«BuyerSubdivision»

1-YEAR LIMITED HOME WARRANTY-EXHIBIT “C”

«BuyerSubdivision» (“Seller”) is pleased to provide you with this 1-Year Limited Home Warranty (the “Warranty”).

A home is a unique product requiring proper maintenance and care by you. Many times a minor adjustment or repair done immediately saves a more serious, time-consuming, and sometimes costly repair later. Under the terms of this Warranty, you must provide proper care and maintenance for your home. Neglect of routine maintenance can void coverage under this Warranty.

You should become familiar with the terms of this Warranty. There are time limits on each item covered by this Warranty and there are specific procedures you must follow to make claims under this Warranty. If the time limit for the Warranty has expired or you do not follow the claims procedure set forth in this Warranty, Seller will not be obligated to you under this Warranty. Do not convey warranty concerns to sales personnel or field construction personnel.

Table of Contents

I. General Scope of Warranty ..………………………………………………. 1

II. Cosmetic Deficiencies/Acceptance Walk-Through Inspection …………..... 1

III. Express Warranties ………………………………………………………… 2

IV. Exclusions from Coverage ……………………………………….……...… 7

V. Waiver of Implied Warranty of Habitability ………………………………. 8

VI. Mold Notice, Disclosure and Disclaimer ………………………….………. 9

VII. Procedures for Warranty Claims …………………………………….…….. 10

VIII. General Provisions …………………………………………………….....… 11

I. General Scope of Warranty

A. Who is Covered. This Warranty protects the original party (referred to herein as “you” or “Buyer”) identified above as the buyer of the Home (defined below). This Warranty is extended only to Buyer and does not extend to subsequent owners of the home, tenants, guests or any other person and may not be assigned by Buyer.

B. Property Covered by Warranty. This Warranty covers the residential dwelling (the “Home”) identified in your Purchase Agreement.

C. Length of Coverage. This Warranty commences at the close of escrow or when you first take occupancy of the Home, whichever occurs first (the “Commencement Date”). The duration of the Warranty, as to each specific item, is set forth below in Section III; provided, however, this Warranty will terminate automatically if any of the following first occurs:

(i) You sell the Home; or

(ii) You no longer occupy the Home

(iii) One (1) year after commencement date

II. Cosmetic Deficiencies/Acceptance Walk-Through Inspection

The following items are considered to be “Cosmetic Deficiencies” and are not covered by this Warranty. Pursuant to that provision, Seller will correct the following cosmetic items only if they are noted to Seller during the New Home Orientation and are identified on the written itemized walk-through inspection list signed by Seller and Buyer:

(a) Scuffed, scratched or smudged floor tiles, floor coverings, wall coverings, painted surfaces or countertops;

(b) Stains or spots on floor coverings

(d) Unnaturally caused chipped or cracked porcelain, tile, natural stone (including granite and marble), grout or fiberglass. Some faint scratches, crazing or fissures are a natural part of certain materials and are not considered deficiencies. Inconsistencies that do not meet industry standards and that are noted on the walk-through inspection list will be corrected with a filler product; natural stone will NOT be replaced unless there is severe damage caused by unnatural circumstances that is noted on the walk-through inspection list;

(e) Cracked or loose porcelain or tile;

(f) Chipped or scratched surfaces of appliances or plumbing fixtures;

(g) Excessively chipped or gouged wood trim;

(h) Torn or damaged window or door screens;

(i) Door locks or windows that do not operate with reasonable ease;

(j) Smudged, scratched or stained cabinet surfaces or finishes;

(k) Broken or scratched glass, light fixtures, windows or mirrors. If the scratch is on a window, the scratch must be readily visible from a distance of 4 feet under normal lighting conditions;

(l) Paint splatters and smears;

(m) Excessive concrete or drywall splatters; and

(n) Surface damage to concrete, asphalt and cracks in driveways, sidewalks or patio slabs not exceeding 1/4" in horizontal or vertical displacement.

III. Express Warranties

Subject to the exclusions from warranty coverage set forth in Section IV, below, and any additional specific exceptions to coverage set forth in this Section III, Seller makes the following warranties for the time periods set forth below. To the extent that performance standards for construction have not been enumerated in this Warranty, defects and deficiencies in materials and workmanship will be those recognized under generally accepted standards of the building industry in the State of Illinois for the geographical location of the Home.

Structural Components.

Warranty: Seller warrants that the Home will be free from significantly defective construction and materials resulting in or causing tangible damage to the roof, walls or foundation of the Home that affects the structural integrity and the load-bearing performance of the Home to the degree that it materially affects the physical safety of the occupants of the Home. Seller’s obligation under this Warranty is limited to such actions as are necessary to restore the load-bearing capability of the affected components.

Warranty One (1) year after the Commencement Date

Period:

Air Conditioning System.

Warranty: The air conditioning system should be capable of maintaining a temperature differential of 15 degrees from the outside temperature, measured in the center of each room at the height of five (5) feet above the floor and provided that operable window coverings are installed on all windows, no structural modifications have been made, and vents are not covered. Lower temperature settings are often possible but are not promised by the manufacturer or Seller. Lack of air conditioning service is not an emergency unless someone is living in the home with a medical condition in which the loss of air conditioning would be life threatening and the outside air is 95 degrees or above.

