Institute of Continuing Legal Education (ICLE)



This residential building contract (Contract), made [date], between [purchaser’s name], of [purchaser’s address] (Purchaser), and [builder’s name], a Michigan [type of entity], of [builder’s address] (Builder), for labor, material, and supervision in connection with the construction of a single-family home (Home), at the property identified as:

[Insert legal description and tax identification number if available]

more commonly known as [street address] (Property). Purchaser and Builder agree as set forth below:

Article I

Contract Documents

The following documents, construed together and in complimentary manner, form the Contract (Contract Documents):

1. This Contract and any addendum, exhibits, and warranties to the Contract that are attached and initialed to this Contract;

2. Architectural drawings job number [number], dated [date], prepared by [architect’s name] (Architect), consisting of [number] sheets;

3. Specifications dated [date], prepared by [name], as initialed by the parties to this Contract;

4. Applicable building codes;

5. Written change orders, as defined by this Contract; and

6. In the event of conflict between the Contract Documents, including the specifications, drawings, exhibits, addendum, or change orders, the most recent agreed-on revision to the specifications will apply.

Where this Contract is executed by Purchasers who are husband and wife, any subsequent modification approved by either husband or wife solely will be binding on both if accepted by Builder.

Pronouns and relative words used will be read as if written in singular or plural, masculine or feminine as necessary to fit the parties on this Contract.

Article II

Scope of Work

Builder agrees to finish all of the materials and perform all of the work required to construct on the premises of Purchaser described as a new single-family home that will be in accordance with the Contract Documents as defined by this Contract. Builder will pay for all permits necessary for the completion of the work done by Builder.

Article III

Purchase Price and Payments

Purchaser agrees to pay Builder the sum of $[amount] (Purchase Price) (subject to written change orders) to construct the Home in accordance with this Contract. On signing this Contract, Purchaser will pay Builder a deposit in the amount of $[amount] that will be applied to the Contract price. After, progress payments will be paid within 10 days from invoice, pursuant to the following schedule and terms, except for change orders, which will be paid as set forth in this Contract.

1. Payment schedule as follows:

| |Deposit—lot payoff |$[amount] |

| |Temporary drive, insurance, fencing, miscellaneous, etc. |$[amount] |

| |Basement, digging, foundation |$[amount] |

| |Backfill [(steel, lumber, tresses, TSI joist)—ordered] |$[amount] |

| |Balance through bank construction draws |$[amount] |

2. Each draw request to the bank will be accompanied by a sworn statement. Builder agrees to comply with such other requirements and submittals as may be reasonably required by the lender and the title company.

3. Final payment of the entire unpaid balance of the Contract sum, except for that agreed-on amount for work required to obtain a final certificate of occupancy, incomplete items (including “punch list” items), and nonconforming work, will be made on receipt of a temporary certificate of occupancy, the final sworn statement, and receipt of all warranties and approval of all governmental authorities having jurisdiction.

4. Any amount held in accordance with paragraph (3) for incomplete or nonconforming work will be deposited, by Purchaser, in escrow with [escrow agent] and will be released by [escrow agent] on written authorization from Builder and Purchaser. Builder acknowledges that final payment and the escrow requirements may be subject to modification in accordance with the requirements of the lending institution and title company.

5. Purchaser will pay all costs for power and fuel needed from the commencement of the job through the completion of the Home.

Article IV

Change Orders

On agreement between Builder and Purchaser, change orders to the Home may be necessary. It is agreed that the amount to be paid by Purchaser for any changes or extras will be paid in advance. Purchaser understands that change orders may cause delays in the time for completion and that those delays will not be considered a breach of this Contract by Builder.

Article V

Time for Completion

The project will be commenced by Builder within [number] days from the date of this Contract and be completed as soon as reasonably possible given delays caused by weather conditions, strikes, fire, material shortages, energy shortages, acts of God, or other causes beyond the control of Builder. The Home will be deemed completed as of the date of issuance of a temporary or final certificate of occupancy or Purchaser taking possession of the premises, its equivalent by the governmental entity having jurisdiction to issue the same. Estimated completion date is [number] months, subject to delays and exceptions as specified in this Contract. If the project is not completed by [date], Builder will incur a penalty of $[amount] per day, which will be deducted from the final payment (or payments) due to Builder under this Contract.

Builder will not be responsible for delays in completion of work resulting from acts or neglect of Purchaser or persons employed by Purchaser; delays resulting from damage by fire, windstorm, or casualty; delays from shortage of any building material; delays caused by process of courts or arbitration; change orders; or other circumstances beyond Builder’s control.

Article VI

Possession of Premises

Until completion, as provided by this Contract, Builder will have exclusive possession, and Purchaser will not occupy, sell, transfer, convey, or otherwise encumber the land without first obtaining written consent of Builder.

Purchaser will not occupy the premises until the completion of inspections and approvals by the appropriate governmental authorities. If Purchaser desires to occupy the Home when it has been substantially completed, a temporary certificate of occupancy must be issued by the appropriate governmental authority, and Builder must consent to the occupancy. Purchaser will pay the balance of the Contract price and extras to Builder before occupying the Home. The cost of any unfinished work will be placed in escrow until that work is complete.

