Onslow Bay Homes’

 Limited Warranty

1. Consequential and Incidental Damages – Consequential and incidental damages are excluded, and the implied warranties are limited in duration.

2. Terms – The terms of the various coverages of this warranty begin on the date of transfer of title (settlement date) or the date the buyer first takes occupancy of the home, whichever comes first.

3. Coverage – The builder warrants that the standards of construction relevant in (town or area) for a period of one year.

1. The floors, ceilings, walls and other internal structural components of the home that are not covered by other portions of this limited warranty will be free of defects in materials or workmanship.

1. The plumbing, heating, electric wring systems and the septic tank (if builder installed) will be free of defects in materials and workmanship.

1. The roof will be free of leaks caused by defects in materials and workmanship.

The builder warrants that by the standards of construction relevant in (town or area) for a period of 365 days following transfer of title (settlement day) or date the buyer first takes occupancy, whichever occurs first, that the following items will be free of defects in materials and workmanship; doors (including hardware), windows, jalousies, electric switches, receptacles and fixtures, caulking around the exterior openings, plumbing fixtures and cabinet work.

4. Manufacturer’s Warranties – The builder assigns to the buyer (to the extent they are assignable), the manufacturer’s warranties on all appliances and equipment that are installed by the builder for the benefit of the buyer to include if applicable the following items: refrigerator, range (cooking system applicable), micro-wave oven, furnace/heat pump/air conditioner, washing machine & clothes dryer, dishwasher, garbage disposal, ventilating & ceiling fan(s), Jacuzzi tub, pre-fabricated fireplace, garage door opener and remote controls for opener, hot water heater & glass shower doors.

5. Exclusions from Coverage – The following items are exclusions relating to this limited warranty.

1. Consequential or incidental damages. Some states do not allow the exclusion or limitation of incidental or consequential damages. (Note:  the limitation or exclusion may not apply to you.)

1. Defects in appliances and equipment that are covered by manufacturer’s warranties (see paragraph 4 above). The buyer should contact the manufacturer and follow the instructions for filing claims for repairs and or replacement of the defective item.

1. Damage due to ordinary wear and tear & lack of proper maintenance.

1. Defects that result from characteristics common to the materials used in the construction of the home, such as (but not limited to) warping, deflection of wood, peeling, chalking and checking of the paint due to exposure to sunlight; cracks that occurred in the drying and curing of concrete, stucco, plaster, bricks and masonry; drying, shrinking and cracking of caulking and weather stripping and applied over newly plastered walls.

1. Defects in products installed by or for the buyer by anyone other than the builder or the builder’s sub-contractor.

1. Work done by or for the buyer by anyone other than the builder or the builder’s sub-contractors.

1. Loss or injury attributable to the elements.

1. Conditions resulting form condensation or expansion or constriction of materials.

6. No Other Warranties – This limited warranty is the only express warranty the builder gives to the buyer. Implied warranties, including (but not limited to) warranties of merchantability, fitness for a particular purpose, habitability and good workmanship are limited to the warranty period (term) as set forth in paragraph 2, above.  Some states do not allow limitations on term of implied warranties, in which case, this limitation may not apply to you.  This limited warranty gives you specific legal rights and you may have other rights that vary from state to state.

7. Claims Procedures – If a defect appears the buyer must notify the builder in writing at the builders office address. The buyer needs to describe the defect and advise the builder how to contact the buyer for access to the home to review the defect.  If it is an emergency (water leak, frozen pipes, etc.), the buyer should call the builder and file the claim by phone.  Only emergency reports will be taken by phone.  Failure to notify the builder of defects covered under this limited warranty or any implied warranty relieves the builder of all liability for replacement, repair and other damages.

8. Repairs – Upon receipt of the buyer’s written report of a defect, if the defect is covered by the limited warranty, the builder will repair or replace the defective part at no cost to the buyer. The repair or replacement will be done within 60 days (longer if weather conditions, labor problems or material shortages cause delays) of the filing of the reported defect other than for emergency repairs which will be done immediately to alleviate further damage.  The work will be handled by the builder and or a sub-contractor of the builder’s choosing.  To repair or replace the defective item with be at the sole discretion of builder.

