated by insulated drapes keepingin the moisture.(b) Repair Responsibility. Builder is responsible for repair only if window seal is broken or defective.Condensation on window and sky lights caused by a lack of thermal break are excluded. Considerationof thermal break should be given when selecting price range of windows.(10) Excessive opening at the bottom of interior doors.(a) Standard. Passage doors from room to room that have an opening between the bottom of the door andthe floor finish material in excess of 1-1/2 inches is a deficiency. Closet doors having an opening inexcess of 2 inches is a deficiency.(b) Repair Responsibility. The Builder will make necessary adjustment or replace door to meet requiredtolerance.(11) Double hung windows do not stay in place when open.(a) Standard. Double hung windows are permitted to move up or down within a two inch tolerance, whenput in an open position.(b) Repair Responsibility. The Builder will adjust sash balances one time only.(12) Hardware does not work properly, fails to lock or perform its intended purpose.(a) Standard. All hardware installed on doors and windows should operate properly.(b) Repair Responsibility. The Builder will be responsible for repairs of hardware, if reported by thehomeowner, no later than seven (7) days after construction completion.(13) Storm doors and windows do not operate or fit properly.(a) Standard. Storm doors and windows, when installed by the Builder, should operate and fit properly toprovide the protection for which they are intended.(b) Repair Responsibility. The Builder will adjust, repair or replace as necessary for proper fit and operation.(14) Screen panels do not fit properly. Screen mesh is torn or damaged.(a) Standard. Rips or gouges in the screen mesh must be documented by the homeowner prior tocompletion. The screen panels shall fit properly.(VA 11/23)

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-11-Coverage for Year One (continued) (b) Repair Responsibility. The Builder will adjust screen panels to fit in the frame properly, one time only.Where tears or gouges are reported prior to completion, the Builder will repair or replace. If the Builderdoes not perform a walk-through, the Builder will be responsible for repairing tears and gouges if reportedby the homeowner in writing no later than seven (7) days after completion.H. INTERIOR WALLS AND TRIM(1) Molding and trim defects.(a) Standard. Some separation between moldings and adjacent surfaces (including casement, base, etc.)is normal and should be expected within certain tolerances.(b) Repair Responsibility. Separation in excess of 1/4 inch will be repaired by caulking or other methods.(2) Cracks in interior wall and ceiling surfaces.(a) Standard. Hairline cracks are not unusual in interior wall and ceiling surfaces. Cracks greater than 1/8inch in width shall be repaired.(b) Repair Responsibility. Builder will repair cracks exceeding 1/8 inch in width as required, one time only,during the first year of the Limited Warranty period. The Builder is not responsible for variations in colorsor patterns.(3) Nail pops, blister in tape or other blemishes.(a) Standard. Slight "imperfections" such as nail pops, seam lines and cracks not exceeding 1/8 inch inwidth are common in gypsum wallboard installations and are considered acceptable.(b) Repair Responsibility. Builder will repair only cracks exceeding 1/8 inch in width, one time only, duringthe first year of the Limited Warranty period. The Builder is not responsible for variations in colors orpatterns.(4) Ceramic tile cracks.(a) Standard. Cracking of grout joints is common and should be expected within certain tolerances.Purchaser is responsible for routine maintenance of grout joints.(b) Repair Responsibility. Broken tiles will be replaced and excessive cracking of grout joints will berepaired once. Builder is not responsible for discontinued patterns or colors or for variations in colors.(5) Peeling of wallpaper or wallcovering.(a) Standard. Wallpaper should not peel.(b) Repair Responsibility. Builder is not responsible for peeling caused by owner negligence or use. Builderwill repair or replace defectively installed wallpaper or wallcovering. Builder is not responsible fordiscontinued patterns or colors or variations in color.(6) Edge mismatching in pattern of wallcovering.(a) Standard. None.(b) Repair Responsibility. None.(7) Mildew on floors, base and moldings.(a) Standard. Mildew is caused by the humidity level maintained by the occupants of the home and isconsidered a maintenance item. In homes constructed on concrete slabs, more humidity levelmaintenance is required.