Warranty for rooms over garages: These are the most difficult rooms in a home to heat and cool. These rooms can have an average temperature difference of between 5 to 9 degrees than the rest of your home. Rooms or living spaces over garages are typically separated from the rest of the home and usually have 2 to 3 outside walls, and an unconditioned (unheated/uncooled) space below. Rooms over garages are usually farthest from the furnace, so the air will gain or lose temperature more so than the shorter runs in your home. We recommend running the fan in the “on” position on all furnaces or air conditioners during unusually cold and hot temperature days/periods respectively.

Warranty One (1) year after the Commencement Date

Period:

Specific

Exceptions: The exact placement of ducts and vents may vary from those positions shown in similar plans and models. Placements of ducts and vents are NOT covered by this Warranty. Expansion or contraction of metal ductwork results in ticking or popping sounds. Eliminating all of these sounds is impossible and is NOT covered by this Warranty.

Cabinetry and Stair Railing.

Warranty: Warped doors or drawer fronts will be corrected if warpage is in excess of 1/8” within any 24” distance. Gaps between cabinets and ceilings, or cabinets and walls will be corrected if they are in excess of 1/8”. Oak handrails will be free from workmanship defects.

Warranty One (1) year after the Commencement Date

Period:

Specific Locations behind appliances and toe-kick areas are excepted from this

Exceptions: Warranty. Readily noticeable variations in wood grain and color are expected in all style selections. Replacements will not be made due to such variations.

Carpet.

Warranty: Although carpet seams will be visible, Seller will repair gaps, fraying and wrinkles. Edges of carpet along moldings and edges of stairs should be held firmly in place. Some stretching of carpet should be expected; however, if it stretches excessively, it will be re-stretched.

Warranty One (1) year after the Commencement Date

Period:

Specific Seller will not be responsible for dye lot variations if replacements are

Exceptions: made.

Concrete Flatwork.

Warranty: One time during the Warranty period, Seller will repair the following: cracks in slabs in builder-finished areas of the Home in excess of 1/8” in width or 1/8” in vertical displacement, cracks in garage or exterior concrete flatwork (patio, porch, private walks, or driveway) in excess of 1/8” in width or 1/8” in vertical displacement, and uneven concrete floor slabs, pits, depressions or areas of unevenness exceeding 1/4" in 32” or slopes in excess of 1/240 of room width or length, (i.e. 10.0 ft wide room – not to exceed 1/2" out of level).

Seller will repair spalling if, in the aggregate, in excess of ten percent of the total surface area of concrete flatwork is exposed and such exposure has not been caused by concentration of water, use of chemicals, mechanical implements, and other factors beyond Seller’s control.

De-icing compounds picked up on city streets and carried onto drives or garage floors by auto traffic in winter may also cause scaling or spalling. Occasional washing down of these areas during thaw periods will minimize this damage. Scaling or spalling is not warrantable.

Warranty One (1) year after the Commencement Date

Period:

Specific Masonry and concrete work are subject to color and texture variation by the

Exceptions: nature of the materials. When repairs are made to these materials, color and texture match is impossible to achieve. Any repair provided will result in a variation in color and texture of concrete.

Countertops – Ceramic Tiles.

Warranty: Cracked tiles due to settling will be replaced at year-end, unless edges are sharp and pose danger. Seller will repair significant cracks in grouting of tiles at joints or junctions if determined by Seller’s representative to be the result of poor workmanship or defective materials. Seller will repair loose tiles and cracks.

Gaps in laminated countertops in excess of 1/16” at a seam will be corrected. Where backsplash joints in manufactured marble countertops occur at corners, the top edges should be even within 1/8”. One time during the Warranty period, Seller will repair caulking separation at the wall or at the counter.

Warranty One (1) year after the Commencement Date

Period:

Specific Hairline cracks in ceramic tile and grout are not uncommon and are not covered

Exceptions: by this Warranty. New grout may vary in color from the original. Seller is not responsible for color variations in grout or discontinued colored grout.

Refer to the manufacturer’s warranty for information regarding warranty coverage on Corian.

Doors and Locks.

Warranty: Interior doors should operate with reasonable ease as designed. As the Home dries, slight separation of joints in molding, or joints between molding and adjacent surfaces may result. Gaps in excess of 1/8” will be repaired by Seller with a filler method.

Due to normal settling of the Home, doors may require adjustment for proper fit. Seller will make these adjustments.

Warping of exterior doors is normal but should not exceed the National Woodwork Manufacturer’s Association standard of 1/4". Doors that warp in excess of that standard will be repaired.

Warranty One (1) year after the Commencement Date

Period:

Specific Exterior wood doors will usually warp on direction of the sun during summer

Exceptions: and the reverse direction during the winter. Panels may shrink and expand in some wood doors. This is normal and no repair will be provided. Adjustment of weather stripping and/or the threshold is a Buyer responsibility.

Drywall/Sheetrock.

Warranty: Due to normal expansion and contraction of building materials and normal settling of the Home, some minor sheetrock cracks may occur. One time during the Warranty period, Seller will make needed drywall repairs to cracks due to this settling and expansion or contraction. Seller will be responsible for any touch-up or repainting needed as a result of such repairs.

