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Perry Homes Express Limited Warrantysecond anniversary of the date of discovery of the alleged construction defect but in no event later thanninety days following the expiration of the applicablewarranty period stated in Section 1.2(a) of this Warranty, and not later than the thirtieth day after thetenth anniversary of the date of the initial transfer oftitle from Perry Homes to the initial Homeowner ofthe Home.bring the variance within the Performance Standard.(B) The Homeowner shall notify Perry Homes ofa known construction defect not later than thesecond anniversary of the date of discovery ofthe construction defect or not later than ninetydays following the applicable warranty periodprovided in Section 1.2 of this Warranty and notlater than the thirtieth day after the tenth anniversary of the date of the initial transfer of title fromPerry Homes to the initial Homeowner of theHome.(2) Repair of a Construction Defect. Any repair shallbe in accordance with usual and customary buildingpractices or as agreed by the Parties.(3) Repair Condition. In connection with a repair of aconstruction defect, any repairs performed by PerryHomes will include those components of the Homethat have to be removed or altered in order to repairthe construction defect. Repair shall be made so thatthe condition is returned to its condition as it existedat the time immediately preceding the constructiondefect and in accordance with Subsection 1.1(e)(4) ofthis Warranty.(6) Specialty Feature. Notwithstanding a PerformanceStandard stated in this Warranty, a Specialty Feature,which is work performed or material supplied incident to certain design elements shown on the construction plans and specifications and agreed to inwriting by Perry Homes and the Homeowner, shall bedeemed to be compliant with the Performance Standards stated in this Warranty so long as all items arecompliant with the Code.(4) Finish. Surfaces altered incident to any repair willbe finished or touched up to match the surroundingarea as closely as is reasonably practical. In connection with the repair of finish or surface material, suchas paint, wallpaper, flooring or a hard surface, PerryHomes will match the standard and grade as closelyas reasonably possible. Perry Homes will attempt tomatch the finish, but will not be responsible for discontinued patterns or materials, color variations orshade variations. When the affected surface finishmaterial must be replaced and the original materialhas been discontinued, Perry Homes is responsiblefor installing replacement material substantially similar in appearance to the original material for the affected area, not full replacement.(f) Exceptions and Exclusions from Perry Homes' Responsibilities.(1) Perry Homes is not responsible for repair, loss ordamage to a component or that part of a componentof a Home caused by or made worse by any of thefollowing:(A) Work performed or material supplied incident to construction, modification or repair to thehome performed by anyone other than PerryHomes or persons providing work or material atthe direction of Perry Homes.(B) The negligence, improper maintenance, misuse, abuse, failure to follow manufacturer's recommendations, failure to take reasonable actionto mitigate damage, failure to take reasonable action to maintain the residence or other action orinaction of anyone other than Perry Homes orpersons providing work or material at the direction of Perry Homes.(5) Manufactured Products. Perry Homes shall installall Manufactured Products in accordance with eitherthe manufacturer's instructions and specifications or amethod or means approved by a professional engineer.(A) Perry Homes shall use only new Manufactured Products and parts unless otherwise agreedin writing by the Parties. If Perry Homes did notinstall a Manufactured Product in accordancewith the manufacturer's specifications or usenewly manufactured parts as required, PerryHomes shall take such action as is necessary to(C) Failure of the Homeowner to comply with theHomeowner's Responsibilities as set forth inSubsection 1.1(g) or as may be stated separatelyelsewhere in this Warranty.4