(b) Repair Responsibility. None.(8) Variations in paneling color; scratches or checks on finished surfaces.(a) Standard. Plywood paneling pattern and color will often vary and is not considered a deficiency.Scratches and checks on the paneling surface are deficiencies, if reported before completion.(b) Repair Responsibility. The Builder will repair damaged paneling, if such damage was documented ona walk-through inspection. If the Builder does not perform a walk-through, Builder will be responsible forrepairing the defects, if reported by the homeowner in writing no later than seven (7) days aftercompletion. The Builder is not responsible for discontinued variations.(9) Lumps, ridges and nail pops in wallboard which appear after homeowner has wallcovering installedby others.(a) Standard. The homeowner shall ensure that the surface to receive wallcovering is suitable and assumesfull responsibility should lumps, ridges and nail pops occur.(b) Repair Responsibility. None.(10) Interior caulk shrinkage.(a) Standard. Interior caulk shall not shrink and form a gap that exceeds 1/4 inch in width.(b) Repair Responsibility. The Builder will repair or caulk joints and cracks, as required to correctdeficiencies, one time only during the warranty period. Even when properly installed, caulking will shrinkand must be maintained by the Purchaser.(VA 11/23)

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-12-Coverage for Year One (continued) I. FLOORING AND COVERING(1) Uneven joints in wooden floors and subflooring.(a) Standard. Squeaks and loose sub-flooring are usually passing conditions caused by lumber shrinkageor temperature changes and are not covered by this warranty unless caused by a defective joist in thefloor system.(b) Repair Responsibility. Uneven joints resulting in ridges or indentations exceeding 1/4 inch within a 32inch area (measuring perpendicular to the ridge or indentation) will be repaired.(2) Cracks, gaps or splits in finished flooring.(a) Standard. Some separation is normal and should be expected within certain tolerances.(b) Repair Responsibility. Separations exceeding 1/4 inch in width will be repaired by filling or replacing atthe Builder's option. Separations caused by exposure to moisture or humidity fluctuation are beyond theBuilder’s control and are not the Builder’s responsibility.(3) Nails popping through resilient flooring.(a) Standard. Only nails which have broken through the floor covering will be repaired.(b) Repair Responsibility. The nail pops will be repaired or replaced at the sole option of the Builder in thearea damaged. The Builder is not responsible for discontinued patterns or colors or for variations in color.(4) Ridges in sub-floor.(a) Standard. Minor ridges or indentations are common and should be expected within certain tolerances.(b) Repair Responsibility. Ridges or indentations in excess of 1/8 inch (measured with a straight edgeperpendicularly over the ridge and the deflection measured no more than 3 inches from the ridge) will berepaired and affected floor covering will be repaired or replaced. Builder is not responsible fordiscontinued patterns or colors or for variations in color.(5) Loose floor coverings.(a) Standard. The Builder has sole option of repairing or replacing.(b) Repair Responsibility. The affected area will be repaired or replaced. Builder is not responsible fordiscontinued patterns or colors or for variations in color. Bubbles may be repaired by injecting adhesivethrough a cut placed in the flooring.(6) Gaps in seams of resilient coverings.(a) Standard. Minor gaps are common and should be expected within certain tolerances. When thePurchaser installs flooring and covering, sub-floor preparation is their responsibility. If sub-floor repairsare to be made when the Purchaser installs floor covering, the removal and replacement of the floorcovering is the Purchaser's responsibility.(b) Repair Responsibility. Minor gaps in excess of 1/8 inch will be repaired or replaced at the affected area.Builder is not responsible for discontinued patterns or colors or for variations in color. Builder is notresponsible for flooring or coverings installed by Purchaser.(7) Gaps in carpet seams.(a) Standard. Seams will be apparent. Spotting or fading of carpet is not covered by this warranty.(b) Repair Responsibility. The carpet will be repaired or re-stretched if necessary so gaps are not visible,only once.J. CARPENTRY(1) WaIls which bulge, bow or are out-of-plumb.(a) Standard. All interior and exterior walls have minor differences and routine differences should beexpected within certain tolerances.