9. Not Transferable – This limited warranty is extended to the buyer only if the buyer is the original purchaser of the home. If the original purchaser sells the home or moves out of the home, this limited warranty automatically terminates.  It is not transferable to subsequent purchasers of the home or to buyer’s purchaser’s tenants.

Onslow Bay Homes’

Non-Warrantable Conditions

This statement of conditions that are not subject to the builder’s warranties explains some of the changes and need for maintenance that may occur in a new home during the first year of occupancy.  A home requires more maintenance and care than most other products due to the fact that it is made up of many different components, each with its own special characteristics.

The buyer understands that like other products made by human hands, a house is not perfect.  It will show minor flaws and unforeseeable defects and will require some adjustments and maintenance touch ups from time to time.

As described in the limited warranty provided to the buyer, which this statement of “Non-Warrantable Conditions” is a part of, the builder will correct certain defects that arise during a defined period of time after construction is completed.  Other items not covered by the builder’s limited warranty may be covered by a manufacturer’s warranty.  The buyer should read these carefully and understand that the buyer has not contracted for the builder to correct certain types of problems that may occur in the new home.  These guidelines will alert the buyer to certain types of maintenance, (a) that are the responsibility of the buyer, and (b) that could lead to problems if they are neglected.

1. Concrete – Concrete foundations, walks, drives and patios can develop cracks that do not affect the structural integrity of the building. These cracks are caused by characteristics of the expansion and contraction during the curing process of the concrete.  There is no known method of eliminating these cracks entirely.  This condition does not affect the strength or reliability of the structure.

2. Masonry and Mortar – Masonry and mortar can develop cracks from shrinkage of either the mortar or the brick. This condition is normal and should not be considered a defect.

3. Wood – Wood will sometimes be checked, cracked or “spread apart” because of the drying out process. This condition is normal and should not be considered a defect.

4. Sheetrock and Drywall – Sheetrock or drywall will sometimes develop nail pops or settlement cracks. These nail pops and settlement cracks are a normal part of the curing process.  These items can easily be handled by the homeowner with spackling during normal decorating.  However, if the homeowner wishes, the builder will send workers at the end of one year to make necessary repairs.  Builder’s repairs will not include repainting.

5. Floor Squeaks – After extensive research and writing on the subject, technical experts have concluded that much has been tried but that little can be done about floor squeaks. Generally, floor squeaks will appear and disappear over time with changes in the weather.  Due to our humid climate hardwood dries and spreads apart during the winter and slightly buckles due to humidity in the summer.  There is nothing that can be done to correct this situation.

6. Floors – Floors are not warranted for damage caused by neglect or the incidents of use. Wood, tile and carpet all require maintenance.  Floor casters are recommended to prevent scratching or chipping of wood or tile.  Stains should be cleaned from carpets, wood or tile immediately to prevent discoloration.  Carpet has a tendency to loosen in damp weather and will stretch tight in dryer weather.

7. Caulking – Exterior caulking and interior caulking in bathtubs, shower stalls and ceramic tile surfaces will crack or bleed somewhat in the months after installation. These conditions are normal and should not be considered a problem.  Maintenance or repairs resulting from these conditions are the homeowner’s responsibility.

8. Brick Discoloration – Brick materials will discolor when exposed to the elements of climate & weather conditions in the local area. This is normal and not something for the homeowner to be concerned about.

9. Broker Glass – Broker glass or mirrors that are not noted by the buyer during walk-thru on the inspection sheet, before closing will be and are the responsibility of the buyer.

10. Frozen Pipes – The homeowner needs to take extra precautions to prevent the freezing of water pipes, sill cocks by leaving faucets with a slight drip. The water system is to left for an extended period of time during cold weather the system should be turned off.  If the yard is irrigated the irrigation system needs to be turned off in the cold weather months.

11. Stained Wood – Wood that are stained will normally have a variation of colors because of the different texture of the woods. Because of weather conditions, doors that have panels will sometimes dry out and leave a small space of bare wood.  These are normal conditions and should not be considered defects.

