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Alabama Purchase and Sale Agreement Form

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PURCHASE AND SALE AGREEMENT Conventional Form With Limited Warranty  This  document  and  the  exhibits  and  attachments  are  not  final  or  complete  instruments,  they  include  several  options  which may be included or deleted, and should not be executed in their present form.  The HBAA and its local chapters do not assume any liability for damages arising from the use of this document and the exhibits and attachments thereto and give no opinion that any of the terms and conditions in this document and the exhibits and attachments should be accepted by the parties in a particular  transaction.    Terms  and  conditions  should  be  negotiated  between  the  parties  based  upon  the  respective  interests, objectives, and bargaining positions of all interested parties.  Seek specific legal advice from your lawyer.  This  PURCHASE  AND  SALE  AGREEMENT  (hereinafter  “this  Agreement”)  is  hereby  bargained  for,  made,  and  entered into on the ________ day of ___________________, 20________, by and between ________________________________________ _______________________________________________________________________________ (hereinafter  referred  to  as  “Seller”) and ________________________________________________________________________________________________________ (hereinafter, whether one or more, referred to as “Buyer”). W I T N E S S E T H : Buyer  desires  to  purchase  from  Seller,  and  Seller  has  agreed  to  sell  to  Buyer,  the  following  described  real  property  (the “Land”) situated in ______________________ County, Alabama, and more particularly described as follows: Address:   _____________________________________________________________________________________  Legal description:   _____________________________________________________________________________   _____________________________________________________________________________________________   _____________________________________________________________________________________________   (See attached Exhibit I for legal description of the Land if not inserted in the above space.) together  with  all  improvements  thereon,  if  any  (the  Land  and  said  improvements  hereinafter  referred  to  together  as  the  “Property”).  The  Property  either  has  been  or  will  be  improved  with  a  residential  dwelling  (the  “Dwelling”)  in  accordance  with  the  provisions  of this Agreement.  As a part of the negotiation of the terms and provisions of this Agreement, Buyer and Seller have negotiated between themselves  the  terms  and  provisions  of  a  Limited  Warranty  Agreement  and [Insert  here  one,  but  only  one,  of  either  “a Preoccupancy  Inspection  Agreement  as  described  herein  below”  or  “Acknowledgment  of  Acceptance as  described  herein below” and remove as an exhibit the one that was not selected]. NOW,  THEREFORE,  in  consideration  of  the  foregoing  recitals,  the  agreements  contained  herein  and  attached  hereto,  the provisions  of  the  Limited  Warranty  Agreement,  and  other good  and  valuable  consideration,  the  receipt  and  sufficiency  of  which  are hereby acknowledged, Buyer and Seller do hereby agree as follows: 1. Purchase  and  Sale.    Buyer  hereby  agrees  to  purchase  the  Property  from  Seller,  and  Seller  hereby  agrees  to  sell  the Property to Buyer. 2. Purchase  Price.    The  purchase  price  to  be  paid  by  Buyer  to  Seller  for  the  conveyance  of  the  Property,  as  improved with  the  Dwelling,  shall  be  the  sum  of ____________________________________________________________________ Dollars (the “Purchase Price”) and shall be payable as follows:

2 Earnest  Money,  payable  upon  the  execution  of  this Agreement, in the amount of   $____________________________ Additional Earnest Money, payable on or before  ________________________ in the amount of   $____________________________ Additional Earnest Money, payable on or before  ________________________ in the amount of   $____________________________ The  balance  of  the  Purchase  Price,  in  immediately available  funds,  payable  upon  the  conveyance  of the Property in the amount of    $____________________________ Total Purchase Price $____________________________  All  payments  of  Earnest  Money  and  Additional  Earnest  Money  (the  Earnest  Money  and  Additional  Earnest  Money  are  sometimes hereinafter  referred  to  collectively  as  the  “Earnest  Money”)  shall  be  paid  to  Seller  and  may  be  spent  by  Seller  as  Seller  deems appropriate,  unless  provided  otherwise  in  this  Agreement.    The  Earnest  Money  may  be  immediately  expended  by  Seller  toward  the costs  of  constructing  or completing  the  construction  of  the  Dwelling  or  other  improvements  to  the  Property  or  for  any  other  purpose that Seller deems appropriate. 3. Financing.    The  provisions  of  this  paragraph  shall  be  applicable  only  if  initialed  by  both  Seller  and  Buyer.    This Agreement is subject to Buyer being able to obtain a conventional loan in the amount of $________________________ (the “Loan”).  Buyer agrees to make application for the Loan within ten (10) days after the date of this Agreement and to exert all reasonable efforts and diligence to obtain approval of the Loan.  Buyer agrees to keep Seller fully informed of the status of Buyer’s efforts to secure the approval of the Loan.  Buyer shall provide such evidence as may be required by Seller, including a written commitment for the Loan, to confirm the final approval of the Loan.  Seller shall have the right to delay the commencement of the construction of the Dwelling, if applicable, or delay the completion of the construction of the Dwelling, if applicable, until such time as Seller has determined, to the satisfaction of Seller, that the Loan has been or is likely to be approved.  Any such determination by Seller shall be for the sole benefit of  Seller  and  may  not  be  relied  upon  in  any  manner  by  Buyer.    The  failure  of Buyer  to  secure  and  deliver  to  Seller,  on  or  before _________________ days  after  the  date  of  this  Agreement,  a  commitment  for  the  Loan  in  a  form  acceptable  to  Seller,  shall  entitle Seller,  at  the  election  of  Seller,  to  terminate  this  Agreement,  whereupon  the  Earnest  Money,  if  any,  shall  be  refunded  by  Seller  to Buyer  within  thirty  (30)  days  after  such  termination,  without  interest,  and  reduced  in  an  amount  equal  to  any  out-of-pocket  costs incurred by Seller in connection with or related to the application for the Loan or the process of the consideration thereof.   Seller:     Buyer:             4. The  Dwelling.    The  Property  either  has  been  or  will  be  improved  with  the  Dwelling.   (The  parties  should  select one, but only one, of the following subparagraphs by initialing the subparagraph which is applicable.) As  of  the  execution  of  this  Agreement,  the  Dwelling  has  been  completed  and  Buyer  has  inspected  and accepted  the  Dwelling,  as  completed,  subject  to  the  preoccupancy  inspection  to  be  made  by  Buyer  and Seller pursuant to the Limited Warranty Agreement and the [Insert here one, but only one, of either “the Preoccupancy  Inspection  Agreement”  or  “Acknowledgment  of  Acceptance”  and  remove  as  an exhibit the one that was not selected], both of which are attached hereto and both of which are described in greater detail elsewhere in this Agreement.  Seller:  ___________________________________________________________________________________________________________   ___________________________________________________________________________________________________________   Buyer:  ___________________________________________________________________________________________________________   ___________________________________________________________________________________________________________

3 The  construction  of  the  Dwelling  has  been  commenced  and,  as  of  the  date  of  this  Agreement,  is  only partially complete.  Buyer has inspected the portion of the Dwelling which has been constructed and finds same to be acceptable.  The construction of the Dwelling shall be completed by Seller in accordance with the  provisions  of  this  Agreement  and  the  Limited  Warranty  Agreement  and  in  general  conformity  with the  plans  and  specifications  (the  “Plans  and  Specifications”)  described  on  Exhibit A  and  incorporated herein,  except  that,  to  the  extent  that  the  portion  of  the  Dwelling  which  has  been  constructed  as  of  the date  of  this  Agreement  is  different  from  the Plans  and  Specifications,  then  the  Plans  and  Specifications shall be deemed modified to be consistent with the actual construction.   Seller:  ___________________________________________________________________________________________________________   ___________________________________________________________________________________________________________   Buyer:  ___________________________________________________________________________________________________________   ___________________________________________________________________________________________________________    The  construction  of  the  Dwelling  has  not  yet  been  commenced.    Seller  agrees  that  the  Dwelling  shall  be constructed  in  accordance  with  the  provisions  of  this  Agreement  and  the  Limited  Warranty  Agreement and  in  general  conformity  with  the  Plans  and  Specifications  attached  hereto  as  Exhibit A  and incorporated herein.   Seller:  ___________________________________________________________________________________________________________   ___________________________________________________________________________________________________________   Buyer:  ___________________________________________________________________________________________________________   ___________________________________________________________________________________________________________    The Plans and Specifications, if applicable, have been signed and dated simultaneously with the execution of this Agreement by both Seller and Buyer and any changes in the Plans and Specifications which have been agreed upon by both Seller and Buyer have been  clearly  shown  and  initialed  by  both  Seller  and  Buyer.    The  construction  of  the  Dwelling  shall  be  deemed  completed  upon  the issuance of a certificate of occupancy by the applicable governmental building inspection department, if there is such a department in the  jurisdiction  in  which  the  Property  is  located,  and,  if  no  such  department  exists,  then  upon  the  reasonable  determination by  Seller that the construction of the Dwelling is substantially complete.  5. Changes to Plans and Specifications.  If Seller has agreed to construct the Dwelling or complete the construction of the  Dwelling  in  general  conformity  with  Plans  and  Specifications  pursuant  to  the  preceding  paragraph,  Seller  shall  be  under  no obligation to make any changes, additions or alterations to the Plans and Specifications.  Seller may elect to make changes, additions or alterations to the Plans and Specifications upon the request of Buyer; however, Seller shall not be obligated to do so.  In the event that  Seller  and  Buyer  agree  upon  changes,  additions or alterations to the Plans and Specifications, then such agreement shall become effective  only  upon  the  execution  by  both  Seller  and  Buyer  of  a  written  change  order,  in  a  form  which  is  acceptable  to  Seller and which sets forth the changes to be made and the additional consideration to be paid by Buyer to Seller in connection therewith, and the payment  by  Buyer  to  Seller  of  such  portion  of  said  additional  consideration  as  shall  be  required  by  Seller.    Any  such  additional consideration shall be in addition to the Purchase Price and any payments of said additional consideration by Buyer to Seller shall not be  a  credit  against  the  Purchase  Price  and  shall  be  non-refundable.    Seller  shall  not  be  obligated  to  agree  to  any  such  changes, additions  or  alterations  to  the  Plans  and  Specifications  and  may  condition  any  such  agreement  upon  such  matters  as  Seller  shall,  in sole  discretion  of  Seller,  determine,  including,  but  not  limited  to,  the  payment  of  additional  consideration  by  Buyer,  the  approval  of such changes by Buyer’s lender and the local building inspection officials, if any.  In  the event that Seller agrees to such changes and has not received all of the additional consideration to be paid in connection therewith, then the balance of said consideration shall be paid  at  the  closing  of  the  sale  of  the  Property.    Notwithstanding  the  foregoing,  Seller  shall  have  the  right  to  make  such  changes, additions,  or  alterations  to  the  Plans  and  Specifications  as  shall  be  required  by  any  governmental  officers  who  have  jurisdiction  or authority over the construction of the Dwelling, or to cause the construction of the Dwelling to be in compliance with any applicable building codes or other applicable governmental laws, rules, or regulations, without notice to or approval by Buyer. 6. Decorating Allowance.  Seller may allow Buyer to select some or all of the decorating items to be incorporated into the Dwelling, provided that same have not already been incorporated therein.  Such items may include brick, paint colors, roof colors, light  fixtures,  wall  paper,  and  floor  covering  for  which  Seller  shall  establish  allowances.    Buyer  shall  make  such  selections within seven (7) working days after the request by Seller.  If selections of Buyer exceed the amount of allowances established by Seller, then Buyer shall pay such portion of any such excess as shall be required by Seller at the time of making the selections, and the balance, if any, shall be paid upon the Closing, in addition to the Purchase Price.  The allowances established by Seller and which are included in the Purchase Price are attached hereto as Exhibit B.  In no event shall the Purchase Price be reduced as the result of the expenditure of less than the allowance for any particular item.