Warranty One (1) year after the Commencement Date

Period:

Specific Touch-up paint may not match the original paint exactly. Repairs will

Exceptions not be made on flaws that are visible.

Exterior Trim.

Warranty: Separations or cracks in excess of 1/4" will be repaired by Seller by caulking or other method deemed appropriate by Seller.

Warranty One (1) year after the Commencement Date

Period:

Specific Knotholes are a natural occurrence in wood and are not covered by this

Exceptions: Warranty. Exterior beams and posts used in construction may warp, twist, and develop cracks. Unless these conditions affect the structural integrity of the Home, no repair is provided. Trim joints are filled with caulking which, over a period of time, can crack, peel, flake or pull away from trim boards and windows. This is not covered by this Warranty. Recaulking is a Buyer maintenance responsibility.

Electrical Systems.

Warranty: If electrical outlets, switches, circuit breakers, fuses, receptacles and fixtures do not function as intended, Seller will repair or replace them. Any electrical wiring that fails to carry its designed load will be repaired to meet specifications.

Warranty One (1) year after the Commencement Date

Period:

Specific Light bulbs and tubes are not covered by this Warranty.

Exceptions:

Electrical boxes on exterior walls may permit airflow through the outlet. This is normal and no corrective action is provided.

Power surges are the result of local conditions and can result in burned out bulbs, appliance or equipment damage. Since this is beyond the control of Seller, this Warranty does not cover damage that may result from such occurrences.

This Warranty does not cover conditions that may occur (for example, food spoilage) from plugging a refrigerator or freezer into a GFCI outlet. Do not plug a refrigerator or freezer into a GFCI outlet.

Fences.

Warranty: Seller will repair or adjust gates, which do not operate easily or freely during the first sixty (60) days after the Commencement Date. Any warranty requests for repairs to fencing must be submitted within this sixty (60) day period.

Warranty One (1) year after the Commencement Date

Period:

Specific Fence boards and fence support materials vary in appearance and will shrink and

Exceptions: swell with changing weather conditions. This can create gaps between fence boards, knotholes, and cracks. This is a normal occurrence and is not covered by this Warranty.

Fireplace.

Warranty: Discoloration of the firebox or brick is the normal result of use and requires no corrective action. Mortar style fireplaces may develop cracks due to temperature changes and other factors. This is not covered by this Warranty.

Flooring – Resilient Vinyl (Linoleum).

Warranty: Vinyl floor covering should adhere; lifting or bubbling will be repaired. In the event that nail pops should appear on the surface of resilient floors these will be repaired. Seams will occur and are sealed at the time of installation; gaps in excess of 1/16” will be repaired unless caused by excessive application of water on the floor.

Warranty One (1) year after the Commencement Date

Period:

Specific In any situation that requires replacement, Seller is not responsible for

Exceptions: discontinued patterns or colors. High heels, chair and table legs will cause indentations in vinyl floor coverings. This Warranty does not cover this type of damage.

VINYL FLOOR COVERINGS CAN BE DAMAGED EASILY, ESPECIALLY WHEN MOVING FURNITURE OR APPLIANCES, OR DROPPING OBJECTS. This Warranty does not cover such damage caused by Buyer.

Flooring – Tile (Ceramic, marble, slate).

Warranty: Seller will repair cracked and loose tiles.

Warranty One (1) year after the Commencement Date

Period:

Specific Quarried marble tile is a natural rock product and as a result there are many

Exceptions: uncontrollable conditions that may exist before and after the installation of this material. Slate and quarry tile floors will typically have variations in the surface, and when new, small pieces may flake off. As well, the finish will vary in color, shading, veining and/or marbling, and the tiles will vary in size slightly from the designated 12” x 12” measurement. There are also variances in the thickness of each tile that will result in an uneven surface. Some tiles may be “higher” than others, a condition especially noticeable on floor installations. The grout joint between marble tiles will be 1/8” to 1/4" due to variations in the tiles.

Marble is not a fire-glazed product as are most ceramic tiles. The surface is softer and therefore susceptible to scratches or nicks. In any installation you will notice existing scratches, which are unavoidable due to the packing, installation, and grouting processes, this is normal and not considered a defect.

As marble is processed, it may have some areas on the surface that have been filled. This filler is not a defect and may exist in the finished product.

Buyer is responsible for sealing slate, granite and quarry tile.

Garage Door.

Warranty: The garage door should operate smoothly and with reasonable ease. The door can become misaligned and require adjustment, which Seller will provide unless the problem is caused by the installation of a garage door subsequent to closing on the Home.

Warranty One (1) year after the Commencement Date

Period:

Specific Garage overhead doors cannot be airtight and typically some light will be visible

Exceptions: around the edges and across the top of the door.

Lot Grading.

Warranty: Maintenance of the final grade established by Seller is Buyer’s responsibility and is not covered by this Warranty. Homeowner must not proceed with any landscaping until final grade is established and certified by Seller.

Gutters and Downspouts.

Warranty: Seller warrants the gutter and downspout drainage system (if applicable) to be free of significantly defective construction and materials.