(b) Repair Responsibility. Walls bowing more than 1/4 inch within a 32 inch measurement or 3/8 inch withina 4 foot measurement (floor to ceiling or wall-to-wall) will be repaired.K. CABINETS AND COUNTER TOPS(1) Counter-top or cabinet imperfections.(a) Standard. None.(b) Repair Responsibility. Chips, cracks or delaminations will be repaired. Cracks and chips, includingporcelain and fiberglass fixtures, not reported to the Builder prior to occupancy will not be covered by thiswarranty.(2) Warping of doors and drawers.(a) Standard. Minor warpage is common and should be expected within certain tolerances.(b) Repair Responsibility. Warpage in excess of 1/4 inch from the face of the cabinet will be repaired orthe doors or drawers replaced. Builder is not responsible for variations in color.(VA 11/23)

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-13-Coverage for Year One (continued) (3) Cabinet separates from wall or ceiling(a) Standard. Some separation is common and should be expected within certain tolerances.(b) Repair Responsibility. Separation in excess of 1/4 inch will be repaired or the cabinet replaced.(4) Countertop or backsplash separates from wall.(a) Standard. Some separation is common and should be expected within certain tolerances.(b) Repair Responsibility. The Builder will repair or caulk joints in excess of 1/4 inch separation asrequired to correct deficiencies, one time only during the warranty period.L. COOLING AND HEATING (Coverage for one year only.)(1) Cooling variations.(a) Standard. Where applicable, the cooling system should be able to maintain a temperature of 78 degrees(measured 5 feet above the center of the floor in the room where the thermostat is located) under localoutdoor ASHRAE specifications. In the case of excessive outdoor temperature, a 15 degree differenceis acceptable. Purchaser is responsible for minor adjustments such as balancing dampers and registers.All rooms will vary in temperature by 5 or 6 degrees. This is acceptable under industry standards.(b) Repair Responsibility. The Builder will repair the system so that it will perform as described.(2) Heating variations.(a) Standard. Where applicable (coverage for one year only) the heating system should be able to maintaina temperature of 70 degrees (measured 5 feet above the center of the floor in the room where thethermostat is located) under local outdoor ASHRAE specifications. Purchaser is responsible forminor adjustments such as balancing dampers and registers. On extremely cold days, a 5 to 6 degreedifference between the actual inside temperature and the thermostat setting is acceptable. All rooms willvary in temperature by 5 to 6 degrees. This is acceptable under industry standards.(b) Repair Responsibility. The Builder will repair the system so that it will perform as described.(3) Heat pump-continues to run.(a) Standard. On extreme outside temperatures the heating unit will work more frequently. If the unit stilldoes not supply sufficient heat, the outside temperature setting on the unit may need to be adjusted.(b) Repair Responsibility. None. This is a homeowner maintenance item. Please consult themanufacturer's instructions for use.(4) Noisy ductwork.(a) Standard. When metal ducts heat and cool, some noise will result.(b) Repair Responsibility. Builder will correct excessively loud noise only.(5) Condensation Lines.(a) Standard. None.(b) Repair Responsibility. Condensation lines will clog eventually under normal use. This is a homeownermaintenance item. Builder shall provide unobstructed condensation lines as of the effective date of theLimited Warranty.M. PLUMBING (Covered for one year only.)(1) Pipes freeze and burst.(a) Standard. Purchaser is responsible for draining pipe lines supplying outside faucets.(b) Repair Responsibility. Builder will insulate pipes to prevent freezing during normal winter temperatures.(2) Plumbing fixture, appliance and trim fitting defects.(a) Standard. None.(b) Repair Responsibility. Builder will correct leaks or malfunction in faucets, valves, appliances and trimfittings caused by unworkmanlike installation. Coverage for defective plumbing fixtures, appliances andtrim fittings is limited to the manufacturer’s warranty.(3) Noisy pipes.(a) Standard. Expansion and contraction caused by water flow will cause some noise which is to beexpected. Pipe noise is more pronounced in plastic piping.(b) Repair Responsibility. Builder will correct only excessively loud pipe noises caused by "water hammer"in the supply lines.(4) Cracks or chips in porcelain or fiberglass.(a) Standard. The Purchaser should inspect these items and report them to the Builder prior to occupancy.(b) Repair Responsibility. The Builder will be responsible for surface imperfections only if reported inwriting prior to occupancy. Staining of fixtures is not covered by this warranty.(VA 11/23)