4 7. Condition of the Land.   (a) Buyer hereby affirms that, before signing this Agreement, Buyer has personally walked upon and inspected the  Land.    Buyer  acknowledges  that  Buyer  and  its  representatives  have  had  an  opportunity  to  enter  the  Land  for  the  purpose  of conducting  such  engineering  studies, site  investigations  and  analyses  (including  soil  tests)  as  Buyer  deems  desirable  to  determine whether  the  soil  or  other  conditions  of  the  Land  are  acceptable  to  Buyer.    Buyer  agrees  that  Buyer  is  acquiring  the  Land  “AS-IS” without any representation or warranty on the part of Seller other than as to the title. (b) Buyer  waives  all  claims,  present  and  future,  against  Seller  and  Seller’s  agents,  employees,  successors, assigns,  members,  owners,  managers,  partners,  officers  and  contractors  based  upon  or  connected  with  the  condition  of  the  Land  and hereby  releases  Seller  and  Seller’s  agents,  employees,  successors,  assigns,  members,  owners,  managers,  partners,  officers  and contractors  from  any  liability  whatsoever  therefor.    This  provision  shall  survive  the  closing  of this  sale.    In  addition,  the  deed  to  be delivered by Seller to Buyer as described in this Agreement shall contain a release from damages in the form set forth below: This conveyance is made with the express reservation and condition that Grantees, for themselves and on behalf of their heirs, administrators, executors, successors, assigns, contractors, permitees, licensees  and  lessees,  hereby  release  and  forever  discharge  Grantor  from  any  and  all  liability, claims and causes of action, whether arising at law (by contract or in tort) or in equity with respect to damage or destruction of property and injury to or death of any person located in, on, or under the  surface  of  or  over  the  property  herein  conveyed,  as  the  case  may  be,  which  are  caused  by,  or arise  as  a  result  of,  past,  present,  or  future  soil,  subsoil,  or  other  conditions  (including,  without limitation,  sinkholes,  underground  mines,  subsurface  waters,  and  limestone  formations)  under  or on  the  subject  property,  whether  contiguous  or  non-contiguous.    Grantees  acknowledge  that  they have  made  their  own  independent  inspections  and  investigations  of  the  subject  property  and  are purchasing the subject property in reliance upon such inspections and investigations.  For purposes of  this  paragraph,  Grantor  shall  mean  and  refer  to  the  members,  managers,  agents,  employees, successors, assigns, members, owners, managers, partners, officers and contractors of Grantor and any successors and assigns of Grantor. (c) Buyer acknowledges that Buyer has been advised to investigate the purchase of insurance for protection in the  event  of  earthquakes  or  sinkholes  and  that  Seller  has  made  no  representation  or  warranty  with  respect  to  the  availability of  such insurance coverage. (d) The  Purchase  Price  does  not  include  any  costs  or  contingencies  for  rock  or  other  abnormal  surface conditions,  and  Buyer  shall  be  responsible  for  the  costs  of  correcting  any  such  conditions.    Should  such  abnormal  conditions be encountered  on  the  building  site  in  connection  with  foundations  and  footing  excavation  or  installation  of  sewer  lines,  on-site  sewage disposal  systems,  water  lines,  or  other  utility  services,  Seller  shall  promptly  inform  Buyer  of  same  and  estimated  costs  of  the additional work.  Such costs may include, but are not necessarily limited to, blasting expenses, jack hammer and drill operations.  The actual costs will be reflected in an increase in the Purchase Price at Closing. 8. Maintenance and Prevention of Moisture-Related Conditions.   (a) Buyer hereby acknowledges and agrees that, upon the closing and occupancy of the Property by Buyer:  (i) it  shall  be  the  responsibility  and  obligation  of  Buyer  to  maintain  the  Property,  including  the  Dwelling  and  all  components  thereof,  in good  condition  and  repair,  including  all  caulking,  water  seals,  exterior surfaces  and  finishes,  mortar,  water  pipes,  drainage  systems, HVAC  pipes  and  systems,  basement  and  crawl  space  areas,  gutters,  roofs,  and  landscaping,  for  the  prevention  of  water  penetration, mildew, mold, spores, fungi, damage to wood and other materials, and other moisture-related conditions; (ii) the failure to do so could result  in  health-related  problems  and/or  damage  to  the  Property;  (iii)  Seller  shall  have  no  liability  or  responsibility  with  respect  to same; and (iv) Buyer hereby waives and disclaims any claims against Seller arising out of any such condition and any loss, damage, or injury resulting therefrom. (b) Buyer  further  acknowledges  and  agrees  that:  (i)  if  Buyer  becomes  aware  of  water  intrusion  into  the Property,  Buyer  should  respond  immediately;  (ii)  in  cases  of  serious  water  damage,  Buyer  should  hire  construction  and  indoor  air quality  consultants  to  assess  the  damage  and  determine  what  remediation  is  needed;  (iii)  inadequate  remediation,  even  if  well-intentioned,  will  only  create  more  problems;  (iv)  water  damaged  materials  may  need  to  be  removed,  and  the  source  of  the  water intrusion  should  be  addressed;  (v)  the  Property  may  have  to  be  vacated  while  remediation  work  is  in  progress;  and  (vi)  a  certified

5 industrial  hygienist  experienced  with  testing  for  molds  in  indoor  environments  should  be  retained  to  determine  whether  the  water damage has caused a source of mold growth and amplification. (c) Buyer  further  acknowledges  and  agrees  that:  (i) unusual  odors  should  also be  investigated  promptly; (ii) unusual odors may be indicative of water intrusion and mold growth; and (iii) chronic complaints of illness (especially respiratory, breathing, or allergy-type problems), headaches or nausea may indicate indoor air quality problems and should be taken seriously and investigated promptly.  9. The  Closing.    The  closing  of  the  purchase  and  sale  of  the  Property  (the  “Closing”)  shall  occur  on  or  before the ____________ day of  _______________________,  20______ (the  “Closing  Date”)  except  that  Seller  shall  have  a  reasonable  time thereafter  within  which  to  perfect  title  or  cure  title  defects,  and  further  provided  that  the  Closing  Date  may  be  extended  by Seller for such  additional  time  as  Seller  shall  determine  to  be  reasonably  necessary  (a)  as  the  result  of  any  delay  in  the  approval  of  Buyer’s Loan; or (b) to complete the construction of the Dwelling, if applicable, as the result of any delays in the progress of construction due to items such as, but not limited to, inclement weather, acts of war or terrorism, changes in the Plans and Specifications agreed upon between  the  parties,  requirements  of  any  building  officials  or  other  governing  authorities,  work  stoppages,  delays  in  the  delivery  of materials, delays in the approval of Buyer’s Loan, contingencies under this Agreement, the completion of the preoccupancy inspection and any additional work required as the result thereof, and any other matters which might delay the completion of construction of the Dwelling; or (c) as a result of any delay caused by the failure or interruption of systems used by Seller or systems used by third parties upon whom Seller relies or any other system where such failures or interruptions are caused, in whole or in part, directly or indirectly, by  the  inability  of  such  systems  to  accurately  calculate,  compare,  extract,  sequence,  display,  accept,  process,  store,  reserve,  and provide  date  data  in  a  manner  that  is  consistently  correct  and  accurate,  regardless  of  the  date  data  input,  the  functions  requested,  the date  data  output  requested,  or  the  date  upon  which  the  date  data  is  input,  processed,  or  output;  or  (d)  as  a  result  of  any  damage  or destruction to all or any portion of the Property as the result of fire, storm, or other casualty.  In the event of the delay of the Closing Date pursuant to the foregoing provisions, then the Closing Date shall be that date which has been established in a written notice from Seller to Buyer provided that such date is no more than ten (10) days after the date of such notice.   At the Closing, Seller shall convey title to the Property to Buyer by statutory warranty deed (with survivorship if requested by Buyer) subject to current ad valorem taxes; all  matters  set  forth  in  the  title  insurance  commitment  to  be  provided  pursuant  to  paragraph  10  of  this  Agreement;  any additional easements,  restrictions,  rights-of-way, or other such exceptions as Seller deems appropriate to impose upon the Property pending the closing  of  the  subject  purchase  and  sale;  easements,  restrictions,  rights-of-way,  covenants,  building  setback  lines,  reservations,  and other  matters  of  record;  all  matters  which  would  be  revealed  by  an  accurate  survey  or  inspection  of  the  Property;  applicable subdivision, zoning and other applicable governmental regulations and restrictions; and less and except any minerals and any mineral, mining or other subsurface rights previously conveyed or otherwise not owned by Seller.  Possession of the Property shall be delivered to  Buyer  upon  the  Closing.    The  Closing  shall  be  held  at  such  time  of  day  and  at  such  location as  shall  be  reasonably  agreed  upon between  Seller  and  Buyer;  provided,  if  the  parties  cannot  agree,  then  the  closing  shall  be  held  at  such  time  of  day  as  shall be established  by  Seller  at  either  the  office  of  Seller  or  the  office  of  Seller’s  attorney.    Buyer  shall  pay  to  Seller,  at  the  Closing,  the Purchase  Price  plus  any  additional  consideration  owing  with  respect  to  changes  in  the  Plans  and  Specifications  and  allowance item overages, less any Earnest Money previously paid by Buyer and received by Seller. 10. Title Insurance.  A commitment for the issuance of an owner’s title insurance policy in the amount of the Purchase Price, subject to all of the matters set forth in this Agreement with respect to the status of title to the Property and subject to such other matters as are customarily included in such commitments, shall be furnished by Seller at the Closing. 11. Survey.    Buyer  does      does  not     (check  one)  require  a  survey  by  a  registered  Alabama  land  surveyor  of Buyer’s  choosing.    Unless  otherwise  agreed  herein,  the  survey  shall  be  at  Buyer’s  expense.    (NOTE:  Only  a  surveyor  can  verify  the Property lines, and Buyer’s lender may require a survey.) 12. Termite Contract/Termite Bond.  Buyer shall be responsible for purchasing such termite or wood infestation reports, termite treatment contracts, or termite bonds as Buyer deems appropriate, if any, at the expense of Buyer.  Any such report, contract, or  bond,  if  any,  which  is  provided  by  Seller  shall  be  accepted  by  Buyer  without  representation,  obligation,  or  warranty  from  Seller, and Buyer hereby acknowledges and agrees that Buyer shall determine whether any such report, contract, or bond provides sufficient protection  of  Buyer’s  interests,  and  Buyer  shall  look  solely  to  the  issuer  of any  such  report,  contract,  or  bond  with  respect  to  any representations, agreements, or obligations therein contained. 13. Closing  Costs.    At  the  Closing,  Seller  shall  pay  the  cost  of  the  preparation  of  the  deed  and  the  premium  for  the owner’s  title  insurance policy,  provided,  however,  in  the  event  of  the  simultaneous  issuance  of  a  mortgagee’s  title  insurance  policy, the premium shall be divided evenly between Seller and Buyer, even if the mortgagee is Seller.  Buyer shall pay all loan closing costs, discount  points,  mortgage  insurance  premiums,  prepaid  items  and  recording  fees.    Ad  valorem  taxes,  any  association  dues,  district

6 dues and the like shall be prorated as of the date of closing between Seller and Buyer.  Unless otherwise agreed herein, all ad valorem taxes  except  municipal  are  presumed  to  be  paid  in  arrears  for  purposes  of  proration,  and  municipal  taxes,  if  any,  are  presumed  to  be paid in advance. 14. Utilities.    Seller  agrees  that  the  utility  meters  when  installed  will  be  in  Seller’s  name  through  the  Closing  Date,  at which time Buyer is obligated to transfer such utility services to Buyer. 15. Selection of Attorney.  Buyer and Seller hereby do  □   do not  □ agree to share the fees of a closing attorney.  The parties hereto acknowledge and agree that, if they have agreed to share the fees of a closing attorney hereunder, such fee-sharing may involve a potential conflict of interest and they may be required to execute an affidavit at closing acknowledging their recognition and acceptance  of  same.    The  parties  further  acknowledge  that  they  have  a  right  to  be  represented  at  all  times  in  connection  with this Agreement and the closing by an attorney of their own choosing, at their own expense. 16. Time Is Of The Essence.  TIME IS OF THE ESSENCE with respect to the obligation of Buyer to close the purchase of the Property and pay the Purchase Price within the time required pursuant to this Agreement. 17. Agency Disclosure/Disclaimer/Commissions.    The  listing  company  is ____________________________________.  The selling company is ___________________________________________________.   The LISTING COMPANY is: (Two blocks may be checked)  An Agent of Seller  An Agent of Buyer  An Agent of both Seller and Buyer and is acting as a Limited Consensual Dual Agent  Assisting  _______  Buyer as a Transaction Broker    _______  Seller as a Transaction Broker  The SELLING COMPANY is: (Two blocks may be checked)  An Agent of Seller  An Agent of Buyer  An Agent of both Seller and Buyer and is acting as a Limited Consensual Dual Agent  Assisting  _______  Buyer as a Transaction Broker    _______  Seller as a Transaction Broker   Seller:     Buyer:             Buyer  acknowledges  that  the  listing  agent  has  undertaken  no  duty  to  Buyer,  whether  fiduciary  or  otherwise,  and  Buyer affirms that Buyer has not relied upon said listing company or any representation by it or its agents, servants, or employees in entering into this Agreement, and Seller shall not be bound or obligated pursuant to any such representation, nor by any representation made by the selling company or its agents, servants, or employees, unless same shall have been set forth fully in this Agreement.  Buyer further acknowledges that Buyer has not relied upon any advice or representations of Seller, any listing company, any selling company, or any sales person associated therewith relative to (i) the legal or tax consequences of this Agreement and the sale, purchase, or ownership of the Property; (ii) except as provided in the Limited Warranty Agreement (as defined herein), the structural condition  of  the  Property;  (iii) the  character  of  the  neighborhood;  (iv)  the  investment  or  resale  value  of  the  Property;  (v)  the  use  or condition  of  adjoining  or  neighboring  property;  (vi)  subsurface  conditions,  including  radon  and  other  potentially  hazardous  materials and/or gases; or (vii) any other matters affecting Buyer’s willingness to purchase the Property on the terms and price herein set forth.  Buyer  acknowledges  that  if  such  matters  are  of  concern  to  Buyer  in  the  decision  to  purchase  the  Property,  Buyer  has  sought  and obtained  independent  advice  relative  thereto.  Buyer  further  acknowledges  that  the  promotional  brochures  and  drawings,  if  any,  with respect to the Property are not exact depictions of the Property, the Dwelling, or surrounding areas and have not been relied upon by Buyer in the determination to enter into this Agreement.   In  the  event  of  the  closing  and  funding  of  this  purchase  and  sale,  Seller  agrees  to  pay  a  commission  in  the  amount of _____________________ percent  (_______%)  of  the  Purchase  Price  of  $___________________________ payable  as  follows: _____________________ percent  (_______%)  to  the  listing  company and _____________________ percent  (_______%)  to  the selling company.