Warranty One (1) year after the Commencement Date

Period:

Specific Gutters are installed level for aesthetic reasons and therefore water may stand in

Exceptions: them after a rain. The purpose of the gutter is to channel the bulk of water from the roof to the downspout. A small amount of water may run off the roof or between the gutter and the fascia board. These are normal conditions and no repair is needed.

Hardware.

Warranty: Doorknobs and locks should operate correctly. Some slight adjustment may be needed due to normal shrinkage of the framing; these will be made by Seller once during the Warranty period.

Finishes on all hardware will be covered for the first forty-five (45) days after the Commencement Date for defects in brass plating, provided correct cleaning practices have been used.

Warranty One (1) year after the Commencement Date for adjustments to doorknobs

Period: and locks. Forty-five (45) days after the Commencement Date for finishes on hardware.

Heating System.

Warranty: Heating systems will be installed in accordance with local building codes, as well as engineered designs for the particular floor plan. Adequacy of the system is determined by its ability to establish a temperature of 70 degrees, as measured in the center of the room, five (5) feet above the floor. Although the heat system is not a sealed system, the ductwork should remain attached and securely fastened. If it becomes unattached it will be repaired as needed.

Warranty One (1) year after the Commencement Date

Period:

Specific It is normal for temperatures to vary from room to room or between first and

Exceptions: second floors. This is the result of wind direction, sunlight, landscaping exposed windows, and other factors.

The furnace will typically operate more frequently but for shorter periods of time during severe cold spells.

When new, it is normal for a new heating system to emit a slight amount of smoke when it is first turned on or an odor after an extended period of not being used (such as after the summer months if you do not use air conditioning). This is caused by dust that has settled in the ducts and should pass very quickly; such occurrences may activate the smoke detector. If this condition is extreme or persists, a professional should check the furnace.

Expansion or contraction of metal ductwork will typically result in some ticking or popping sounds. It is not possible to eliminate these sounds.

The exact placement of heat ducts may vary slightly from those positions shown in the models or on blueprints.

Landscaping.

The landscaping provided with the Home is not warranted.

Paint.

Paint will gradually change color with time, as no paint is completely color-stable when exposed to light, air and varying temperature and humidity. Seller does not warrant against such color change.

Seller will touch up paint only if noted on the walk-through inspection list during the walk-through inspection. Buyer is responsible for all subsequent touch-ups unless provided as part of another Warranty repair. Paint touch-ups, whether performed by Seller or Buyer, are sometimes visible under certain lighting conditions and this is not covered by this warranty.

Due to wood characteristics, color variation will result when stain is applied. There will be no repair or replacements because of such variations.

Fading of exterior paint can be expected due to the effects of sun and weather. No action will be taken for this normal occurrence.

Wood trim will develop some minor cracks and raised grain as it ages and dries. Much of this will occur during the first year. Raised grain can result in peeling paint; however, this is not due to a defect in materials or workmanship. Paint maintenance of wood trim and gutters is Buyer’s responsibility and is not covered by this Warranty.

Wood trim painted white or light colors will more readily show grain or cracks. Seller does not provide correction for this condition.

Plumbing.

Warranty: All drains and sewer lines should operate freely. Proper care is within the control of Buyer; therefore, Seller will correct obstructions that occur only during the first sixty (60) days after the commencement Date. Following that, correction of clogged drains will be Buyer’s responsibility.

Leaks in the plumbing system during the sixty (60) day period after the commencement Date will be repaired. If a plumbing leak caused by a warranted item results in drywall or floor covering damage, this will be repaired matching the original condition and finish as closely as possible. No adjustments will be made for secondary or incidental damages (i.e., wallpaper, drapes, personal belongings, etc.).

Seller warrants the sewer system connecting the Home to central sanitary sewer lines to be free of significantly defective construction and materials for a period of sixty (60) days after the Commencement Date.

Consistent “water hammer” will be repaired.

Warranty Sixty (60) days after the Commencement Date

Period:

Specific Changes in temperature or the flow of the water itself will cause some noise in Exceptions: the pipes. This is normal and requires no repair. Temperature variations should

be expected if water is being used in more than one location. Hot water will take a bit longer to reach baths that are farthest away from the hot water tank.

Rough Carpentry.

Warranty: Wood floors will be level to within 1/4” in any 32 distance. Walls that are out of plumb more than 1/2" in an 8’ distance will be corrected. Walls that are bowed more than 1/4" in a 32’ distance will be corrected.

Warranty One (1) year after the Commencement Date

Period:

Specific Floor squeaks are unavoidable; Seller does not warrant against floor Exceptions: squeaks. Floors will deflect when walked on. This will be more noticeable next

to hutches, bookcases, chairs, etc. This is not a structural deficiency and is not covered by this Warranty.

Roof.

Warranty: Roof leaks other than those caused by severe weather, such as hail damage, or Buyer activity will be repaired. Roof repairs are only made when the roof is dry.

Warranty One (1) year after the Commencement Date

Period:

Specific Spaces between wood shakes or tile are required by code and some flashing will

Exceptions be visible. Roofs, regardless of the finish material used, are not made to walk on. Walking on the roof will void the Warranty.