Perry Homes Express Limited Warranty(D) Alterations to the grade of the soil that arenot in compliance with original construction, thefinal survey, the Code, or applicable governmental regulations.(P) Homeowner delay in reporting a known construction defect or failing to take reasonable action necessary to prevent further damage to theHome.(E) Normal wear and tear or normal deteriorationto any component of the Home.(Q) For remodeling projects, improvements, alterations or additions to an existing residencewhere the Performance Standard cannot beachieved due to an existing condition.(F) Extreme Weather Conditions.(G) Riot, civil commotion, war, terrorism, vandalism, aircraft, vehicle, boat, or other “acts ofGod”.(R) Abuse or misuse of a Home component orManufactured Product by anyone other than Perry Homes or persons providing work or materialat the direction of Perry Homes.(H) Fire, smoke or water damage unless such lossor damage is a direct result of a construction defect.(2) No Actual Physical Damage. Perry Homes shallnot be responsible for any condition that does not result in actual physical damage to the Home, including, but not limited to the presence of radon gas, formaldehyde or other pollutants or contaminants, or thepresence or effect of mold, mildew, toxic material, orvolatile organic compound, unless such condition is adirect result of a construction defect.(I) Change in the underground water table thatexerts pressure on, seeps, or leaks under theHome, sidewalk, driveway, foundation or otherstructure or causes subsidence or sinkholes.(J) Erosion or accretion of soils unless such lossor damage is a direct result of a construction defect.(g) Homeowner's Responsibilities.(1) Home Maintenance. Maintenance of the Homeand the lot on which the Home is located are essentialto the proper functioning of the Home. The Homeowner is responsible for maintenance of the Homeand the lot on which it is located. The Homeowner isresponsible for maintenance items described in thisParagraph and those maintenance items identifiedseparately in the Performance Standards set forth inthis Warranty. Additionally, the Homeowner is responsible for ongoing maintenance responsibilitiesthat affect the performance of the Home but that maynot be expressly stated in this Warranty. Such ongoing maintenance responsibilities include, but are notlimited to, periodic repainting and resealing of finished surfaces as necessary, caulking for the life ofthe Home, stucco maintenance, regular maintenanceof delivery systems, regular replacement of HVACfilters, cleaning and proper preservation of gradingaround the Home and drainage systems to allow forthe proper drainage of water away from the Home.(K) Insects, bees, birds, bats, rodents, vermin orother wild or domestic animals unless such lossor damage is a direct result of a construction defect.(L) The quality and potability of water unlesscaused by a construction defect, regardless of anyprevious, current or future relationship betweenPerry and the water board, municipal utility district, or other similar organization responsible forthe quality or potability of water.(M) While the Home or an affected portion ofthe Home is being used primarily for nonresidential purposes.(N) Use for which the Home or a component ofthe Home was not designed.(O) Use of any component of the Home that exceeds the normal design loads, capacity, or intended/expected use prescribed by any Code, anengineer of record, permit, or other establishedstandard.(2) Manufactured Products. The Homeowner shalluse and perform periodic maintenance on all Manufactured Products according to the manufacturer's instructions and specifications. The misuse, abuse, neglect or other failure to follow manufacturer's specifications with regard to Manufactured Products may5

Perry Homes Express Limited Warrantyvoid the manufacturer's warranty, or this Warranty, ifany.maintenance, and the effect of any addition on theHome, including, but not limited to, the addition of:swimming pools, spas, flatwork, conversion of attics,garages, or storage spaces into living space.(3) Landscape Planting. The Homeowner shall takemeasures to prevent landscaping materials or plantsfrom contacting the exterior surface of the Home andfrom interfering with the proper drainage of wateraway from the foundation. The Homeowner shouldnot improperly alter the proper drainage pattern orgrade of the soil within ten feet of the foundation sothat it negatively impacts the Home's performance orfails to comply with the Code or this Warranty.(h) Customer Service Request.(1) Requests for warranty service should be submittedin writing to the Customer Service Department. Requests may be submitted online by completing a stepby-step form found in the “Warranty” section ofwww.perryhomes.com.(4) Swimming Pools or Spas. The Homeowner shalltake measures to prevent swimming pools or spasfrom interfering with the proper drainage of wateraway from the foundation. The Homeowner shouldnot improperly alter the proper drainage pattern orgrade of the soil within ten feet of the foundation sothat it negatively impacts the Home's performance orfails to comply with the Code or this Warranty.(2) All warranty work will be scheduled at a time during business hours (Monday through Friday 7:30 amto 5:30 pm) when the Homeowner can be at Home, orthe Home is otherwise made available.