STANDARDS OF CONSTRUCTION:
Subject to the terms and conditions contained herein, Contractor warrants that the work as specified in the construction plans and specifications shall be free from material defects in workmanship and/or materials under normal use and service as a single-family residence. Said home shall be constructed according to the standards set forth in “Residential Construction Performance Guidelines” by the National Association of Home Builders, Edition No.3.

ARBITRATION:
All claims and disputes arising out of or related to this Contract or to any defect in or to the subject structure or the real property on which it is situated or the sale of the subject property including, without limitation, any claim of breach of contract, negligence, or intentional misrepresentation or the inducement, execution or performance of any contract, including this arbitration agreement, and breach of any alleged duty of good faith and fair dealing shall be submitted to binding arbitration by and pursuant to the rules of Construction Arbitration Services (“CAS”) of the American Arbitration Association (AAA) in effect at the time of the requested information. Arbitration shall take place in Bellingham, WA, or a mutually-agreed place. All decisions of the arbitrator shall be final, binding, and conclusive on both Parties. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The losing Party shall bear all expense relating to any arbitration, except proceedings and appeals therefrom, including but not limited to the fees and expenses of the prevailing Party’s attorney and costs. The Parties agree that arbitration according to the terms of the Contract shall be the only method used by the Parties to effect resolution and settlement of claims and disputed arising out of or relating to the Contract, or the breach thereof, and that said claims and disputes shall not be submitted to or heard by any other entity.

CONTRACTOR LIMITED WARRANTY:
All expenses or implied warranties, including any oral or written statements of representations made by Contractor or any other person and any implied warranty of habitability, merchantability, or fitness are hereby disclaimed by Contractor and are hereby waived by Purchaser, except as herein provided. In addition, Purchaser waives the right to seek damages or other legal or equitable remedies from Contractor, Contractor’s subcontractors, agents. Vendors, suppliers, design professionals, and material men, under any other common law or statutory theory of liability including, but not limited to, negligence and strict liability. The only remedy of Purchaser in the event of a defect in or to the home or in or to the real property on which the home is situated is the coverage provided below. This waiver shall not be applicable to any express written warranty issued by the manufacturer of any appliance that is sold with the home. Contractor does hereby grant and issue this Warranty to Purchase in connection with construction of a home on the above-described lot and the same is accepted by Purchaser subject to the conditions set forth herein. This Warranty is the sole and exclusive Warranty given by Contractor to Purchaser and any implied warranties, including an implied warranty of workmanlike construction, an implied warranty of habitability, or an implied warranty of fitness of a particular use are hereby waived and disclaimed. Purchaser does hereby accept the Warranty contained herein as the sole and exclusive Warranty and does hereby waive any and all implied warranties. The Warranty contained herein shall expire one (1) year after the earliest of the following events:

A. Issuance of a Certificate of Occupancy: or,

B. Closing of the sale between Contractor and Purchaser.

Contractor agrees:

A. That Contractor will correct any defects due to faulty construction and/or

B. Defective materials, excluding normal wear and tear, brought to the attention in writing during the period of one (1) year from the date of issuance of a Certificate of Occupancy or closing of the sales transactions between Contractor and Purchaser whichever occurs first. Contractor shall not be responsible for any secondary damage (damage done to personal property and/or other materials or construction not originally supplied and installed by Contractor) caused by the defect and nothing contained herein shall be deemed to make Contractor an insurer of personal property of owner. This Warranty shall only be applicable to matters warranted herein and only if the defects are reported in writing before the end of the one (1) year warranty period.

C. The second (2nd) year the home is warranted that the electrical, plumbing, heating, cabling, and ventilation systems will be free of defects, excluding wells and septic systems. All extended warranties by suppliers of appliances, furnaces, hot water heaters, light fixtures, and windows (if any) will be transferred to the Purchaser.

D. Due to the requirement of maintenance by Purchaser and conditions beyond the control of Contractor, landscaping will not be covered by warranty or guarantee.

E. Contractor shall not be responsible for damages caused by the negligence of Purchaser or Purchaser’s agents, nor for damages caused by Acts of God.

F. Purchaser shall be responsible for normal and routine maintenance during the warranty period.

G. All repairs will be done in a workmanlike manner, but the techniques of repair will be totally determined by Contractor. Repairing any particular area or item does not mean the entire item or area will be replaced, repainted or resurfaced.

H. Any service or repair work requested by Purchaser and performed by Contractor or his agent that is not covered by this Warranty shall be billed to Purchaser at current industry rates. This will include “travel time” and “minimum charges” on any non-warranty service calls.

I. This Warranty is not transferable and is only for the benefit of Purchaser, only during Purchaser’s occupancy of the premises within the period of this Warranty.

J. Whether or not Purchaser experiences mold growth depends largely on how Purchaser manages and maintains the home. Contractor will not be responsible for any damages caused by mold, or by some other agent, that may be associated with defects in our construction, to include but not be limited to property damage, personal injury, loss of income, emotional distress, death, loss of use, loss of value, and adverse health effects, or other effects.

K. All legitimate items listed for repair on the pre-settlement “walk-through” will be completed by Contractor prior to occupancy by Purchaser, except if agreed in writing by both Parties. Sixty (60) days after occupancy, Purchaser and Contractor will perform a second “walk-through.” Prior to the end of the one-year warranty period, Purchaser should submit a “final punch list” on the Warranty form provided to Purchaser by Contractor. All warranted items on this list will be corrected within sixty (60) days of receipt of this “final punch list.” Purchaser is encouraged to wait until the end of the warranty period to submit this “final punch list” so that no items will be missed. Purchaser agrees to make Purchaser’s house available during normal working hours, Monday through Friday, for correction of any warranted items. Purchaser must be present during repair work and agrees to sign off each item on the punch list as it is completed. Should Purchaser fail to cooperate with Contractor in this Warranty program, Contractor’s warranty obligations shall de deemed satisfied by Contractor’s attempt to meet said warranty obligations.

L. First Opportunity to Correct Work: Purchaser cannot contract with any alternative contractor for the performance of completion of work, or claim a credit or back charge for the cost of completing any item stated on the written punch list, not occupy or use Contractor’s work until and unless Contractor shall have first been given reasonable notice and opportunity to correct the work stated on the punch list.

M. Purchaser’s Penalty for Failure to Provide Opportunity: If Purchaser does contract with an alternate contractor to perform the pickup work or otherwise complete the project without first affording the opportunity to Contractor to do so, or if Purchaser commences to use of occupy the space or work in which Contractor performed work, Purchaser then agrees to accept all work “as is” and thereby waives any claim against Contractor. Chapter 64.RCW (sections 1 through 7 of this act) contains important requirements Purchaser must follow before Purchaser files a lawsuit for defective construction against the Contractor or Seller of this home. Forty-five (45) days before Purchaser files Purchaser’s lawsuit, Purchaser must deliver to the Seller of Contractor a written notice of any construction conditions Purchaser alleges are defective and provide Purchaser’s Seller or Contractor the opportunity to make an offer to repair or pay for the defects. Purchaser is not obliged to accept any offer made by the Contractor or Seller. There are strict deadlines and procedures under State law, and failure to follow them may affect Purchaser’s ability to file a lawsuit.

N. In no event shall a liability of Contractor exceed the fair and reasonable cost of repair or replacement of the warranted defect.

O. Warranties are not given on materials furnished directly by Purchaser or work completed by Purchaser or Purchaser’s agents outside the contracts with Contractor.