7 18. Insulation.    Living  area  ceilings  will  be  installed  with  blown  fiberglass  type  insulation  to  a  thickness of _______________________  (_____)  inches  or  batt  fiberglass  type  insulation  to  a  thickness of _______________________  (_____) inches, which thickness, according to its manufacturer, will (in either case) result in an R-Value of _____________________ (_____).  Living area exterior walls will be insulated with batt fiberglass type insulation to a thickness of _______________________ (_____) inches,  which  thickness,  according  to  the  manufacturer,  will  result  in  an  R-Value of  _______________________  (_____).    Buyer acknowledges and agrees that, in accordance with Federal Trade Commission Regulations, this information has been supplied by the installer of the insulation and has not been determined by Seller.  Buyer acknowledges and agrees that Seller shall have no liability or obligation with respect to the accuracy of the information included in this paragraph. 19. Casualty  Loss.    In  the  event  of  any  damage  or  destruction  to  all  or  any  portion  of  the  Property  as  the  result  of  fire, storm, or other casualty, then Seller shall have the right, at the election of Seller, to either (a) extend the Closing Date as necessary to permit Seller to remedy any such damage and complete the construction of the Dwelling or (b) terminate this Agreement, whereupon the Earnest Money shall be refunded to Buyer and Seller shall be relieved of any obligation to complete the Dwelling or close the sale of the Property.  20. Arbitration.  Seller and Buyer acknowledge and agree that this transaction substantially affects interstate commerce by virtue of the materials and components contained in the Dwelling.  Any controversy, claim, or dispute arising out of or relating to this  Agreement,  or  the  breach  thereof,  or  the  transaction  contemplated  hereby,  shall  be  settled  by  binding  arbitration  pursuant  to  the Federal  Arbitration  Act,  9 USC  § 1,  et  seq.,  and  shall  be  administered  in  accordance  with  the  applicable  rules  of [Insert  here  an arbitration option of your choice, such as “The Construction Industry Rules of the American Arbitration Association” or “the Better  Business  Bureau  of  (Insert  here  the  designation  of  your  local    Better  Business  Bureau)”  or  such  other  system  as  you might prefer].  Judgment on the award rendered by the arbitrators may be entered in any court having jurisdiction thereof. 21. Notices.    Any  notices  to  be  given  pursuant  to  the  provisions  of  this  Agreement  shall  be  in  writing  and  shall  be deemed received by the party to whom given when deposited in the United States Mail, by certified mail, with postage pre-paid, and addressed as follows:   When to Seller:   ___________________________________________   ___________________________________________   ___________________________________________   ___________________________________________     When to Buyer:   ___________________________________________   ___________________________________________   ___________________________________________   ___________________________________________    The address of a party may be changed by written notice to the other party in the manner described above. 22. Default.   (a) By Seller:  If this transaction is not concluded because of the material default of Seller in the performance of the obligations of Seller pursuant to this Agreement, and if said default is not remedied within thirty (30) days after written notice from  Buyer  to  Seller  setting  forth  the  details  of  the  default  and demanding  that  the  default  be  remedied  (or  within  such  reasonable period of time as may be necessary to remedy the default in the event that thirty (30) days is not a sufficient time, provided that Seller is diligently pursuing the remedy of any such default), then the Earnest Money and any other sums received by Seller from Buyer with respect to changes in the Plans and Specifications or with respect to allowance overages, shall be refunded to Buyer, without interest, and  thereupon  this  Agreement  shall  be deemed  terminated  and  both  Seller  and  Buyer  shall  be  relieved  of  any  further  obligations hereunder.  This shall be the sole remedy available to Buyer in the event of a default by Seller.   (b) By  Buyer:    In  the  event  of  default  by  Buyer  in  the  performance  of the  obligations  of  Buyer  under  this Agreement,  and  should  said  default  not  be  remedied  within  ten  (10)  days  after  written  notice  from  Seller  to  Buyer  setting  forth  the details of the default and demanding that the default be remedied, then, at the election of Seller, (i) Seller shall retain all sums paid to Seller by Buyer pursuant to this Agreement including, but not limited to, the Earnest Money, any sums with respect to changes in the Plans  and  Specifications,  any  sums  with  respect  to  allowance  overages, and  any  other  sums,  as  liquidated  damages,  whereupon  this Agreement shall be deemed terminated and both Seller and Buyer shall be relieved of any further obligations hereunder; or (ii) Seller

8 shall have the right to retain all sums paid to Seller, as aforesaid, by Buyer, which sums shall be applied toward the actual damages of Seller, and Seller shall be entitled to recover from Buyer the balance of any damages incurred by Seller; or (iii) Seller shall  have  the right  to  retain  all  sums  paid  to  Seller,  as  aforesaid,  by  Buyer,  and  Seller  shall  have  the  right  to  pursue,  in  addition  to  the  retainage  of said  sums,  equitable  relief  against  Buyer,  including  the  remedy  of  specific  performance  together  with  the  recovery  of  Seller’s attorney’s fees and costs; or (iv) Seller shall have the right to pursue any one or more of the foregoing or any other remedies available to Seller under applicable law together with the recovery of Seller’s attorney’s fees and costs.  The pursuit of any one or more of said remedies shall not be deemed a waiver of the right to pursue any other remedies. 23. General Provisions.   (a) If any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable, that determination will not affect the enforceability of the remaining portions.   (b) This  Agreement  shall  be  binding  upon  Seller  and  Buyer,  and  their  respective  heirs,  executors, administrators, successors and assigns. (c) This Agreement shall be governed by and construed in accordance with the laws of the State of Alabama.  (d) The  titles  or  headings  to  the  paragraphs  included  herein  are  for  convenience  only  and  shall  not  add  to, reduce, limit or modify in any manner the content thereof. (e) The  use  of  one  gender  shall  include  all  other  genders,  the  use  of  singular  shall  include the  plural,  and  the use of the plural shall include the singular, all as may be appropriate to the context in which they are used. (f) The  rights  of  Buyer  hereunder  may  not  be  assigned  by  Buyer  without  the  written  consent  of  Seller,  which consent may be withheld in the sole discretion of Seller. 24. Limited  Warranty/Preoccupancy  Inspection.    Buyer  and  Seller  agree  to  the  terms  and  conditions  of  the  Limited Warranty  Agreement  attached  hereto  as  Exhibit  C  and  made  a  part  of  this  Agreement.    The  terms  and  provisions  of  the  Limited Warranty Agreement have been fully negotiated between Buyer and Seller as a part of the negotiation of the terms and provisions of this  Agreement.    The  Limited  Warranty  Agreement  has  been  fully  executed,  as  of  the  date  of  this  Agreement,  and the  terms  and provisions thereof are an integral part of the terms and provisions of this Agreement.  Buyer and Seller agree to re-execute the Limited Warranty Agreement and to deliver duplicate originals of same at the Closing.  Buyer and Seller agree to be fully bound by the terms and provisions of the Limited Warranty Agreement and agree that the Limited Warranty Agreement shall survive the Closing and the conveyance  of  title  to  the Property.    Pursuant  to  the  Limited  Warranty  Agreement,  Buyer  and  Seller shall  make  a  preoccupancy inspection of the Dwelling and shall [Insert here one, but only one, of either “complete and execute the Preoccupancy Inspection Agreement”  or  “execute,  prior  to  the  Closing,  the  Acknowledgment  of  Acceptance”] which  is  attached  as an  exhibit to  the Limited Warranty Agreement.  (a) Duration  of  Limited  Warranty.    Seller  and  Buyer  have  negotiated  and  agreed  upon  the  Limited  Warranty Period,  as  defined  in  paragraph  1  of  the  Limited  Warranty  Agreement,  and  acknowledge  that  the  duration  of  the  Limited  Warranty Period,  as  negotiated  between  Seller  and  Buyer,  has  been  material  to  the  amount  of  the  Purchase  Price  and  the  other  terms  and conditions set forth in this Agreement. (b) Buyer’s  Acknowledgment.    Buyer  hereby  acknowledges  that  Seller  has  offered  to  agree  to  a  Limited Warranty  Period  of  greater  duration  than  that  which  is  set  forth  in  paragraph  1  of  the  Limited  Warranty  Agreement  and  that,  rather than accepting the longer duration of the Limited Warranty Period, Buyer has preferred to reduce the amount of the Purchase Price, to the amount thereof which is set forth in this Agreement, and accept the Limited Warranty Period of the duration set forth in paragraph 1 of the Limited Warranty Agreement. [If  you  want  to  offer  different  durations  of  the Limited  Warranty  Period  based  upon  appropriate  revisions  to  the  Purchase Price, then this subparagraph (b) or a provision similar thereto might be included in your contract documents; otherwise, the foregoing subparagraph (b) should be deleted.] 25. WAIVER  OF WARRANTIES  AND  CLAIMS.    BUYER  AGREES  THAT  THE  LIMITED  WARRANTY AGREEMENT  IS  GIVEN  IN  LIEU  OF  ANY  AND  ALL  OTHER  WARRANTIES,  EXPRESSED  OR  IMPLIED,  INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,

9 HABITABILITY  AND  WORKMANSHIP,  AND  IS  ALSO  IN  LIEU  OF  ANY  CLAIMS  FOR  CONSEQUENTIAL  DAMAGES, MENTAL  ANGUISH  OR  DISTRESS,  AND  FOR  DAMAGES  BASED  UPON  NEGLIGENCE,  AND  BUYER  HEREBY EXPRESSLY WAIVES AND DISCLAIMS ALL SUCH OTHER WARRANTIES AND CLAIMS WITH RESPECT TO BOTH THE DWELLING AND THE PROPERTY. Buyer acknowledges that Buyer has read, understood, and accepted the foregoing.   Buyer:  ____________   ____________   26. Entire Agreement.  This Agreement and the Limited Warranty Agreement, together with all of the other exhibits and attachments to  this  Agreement  and  the  Limited  Warranty  Agreement,  constitute  the  entire  agreement  of  the  parties,  and  Buyer acknowledges  that  Buyer  has  not  relied  upon  any  oral  or  written  statements,  undertakings,  or  representations  and  that  no  prior agreement  or  understanding  shall  be  valid  or  of  any  force  or  effect,  unless  the  same  have  been  fully  set  forth  in  this  Agreement,  the Limited  Warranty  Agreement,  or  the  attachments  and  exhibits  thereto.    The  covenants  and  agreements  contained  in  this  Agreement and  the  Limited  Warranty  Agreement  cannot  be  altered,  changed,  modified,  or  added  to,  except  in  a  written  instrument  signed  by Buyer  and  Seller.    No  representation,  inducement,  understanding,  or  anything  of  any  nature  whatsoever  made,  stated,  or  represented by Seller or on Seller’s behalf, either orally or in writing (except as specifically set forth in this Agreement or in the Limited Warranty Agreement), has induced Buyer to enter into this Agreement or shall be enforceable in any manner against Seller. IN WITNESS WHEREOF, the undersigned parties have set their hands and seals to this Agreement on this the ________ day of ______________________, 20________.        SELLER:            By:   ______________________________________________   Witness   Its:    _____________________________________________           BUYER:        __________________________________________________   Witness       __________________________________________________   Witness        The HBAA  and  its  local  chapters  do  not  assume  any  liability  for  damages  arising  from  the  use  of  this  document  and  give  no opinion  that  any  of  the  terms  and  conditions  in  this  document  should  be  accepted  by  the  parties  in  a  particular  transaction.  Terms and conditions should be negotiated between the parties based upon the respective interests, objectives and bargaining positions  of  all  interested  parties.    Seek  specific  legal  advice  from  your  lawyer.  Copyright  2001  by  the  Home  Builders Association of Alabama.

EXHIBIT A  Plans and Specifications  The  Plans  have  been  prepared  by ______________________________________________________________________________ dated  the  ___________  day  of  ________________________,  20_________,  include  __________  pages,  and  have been  signed  and dated by Seller and Buyer.  The Specifications have been prepared by __________________________________________________________________________ dated  the  ___________  day  of  ________________________,  20_________,  include  __________  pages,  and  have  been  signed  and dated by Seller and Buyer.