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-14-N. ELECTRICAL (Coverage for one year only.)Coverage for Year One (continued) (1) Outlets, switches or fixtures.(a) Standard. Should operate as intended.(b) Repair Responsibility. Defective outlets, switches and fixtures will be repaired or replaced.(2) Consistently blown fuses or circuit breakers kicking off.(a) Standard. Builder will not be responsible if caused by overloads in the system.(b) Repair Responsibility. Builder will inspect and repair any defects caused by Builder noncompliancewith applicable building and electrical codes, or by defective wiring or components.(3) Ground fault interrupter trips frequently.(a) Standard. Ground fault interrupters are sensitive safety devices installed into the electrical system toprovide protection against electrical shock. These sensitive devices can be tripped very easily.(b) Repair Responsibility. Builder shall install ground fault interrupter in accordance with approved electricalcode. Tripping is to be expected and is not covered, unless due to a construction defect.WARRANTY STANDARDS AND COVERAGE FOR YEARS ONE AND TWO ONLY (1) Lack of water supply.(a) Standard. All on-site service connections to municipal water main and private water supply shall be theBuilder's responsibility. Private systems shall be designed and installed in accordance with all approvedbuilding, plumbing and health codes.(b) Repair Responsibility. Builder will repair if failure is the result of defective workmanship or materials. Ifconditions beyond Builder's control disrupt or eliminate the sources of the supply, the Builder has noresponsibility. Potability of water is not covered by this warranty.(2) Septic system fails.(a) Standard. Septic system should operate properly. Excessive use or failure to properly remove septageis not covered by this warranty.(b) Repair Responsibility. Builder only will warrant against faulty workmanship and materials and will repairor replace to perform properly with the exception of the above mentioned items as well as:1. Excessive use of water such as overuse of washing machine and dishwasher; including theirsimultaneous use;2. Connection of sump pump, roof drains or backwash from water conditioner to the system;3. Placing of non-biodegradable items in the system;4. Addition of any harsh chemicals, greases, or cleaning agents, and excessive amounts of bleaches ordrain cleaners;5. Use of a food waste disposer not supplied by the contractor;6. Placement of impervious services over the disposal area;7. Allowing vehicles to drive or park over the disposal area;8. Failure to periodically pump out the septic tank when required.(3) Pipe leaks.(a) Standard. Condensation on pipes is normal and should be expected.(b) Repair Responsibility. Builder will repair leaks.(4) Clogged drain and sewers.(a) Standard. N/A.(b) Repair Responsibility. Builder will repair only if caused by a defect in construction. Purchaser will payfor Builder's repair if not a construction defect.(5) Ductwork separates.(a) Standard. Should not separate under normal conditions.(b) Repair Responsibility. The Builder will repair.(6) Wiring fails to carry specified electrical load.(a) Standard. Wiring should be capable of handling the required load.(b) Repair Responsibility. Builder will correct to meet applicable building and electrical codes.(VA 11/23)

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-15-VI. Complaint and Claim ProcedureQBW is the Warranty Administrator on behalf of Company and processes all claims made under the terms of theLimited Warranty Agreement. In order to file a complaint or claim, the following procedure must be adhered to.A. Step One. Upon discovery of some fault or defect in the first or second year which you believe is coveredby this Agreement, you must first send a clear and specific written notice to your Builder. If you have acomplaint as the result of a Major Structural Defect occurring during the third through tenth years of thisAgreement, notice must be sent to QBW, as Warranty Administrator for the Company (not theBuilder).B. Step Two. If, after receiving notice, your Builder does not correct the item(s) within a reasonable time, or ifyou have a Major Structural Defect complaint occurring