12. Paint – Good quality paint has been used both on the interior and exterior of the home. Nevertheless exterior paint can sometimes crack or check.  This source of the defect is most often something other than the paint.  To avoid problems with paint, buyers should avoid allowing lawn sprinklers to hit the painted surfaces or washing the painted surfaces with toxic cleaners.  Additionally care should be given to the use of power washers to clean painted surfaces.  Homeowners should also not scrub latex painted outside walls and be careful of newly painted walls when moving furniture into the new home.   The best paint will chip and will stain if not properly cared for.  Any defects in the painted surfaces that are not noted during the final walk thru inspection and before closing are and will be the responsibility of the new homebuyer.

13. Cosmetic Items – General repair and maintenance becomes the responsibility of the homebuyer at the time of closing (transfer of title). Ordinary wear and tear or other occurrences subsequent to construction that affect the condition of the features in the home are not the builder’s responsibility. Chips, scratches or mars in tile, woodwork, walls, porcelain, brick, mirrors, plumbing fixtures; marble, granite, Formica and hard surface counter tops; lighting fixtures; kitchen appliances; doors, paneling, screens, windows; carpet, vinyl floors, hardwood surfaces and cabinets that are not noted by the buyer during the final walk thru and before closing become non-warrantable conditions and the upkeep of cosmetic aspects of the new home become the new homeowner’s responsibility.

14. Plumbing – Dripping faucets, toilet adjustments are covered by the builder’s warranty for a period of 60 days. After 60 days it becomes the homeowner’s responsibility for the maintenance and repair of these items.  If the plumbing is stopped up during the warranty period and the person servicing the plumbing finds foreign objects and or materials in the line, the homeowner will be charged to the cost of the subsequent repair.

15. Alteration to Grading – The buyer’s lot has been graded to ensure proper drainage away from the home. Should the buyer wish to change the drainage pattern because of landscaping, installation of patio or service walks, or for other reasons, the buyer should be sure a proper drainage slope is retained.  The builder assumes no responsibility for the grading or subsequent flooding or stagnant pool formation if the established pattern is altered.  Due to the flat topography found in southeastern North Carolina, rain water may stand in the yard for a few days after a rain shower; however there should be no standing water within 10 feet of the home.

16. Lawns and Shrubs – The builder accepts no responsibility for the growth of grass or shrubs. Once the builder grades, seeds and/or sods and fertilizes the yard, the buyer must water and spread ground cover to prevent erosion.  The builder will not re-grade a yard, nor remove or replace any shrubs or trees, except for those that are noted as diseased at the walk-thru inspection and prior to closing.

17. Roof Range – The warranty on the buyer’s roof is for material only and is prorated over the period of the lifetime use of the roof. Warranty claims for any defects in materials will be handled by and through the manufacturer with the builder’s assistance.

The builder will not be responsible for any damages caused by walking on the roof, installation of exterior antennas or other items not associated with the actual construction of the new home.

18. Heating and Air Conditioning – The buyer’s source of heating and cooling is

covered by a manufacturer’s warranty.  The buyer is responsible for making sure the filters are kept clean and changed on regular schedule (30 to 60 days).  Failure to do so may void the warranty.  Additionally it is recommended that the homeowner have his heating and cooling system serviced annually.

19. Indoor Quality – “Radon Notice and Disclaimer” The United States Environmental Protection Agency (EPA) has expressed concern regarding the presence of radon gas in homes. Prolonged exposure to high levels of indoor radon or its progeny may affect the health of residents.  Although such conditions may exist, the builder has made no investigation to determining whether radon gas or other environmental pollutants are present in the home or are affecting the premises.  The builder has made no analysis or verification of the extent of the environmental or health hazard, if any, that may affect the premises or residents.

The builder makes no representation or warranty as to the presence or lack of radon or hazardous environmental condition, nor as to the effect of radon or any such condition on the premises or residents.

The builder further disclaims and buyer waives, unless otherwise expressly   provided for in the builder’s limited warranty, all warranties , express or implied, including but not limited to the warranties of good workmanship, habitability, merchantability and fitness of purpose, and including any warranties that could be construed to cover the presence of radon or other environmental pollutants.  The only warranties the builder provides to the buyer are those contained in the limited warranty.