EXHIBIT B  Decorating Allowance  Allowance Item Allowance Amount

EXHIBIT C  Limited Warranty Agreement

LIMITED WARRANTY AGREEMENT  This  Limited  Warranty  Agreement  is  hereby  entered  into  on  this the  ________ day  of _____________________,  20_____, by _________________________________________________________________________________________________________ hereafter (whether one or more) referred to as Buyer, and _____________________________________________________________ hereafter referred to as Seller. WHEREAS, Seller and Buyer on this same day entered into a Purchase and Sale Agreement ( the “Contract”) of which this Limited Warranty Agreement is a part, for the sale by Seller and the purchase by Buyer of a house (the “Dwelling”) located upon that certain  parcel  of  real  property  located  in ___________________ County,  Alabama,  the  address  of  which  is ____________________ ______________________________________________________; and WHEREAS,  Seller  has  agreed  in  the  Contract  to  provide  to  Buyer  and  Buyer  has  agreed  to  accept  this  Limited  Warranty Agreement, in lieu of all other warranties and claims whatsoever, whether implied by law or otherwise. NOW,  THEREFORE,  in  consideration  of  the  premises,  the  agreements  herein,  the  agreements  set  forth  in  the  above mentioned  Contract,  the  payment  of  the  purchase  price  as  set  out  in  the  Contract,  and  other  good  and  valuable  considerations, the receipt  and  sufficiency  of  which  are  hereby  acknowledged,  the  parties  do  hereby  agree  to  the  terms  and  conditions  of  this  Limited Warranty Agreement as follows: 1. Warranty  Period.    Seller  does  hereby  provide  to  Buyer  this  Limited  Warranty  Agreement  on  the  Dwelling  for  a period  of  __________________________________________________________  (the  “Limited  Warranty  Period”)  beginning  on  the date  of  conveyance  of  title  to  Buyer  or  the  date  of  initial  occupancy  of  the  Dwelling,  whichever  occurs  first  (the  “Limited  Warranty Commencement  Date”),  and  Buyer  does  hereby  agree  to  the  terms  of  this  Limited  Warranty  Agreement  and  further  agrees  to  accept this  Limited  Warranty  Agreement  as  the  only  warranty  given,  in  lieu  of  all  other  warranties  of  any  kind,  expressed  or  implied,  with respect to the Dwelling and the sale thereof to Buyer.   Seller and  Buyer  have  negotiated  and  agreed  upon  the  Limited  Warranty  Period  and  acknowledge  that  the  duration of  the  Limited  Warranty  Period,  as  negotiated  between  Seller  and  Buyer,  has  been  material  to  the  amount  of  the  Purchase  Price and the other terms and conditions as set forth in the Contract. Buyer  hereby  acknowledges  that  Seller  has  offered  to  agree  to  a  Limited  Warranty  Period  of  greater  duration  than that which is set forth in this paragraph 1 and that, rather than accepting the longer duration of the Limited Warranty Period, Buyer has chosen to reduce the cost of the Property as reflected by the amount of the Purchaser Price and to accept the Limited Warranty Period of the duration set forth in this paragraph 1.   2. Limited Warranty.  Seller hereby warrants to Buyer that, for and during the Limited Warranty Period, the Dwelling will  be  free  from  Latent  Defects,  as  hereinafter  defined.    If  a  Latent  Defect  occurs  in  an  item  which  is  covered  by  this  Limited Warranty  Agreement,  Seller  will  repair,  replace,  or  pay  to  Buyer  the  reasonable  cost  of  repairing  or  replacing  any  such  item.    Seller shall  in  its  sole  discretion  determine  whether  to  repair,  replace,  or  pay  the  reasonable  cost  of  repairing  or  replacing  any  such  item.  THE  LIABILITY  OF  SELLER  IS  STRICTLY  LIMITED  TO  THE  OBLIGATION  TO  REPAIR,  REPLACE,  OR  PAY  THE REASONABLE COST OF REPAIRING OR REPLACING ANY SUCH ITEM, AND ANY RIGHT THAT BUYER MIGHT HAVE TO  RECOVER  ANY  OTHER  OR  ADDITIONAL  DAMAGES  IS  HEREBY  WAIVED  AND  EXCLUDED.    BUYER ACKNOWLEDGES  THAT  THE  SOLE  REMEDY  AVAILABLE  TO  BUYER  HEREUNDER  IS  THE  RIGHT  TO  REQUIRE SELLER  TO  REPAIR,  REPLACE,  OR  PAY  THE  REASONABLE  COST  OF  REPAIRING  OR  REPLACING  ANY  SUCH  ITEM.  Steps  taken  by  Seller  to  correct  any  Latent  Defect  under  this  Limited  Warranty  Agreement  shall  not  extend  the  Limited  Warranty Period.   3. Definition  of  Latent  Defect.    For  the  purposes  of  this  Limited  Warranty  Agreement,  a  Latent  Defect  is  defined  as and  limited  to  a  defect  in  a  necessary  component  in  the  Dwelling  which  (i) is  not  apparent  at  the  Limited  Warranty  Commencement Date  but  which  becomes  apparent  during  the  Limited  Warranty  Period;  (ii) is  not  otherwise  excluded  in  this  Limited  Warranty Agreement;  (iii) results  in  actual  physical  damage  to  the  Dwelling;  (iv) is  the  direct  result  of  the  failure  by Seller  to  construct  the Dwelling  in  accordance  with  the  applicable  Building  Standard  portion  of  the  Building  Quality  Standards  Section  attached  hereto  as Exhibit  I;  and  (v) has  been  set  forth  in  detail  by  Buyer  in  a  written  notice  to  Seller  prior  to  the  expiration  of  the  Limited  Warranty Period.  The responsibility of Seller to repair or replace certain items with respect to which there might be a Latent Defect shall be as set  forth  in  the  Responsibility  portion  of  the  Building  Quality  Standards  Section.    If  a  specific  Latent  Defect  is  not  addressed  in  the Building  Quality  Standards  Section,  then  the  applicable  codes  adopted  by  the  local  governing  body  with  respect  to  residential

2 construction  standards  (or  if  no  such  codes  have  been  adopted,  then  the  standards  of  construction  prevailing  in  the  geographical  area of  the  Dwelling)  will  be  used  in  lieu  of  the  provisions  of  the  Building  Quality  Standards  Section.    The  Building  Quality  Standards Section  lists  specific  defects  that  might  occur  within  specified  categories  of  the  construction  and  the  responsibilities  of  Seller  and Buyer with respect thereto, pursuant to the following format:   Possible Defect -  a brief statement of problems that may be encountered. Building Standard - a building standard relating to a specific defect. Responsibility - a  Statement  of  the  corrective  action  required  of  Seller  to  repair  the defect or a statement of Buyer’s maintenance responsibilities. [The  following  paragraph  3  may  be  used  in  lieu  of  the  preceding  paragraph  3  in  the  event that  the  parties  desire  to  omit  the Building Quality Standards section attached as Exhibit I and to replace that particular Building Standard with the Residential Construction  Performance  Guidelines  for  Professional  Builders  and  Remodelers.    If  the  following  paragraph  is  used  instead  of the preceding paragraph, then the Building Quality Standards Section will not be attached as an exhibit and Exhibit I will be either the Preoccupancy Inspection Agreement or the Acknowledgment of Acceptance.] 3. Definition of  Latent  Defect.    For  the  purposes  of  this  Limited  Warranty  Agreement,  a  Latent  Defect  is  defined  as and  limited  to  a  defect  in  a  necessary  component  in  the  Dwelling  which  (i) is  not  apparent  at  the  Limited  Warranty  Commencement Date  but  which  becomes  apparent  during  the  Limited  Warranty  Period;  (ii) is  not  otherwise  excluded  in  this  Limited  Warranty Agreement;  (iii) results  in  actual  physical  damage  to  the  Dwelling;  (iv) is  the  direct  result  of  the  failure  by  Seller  to  construct  the Dwelling  in  accordance with Residential  Construction  Performance  Guidelines  for  Professional  Builders  and  Remodelers,  latest edition,  published  by  National  Association  of  Homebuilders  (the  “Guidelines”);  and  (v) has  been  set  forth  in  detail  by  Buyer  in  a written notice to Seller prior to the expiration of the Limited Warranty Period.  The responsibility of Seller to repair or replace certain items  with  respect  to  which  there  might  be  a  Latent  Defect  shall  be  as  set  forth  in  the  Guidelines.    If    a  specific  Latent  Defect  is  not addressed  in  the  Guidelines,  then  the  applicable  codes  adopted  by  the  local  governing  body  with  respect  to  residential  construction standards  (or  if  no  such  codes  have  been  adopted,  then  the  standards  of  construction  prevailing  in  the  geographical  area  of  the Dwelling)  will  be  used  in  lieu  of  the  provisions  of  the  Guidelines.    The  Guidelines  lists  specific  defects  that  might  occur  within specified categories of the construction and the responsibilities of Seller and Buyer with respect thereto. 4. LIMITATION  UPON LIABILITY.    THE  SOLE  REMEDY  AVAILABLE  TO  BUYER  UNDER  THIS  LIMITED WARRANTY  AGREEMENT  IS  THE  RIGHT  TO  REQUIRE  SELLER  TO  REPAIR,  REPLACE,  OR  PAY  THE  REASONABLE COST  OF  REPAIRING  OR  REPLACING  LATENT  DEFECTS,  AS  HEREIN  DEFINED,  IN  THE  DWELLING.    SELLER’S TOTAL  LIABILITY  UNDER  THIS  LIMITED  WARRANTY  AGREEMENT  SHALL  NOT  EXCEED  THE  ORIGINAL PURCHASE  PRICE  PAID  TO  SELLER  UNDER  THE  CONTRACT,  LESS  THE  VALUE  OF  THE  REAL  PROPERTY  UPON WHICH  THE  DWELLING  IS  LOCATED.    THIS  LIMITED  WARRANTY  AGREEMENT  DOES  NOT  EXTEND  TO  OR INCLUDE LIABILITY FOR INDIRECT OR CONSEQUENTIAL DAMAGES. 5. Pre-Closing  Inspection.    Prior  to  closing  the  purchase  of  the  Dwelling,  Buyer  and  Seller  will  inspect  the  Dwelling and  Buyer  will [Insert  here  one,  but  only  one,  of  either  “complete  and  execute  the Preoccupancy  Inspection  Agreement”  or “execute  the  Acknowledgment  of  Acceptance”] in  accordance  with  the  form  attached  hereto  as [Insert  Exhibit  II  if  the  Building Quality  Standards  Section  is  attached  as  Exhibit  I;  otherwise;  insert  Exhibit  I],  and  any  exceptions,  omissions,  or  malfunctions agreed  upon  and  noted  thereon  will  be  corrected  promptly  by  Seller.    Seller  may  elect,  at  the  discretion  of  Seller,  to  correct  all exceptions, omissions, or malfunctions and document, with Buyer, such corrections of exceptions, omissions, or malfunctions, prior to proceeding with closing, and may extend the Closing as necessary to complete said corrections. 6. Assignment  of  Insurance  and  Warranties  to  Seller.    In  the  event  Seller  repairs,  replaces,  or  pays  to  Buyer  the reasonable  cost  of  repairing  or  replacing  any  Latent  Defect  covered  by  this  Limited  Warranty  Agreement  which  is  covered  by insurance or other warranties, Buyer will, upon the request by Seller, assign the products or proceeds of such insurance or warranties to Seller to the extent of the cost to Seller of such repair, replacement, or payment. 7. Exclusions and Disclaimers.   This  Limited  Warranty  Agreement  shall  not  extend  to,  include,  or  be  applicable  to  (a) defects  in  garages,  storage buildings  or  other  outbuildings  not  attached  to  the  Dwelling;  swimming  pools;  other  recreational  facilities;  driveways;  walkways; retaining walls; fences; landscaping (including sodding, seeding, shrubs, trees, and plantings); or items furnished or installed by Buyer

3 or by parties who have dealt directly with Buyer; or (b) defects which are the result of characteristics common to the materials used, such  as  (but  not  limited  to)  warping  and  deflection  of  wood;  the  presence  of  mildew,  mold,  spores,  fungi,  or  other  moisture-related conditions; fading, chalking, and checking of paint due to sunlight; cracks due to drying and curing of concrete, stucco, plaster, bricks, and  masonry;  shrinking  and  cracking  of  caulking  and  weatherstripping;  or  non-uniformity  of  appearance  of  brick  and  mortar;  or  (c) defects  resulting  from  failure  to  perform  general  maintenance,  including  but  not  limited  to  the  presence  or  growth  of  mildew, mold, spores, fungi, or other moisture-related conditions; negligence; normal wear and tear; improper maintenance; or improper operation of the  Dwelling  or  any  part  of  the  systems  in  the  Dwelling;  and  Buyer  hereby  waives  and  disclaims  any  claim  arising  out  of  any  such defects.  Buyer acknowledges that Buyer has read, understood, and accepted the foregoing paragraph.   Buyer:  ____________   ____________   This Limited Warranty Agreement shall not extend to, include or be applicable to any loss, damage, or injury caused by  or  resulting  from  any  events,  conditions  or  circumstances  not  within  the  complete  control  of  Seller;  riots;  civil  commotion;  fire; explosion; smoke; accidents; water escape; mildew, mold, spores, fungi, or other moisture-related conditions; falling objects; aircraft; vehicles;  acts  of  God;  lightning;  windstorm;  hail;  flood;  mud  slides;  damage  to  personal  property;  earthquakes;  volcanic  eruptions; wind  driven  water;  radon  gas;  the  presence  of  fiberglass  (also  known  as  rock  wool)  as  a  component  in  the  construction  of  the Dwelling;  infestation  from  termites  or  other  insects;  sink  holes;  subsurface  conditions;  or  changes  in  the  underground  water  table; including,  but  not  limited  to,  any  mental  anguish  or  bodily  injury  and  any  incidental,  consequential,  or  secondary  damages  caused or claimed to be caused thereby; and Buyer hereby waives and disclaims any claim arising out of any such loss, damage or injury.  Buyer acknowledges that Buyer has read, understood, and accepted the foregoing paragraph.   Buyer:  ____________   ____________   This  Limited  Warranty  Agreement  does  not  limit  or  enhance  any  manufacturer’s  warranty  that  is  given  on  any appliance, fixture, equipment, or material included within the Dwelling (“Manufacturer’s Warranted Items”).  The warranties supplied by  the  manufacturers,  either  directly  or  indirectly,  to  Buyer,  on  some  Manufacturer’s  Warranted  Items,  may  be  greater  in  both scope and time than warranties provided in this Limited Warranty Agreement.  These warranties are the property of Buyer, and Seller shall deliver all such warranties at the pre-occupancy inspection and transfer the rights that Seller has in such warranties, if any, to Buyer.  Buyer  will  file  with  the  manufacturer  any  forms  contained  in  these  manufacturer’s  warranties  that  are  necessary  to  activate  such warranties.  These Manufacturer’s Warranted Items are specifically not covered by this Limited Warranty Agreement, and Buyer shall rely on the manufacturers to correct any deficiencies with respect to these Manufacturer’s Warranted Items.  Buyer acknowledges that Buyer has read, understood, and accepted the foregoing paragraph.   Buyer:  ____________   ____________   8. Access  to  the  Dwelling.    Buyer  must  provide  Seller  with  reasonable  workday  access  to  the  Dwelling  in  order  to perform any warranty service required under this Limited Warranty Agreement.  Failure or refusal of Buyer to provide such access to Seller will relieve Seller of its obligations under this Limited Warranty Agreement. 9. Opportunity  to  Perform.    Prior  to  filing  any  action  under  this  Limited  Warranty  Agreement,  Buyer  must  give  to Seller  reasonable  notice  of  and  a  reasonable  opportunity  to  repair,  replace,  or  pay  the  reasonable  cost  of  repairing  or  replacing  any Latent  Defect  covered  hereunder.    SUCH  NOTICE  MUST,  IN  ANY  EVENT,  BE  GIVEN  IN  THE  MANNER  DESCRIBED  IN PARAGRAPH 13 OF THIS LIMITED WARRANTY AGREEMENT AND MUST BE GIVEN PRIOR TO THE EXPIRATION OF THE  LIMITED  WARRANTY  PERIOD.    Buyer  acknowledges  that  the  right  of  Buyer  to  require  Seller  to  repair,  replace,  or  pay  the reasonable cost of repairing or replacing any Latent Defect covered hereunder is the sole and exclusive remedy available to Buyer.  10. Arbitration.    Any  controversy,  claim,  or  dispute  arising  out  of  or  relating  to  any  obligation  of  Seller  to  repair, replace,  or  pay  to  Buyer  the  reasonable  cost  of  repairing  or  replacing  any  Latent  Defect  covered  under  this  Limited  Warranty Agreement shall be settled by binding arbitration pursuant to the Federal Arbitration Act, 9 USC § 1, et seq., and shall be administered in  accordance  with  the  applicable  rules  of [Insert  here  an  arbitration  option  of  your  choice,  such  as  “the  Construction  Industry Rules  of  the  American  Arbitration  Association”  or “the  Better  Business  Bureau  of  (Insert  here  the  designation  of  your  local  Better  Business  Bureau)”  or  such  other  system  as  you  might  prefer].    Seller  and  Buyer  acknowledge  and  agree  that  this  Limited