during the third through tenth years of thisAgreement, you must send written notice of your complaint to QBW, as Warranty Administrator for theCompany, by certified mail, or other carrier that provides a receipt of delivery. QBW will handle and processall complaints and claims. Note that QBW must receive written notice of any complaint no more than thirty(30) days after the expiration of the applicable warranty period. If your complaint is received by QBW after30 days from the expiration of the warranty on the item, it will not be honored. Notice to your Builder doesnot constitute notice to QBW as Warranty Administrator on behalf of the Company. Telephonediscussions will not be considered notice and will not protect your rights. The written notice to QBWof any complaint must include: your warranty number and effective date, your name, address and telephonenumber, Builder name and address, as well as a description of the defect and the warranty standard whichapplies specifying the page and section of the warranty, all previous written correspondence to the Builderpertaining to defects, and any substantiating information to demonstrate that the defect exceeds warrantystandards.C. Step Three. QBW will review your complaint to make a determination of warranty coverage and may requestadditional information, including photographs to assist in its review. If QBW determines it necessary, QBWwill cause an inspector, who may be an employee of QBW, to view the defect. After review, QBW will reportwhether the defect is covered under the Limited Warranty Agreement. Upon receipt of the determination,you have thirty (30) days to accept the determination. Where a claimed defect is filed that cannot beobserved or determined under normal conditions, it is the homeowner's responsibility to substantiate thatthe condition does exist.D. Step Four: Binding Arbitration. The Parties each agree that the provisions of the Limited WarrantyAgreement involves and concerns interstate commerce. The binding arbitration provisions of this LimitedWarranty Agreement shall be governed by the procedures of the Federal Arbitration Act (9 U.S.C. § 1, etseq.).If you disagree with the determination, you have thirty (30) days to notify QBW, as Warranty Administrator on behalf of Company, in writing that you disagree, otherwise it will be deemed that you have accepted QBW's determination. If you provided the required notice that you disagree, disputed items shall be submitted for binding arbitration by QBW to Construction Arbitration Program, administered by DeMars & Associates Limited (CAP-Home), or such other independent arbitration service as may be designated by QBW, for resolution in accordance with the rules and regulations for home warranty disputes of CAP-Home or such other service. The arbitration fee shall be paid in advance and will be divided equally among the arbitrating parties. The arbitrator will have the authority to reallocate such fees at time of hearing upon request of a party and award reimbursement of the fee paid by the prevailing party. QBW will forward to you a request for arbitration form to return to QBW with the applicable fee so QBW can initiate the arbitration process. Arbitration will take place at the home. Upon delivery of an arbitration award ("Award") to the parties, any party may, within twenty (20) days, request an appeal of the Award. A request for appeal must be sent, together with the appropriate administrative fee, paid solely by the party requesting the appeal, to QBW, with copies of the request simultaneously being sent to all other parties. If no appeal is filed the award will become final. Upon receipt of the request for appeal and the appropriate administrative fee, QBW will forward the application to CAP-Home, or other service, for administration. CAP-Home, or other such service, will appoint an Appellate Arbitrator and schedule a hearing at the home. The Appellate Arbitrator may not review any new or different complaints, but may modify or change the Award if he/she finds that the Award exceeds or does not meet the scope of the Warranty or its coverages or if the Arbitrator exceeded the scope of his/her authority. CAP-Home, or other such service, will notify all parties of the decision of the Appellate Arbitrator, which will be final. The Builder, the Company, and the homeowner agree to be bound by the final Award of (VA 11/23)