(3) If you have a problem with a Manufactured Product, such as an appliance or a mechanical system, including air conditioning, electrical or plumbing, weask that you first call the telephone numbers you received on your Closing Procedures Sheet. The manufacturers of these products offer their own warranties,which may exceed this Warranty, and their installerswill coordinate directly with you to resolve any issues.(5) Humidity or Dryness in the Home. The Homeowner should take the following actions to preventExcessive moisture accumulation by:(A) properly using ventilation equipment;(B) preventing Excessive temperature fluctuation; and(4) If you have an emergency condition with yourHome that presents an imminent danger or harm topersons or damage to property, you should contactemergency service personnel (e.g. fire department) orthe relevant utility provider (e.g., gas company, electric company, etc.), as appropriate. Perry Homesdoes not provide emergency response services.(C) taking any other action reasonably necessaryto avoid Excessive moisture, dampness, humidityor condensation in the Home that may lead todamage due to Excessive moisture or dryness.(6) Proper Maintenance and Care of Home Components. The Homeowner shall properly maintain eachcomponent of the Home including proper cleaning,care and upkeep of the Home. The Homeowner shalluse Home components for the purposes for whichthey are intended and shall not damage, misuse orabuse Home components.(i) Alternative Dispute Resolution.(1) MEDIATION. The Homeowner agrees thatany dispute involving the Warranty (includingany Dispute involving Perry Homes, Homeowner,their representatives, their contractors, suppliers,manufacturers, affiliates, the developer of theProperty, or any other provider of goods or services in connection with the Home (“Dispute”))shall first be submitted to mediation. The Partiesagree to split the mediation fee evenly. The Parties agree to cooperate to select a mediator in thecounty in which the Home is located or such otherlocation as may be agreeable to the Parties. Unless otherwise agreed by the Parties, any mediatormust have at least five (5) years of experienceserving as an arbitrator or mediator and shall(7) Self-Help. Upon observation of a circumstancethat may cause further damage to the Home or a component of the Home, the Homeowner shall take reasonable action necessary to prevent further damage tothe Home.(8) Additions to the Property. The Homeowner shallbe solely responsible for any addition to the Home after completion by Perry, including installation,6

Perry Homes Express Limited Warrantyhave technical expertise and knowledge appropriate to the subject matter of the Dispute. If theParties fail to agree on the selection of a mediator,either Homeowner or Perry Homes may requestthe appointment of a mediator by the AmericanArbitration Association.Subsection 1.1 and such rules or procedures,the provisions of Subsection 1.1 shall control.If for any reason the AAA is unable or unwilling to conduct the binding arbitration, eitherParty may petition a court of general jurisdiction in the subject county to appoint an arbitrator, and the filing of a petition requestingappointment of an arbitrator, or for a court toresolve a dispute concerning this provision,shall not constitute a waiver of the right to enforce binding arbitration.(2) MANDATORY ARBITRATION.THEPARTIES AGREE THAT ANY DISPUTE (INCLUDING ANY DISPUTE INVOLVING PERRYHOMES, HOMEOWNER, THEIR REPRESENTATIVES, THEIR CONTRACTORS, SUPPLIERS, MANUFACTURERS, AFFILIATES,THE DEVELOPER OF THE PROPERTY, ORANY OTHER PROVIDER OF GOODS ORSERVICES IN CONNECTION WITH THEHOME), IF NOT SETTLED DURING MEDIATION, SHALL NOT BE DECIDED BY OR IN ACOURT OF LAW BUT SHALL THEREAFTERBE SUBMITTED FOR FINAL RESOLUTIONTO BINDING ARBITRATION AS PROVIDEDBY THE FEDERAL ARBITRATION ACT (9U.S.C. §§ 1 ET SEQ.), OR THE APPLICABLESIMILAR STATE STATUTE IF THE FEDERALARBITRATION ACT DOES NOT APPLY. THISWARRANTY REQUIRES MANDATORY ARBITRATION OF DISPUTES. IF ANY PARTYCOMMENCES LITIGATION IN VIOLATIONOF THIS SUBSECTION, THAT PARTY SHALLREIMBURSE THE OTHER PARTIES TO THELITIGATION FOR THEIR COSTS AND EXPENSES (INCLUDING ATTORNEYS' FEES)INCURRED IN SEEKING ABATEMENT OFSUCH LITIGATION AND ENFORCEMENT OFARBITRATION. However, an unsuccessful motion or action to stay an arbitration proceedingbased on the position that it has been commencedafter expiration of limitations shall not waive anyParty’s right to have the underlying Dispute resolved by arbitration. All decisions respecting thearbitrability of any Dispute shall be decided by thearbitrator.