4 Warranty  Agreement  substantially  affects  interstate  commerce  by  virtue  of  the  materials  and  components  contained  in  the  Dwelling.  Judgment on the award rendered by the arbitrators may be entered in any court having jurisdiction thereof. 11. No Assignment.  This Limited Warranty Agreement is provided to Buyer only and is not transferable or assignable by Seller or Buyer nor enforceable by any subsequent owner or occupant of the Dwelling. 12. General Provisions.   (a) If any provision of this Limited Warranty Agreement is determined by a court of competent jurisdiction to be unenforceable, that determination will not affect the enforceability of the remaining portions.   (b) This  Limited  Warranty  Agreement  shall  be  binding  upon  Seller  and  Buyer  and  their  respective  heirs, executors, administrators, successors and assigns. (c) This Limited  Warranty  Agreement  shall  be  governed  by  and  construed  in  accordance  with  the  laws  of  the State of Alabama. (d) The  titles  or  headings  to  the  paragraphs  included  herein  are  for  convenience  only  and  shall  not  add  to, reduce, limit, or modify in any manner the content thereof. (e) The  use  of  one  gender  shall  include  all  other  genders,  the  use  of  singular  shall  include  the  plural,  and  the use of the plural shall include the singular, all as may be appropriate to the context in which they are used. 13. Notice  to  Seller.    Buyer  shall  notify  Seller  in  writing  before  the  expiration  of  the  Limited  Warranty  Period  of  any alleged  defect  covered  by  this  warranty.    Such  notice  and  any  other  notices  to  be  given  to  Seller  hereunder  must  be  sent  by  certified mail to Seller at the following address:   _______________________________________________________________________    _______________________________________________________________________    _______________________________________________________________________    _______________________________________________________________________   Attention:    _____________________________________________________________   FAILURE  OF  BUYER  TO  GIVE  SUCH  WRITTEN  NOTICE  TO  SELLER  BEFORE  THE  EXPIRATION  OF THE  LIMITED  WARRANTY  PERIOD  SHALL  BAR  ANY  RIGHT  TO  RECOVERY  BY  BUYER  PURSUANT  TO  THIS LIMITED WARRANTY AGREEMENT. 14. Consumer  Products.    This  Limited  Warranty  Agreement  does  not  extend  to  or  cover  any  appliance,  piece  of equipment,  or  any  item  defined  as  a  consumer  product  for  purposes  of  the  Magnusson-Moss  Warranty  Act  (15  USC  2301-2312,  as amended). 15. WAIVER  OF  WARRANTIES  AND  CLAIMS.    THIS  LIMITED  WARRANTY  AGREEMENT  IS  GIVEN  IN LIEU  OF  ANY  AND  ALL  OTHER  WARRANTIES,  EXPRESSED  OR  IMPLIED,  INCLUDING,  BUT  NOT  LIMITED  TO,  ANY IMPLIED  WARRANTY  OF  MERCHANTABILITY,  FITNESS  FOR  A  PARTICULAR  PURPOSE,  HABITABILITY  AND WORKMANSHIP  AND  IS  ALSO  IN  LIEU  OF  ANY  CLAIMS  FOR  CONSEQUENTIAL  DAMAGES,  MENTAL  ANGUISH  OR DISTRESS,  AND  FOR  DAMAGES  BASED  UPON  NEGLIGENCE,  AND  BUYER  HEREBY  EXPRESSLY  WAIVES  AND DISCLAIMS  ANY  SUCH  WARRANTIES  AND  CLAIMS  WITH  RESPECT  TO  BOTH  THE  DWELLING  AND  THE  REAL PROPERTY UPON WHICH THE DWELLING HAS BEEN CONSTRUCTED.  Buyer acknowledges that Buyer has read, understood, and accepted the foregoing paragraph.   Buyer:  ____________   ____________   16. SOLE  WARRANTY/ENTIRE  AGREEMENT.    IT  IS  SPECIFICALLY  AGREED  BY  THE  PARTIES  HERETO THAT  THIS  LIMITED  WARRANTY  AGREEMENT  IS  ACCEPTED  BY  BUYER  AS  THE  SOLE  WARRANTY  GIVEN  BY SELLER.  BUYER ACKNOWLEDGES THAT THIS LIMITED WARRANTY AGREEMENT IS THE ENTIRE AGREEMENT OF THE  PARTIES  RELATED  TO  WARRANTIES.    BUYER  FURTHER  AGREES  THAT  BUYER  HAS  NOT  RELIED  UPON  ANY

5 ORAL OR WRITTEN STATEMENTS, UNDERTAKINGS, OR REPRESENTATIONS EXCEPT AS SPECIFICALLY SET FORTH IN THIS LIMITED WARRANTY AGREEMENT AND THAT NO PRIOR AGREEMENT OR UNDERSTANDING PERTAINING TO WARRANTIES SHALL BE VALID OR OF ANY FORCE OR EFFECT.  THE COVENANTS AND AGREEMENTS OF THIS LIMITED  WARRANTY  AGREEMENT  CANNOT  BE  ALTERED,  CHANGED,  MODIFIED,  OR  ADDED  TO,  EXCEPT  IN  A WRITTEN  INSTRUMENT  SIGNED  BY  BUYER  AND  SELLER.    NO  REPRESENTATION,  INDUCEMENT, UNDERSTANDING, OR ANYTHING OF ANY NATURE WHATSOEVER MADE, STATED, OR REPRESENTED BY SELLER OR  ON  SELLER’S  BEHALF,  EITHER  ORALLY  OR  IN  WRITING,  (EXCEPT  AS  SPECIFICALLY  SET  FORTH  IN  THIS LIMITED  WARRANTY  AGREEMENT)  HAS  INDUCED  BUYER  TO  ENTER  INTO  THIS  LIMITED  WARRANTY AGREEMENT OR SHALL BE ENFORCEABLE IN ANY MANNER AGAINST SELLER.  Buyer acknowledges that Buyer has read, understood, and accepted the foregoing paragraph.   Buyer:  ____________   ____________   17. Bargained-For Exchange / Survival.  The terms and provisions of this Limited Warranty Agreement have been fully negotiated  between  Buyer  and  Seller  as  a part  of  the  negotiation  of  the  terms  and  provisions  of  the  Contract,  and  the  terms  and provisions  hereof  are  an  integral  part  of  the  terms  and  provisions  of  such  Contract.    Buyer  and  Seller  agree  to  be  fully  bound  by the terms  and  provisions  of  this  Limited Warranty Agreement and agree that this Limited Warranty Agreement shall survive the Closing and the conveyance of title to the Property, as described in the Contract. IN  WITNESS  WHEREOF  the  parties  hereto  have  set  their  hands  and  seals  on  this the  _______  day  of ___________________, 20____.           SELLER:       By:   ______________________________________________   Witness   Its:    _____________________________________________           BUYER:        __________________________________________________   Witness       __________________________________________________   Witness  The  HBAA  and  its  local  chapters  do  not  assume  any  liability  for  damages  arising  from  the  use  of  this  document  and  give  no opinion  that  any  of  the  terms  and  conditions  in  this  document  should  be  accepted  by  the  parties  in  a  particular  transaction.  Terms and conditions should be negotiated between the parties based upon the respective interests, objectives and bargaining positions  of  all  interested  parties.    Seek  specific  legal  advice  from  your  lawyer.  Copyright  2001  by  the  Home  Builders Association of Alabama.

[This Exhibit should be used only if the parties elect to reference these standards in paragraph 3 of the Limited Warranty Agreement.]  Exhibit I to Limited Warranty Agreement  Building Quality Standards Section   I. Site Work  A. Site Grading (1) Possible Defect Settling of ground around foundation, utility trenches or other areas. Building Standard Settling of ground around foundation walls, utility trenches or other filled areas shall not interfere with water drainage away from the Home. Responsibility If  the  Seller  has  provided  final  grading:  upon  request  by  the  Buyer,  Seller  shall  fill  settled  areas affecting  proper drainage,  one  time  only,  during  the  Limited  Warranty  Period.    Buyer  shall  be responsible  for  removal  and  replacement  of  shrubs  or  other  landscaping  affected  by  placement  of such fill.   ___________________________________________________________________________________________________________  B. Site Drainage (1) Possible Defect Improper drainage of the site. Building Standard The  necessary  grades  and  swales  shall  have  been  established  by  the  Seller  to  insure  proper drainage  away  from  the  Home.    Standing  or  ponding  water  shall  not  remain  for  extended  periods in  the  immediate  area  after  a  rain  (generally  no  more  than  24 hours),  except  that  in  swales  which drain  other  areas,  or  in  areas  where  sump  pumps  discharge,  a  longer  period  can  be  anticipated (generally  no  more  than  48  hours).    The  possibility  of  standing  water  after  an  unusually  heavy rainfall  should  be  anticipated.    No  grading  determination  shall  be  made  while  there  is  frost  or snow on the ground, or while the ground is saturated.  Responsibility The Seller is responsible only for initially establishing the proper grades and swales.  The Buyer is responsible for maintaining such grades and swales once they have been properly established.  II. Concrete  A. Expansion and Contraction Joints (1) Possible Defect Separation or movement of concrete slabs within the structure at expansion joints. Building Standard Concrete slabs within the structure are designed to move at expansion and contraction joints. Responsibility None  ___________________________________________________________________________________________________________   B. Cast-In-Place Concrete  (1) Possible Defect Basement or foundation wall cracks. Building Standard Shrinkage cracks are not unusual in concrete foundation walls.  Such cracks greater than 1/8 inch in width shall be repaired. Responsibility Seller will repair cracks in excess of 1/8 inch in width.   ___________________________________________________________________________________________________________

2 (1) Possible Defect  Cracking of basement floor. Building Standard Minor cracks in concrete basement floors are normal.  Cracks exceeding 3/16 inch in width or 1/8 inch in vertical displacement shall be repaired.  Responsibility Seller  will  repair  cracks  exceeding  maximum  tolerances  by  surface  patching  or  other  methods  as required.   ___________________________________________________________________________________________________________   (2) Possible Defect Cracking in slab attached garage.  Building Standard Cracks in garage slabs in excess of 1/4 inch in width or 1/4 inch in vertical displacement shall be repaired.  Responsibility Seller  will  repair  cracks  exceeding  maximum  tolerances  by  surface  patching  or  other  methods  as required.   ___________________________________________________________________________________________________________   (3) Possible Defect  Uneven concrete floors/slabs  Building Standard Except  for  basement  floors  or  where  a  floor  or  portion  of  floor  has  been  designed  for  specific drainage  purposes,  concrete  floors  in  rooms  designed  for  habitability  shall  not  have  pits, depressions or areas of unevenness exceeding 1/4 inch in 32 inches.  Responsibility Seller will correct or repair to meet the Building Standard  ___________________________________________________________________________________________________________   (4) Possible Defect  Cracks in concrete slab-on-grade floors with finish flooring.  Building Standard Cracks which rupture the finish flooring material shall be repaired.  Responsibility Seller  will  repair  cracks,  as  necessary,  so  as  not  to  be  readily  apparent  when  the  finish  flooring material is in place.  (See also Building Standard 7, “Finishes.”)   ___________________________________________________________________________________________________________   (5) Possible Defect  Pitting, scaling or spalling of concrete work covered by this Limited Warranty.  Building Standard Concrete  surfaces  shall  not  disintegrate  to  the  extent  that  the  aggregate  is  exposed  and  loosened under normal conditions of weathering and use.  Responsibility Seller  will  take  whatever  corrective  action  necessary  to  repair  or  replace  defective  concrete surfaces.    Seller  is  not  responsible  for  deterioration  caused  by  salt,  chemicals,  mechanical implements and other factors beyond its control. .”)   ___________________________________________________________________________________________________________   (6) Possible Defect  Settling, heaving, or separating of stoops, steps, or garage floors.  Building Standard Stoops, steps, or garage floors shall not settle, heave or separate in excess of 1 inch from the house structures.  Responsibility Seller will take whatever corrective action is required to meet the Building Standard.   ___________________________________________________________________________________________________________