Ice Dams: Where roof gutters are used on a house, sudden freezing of any waters standing in these gutters may create the build-up of an ice dam. Subsequent melting on the roof side of this ice dam can cause leakage underneath the shingles and damage to interior walls. It is important that you inspect for this condition as often as possible.

Siding.

Warranty: Some shrinkage of siding is to be expected; however, if gaps in excess of 1/4" appear, Seller will caulk and apply touch-up paint. This will be performed one time only, near the end of the first year after the Commencement Date.

Warranty One (1) year after the Commencement Date

Period:

Specific Paint touch-up may not match exactly. Slight “waves” can be seen in siding

Exceptions under certain weather conditions – this cannot be entirely eliminated. Nails are not “set” when siding is installed; this is in accordance with manufacturer’s directions.

IV. Exclusions from Coverage.

A. Consumer Products. This Warranty does not cover any appliance, piece of equipment or other item which is a “Consumer Product” for purposes of the Magnuson-Moss Warranty Act, 15 United States Code Section 2301, et seq. You must make claims directly to the supplier or manufacturer under those warranties if there are defects in consumer products covered by those warranties. You should be aware that some consumer product warranties start when the deed conveying the Home to you is recorded or when you first occupy the Home, whichever comes first. You should review the consumer product warranties, which you receive and make yourself aware of when such warranties start and end. (Please note that some consumer products may not have consumer warranties provided by the manufacturer). Seller hereby assigns to you any and all rights Seller may have under any original manufacturer's warranties covering any consumer products in the Home.

Following is a partial list of consumer items that are NOT covered by this Warranty. (Your home may not have all of the consumer items listed below or it may have other similar items not listed below.)

Air Conditioning Unit Audio System Barbecue

Bathroom Fixtures Central Vacuum Cooktops

Dishwasher Doorbell Ejector Pit

Electric Meter Exhaust Fans Faucets

Finish Hardware Fire Alarm Fire Sprinkler Heads

Fire Extinguisher Fireplace Flooring

Freezer Furnace Garage Door Opener/Keypad

Garbage disposal Gas Meter Ice Maker

Intercom Kitchen Fixtures Light Fixtures

Landscape Sprinklers/Controls Landscaping Microwaves

Mirrors Ovens Oven Hood

Plumbing Fixtures Range Refrigerator

Roofing Shingles Smoke Detector Space Heater

Speakers Sump Pump Thermostat

Trash Compactor Vacuum System Washer/Dryer

Water Heater Water Meter Water Pump

Whirlpool Bath Windows Wine Storage

B. General Exclusions from Coverage. This Warranty does not cover the following:

(i) Damage due to ordinary wear and tear;

(ii) Damage caused by Buyer or Buyer’s guests, tenants or invitees or by any other third party, including, without limitation, lack of homeowner maintenance, homeowner’s failure to take appropriate action to prevent further damage, homeowner’s failure to notify Seller of any defect or damage within the lesser of fifteen (15) days or such shorter period as will avoid worsening of the defect or damage, abuse of the Home or property, or use of the Home or property in a manner for which they are not intended (including, without limitation, failure to use the sprinkler system properly and damage to the driveway or other flatwork caused by heavy trucks, heavy machinery or other unusual loads.

(iii) Damage normally covered by a standard homeowner’s insurance policy.

(iv) Damage caused by natural catastrophes, acts of nature or acts of God, including, without limitation, freezing, ice buildup, build up of leaves, debris or animal droppings, fire, smoke, explosion, water escape, flood, wind, wind-driven rain, hail, lightning, earthquake, earth movement, and falling trees, or power surges or other similar circumstances outside of Seller’s control. Without limiting the foregoing, Seller does not warrant that air infiltration or drafts around doors, windows and electrical outlets, especially during severe weather and high winds, will be eliminated, nor does this Warranty cover the failure of windows to perform or leak due to wind driven rain exceeding 35 miles per hour or clogged weep holes or tracks.

(v) Damage caused by animals, birds, vermin, rodents, insects (including termites or pets).

(vi) Damage resulting from any changes to the grading or drainage pattern of the property after the close of escrow. If you or any contractor you hire make changes to the grade of the lot (for example, by installing a pool or backyard landscaping), or otherwise modify the drainage pattern of your lot, the warranty regarding lot grading and drainage will no longer apply. If you connect additional drain lines to an underground drainage system installed by Seller, the warranty on that system will terminate.

(vii) Damage resulting from expansion, subsidence or lateral movement of the soil.

(viii) Defects caused by materials furnished, or any work or alterations performed, by anyone other than Seller.

(ix) Any part of the Home, structural or otherwise, that is modified by or added to in any way, including attempted repair, by anyone other than Seller, is excluded from this Warranty. Any modification or addition performed by anyone other than Seller that adversely affects any warranted item will void the Warranty for that item.

(x) Non-structural cracks equal to or less than 1/8” in width in masonry walls and veneers and non-structural cracks in concrete that has floor covering if the cracks rupture the floor covering. Such cracks are not unusual in such surfaces and frequently occur due to the normal settling of a home.

(xi) Non-structural cracks equal to or less than 3/8” in width or 1/4" in vertical displacement in concrete that does not have floor covering (i.e., garage floors, patios, walkways and driveways). Such non-structural cracks are not unusual in such surfaces and frequently occur due to normal settling.