(B) Homeowner will pay the lesser of either(a) up to 375 or (b) the amount required under the Home Construction Rules fee scheduleto initiate arbitration; Perry Homes will payall remaining filing fees. In no Dispute willHomeowner be required to pay more in filingfees, case service fees, arbitrator compensation, or other similar type fees for an arbitration proceeding conducted by a single arbitrator than the lesser of either (a) the amountpayable by “Homeowner” under the HomeConstruction Rules fee schedule or (b) 750.Perry Homes shall pay all other arbitratorcompensation, expenses and fees of arbitration for an arbitration conducted by a singlearbitrator.(C) Arbitration shall be conducted by a singlearbitrator; however, a Party may request apanel of 3 arbitrators within 14 days of receiving notice of the initiation of an arbitration proceeding. The Party requesting a panelof 3 arbitrators shall pay the entire cost associated with the additional arbitrators. In anyDispute subject to this Subsection 1.1, the Parties agree the arbitrator(s) may not consolidate the claims of Homeowner (or Partieswith claims by, through, under or derivativeof Homeowner) with claims of others and maynot otherwise preside over any form of a representative or class proceeding unless required by law. In any case involving multipleParties or consolidated claims, any Party mayrequire that a panel of 3 arbitrators decidethe case, including all preliminary and procedural issues. The Party making the requestfor additional arbitrators agrees to pay theentire cost associated with additional arbitrators.(A) Unless the Parties to the Dispute agreeotherwise, all arbitration proceedings pursuant to Subsection 1.1(i)(2) shall be administered in accordance with the rules of theAmerican Arbitration Association (“AAA”),applying the AAA rules, procedures, and protocols determined by the arbitrator to be mostapplicable to the nature of the Dispute, including, where applicable, the AAA’s HomeConstruction Rules (“Home ConstructionRules”). To the extent of any conflict between(D) Any arbitrator must have at least five (5)years of experience serving as an arbitrator or7

Perry Homes Express Limited Warrantymediator and shall have technical expertiseand knowledge appropriate to the subjectmatter of the Dispute. All mediation and arbitration fees and expenses are subject to being awarded by the arbitrator to the prevailing party, to the same extent that court costsmay be awarded under applicable law.(3) TRIAL TO THE COURT WITHOUT A JURY. IF MANDATORY ARBITRATION UNDERSUBSECTION 1.1(i) IS NOT ENFORCED, THEPARTIES AGREE THAT ANY DISPUTE BETWEEN THEM SHALL BE RESOLVED BY ACOURT OF COMPETENT JURISDICTION INTHE COUNTY WHERE THE HOME IS LOCATED WITHOUT THE USE OF A JURY.HOMEOWNER ACKNOWLEDGES THAT THERIGHT TO A TRIAL BY JURY IS A CONSTITUTIONAL RIGHT THAT MAY BE KNOWINGLY, VOLUNTARILY AND INTELLIGENTLY WAIVED BY HOMEOWNER. HOMEOWNER VOLUNTARILY, KNOWINGLY ANDINTELLIGENTLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLELAW, ANY RIGHT HOMEOWNER HAS TOSEEK A TRIAL BY JURY IN ANY LEGALPROCEEDING ARISING DIRECTLY OR INDIRECTLY OUT OF, OR IN ANY WAY RELATED TO, A DISPUTE.HOMEOWNERACKNOWLEDGES AND FULLY UNDERSTANDS THAT THE EFFECT AND CONSEQUENCES OF THIS WAIVER WILL PREVENTHOMEOWNER FROM HAVING THE ABILITYTO HAVE A JURY HEAR AND DECIDE ANYLEGAL OR FACTUAL DISPUTES AND PROCEEDINGS ARISING DIRECTLY OR INDIRECTLY OUT OF, OR IN ANY WAY RELATED TO, A DISPUTE. As valuable considerationfor Homeowner’s promises in this Paragraph, aswell as all other valuable consideration that isprovided for in this Warranty, Perry Homes reciprocally agrees to unconditionally waive itsrights, to the fullest extent permitted by applicablelaw, to have a trial by jury in any legal proceedingarising directly or indirectly out of, or in any wayrelated to a Dispute. In any Dispute subject to thisParagraph, the Parties agree not to request acourt to consolidate the claims of Homeowner (orParties with claims by, through, under or derivative of Homeowner) with claims of others or otherwise preside over any form of a representativeor class proceeding. In the event of litigation, thisWarranty may be filed by either Homeowner orPerry Homes as a written consent to trial by thecourt.(E) The arbitration award or decision is finaland may be confirmed, entered and enforcedas a judgment in a court having jurisdiction,subject to appeal only in the event of the arbitrator's manifest disregard of the law, no evidence to support the award, or such othergrounds for appeal of arbitration awards thatexist by statute, common law, regulation, orthe applicable rules of

Perry Homes Express Limited Warranty 2 § 1.1. General Provisions (a) Scope. This Perry Homes Express Limited War-ranty (“Warranty”) describes the minimum standards of performance for the various elements or compo-nents of a Home as described. If an element or compo-nent of a Home is not described particularly in thisFile Size: 6MB