3 (7) Possible Defect Standing water on stoops.  Building Standard Water  should  drain  from  outdoor  stoops  and  steps.    The  possibility  of  minor  water  standing  on stoops for a short period after rain can be anticipated.  Responsibility Seller shall take corrective action to assure drainage of steps and stoops.   III. Masonry  A. Unit Masonry  (1) Possible Defect Basement or foundation wall cracks.  Building Standard Small  cracks  not  affecting  structural stability  are  not  unusual  in  mortar  joints  of  masonry foundation walls.  Cracks greater then 1/8 inch in width shall be repaired.  Responsibility Seller will repair cracks in excess of 1/8 inch by pointing or patching.  These deficiencies shall be reported and repairs made during the Limited Warranty Period.   ___________________________________________________________________________________________________________   (1) Possible Defect  Cracks in masonry walls or veneer.  Building Standard Small  hairline  cracks  due  to  shrinkage  are  common  in  mortar  joints  in  masonry  construction.  Cracks greater then 3/8 inch in width are considered excessive.  Responsibility Seller  will  repair  cracks  in  excess  of  Building  Standard  by  pointing  or  patching.    These  repairs shall  be  made  during  the  Limited  Warranty  Period.    Seller  will  not  be  responsible  for  color variation between old and new mortar.   IV. Wood and Plastic  A. Rough Carpentry  (1) Possible Defect Floors squeak or subfloor appears loose.  Building Standard Floor  squeaks  and  loose  subfloor  are  often  temporary  conditions  common  to  new  construction, and a squeak-proof floor cannot be guaranteed. Responsibility Seller will correct or repair to meet Building Standard.   ___________________________________________________________________________________________________________   (2) Possible Defect Uneven wood floors.  Building Standard Floors  shall  not  have  more  then  1/4  inch  ridge  or  depression  within  any  32  inch  measurement when measured parallel to the joists.  Allowable floor and ceiling joist deflections are governed by the applicable building code.  Responsibility Seller will correct or repair to meet Building Standard.   ___________________________________________________________________________________________________________

4 (3) Possible Defect Bowed walls.  Building Standard All  interior  and  exterior  walls  have  slight  variances  on  their  finished  surfaces.    Bowing  of  walls should  not  detract  from  or  blemish  the  wall’s  finished  surface.    Walls  should  not  bow  more  than 1/4 inch out of line within any 32 inch horizontal or vertical measurement.  Responsibility Seller will repair to meet Building Standard.   ___________________________________________________________________________________________________________   (4) Possible Defect Out-of-plumb walls.  Building Standard Walls should not be more than 1/4 inch out of plumb for any 32 inch vertical measurement.  Responsibility Seller will repair to meet the Building Standard.   ___________________________________________________________________________________________________________   B. Finish Carpentry (Interior)  (1) Possible Defect Poor quality of interior trim workmanship.  Building Standard Joints  in  moldings  or  joint  between  moldings  and  adjacent  surface  shall  not  result  in  open  joints exceeding 1/8 inch in width.  Responsibility Seller will repair defective joints, as defined.  Caulking is acceptable.   ___________________________________________________________________________________________________________   C. Finish Carpentry (Exterior)  (1) Possible Defect Poor quality of exterior trim workmanship.  Building Standard Joints between exterior trim elements, including siding and masonry, shall not result in open joints in  excess  of  3/8  inch.    In  all  cases  the  exterior  trim,  masonry  and  siding  shall  be  capable  of performing its function to exclude the elements.  Responsibility Seller will repair open joints, as defined.  Caulking is acceptable.   V. Thermal and Moisture Protection  A. Waterproofing  (1) Possible Defect Leaks in basement.  Building Standard Leaks  resulting  in  actual  trickling  of  water  shall  be  repaired.    Leaks  caused  by  improper landscaping  or  failure  to  maintain  proper  grades  are  not  covered  by  this  Limited  Warranty.  Dampness of the walls or floors may occur in new construction and is not considered a deficiency.  Responsibility Seller  will  take  such  action  as  necessary  to  correct  basement  leaks  except  where  the  cause  is determined to result from Buyer action or negligence.   ___________________________________________________________________________________________________________

5  B. Insulation  (1) Possible Defect Insufficient insulation.  Building Standard Insulation shall be installed in accordance with applicable energy and building code requirements.  Responsibility Seller will install insulation in sufficient amounts to meet Building Standard.   ___________________________________________________________________________________________________________   C. Louvers and Vents  (1) Possible Defect  Leaks due to snow or rain driven into the attic through louvers or vents.  Building Standard Attic  vents  and/or  louvers  must  be  provided  for  proper  ventilation  of  the  attic  space  of  the structure.  Responsibility None.  ___________________________________________________________________________________________________________   D. Roofing and Siding  (1) Possible Defect  Ice build-up on roof.  Building Standard During prolonged cold spells, ice build-up is likely to occur at the eaves of a roof.  This condition occurs when snow and ice accumulate and gutters and down spouts freeze up.  Responsibility Prevention of ice build-up on the roof is a Buyer maintenance item.   ___________________________________________________________________________________________________________   (2) Possible Defect  Roof or flashing leaks.  Building Standard Roofs  or  flashing  shall  not  leak under  normally  anticipated  conditions,  except  where  cause  is determined to result from ice build-up or Buyer action or negligence.  Responsibility Seller will repair any verified roof or flashing leaks not caused by ice build-up or Buyer action or negligence.   ___________________________________________________________________________________________________________   (3) Possible Defect  Standing water on flat roof.  Building Standard Water shall drain from flat roof except for minor ponding immediately following rainfall or when the roof is specifically designed for water retention.  Responsibility Seller will take corrective action to assure proper drainage of roof.   ___________________________________________________________________________________________________________   (4) Possible Defect  Delamination of veneer siding or joint separation.  Building Standard All  siding  shall  be  installed  according  to  the  manufacturer’s  and  industry’s  accepted  standards.  Separations and delaminations shall be repaired or replaced.  Responsibility Seller  will  repair  or  replace  siding  as  needed  unless  caused  by  Buyer  neglect  to  maintain  siding properly.    Repaired  area  may  not  match  in  color  and/or  texture.    For  surfaces  requiring  paint, Seller will paint only the new materials.  The Buyer can expect that the newly painted surface may not match original surface in color.   ___________________________________________________________________________________________________________

6 E. Sheet Metal  (1) Possible Defect  Gutter and/or down spouts leak.  Building Standard Gutters and down spouts shall not leak but gutters may overflow during heavy rain.  Responsibility Seller will repair leaks.  It is a Buyer responsibility to keep gutters and down spouts free of leaves and debris which could cause overflow.   ___________________________________________________________________________________________________________   (2) Possible Defect  Water standing in gutters.  Building Standard When  gutter  is  unobstructed  by  debris,  the  water  level  shall  not  exceed  one  (1)  inch  in  depth.  Industry practice is to install gutters approximately level.  Consequently, it is entirely possible that small amounts of water will stand in certain sections of gutter immediately after a rain.  Responsibility Seller will correct to meet Building Standard.   ___________________________________________________________________________________________________________   F. Sealants  (1) Possible Defect  Leaks in exterior walls due to inadequate caulking.   Building Standard Joints  and  cracks  in  exterior  wall  surfaces  and  around  openings  shall  be  properly  caulked  to exclude the entry of water.  Responsibility Seller  will  repair  and/or  caulk  joints  or  cracks  in  exterior  wall  surfaces  as  requires  to  correct deficiencies  once,  during  the  Limited  Warranty  Period.    Even  properly  installed  caulking  will shrink and must be maintained during the life of the Home.   VI. Doors and Windows  A. Wood and Plastic Doors  (1) Possible Defect  Warpage of exterior doors.  Building Standard Exterior  doors  will  warp  to  some  degree  due  to  the  temperature  differential  on  inside  and  outside surfaces.    However,  they  shall  not  warp  to  the  extent  that  they  become  inoperable  or  cease  to  be weather  resistant  or  exceed  National  Woodwork  Manufacturers  Association  Standards  (1/4  inch, measured diagonally from corner to corner)  Responsibility Seller will correct or replace and refinish defective doors, during the Limited Warranty Period.   ___________________________________________________________________________________________________________   (2) Possible Defect  Warpage of interior passage and closet doors.  Building Standard Interior  doors  (full  opening)  shall  not  warp  in  excess  of  National  Woodwork  Manufacturers Association Standards (1/4 inch, measured diagonally from corner to corner).  Responsibility Seller  will  correct  or  replace  and  refinish  defective  doors  to  match  existing  doors  as  nearly  as possible, during the Limited Warranty Period.   ___________________________________________________________________________________________________________

7 (3) Possible Defect  Shrinkage of insert panels show raw wood edges.  Building Standard Panels will shrink and expand and may expose unpainted surface.  Responsibility None.   ___________________________________________________________________________________________________________   (4) Possible Defect  Split in door panel.  Building Standard Split panels shall not allow light to be visible through the door.  Responsibility Seller  will,  if  light  is  visible,  fill  split  and  match  paint  or  stain  as  closely  as  possible,  one  time during the Limited Warranty Period.   ___________________________________________________________________________________________________________   B. Glass  (1) Possible Defect  Broken glass.  Building Standard None.  Responsibility Broken glass not reported to Seller prior to closing is the Buyer responsibility.   ___________________________________________________________________________________________________________   C. Garage Doors on Attached Garages  (1) Possible Defect  Garage doors fail to operate properly, under normal use.  Building Standard Garage doors shall operate properly.  Responsibility Seller  will  correct  or  adjust  garage  doors  as  required,  except  where  the  cause  is  determined  to result from Buyer action or negligence.   ___________________________________________________________________________________________________________   (2) Possible Defect  Garage doors allow entrance of snow or water.  Building Standard Garage  doors  shall  be  installed  as  recommended  by  the  manufacturer.    Some  entrance  of  the elements can be expected under abnormal conditions.  Responsibility Seller will adjust or correct garage doors to meet manufacturer’s recommendations.   ___________________________________________________________________________________________________________   D. Wood, Plastic and Metal Windows  (1) Possible Defect  Malfunction of windows.  Building Standard Windows shall operate with reasonable ease, as designed.  Responsibility Seller will correct or repair as required.   ___________________________________________________________________________________________________________

8 (2) Possible Defect  Condensation and/or frost on windows.  Building Standard Windows will collect condensation on interior surfaces when extreme temperature differences and high  humidity  levels  are  present.    Condensation  is  usually  the  result  of  climatic/humidity conditions, created by the Buyer.  Responsibility Unless  directly  attributed  to  faulty  installation,  window  condensation  is  a  result  of  conditions beyond the Seller’s control.  No corrective action required.   ___________________________________________________________________________________________________________   E. Weather-stripping and Seals  (1) Possible Defect  Air infiltration around doors and windows.  Building Standard Some infiltration is normally noticeable around doors and windows, especially during high winds.  Poorly fitted weather-stripping shall be adjusted or replaced.  It may be necessary for the Buyer to have storm doors and windows installed to provide satisfactory solutions in high wind areas. Responsibility Seller will adjust or correct poorly fitted doors, windows and poorly fitted weather stripping.   VII. Finishes    A. Lath and Plaster  (1) Possible Defect  Cracks in interior wall and ceiling surfaces.  Building Standard Hairline cracks are not unusual in interior wall and ceiling surfaces.  Cracks greater than 1/8 inch in width shall be repaired.  Responsibility Seller will repair cracks exceeding 1/8 inch in width as required one time only, during the Limited Warranty Period.  (See also Building Standard 7.F., “Painting.”) .   ___________________________________________________________________________________________________________   B. Gypsum Wallboard  (1) Possible Defect  Defects  which  appear  during  the  Limited  Warranty  such  as  nail  pops,  blisters  in  tape,  or  other  blemishes.  Building Standard Slight  “imperfections”  such  as  nail  pops,  seam  lines  and  cracks  not  exceeding  1/8  inch  in  width are common in gypsum wallboard installations and are considered acceptable.  Responsibility Seller  will  repair  only  cracks  exceeding  1/8  inch  in  width,  one  time  only,  during  the  Limited Warranty Period.  (See also Building Standard 7.F., “Painting.”)   ___________________________________________________________________________________________________________   C. Ceramic Tile  (1) Possible Defect  Ceramic tile cracks or becomes loose.  Building Standard Ceramic tile shall not crack or become loose.  Responsibility Seller  will  replace  cracked  tiles  and  re-secure  loose  tiles  unless  the  defects  were  caused  by  the Buyer  action  or  negligence.    Seller  will  not  be  responsible  for  discontinued  patterns  or  color variations in ceramic tile.   ___________________________________________________________________________________________________________

9 (2) Possible Defect  Cracks  appear  in  grouting  of  ceramic  tile  joints  or  at  junctions  with  other  materials  such  as  a bathtub. Building Standard Cracks in grouting of ceramic tile joints are commonly due to normal shrinkage conditions.  Responsibility Seller will repair grouting if necessary one time only, during the Limited Warranty Period.  Seller will  not  be  responsible  for  color  variations  or  discontinued  colored  grout.    Regrouting  of  these cracks is a maintenance responsibility of the Buyer within the life of the Home.   ___________________________________________________________________________________________________________   D. Finished Wood Flooring  (1) Possible Defect  Cracks developing between floor boards.  Building Standard Cracks in excess of 1/8 inch in width shall be corrected.  Responsibility Seller  will  repair  cracks  in  excess  of  1/8  inch  during  the  Limited  Warranty  Period,  by  filling  or replacing, at Seller’s option.   ___________________________________________________________________________________________________________   E. Resilient Flooring  (1) Possible Defect Nail pops appear on the surface of resilient flooring.  Building Standard Readily apparent nail pops shall be repaired.  Responsibility Seller  will  correct  nail  pops  which  have  broken  the  surface.    Seller  will  repair  or  replace,  at Seller’s  sole  option,  resilient  floor  covering  in  the  affected  area  with  similar  material.    Seller  will not be responsible for discontinued patterns or color variations in the floor covering.   ___________________________________________________________________________________________________________   (2) Possible Defect Depression or ridges appear in the resilient flooring due to subtle irregularities.  Building Standard Readily  apparent  depressions  or  ridges  exceeding  1/8  inch  shall  be  repaired.    The  ridge  or depression  measurement  is  taken  as  the  gap created  at  one  end  of  a  six- inch  straightedge  placed over  the  depression  or  ridge  with  three  inches  of  the  straightedge  on  one  side  of  the  defect,  held tightly to the floor.,  Responsibility Seller  will  take  corrective  action  as  necessary,  to  bring  the  defect  within  acceptable  tolerance  so that the affected area is not readily visible.  Seller will not be responsible for discontinued patterns or color variations in floor covering.   ___________________________________________________________________________________________________________   (3) Possible Defect  Resilient flooring loses adhesion.  Building Standard Resilient flooring shall not lift, bubble or become unglued.  Responsibility Seller  will  repair  or  replace,  at  Seller’s  sole  option,  the  affected  resilient  flooring  as  required.  Seller will not be responsible for discontinued patterns or color variation of  floor  covering,  or  for problems caused by Buyer neglect or abuse.   ___________________________________________________________________________________________________________