(xii) Cracks equal to or less than 1/8” in width in drywall. Such cracks are not unusual in such surfaces and frequently occur due to normal settling of a home.

(xiii) Cracks in ceramic tile joints or at junctions with other materials, such as a bathtub. These cracks are common due to normal shrinkage.

(xiv) Wood cracks or minor openings of wooden joints such as in panel doors, mitered casings and solid paneling, and interior drywall cracks around windows and sills. Such cracks and openings are generally caused by normal shrinkage during the drying out process of the wood and may be mitigated with proper maintenance, including caulking.

(xv) Fading, chalking, chipping or flaking of outside paint or other exterior finishes caused by the sun, soil or weather.

(xvi) Variations in grain, color and natural voids are normal in all types of wood products and are not covered by this Warranty. Similarly, porcelain, tile, flooring, natural stone, grout and concrete are subject to natural color and manufacturing dye lot variations, and natural stone is subject to naturally caused scratches, crazing and fissures and variations in shading, veining, chipping, joint sizing and thickness, and these variations are not covered by this Warranty. Natural stone is unique and will look different from the sample from which your selection was made. In addition, granite and marble slabs may vary in size and seams may vary in location and number.

(xvii) Condensation that accumulates between the panes of glass in dual-glazed windows indicates a broken seal. Window seals are warranted by the manufacturer only and are not covered under this Warranty. Condensation on interior surfaces of the window and frame is the result of high humidity in the home and low outside temperatures and is not covered by this Warranty, nor is damage caused by applying any film or tint to windows.

(xviii) Special, incidental or consequential damages of any kind (including, but not limited to, damages for emotional distress or loss of wages) arising from any defect, whether or not such defect is covered by this Warranty, by any other warranty or otherwise (including, without limitation, lodging, meal or transportation expenses incurred by Buyer while a defect exists or is being repaired or secondary damage to wallpaper, drapes or personal belongings).

(xix) Special, incidental or consequential damages of any kind (including, but not limited to, damages for emotional distress or loss of wages) arising from the failure of any third party service provider (i.e., utility company, telephone company or cable company) to provide its particular service, including, without limitation, lodging, meal or transportation expenses incurred by Buyer while such service is interrupted.

(xx) Personal property damage or bodily injury.

(xxi) Any condition which does not result in actual physical damage to the Home including, but not limited to, inhabitability or health risk due to the presence or consequence of unacceptable levels of radon gas, formaldehyde, electric and magnetic fields, carcinogenic substances, dust, or other pollutants and contaminants, noise, unpleasant odors, or the presence of hazardous or toxic on-site materials.

V. Waiver of Implied Warranty of Habitability

A. Illinois Law. That the Implied Warranty of Habitability under Illinois law applies to any and every agreement for the purchase of new property, as here, the Implied Warranty carries with it a warranty that, when completed, the property shall be free of defects and will be fit for its intended use as a home. The law further provides that this Implied Warranty not be in writing to be part of the agreement, and covers not only structural and mechanical defects as may be found in the foundation, roof, masonry, heating, electrical and plumbing systems, but also provides that a contract, Seller or buyer may agree in wiring as here, that the Implied Warranty is not included as part of this particular agreement.

B. Waiver and Disclaimer. SELLER HEREBY EXPRESSLY DISCLAIMS THE IMPLIED WARRANTY OF HABITABILITY CREATED BY THE ILLINOIS CASE OF PETERSEN V. HUBSCHMAN CONSTRUCTION COMPANY, INC., AND ANY OTHER STATUTORY OR COMMON LAW IMPLIED WARRANTY OF HABITABILITY. THE CONSEQUENCE OF SUCH DISCLAIMER BY SELLER IS THAT SELLER’S SOLE AND EXCLUSIVE WARRANTY GIVEN TO PURCHASER IN CONNECTION WITH THE AGREEMENT IS THE 1-YEAR LIMITED WARRANTY. PURCHASER’S INITIALS ADJACENT TO THE PARAGRAPH ARE INTENDED AS AND SHALL BE EVIDENCE OF THE PURCHASER’S ACCEPTANCE OF THIS WAIVER AND DISCLAIMER.

C. Implied Warranty. THAT PURCHASER ACKNOWLEDGES AND ACCEPTS THAT THIS 1 YEAR LIMITED WARRANTY EXCLUDES ALL IMPLIED WARRANTIES AND EXCLUDES CONSEQUENTIAL AND INCIDENTAL DAMAGES. THIS LIMITED WARRANTY IS THE ONLY WARRANTY THAT CONTRACTOR GIVES. IMPLIED WARRANTIES, INCLUDING THE WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, MERCHANTABILITY AND HABITABILITY ARE HEREBY DISCLAIMED BY CONTRACTOR AND WAIVED BY CONTRACTOR AND WAIVED BY PURCHASER.

VI. Mold Notice, Disclosure and Disclaimer.

A. Mold. Mold is a type of fungus. It occurs naturally in the environment, and it is necessary for the natural decomposition of plant and other organic material. It spreads by means of microscopic spores borne on the wind, and is found everywhere life can be supported. Residential home construction is not, and cannot be, designed to exclude mold spores. If the growing conditions are right, mold can grow in your home. Most homeowners are familiar with mold growth in the form of bread mold, and mold that may grow on bathroom tile.