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-16-arbitration or appellate arbitration. Judgment upon the final Award rendered in arbitration may be entered in any court having jurisdiction in those states where such arbitration is binding upon all parties thereto. If the state where the home is located does not permit binding arbitration then arbitration in accordance with this agreement shall be a condition precedent to the commencement of any litigation by the homeowner or Builder to compel compliance with the warranty documents or to seek relief for any dispute arising out of this program. 1. Acceptance. If you accept the decision, you must sign a copy of that decision which will be provided forthis purpose and you must then return the signed copy to QBW within thirty (30) days of its date. Theresponsible party will then perform as required by the decision, but neither the Company nor the Builderwill be responsible for damages caused or made worse by your delay in accepting the decision. If thedecision places a time period on performance, the time allowed will be measured from the date QBWreceives your acceptance of the decision. Sixty (60) days will be the standard time for compliance,weather conditions permitting.2. Rejection. If you decide to reject the decision, your Builder or QBW, as Warranty Administrator on behalfof Company, is under no obligation to perform.3. Right of Access. You must provide the Builder, or if applicable, QBW, as Warranty Administrator onbehalf of Company, with reasonable weekday access during normal business hours in order to performits obligations under this Agreement. Failure by you to provide such access to the Builder or QBW mayrelieve the Builder or Company of its obligations under this Agreement.VII. Legal ActionsThis Agreement provides a procedure for you to give notice to both the Builder and QBW, on behalf of Company,of potential claims, to have your complaint reviewed at no cost to you, and to give the Builder and QBW, onbehalf of the Company, as appropriate, an opportunity to fulfill their obligations hereunder. If you institute legalproceedings against the Builder, QBW and/or the Company for any obligation arising or claimed to have arisenunder this Agreement prior to giving the Builder or QBW, on behalf of Company, the proper notices andopportunities to cure provided under the Agreement and prior to complying with and completing all of the stepsin the Complaint and Claim procedure herein, you agree to indemnify the Builder, QBW and/or Company for allcosts and expenses of such legal proceedings, including reasonable attorneys' fees, regardless of whether youhave an otherwise legitimate claim under this Agreement. For purposes of this Agreement legal proceedings shallinclude arbitration proceedings other than those described in this Agreement. In the event you commence anylegal proceeding against QBW and/or the Company, prior to complying with and completing all steps in theComplaint and Claim Procedure, you agree to reimburse QBW and/or the Company, or any other agent ofInsured, for all of its costs and expenses of legal proceedings, including General Counsel costs and reasonableattorneys' fees. QBW is acting solely as Warranty Administrator for the Company. QBW is neither a warrantornor Insurer of this Limited Warranty Agreement.(VA 11/23)

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Copyright 2015BACKED BYQBW’s Premier Protection Plan - COVERS YOUR HOME FOR 10 YEARSTO CHECK YOUR WARRANTY COVERAGE VISIT WWW.QBWC.COM/MYCOVERAGESpecific warranty terms and coverages are set forth in the QBW Limited Warranty Agreement.The artwork is provided as a visual reference only and does not modify or change coverages in theQBW Limited Warranty Agreement.FIRST YEAR YEARS 1-10SECOND YEARRoofingLot grading and drainageSiding and caulkingMasonry and concreteChimneys and fireplacesWindows and doorsInterior walls and trimFlooring and coveringCarpentryCabinets and countertopsCooling and heatingPlumbingElectricalWater infiltrationSeptic system failsLack of water supplyPipe leaksClogged drains and sewersDuctwork separatesWiring fails to carry specified electrical loadColumnsBearing walls and partitionsFloor systems (structural slabs,joists and trusses only)Roof framing members andsystems (rafters and trusses only)Foundation systems and footings(which are an integral part of the homeand structurally attached)Load bearing beamsGirdersLintels (other than lintelssupporting veneers)2726252423222120141516171819W123456789101112261322202427252320161419171518W642323913127101081141115WW6WW4Visit libertymutual.com/qbw forINSURANCE DISCOUNTSor call 800.786.6558Use group code: 4160QUALITYBUILDERSWARRANTY

QBW Warranty Book 11-23 VA

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