10 (4) Possible Defect  Seams or shrinkage gaps at resilient flooring joints.  Building Standard Gaps  shall  not  exceed  1/16  inch  in  width  in  resilient  floor  covering  joints.    Where  dissimilar materials abut, a gap not to exceed 1/8 inch is permissible.  Responsibility Seller  will  repair  or  replace,  at  Seller’s  sole  option,  the  affected  resilient  flooring  as  required.  Seller will not be responsible for discontinued patterns or color variation of floor covering, or for problems caused by Buyer neglect or abuse.   ___________________________________________________________________________________________________________   F. Painting  (1) Possible Defect  Exterior paint or stain peels, deteriorates or fades.  Building Standard Exterior  paint  or  stains  should  not  fail  during  the  Limited  Warranty  Period.    However,  fading  is normal and the degree is dependent on climatic conditions.  Responsibility If  paint  or  stain  is  defective,  Seller  will  properly  prepare  and  refinish  affected  areas,  matching color  as  close  as  possible.    Where  finish  deterioration  affects  the majority  of  the  wall  area,  the whole area will be refinished.   ___________________________________________________________________________________________________________   (2) Possible Defect  Painting required as corollary repair because of other work.  Building Standard Repairs  required  under  this  Limited  Warranty  shall  be  finished  to  match  surrounding  areas  as closely as practicable.  Responsibility Seller will finish repair area as indicated.   ___________________________________________________________________________________________________________   (3) Possible Defect  Deterioration of varnish or lacquer finishes.  Building Standard Natural  finishes  on  interior  woodwork  shall  not  deteriorate  during  the  Limited  Warranty  Period.  However, varnish type finishes used on the exterior will deteriorate rapidly and are not covered by the Limited Warranty.  Responsibility Seller will retouch affected areas of natural finish interior woodwork, matching the color as clearly as possible.   ___________________________________________________________________________________________________________    (4) Possible Defect  Mildew or fungus on painted surfaces.  Building Standard Mildew or fungus will form on a painted surface if the structure is subject to abnormal exposures (i.e., rainfall, ocean, lake, or river front).  Responsibility Mildew or  fungus  formation  is  a  condition  the  Seller  cannot  control  and  is  a  Buyer  maintenance item unless it is a result of noncompliance with other sections of the Building Standard.   ___________________________________________________________________________________________________________   G. Wall Covering  (1) Possible Defect  Peeling of wall covering.  Building Standard Peeling of wall covering shall not occur.  Responsibility Seller will repair or replace defective wall covering applications.   ___________________________________________________________________________________________________________

11 (2) Possible Defect  Edge mismatching in pattern of wall covering.  Building Standard None.  Responsibility None.  ___________________________________________________________________________________________________________   H. Carpeting  (1) Possible Defect  Open carpet seams.  Building Standard Carpet seams will show.  However, no visible gap is acceptable.  Responsibility Seller will correct.   ___________________________________________________________________________________________________________   (2) (2) Possible Defect Carpeting becomes loose, seams separate or stretching occurs.  Building Standard Wall  to  wall  carpeting,  installed  as  the  primary  floor  covering,  when  stretched  and  secured properly shall not come up, become loose, or separate from its point of attachment.  Responsibility Seller  will  re-stretch  or  re-secure  carpeting  as  needed,  if original  installation  was  performed  by Seller.   ___________________________________________________________________________________________________________    (3) Possible Defect Spots on carpet, minor fading.  Building Standard Exposure to light may cause spots on carpet and/or minor fading.  Responsibility None.  ___________________________________________________________________________________________________________  I. I. Special Coatings  (1) Possible Defect  Cracks in exterior stucco wall surfaces.  Building Standard Cracks are not unusual in exterior stucco wall surfaces.  Cracks greater than 1/8 inch in width shall be repaired.  Responsibility Seller will repair cracks exceeding 1/8 inch in width, one time only, during the Limited Warranty Period.  VIII. Specialties    A. Louvers and Vents  (1) Possible Defect  Inadequate ventilation of attics and crawl spaces.  Building Standard Attic and crawl spaces shall be ventilated as required by the approved building code.  Responsibility The  Seller  shall  provide  for  adequate  ventilation.    Seller  will  not  be  responsible  for  alterations  to the original system.   ___________________________________________________________________________________________________________  I.

12 B. Fireplace (1) Possible Defect  Fireplace or chimney does not draw properly.  Building Standard A  properly  designed  and  constructed fireplace  and  chimney  shall  function  properly.    It  is  normal to  expect  that  high  winds  can  cause  temporary  negative  draft  situations.    Similar  negative  draft situations  can  also  be  caused  by  obstructions  such  as  large  branches  of  trees  too  close  to  the chimney.  Some homes may need to have a window opened slightly to create an effective draft, if they have been insulated and weatherproofed to meet high energy conservation criteria.  Responsibility Seller  will  determine  the  cause  of  malfunction  and  correct, if  the  problem  is  one  of  design  or construction of the fireplace.   ___________________________________________________________________________________________________________  I. (2) Possible Defect  Chimney separates from structure to which it is attached.  Building Standard Newly built fireplaces will often incur slight amounts of separation.  Separation shall not exceed ½ inch from the main structure in any 10 foot vertical measurement.  Responsibility Seller  will  determine  the  cause  of  separation  and  correct  if  standard  is  not  met.    Caulking  is acceptable.   ___________________________________________________________________________________________________________   (3) Possible Defect Firebox paint changed by fire.  Building Standard None.  Responsibility None.  Heat from fires will alter finish.   ___________________________________________________________________________________________________________   (4) Possible Defect  Cracked firebrick and mortar joints.  Building Standard None.  Responsibility None.  Heat and flames from “roaring” fires will cause cracking.   IX. Equipment  A. Residential Equipment  (1) Possible Defect  Surface cracks,  joint  delaminations  and  chips  in  high  pressure  laminates  on  vanity  and  kitchen cabinet countertops.  Building Standard Countertops fabricated with high pressure laminate coverings shall not delaminate.  Responsibility Seller will replace delaminated coverings to meet specified criteria.  Seller will not be responsible for chips and cracks noted following first occupancy.   ___________________________________________________________________________________________________________   (2) Possible Defect  Kitchen cabinet malfunctions.  Building Standard Warpage not to exceed 1/4 inch as measured from face from to point of furthermost warpage with door or drawer front in closed position.  Responsibility Seller will correct or replace doors or drawer fronts.

13   X. Plumbing  A. Water Supply System  (1) Possible Defect  Plumbing pipes freeze and burst.  Building Standard Drain,  waste  and  vent,  and  water  pipes  shall  be  adequately  protected  as  required  by  applicable code,  during  normally  anticipated  cold  weather,  and  as  defined  in  accordance  with  American Society  of  Heating,  Refrigerating  and  Air  Conditioning  Engineers  (“ASHRAE”)  design temperatures, to prevent freezing.  Responsibility Seller  will  correct  situations  not  meeting  the  code.    It  is  the  Buyer’s  responsibility  to  drain  or otherwise protect lines and exterior faucets exposed to freezing temperatures.   ___________________________________________________________________________________________________________   B. Plumbing System  (1) Possible Defect  Faucet or valve leak.  Building Standard No valve or faucet shall leak due to defects in workmanship and materials.  Responsibility Seller will repair or replace the leaking faucet or valve.   ___________________________________________________________________________________________________________   (2) Possible Defect  Defective plumbing fixtures, appliances or trim fittings.  Building Standard Fixtures, appliances or fittings shall comply with their manufacturer’s standards.  Responsibility Seller  will  replace  any  defective  fixture  or  fitting  which  does  not  meet  acceptable  standards,  as defined by the manufacturer.   ___________________________________________________________________________________________________________   (3) Possible Defect  Noisy water pipes.  Building Standard There will be some noise emitting from the water pipe system, due to the flow of water.  However, water hammer shall be eliminated.  Responsibility Seller  cannot  remove  all  noises  due  to  water  flow  and  pipe  expansion.    Seller  will  correct  to eliminate “water hammer.”   ___________________________________________________________________________________________________________    (4) Possible Defect  Cracking or chipping of porcelain or fiberglass surfaces.  Building Standard Chips  and  cracks  on  surfaces  of  bathtubs  and  kitchen  sinks  can  occur  when  surface  is  hit  with  a sharp or heavy object. Responsibility Seller  will  not  be  responsible  for  repairs  unless  damage  has  been  reported  to  Seller  prior  to  first occupancy.

14  XI. Heating and Cooling  A. Heating  (1) Possible Defect Inadequate heating.  Building Standard Heating system shall be capable of producing an inside temperature of 70 degrees F, as measured in the center of each room at a height of 5 feet above the floor, under local outdoor winter design conditions  as  specified  in  ASHRAE  handbook.    Federal,  state  or  local  energy  codes  shall supersede this standard where such codes have been locally adopted.  Responsibility Seller will correct heating system to provide the required temperatures.  However, the Buyer shall be responsible for balancing dampers, registers and other minor adjustments.   ___________________________________________________________________________________________________________   B. Refrigeration  (1) Possible Defect  Inadequate cooling.  Building Standard Where  air-conditioning  is  provided,  the  cooling  system  shall  be  capable  of  maintaining a temperature of 78 degrees F, as measured in the center of each room at a height of 5 feet above the floor,  under  local  outdoor  summer  design  conditions  as  specified  in  ASHRAE  handbook.    In  the case  of  outside  temperatures  exceeding  95  degrees  F,  a  differential  of  15  degrees  F  from  the outside  temperature  will  be  maintained.    Federal,  state,  or  local  energy  codes  shall  supersede  this standard where such codes have been locally adopted.  Responsibility Seller  will  correct  cooling  system  to  meet  temperature conditions,  in  accordance  with specifications.   ___________________________________________________________________________________________________________   C. Condensation Lines  (1) Possible Defect  Condensation lines clog up.  Building Standard None.  Responsibility Condensation  lines  will  clog  eventually  under  normal  use.    This  is  a  Buyer  maintenance  item.  Seller shall provide unobstructed condensation lines at time of first occupancy.   ___________________________________________________________________________________________________________   D. Evaporative Cooling  (1) Possible Defect  Improper mechanical operation.  Building Standard Equipment shall function properly at temperature standard set.  Responsibility Seller will correct and adjust so that blower and water system operate as designed.

15 XII. Ventilation  A. Air Distribution  (1) Possible Defect  Noisy ductwork.  Building Standard When  metal  is  heated  it  expands  and  when  cooled  it  contracts.    The  result  is  “ticking”  or “crackling” which is generally to be expected.  Responsibility None.   ___________________________________________________________________________________________________________   (2) Possible Defect  Oil canning.  Building Standard The  stiffening  of  the  ductwork  and  the  gauge  of  the  metal  used  shall  be  such  that  ducts  do  not “oilcan.”  The booming noise caused by “oil canning” is not acceptable.  Responsibility Seller will correct to eliminate this sound.  XIII. Electrical  A. Electrical Conductors, Fuses and Circuit Breakers  (1) Possible Defect  Fuses blow or circuit breakers (excluding ground fault interrupters) “kick out.”  Building Standard Fuses and circuit breakers shall not activate under normal usage.  Responsibility Seller  will  check  wiring  circuits  for  conformity  with  local,  state,  or  approved  national  electrical code requirements.  Seller will correct circuitry not conforming to code specifications.   ___________________________________________________________________________________________________________   B. Outlets, Switches and Fixtures  (1) Possible Defect  Drafts from electrical outlets.  Building Standard Electrical  junction  boxes  on  exterior  walls  may  produce  air  flow  whereby  the  cold  air  can  be drawn through the outlet into a room.  The problem is normal in new home construction.  Responsibility None.   ___________________________________________________________________________________________________________   (2) Possible Defect  Malfunction of electrical outlets, switched or fixtures.  Building Standard All switches, fixtures and outlets shall operate as intended.  Responsibility Seller will repair or replace defective switches, fixtures and outlets.   ___________________________________________________________________________________________________________   C. Service and Distribution  (1) Possible Defect  Ground fault interrupter trips frequently.  Building Standard Ground fault interrupters are sensitive safety devices installed into the electrical system to provide protection against electrical shock.  These sensitive devices can be tripped very easily.  Responsibility Seller  shall  install  ground  fault  interrupter  in  accordance  with  approved  electrical  code.    Tripping is to be expected and is not covered, unless due to a construction defect.