In order to grow, mold requires a food source. This might be supplied by items found in the home, such as fabric, carpet or even wallpaper, or by building materials, such as drywall, wood and insulation, to name a few. In addition, mold growth requires a temperate climate. The best growth occurs at temperatures between 40 F and 100 F. Finally, mold growth requires moisture.

Moisture is the only mold growth factor that can be controlled in a residential setting. By minimizing moisture, a homeowner can reduce or eliminate mold growth.

Moisture in the home can have many causes. Spills, leaks, overflows, condensation, and high humidity are common sources of home moisture. Good housekeeping and home maintenance practices are essential in the effort to prevent or eliminate mold growth.

B. Consequences of mold. Not all molds are necessarily harmful, but certain strains of mold have been shown to have adverse health effects in susceptible persons. The most common effects are allergic reactions, including skin irritation, watery eyes, runny nose, coughing, sneezing, congestion, sore throat and headache. Individuals with suppressed immune systems may risk infections. Experts disagree about the level of mold exposure that may cause health problems, and about the exact nature and extent of the health problems that may be caused by mold. As of the date of this Agreement, The Center for Disease Control has not identified a link between the presence of toxic mold and serious health conditions.

C. What the Homeowner can do. The homeowner can take positive steps to reduce or eliminate the occurrence of mold growth in the home, and thereby minimize any possible adverse effects caused by mold. These steps include the following:

1. Regular vacuuming and cleaning will help reduce mold levels. Mild bleach solutions or most tile cleaners are effective in eliminating or preventing mold growth.

2. Keep the humidity in the home low. Vent clothes dryers to the outdoors. Ventilate kitchens and bathrooms by opening the windows, by using exhaust fans, or by running the air conditioning to remove excess moisture in the air, and to facilitate evaporation of water from wet surfaces. During the heating season, an indoor humidity level below 40% will prevent condensation in homes. During periods of very cold weather (less than 25°) a humidity level of 25% or less must be maintained.

3. Promptly clean up spills, condensation and other sources of moisture.

4. Thoroughly dry any wet surfaces or material. Do not let water pool or stand in your home. Promptly replace any materials that cannot be thoroughly dried, such as drywall or insulation.

5. Inspect for leaks on a regular basis, look for discolorations or wet spots. Repair any leaks promptly. Take notice of musty odors, and any visible signs of mold.

6. Should mold develop, thoroughly clean the affected area with a mild solution of bleach. First, test to see if the affected material or surface is color safe. Porous materials, such as fabric, upholstery or carpet should be discarded. Should the mold growth be severe, call on the services of a qualified professional cleaner.

D. Disclaimer and Waiver. IN ORDER TO PREVENT MOLD GROWTH IN A HOME IT IS ENTIRELY UP TO THE HOMEOWNER TO PROPERLY MANAGE AND MAINTAIN THE HOME. THE HOMEBUILDER CANNOT ELIMINATE THE POSSIBILITY THAT MOLD AND OTHER FUNGI MAY GROW IN YOUR HOME. THE CONTRACTOR SHALL NOT BE LIABLE FOR ANY DAMAGES CAUSED BY MOLD, OR BY SOME OTHER FUNGUS OR AGENT, THAT MAY BE ASSOCIATED WITH ALLEGED DEFECTS IN CONSTRUCTION, INCLUDING BUT NOT LIMITED TO PROPERTY DAMAGE, PERSONAL INJURY, LOSS OF INCOME, EMOTIONAL DISTRESS, DEATH, LOSS OF USE, LOSS OF VALUE, ADVERSE HEALTH EFFECTS, OR ANY OTHER EFFECTS.

VII. Procedures for Warranty Claims.

A. Scheduled Service Program. In order to effectively and efficiently serve you, Seller has established a program of regularly scheduled service at two (2) defined points of your first year of occupancy. We have found it less disruptive of your own schedule and our building schedule to schedule tradesman after receiving your thirty (30) day and eleven (11) month Warranty Service Requests. You will be provided the (30) day and (11) eleven month dates at the New Home Orientation at which to submit your service requests. We request that you prepare and submit your service requests as defined by thirty (30) days and eleven (11) months after your closing date. This service program has been established as the most effective method of expediting all Seller homebuyer Service Requests with the immediate attention they deserve. For non-emergency items that may occur, we respectfully ask that you wait until your next scheduled service date before requesting service. Please do not put us in a position to deny an unscheduled service request.

Seller has set up the following schedule for you to receive service on your new home:

Thirty days after Move-In: To verify that all items have been completed after your new home orientation and to make any adjustments to concerns that may have been noticed during the first weeks of living in your new home.

Eleven Months after Move-In: To address and make adjustments that might be necessary after one complete cycle of seasons. Also, your new home warranty for workmanship and materials is for one year only. We want to make sure that any concerns are addressed and identified. We will also examine portions of your warranty that will continue.