16   XIV. Plumbing  A. Water Supply  (1) Possible Defect  Water supply system fails to deliver water.  Building Standard All  on-site  service  connections  to  municipal  water  main  and  private  water  supply  shall  be  the Seller’s  responsibility.    Private  systems  shall  be  designed  and  installed  in  accordance  with approved building, plumbing and health codes.  Responsibility Seller  will  repair  if  failure  is  result  of  defective  workmanship  or  materials.    If  conditions  beyond Seller’s control disrupt or eliminate the source of the supply, the Seller has no responsibility.   ___________________________________________________________________________________________________________   B. Septic Tank System  (1) Possible Defect  Septic system fails to operate properly.  Building Standard Septic  system  shall  function  adequately  during  all  seasons, under  climatic  conditions  normal  or reasonably  anticipated  (based  on  local  records)  for  the  location  of  the  home.    Septic  system  shall be designed and installed to comply with applicable governmental codes, if any.  Responsibility Seller  will  repair,  or  otherwise  correct,  a  malfunctioning  or  non  operating  system,  if  failure  is caused  by  inadequate  design,  faulty  installation,  or  other  cause  relating  to  actions  of  the  Seller  or contractors  or  subcontractors  under  the  Seller’s  control.    Seller  will  not  be  responsible for system malfunction or damage which is caused by Buyer negligence, lack of system maintenance, or other causes  attributable  to  actions  of  the  Buyer  or  Buyer’s  contractors,  not  under  the  control  of  the Seller,  including,  but  not  necessarily  limited  to,  the  addition  of  fixtures,  items  of  equipment, appliances or other sources of waste or water to the plumbing system served by the septic system, and  damage,  or  changes  to  the  septic  system  installation  or  surrounding  soil  conditions  critical  to the system’s functioning.   ___________________________________________________________________________________________________________   C. Piping  (1) Possible Defect  Leakage from any piping.  Building Standard No  leaks  of  any  kind  shall  exist  in  any  soil,  waste,  vent  or  water  pipe.    Condensation  on  piping does not constitute leakage, and is not covered.  Responsibility Seller will make repairs to eliminate leakage.   ___________________________________________________________________________________________________________   (2) Possible Defect  Stopped up sewers, fixtures and drains.  Building Standard Sewers, fixtures and drains shall operate properly.  Responsibility Seller  will  not  be  responsible  for  sewers,  fixtures  and  drains  which  are  clogged  through  Buyer negligence.    If  a  problem  occurs,  the  Buyer  should  consult  Seller  for  a  proper  course  of  action.  Where  defective  construction  is  shown  to  be  the  cause,  Seller  will  assume  the  cost  of  the  repair; where Buyer negligence is shown to be the cause, the Buyer shall assume all repair costs.   ___________________________________________________________________________________________________________

17 (3) Possible Defect  Refrigerant lines leak.  Building Standard Refrigerant lines shall not develop leaks during normal operation.  Responsibility Seller  will  repair  leaking  refrigerant  lines and  re-charge  unit,  unless  damage  was  caused  by  the Buyer.   XV. Ventilation System  A. Air Distribution  (1) Possible Defect  Ductwork separates or becomes unattached.  Building Standard Ductwork shall remain intact and securely fastened.  Responsibility Seller will re-attach and re-secure all separated or unattached ductwork.   XVI. Electrical System  A. Wiring  (1) Possible Defect  Failure of wiring to carry its designed load.  Building Standard Wiring should be capable of carrying the designed load for normal residential use.  Responsibility Seller  will  check  wiring  for  conformity  with  local,  state,  or  approved  national  electrical  code requirements.  Seller will repair wiring not conforming to code specifications  ___________________________________________________________________________________________________________

[Use as Exhibit either the Preoccupancy Inspection Agreement or the Acknowledgment of Acceptance]  Exhibit II to Limited Warranty Agreement  PREOCCUPANCY INSPECTION AGREEMENT  DATE:      TIME:       BUYERS:           ADDRESS:          CITY:     We the Buyers have inspected the Dwelling, including the items listed  below,  and  find  it  to  be  in  good  physical  condition,  free  from damage  such  as  holes,  chips,  cracks,  exceptions,  omissions,  malfunctions  or  other  defects  of  materials  or  workmanship,  except as noted  in  the  applicable  “comments”  sections  below.    A  check  mark  or  other  similar  notation  in  the  space  beside  an  item  indicates acknowledgment by the Buyers that the item is in good physical condition and free from damage.  If an item is not applicable, please mark through it.  I. GENERAL Foyer     Living Room   Hall Bath   Full Bath   Dining Room    Kitchen   Bed Rooms   Utility Room   Breakfast Rm.    Laundry Rm.   Closets   Porch   Patio     Deck   Garage   Other Areas   Drives     Walks   Yard   Exterior of               Home Comments:       II. DOORS Verify that the weather-stripping, locking mechanism, thresholds and stops are correctly installed and function smoothly and properly.  Foyer     Living Room   Hall Bath   Full Bath   Dining Room    Kitchen   Bed Rooms   Utility Room   Breakfast Rm.    Laundry Rm.   Closets   Porch   Patio     Deck   Garage   Other Areas    Comments:       III. WINDOWS/SCREENS Verify that the weather-stripping and locking mechanisms are correctly installed and function smoothly and properly.  Foyer     Living Room   Hall Bath   Full Bath   Dining Room    Kitchen   Bed Rooms   Utility Room   Breakfast Rm.    Laundry Rm.   Closets   Porch   Patio     Deck   Garage   Other Areas    Comments:

2 IV. ELECTRICAL SWITCHES/OUTLETS/SAFETY SWITCHES Verify that switches and outlets are tested for electric current (hot), proper grounding and proper polarity.  Foyer     Living Room   Hall Bath   Full Bath   Dining Room    Kitchen   Bed Rooms   Utility Room   Breakfast Rm.    Laundry Rm.   Closets   Porch   Patio     Deck   Garage   Other Areas    Comments:       V. SMOKE DETECTOR Verify that the smoke detectors are functioning properly.      Comments:       VI. LIGHT FIXTURES Verify that fixtures are hung straight and level and that bulbs are installed and burn.  Foyer     Living Room   Hall Bath   Full Bath   Dining Room    Kitchen   Bed Rooms   Utility Room   Breakfast Rm.    Laundry Rm.   Closets   Porch   Patio     Deck   Garage   Other Areas    Comments:       VII. HVAC UNIT Verify  that  heating  and  cooling  systems,  including  thermostat,  insulation,  and  filter  are  correctly  installed  and  operating properly.  Verify that unit turns on.  Verify that air flow is at each vent and that vent opens and closes.      Comments:       VIII. HOT WATER HEATER Check the pop-off valve and drain to make sure they are functioning properly.  Verify that hot water flows out of all faucets.  _________  Comments:       IX. BREAKER BOX Check  to  make  sure door  opens  and  closes  properly,  all  circuits  are  labeled  properly,  and  the  breakers  are  functioning properly.  _________  Comments:       X. BASEBOARDS/TRIM Inspect baseboards and trim for proper installation and appearance.      Comments:

3 XI. WALLS/CEILINGS Check all walls and ceilings to verify that appearance is acceptable.      Comments:       XII. CLOSETS Inspect shelves and rods for proper installation and appearance.   Hall Bath     Full Bath   Other Areas   Bed Rooms     Utility Room   Laundry Room     Closets    Comments:       XIII. FLOOR COVERING Inspect  all  carpet  for  proper  installation  and  appearance.    Inspect  all  vinyl,  ceramic  tile  and  wood  flooring  for  proper installation and appearance.     Comments:       XIV. COUNTERTOPS Inspect  all  countertops  for  proper  caulking,  level  and  anchors,  and  check  for  the  presence  of  scratches,  nicks,  and  burns.  ___________  Comments:       XV. CABINETS Inspect  doors,  drawers,  shelves  and  hardware  for  proper  installation  and  operation.    Check  that  all  drawers  and  doors  open properly.    Comments:       XVI. PLUMBING Inspect  for  proper  fittings,  water  draining  freely,  hot  and  cold  water,  proper  washer/dryer  hook  ups  and  the  presence  of  any leaks.  Check and record water pressure.  Hall Bath     Full Bath   Kitchen   Utility Room   Laundry Room     Other Areas    Comments:       XVII. KITCHEN PLUMBING FIXTURES Inspect  for  proper  installation  and  operation  of  sink,  sprayer,  stopper  and  dishwasher.    Check  for  leaks  under  sink.    Check dishwasher  door  for  correct  closing.    Run  dishwasher  through  cycle  and  check  for  leaks  around  door  and  under  sink. ____________  Comments:

4 XVIII. BATHROOM FIXTURES Inspect  for  the  correct  installation  and  operation  of  bathroom  fixtures.    Check  for  leaks  and  presence  of  any  damage  to fixtures.  Place a double hand full of toilet tissue in commode and test flush.      Comments:       XIX. TOWEL BARS/PAPER HOLDERS/SOAP DISH/TOOTHBRUSH HOLDERS/TUMBLER Inspect for proper installation and location.      Comments:       XX. MIRRORS Verify  that  mirrors  are  plumb  and  square  and  there  are  no  factory  defects  in  the  silvering  and  no  cracks  or  chips  on  glass edges.      Comments:       XXI. VENT FANS Check for proper installation and operation.      Comments:       XXII. APPLIANCES Check for proper installation and operation of:  Range      Hood   Refrigerator   turn on      light   gasket   temperature control    fan   ice maker   oven light        light   broiler pan     Garbage Disposal   shelves   oven elements     turn on and run   temperature control   burner eyes     reset button   oven racks     seal   Dishwasher   stopper      arm   Microwave     proper drainage   basket   light         controls   fan         drainage system            door            run full cycle    Comments:         XXIII. FIREPLACE Inspect for proper installation, operation and appearance.  Hearth     Surround  Unit   Screens  Glass     Damper  Doors      Comments:

5 XXIV. CLEANLINESS Inspect for thoroughness of cleaning.   Comments:       XXV. EXTERIOR OF HOME Painting     Roof   Trim    full coverage     all shingles in place   matched in place    caulking at joints     valleys appear normal   fitting properly          ridge shingles in place   sofit vent open     Gutters      Brick   Patio/Walk/Drive Heating & A/C Unit       level (no bird baths)    installed level in        drains    workman like manner       no cracks or             separations  Comments:       XXVI. YARD Bushes      Sod   Lawn    alive & healthy     in place   level          rolled   raked             seeded     Comments:       ADDITIONAL COMMENTS         This Preoccupancy Inspection Agreement is part of the Limited Warranty Agreement which is to be resigned at closing and attached hereto.  This Preoccupancy Inspection Agreement shall survive closing and remain in full force and effect.  We the Buyers have inspected each item contained in this Preoccupancy Inspection Agreement as well as an inspection of our own  and  we  find  the  Dwelling  to  be  in  good  condition  except  as  specifically  described  above.    We  the  Buyers  do  hereby agree that the construction of the Dwelling is complete and do hereby accept all workmanship and material in this Dwelling as  being  free  from  defect  except  as  specifically  described  above  and  except  any  Latent  Defect  (as  defined  in  the  Limited Warranty Agreement) not apparent at this time.  IN  WITNESS  WHEREOF  the  parties  hereto  have  set  their  hands  and  seals  on  this  the            day  of                              , 20      .  WITNESS   ________________________________  BUYER   __________________________________________   WITNESS   ________________________________  BUYER   __________________________________________   WITNESS   ________________________________  SELLER   _________________________________________   WITNESS   ________________________________  SELLER   _________________________________________    Please have utilities changed to your name.

[Use as Exhibit  either the Preoccupancy Inspection Agreement or the Acknowledgment of Acceptance]    Exhibit II to Limited Warranty Agreement    STATE OF ALABAMA   )    : COUNTY OF     )   ACKNOWLEDGMENT OF ACCEPTANCE   We,  the  undersigned  Buyers,  are  consummating  the  purchase  from ______________________________________________ ___________________________________________________________________________________________________ (“Seller”) of _________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________________________________________ (the “Land”).  We  hereby  acknowledge  that  we  have  inspected  the  Land  and  the  Dwelling,  driveway,  and  other  improvements  located thereon  (collectively,  the  “Property”)  and  that,  without  any  reservations,  we  accept  the  Property  as  to  the  condition  thereof.  Specifically,  we  accept  the  Property  as  to  the  condition  of  the (i) wall  finish,  paint,  and  decoration, (ii) finished  floors, (iii) bath  tile and  fixtures, (iv) kitchen  tile, sink,  and  cabinets, (v) woodwork,  trim,  and  paneling, (vi) doors  and  windows, (vii) caulking  and weatherstripping,   (viii) lighting  fixtures, (ix)  brick  and  paneling  on  exterior  walls, (x)  concrete,  stucco,  plaster,  bricks,  mortar,  and masonry, (xi) garages,  storage  buildings,  or  other  outbuildings  not  attached  to  the  Dwelling, (xii) swimming  pools  and  other recreational facilities, (xiii) concrete work of driveway, walks, porches, and carports, (xiv) roofing, (xv) drainage around Dwelling and ditches within easements, (xvi) basement or crawl space under Dwelling, and (xvii) driveways, walkways, retaining walls, fences, and landscaping (including sodding, seeding, shrubs, trees, and plantings).  We hereby acknowledge receipt of the Limited Warranty Agreement for a period of _________________________________ executed by Seller and us and understand the responsibilities of Seller thereunder.  By  closing  the  purchase  of  the  Property,  we  acknowledge  that  Seller  has  performed  its  contract  with  us,  the  improvements upon  the  Property  have  been  completed  according  to  the  plans  and  specifications  agreed  upon,  and  the  improvements  upon  the Property have been completed according to the decoration plans made part of the contract.  Dated the _________ day of __________________________, 20________.      BUYERS:    _________________________________________________________     _________________________________________________________
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Even when you cannot discover a buyer, you have the right to stay in the house during the redemption period. It will provide the buyer an extremely clear comprehension of what it is that they are purchasing, so it isn't possible for them to claim it was not disclosed later on. It's given while the buyer has decided to really buy the house (unlike in deposit, where it's given while the buyer indicates a desire to get the unit). Buyer must discover acceptable financing for a part of the buy price. Buyer to obtain adequate insurance policy protection valued at or over the buy price of property.''
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1 thing people frequently fret about when facing foreclosure is whether the lending company will have the ability to take other property and real estate they own also. You might discover that you are going to be better off in the event that you attempt to delay the foreclosure as you conserve money for rent and moving expenses. The foreclosure and late payment record can stay on your credit report for as much as seven decades, but it doesn't imply that you will not be able to have a loan for seven decades.

You don't wish to actually buy the property, and that's what the agreement says. To begin with, you have to decide whether you wish to put money into property under construction or to be constructed. When you've selected an excellent property for sale you'll need to submit a buy offer.

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