B. Making a Claim. Requests for performance of any obligation asserted under this Warranty (“Requests”) must be in writing, made within the applicable warranty period, must state the problem clearly, and identify your community, homesite, street address and your home and work phone number. The mailing address of Seller for the purpose of this Warranty is as follows:

ATTN: Warranty / Service Department

«BuyerSubdivision»

2056 Westings Avenue, Suite 140

Naperville, Illinois 60563

In an “Emergency”, which shall mean shall any defect which would lead to substantial additional damage to the Home or property if not repaired within forty-eight (48) hours, Requests are to be made directly to the sub-contractor if the Emergency occurs after hours or during a weekend. If the Emergency occurs between 8:00 am and 5:00 pm, Monday through Friday, Requests will be made by telephone to a representative of Seller’s Customer Service Department. The telephone number for Seller’s Customer Service Department is 630.579.9667.

Sales personnel and field construction personnel are not authorized to receive warranty concerns.

C. Response to Requests. Upon receipt of a Request, the Customer Service department will investigate the Request and determine whether or not it is covered by this Warranty. If the Request is covered, Seller shall decide, in its sole and absolute discretion, to either (i) repair the damage, (ii) replace the damaged item, or (iii) pay Buyer the reasonable cost of repairing or placing the damaged item. Seller will not be obligated to incur aggregate costs under this Warranty in excess of the purchase price of the home, less the lot value.

In the event Seller incurs expenses to repair an item not covered by this Warranty (e.g., removal of clogs in drains caused by Buyer), Seller will charge Buyer for such repairs. Prior to the payment by Seller to the Buyer of the reasonable cost of repair or replacement of warranted items, and upon completion of repair or replacement by Seller of a warranted item, Buyer will be provided with a release form to be signed by buyer acknowledging that Seller has completed the repair or replacement of the warranted item and releasing Seller from further obligation for that item. Buyer agrees that if Seller repairs, replaces or pays Buyer the reasonable cost to repair or replace a warranted item, Buyer will assign to Seller any claims of Buyer against other persons or entitles related to that item. Seller’s responsibility under the Warranty is solely to restore the home or property to the condition existing immediately prior to the time the defect occurred.

Seller shall have the sole right to determine the materials and methods to be used in making any repairs or replacement provided all repairs will be made with materials or components reasonable equivalent to the materials or components used in the original construction of the damaged element of the item. Buyer acknowledges that in the event of repairs or replacements involving paint, stain, stucco, tile, marble, grout, caulking, wood, resilient flooring and carpeting, Seller does not warrant that the replacement or repair will match the color, grain or pattern of the original item. Seller shall not be responsible for discontinued patterns or colors, nor shall Seller be responsible for repair or replacement outside of the immediately affected area. For example, if there is a defect in the vinyl flooring in one room of the home, Seller will not be responsible to repair or replace the vinyl flooring in any other room of the home unless there is also a defect in the vinyl flooring in that other room. If Seller elects to repair or replace the damaged item, Seller shall have sole and absolute discretion to choose the subcontractors used for such repair or replacement work.

Seller has no obligation to reimburse Buyer for work done by Buyer or for amounts paid by Buyer to repairman or subcontractor, which have not been pre-approved, in writing, by Seller’s Customer Service Department. However, in the event of damage caused by a defect which constitutes an Emergency, if Buyer can reasonably demonstrate that Seller could not be contacted by Buyer despite buyer’s diligent efforts, Seller will reimburse Buyer for the reasonable and actual costs of repairing or replacing the damaged item, without pre-approval of the repairmen or subcontractors performing the work, provided Buyer notifies Seller in writing within 48 hours of such emergency.

Seller intends to fulfill its obligations covered by this Warranty within thirty (30) days of Seller’s determination that the Request is covered by this Warranty, provided that Buyer cooperates with Seller in Seller’s performance of the repair or replacement. The foregoing is only an estimate. Buyer acknowledges that the thirty (30) day period for certain covered repairs or replacements may be required to be extended for circumstances beyond the reasonable control of Seller, such as strikes, labor or material shortages, unsuitable weather conditions, the unavailability of parts, the magnitude of the repair or replacement required, or delays caused by subcontractors or suppliers. In no event will Seller be liable for any special, incidental or consequential damages arising out of the performance of its obligations under this Warranty.

Warranty work will be performed during normal business hours of 9:00 am to 3:00 pm, weekdays, subject to the availability of labor and material. Buyer must be present or arrange to have a responsible adult present when Warranty work is performed inside the home. Buyer acknowledges that failure to provide Seller access to the Home to inspect and, if required, to repair any alleged defect or warranty item shall be deemed a breach by Buyer and/or a relinquishment of any and all rights under this Warranty.

VIII. General Provisions.

A. Information Materials do Not Create Warranty Liability. Buyer understands and agrees (1) that any advertisement, brochure, information guide or other information material covering the care and maintenance of the home or any stated or implied warranty contained therein is not and shall not be deemed to be a warranty by Seller to Buyer, and (2) that the sole and exclusive terms of any warranty of the Home from Seller to Buyer is set forth in this Warranty.

B. Variation of Home from Model. Homes currently being constructed often differ from model homes due to the availability of material and products, decisions by Seller to incorporate different materials and products, and changes in design due to consumer demand, local government requirements and other considerations. Seller reserves the right to make changes in the plans, specifications, materials and products to be incorporated in its homes. Seller cannot and does not promise or represent to Buyer that the Home and its components, including