Article VII

Cleanup and Storage

Builder will keep the job site in a clean condition consistent with normal construction practices and will leave the Home in a broom-clean condition, full ready for occupancy by Purchaser at the time of substantial completion. Builder will be permitted to store materials, tools, and equipment on site during construction.

Article VIII

Purchaser Requirements

Purchaser, in addition to other duties and obligations as provided by the Contract Documents, will do the following:

1. Within 10 days, respond to questions and issues raised by Builder regarding the construction or Contract Documents, including, but not limited to, selection of allowance items, materials, and colors, required during the construction process.

2. Provide verification of financing from Purchaser’s bank or financial institution in a form reasonably satisfactory to Builder.

3. Complete all necessary applications required to obtain any and all permits and bonds and pay any fees relating to any hearings conducted by architectural review boards, planning commissions, or zoning boards.

4. Complete necessary materials selection and indicate, in writing, to Builder all necessary selections for completion of the Home. If Purchaser fails to make selections, Builder may, on written notice to Purchaser, continue construction and make the necessary selection, in which case Purchaser agrees to accept same. Builder will have the right of substitution on construction materials, provided that the materials are at least comparable with and equivalent to those originally specified.

5. Timely provide or select any work or materials as set forth by the specifications necessary for the completion of the Home. Any loss or delay for failure of Purchaser to comply will be the responsibility of Purchaser.

6. Provide, at Purchaser’s expense, Builder’s risk insurance an “all risk” form in an amount equal to the Contract price to include the interests of Builder. Purchaser may request Builder to provide Builder’s risk insurance, in which case, Purchaser will reimburse Builder for the cost.

7. Provide accessible means of ingress and egress to the building site from a public road.

Article IX

Inspections

Builder will facilitate all inspections by the local municipalities and progress payments under Article III above will be conditioned on all inspections passing local government approval as well as the reasonable approval of Purchaser and Purchaser’s lender. Inspection and testing not required by the local municipalities will be paid by Purchaser.

Article X

Builder’s License

Builder is a residential builder, licensed in the state of Michigan, under builder’s license number [number], and is licensed under MCL 339.2401 et seq.

Article XI

Builder’s Insurance

On request, Builder will provide Purchaser with liability insurance information and will deliver to Purchaser certificates of insurance and endorsements issued by Builder’s insurance company.

Article XII

Liability

Builder will indemnify, defend, and hold harmless Purchaser from and against any and all expenses, damages, liabilities, and damages resulting from any breach or default by Builder under this Contract. Builder’s liability, as a result of any claims, delays, liability, loss, or expense asserted or incurred as a result of default, negligence, or wrongdoing of Builder, its agents, employees, subcontractors, supplies, or persons acting under any of them is limited to the extent of Builder’s insurance coverage that it may have insuring against such default, loss, damage, or liability.

Builder and Purchaser waive rights against each other to recover for damages of loss caused by fire or other perils that are covered by that insurance or any other insurance to the extent that the insurance or other insurance is valid and collectible.

Builder is not liable for any defects, claims, liability, loss, or expense asserted or incurred as a result of default, negligence, or wrongdoing of Purchaser, Purchaser’s agent, or Purchaser’s Architect. If Purchaser supplies construction plans and specifications, Purchaser will indemnify and hold Builder harmless from any and all defects, claims, liability, loss, or expense asserted or incurred as resulting from any defect in those plans.

Article XIII

Soil Conditions

Purchaser acknowledges and agrees that the Purchase Price is based on standard excavation with subsurface soil conditions adequate for the standard footing dimensions specified in the drawings. If Builder determines the existence of any subterraneous ground conditions that require de-watering, additional excavation, or additional footing work rendering the excavation and footing work nonstandard, Purchaser agrees to incur the cost for and treat the same as a change order.

Article XIV

Termination of Contract

If Purchaser fails to make payment as required by this Contract, if the project is stopped for a period of 30 days or more and the stoppage was caused by Purchaser, or if Purchaser is otherwise in breach or default of this Contract and that breach has not been cured within 30 days after notice of default, Builder, on written notice, may terminate this Contract, and Builder will have all rights and remedies as set forth in this Contract.

If Builder fails to comply with the terms of this Contract, Purchaser will notify Builder of the same as set forth in this Contract, and Builder will have 30 days to cure any such defect. After, Purchaser will have all rights and remedies as set forth in this Contract.

Article XV

Successors and Assigns

This Contract may not be assigned by either party without written consent of the other party. The provisions of this Contract are binding on Builder and on Purchaser, assigns, successors, executors, and administrators of Purchaser.

Article XVI

Disputes

Any dispute between Builder and Purchaser about this Contract, including the interpretation of this Contract and adequacy of performance of this Contract, will be resolved by arbitration before a single arbitrator who is mutually acceptable to Builder and Purchaser. If Builder and Purchaser are unable to agree on an arbitrator, either party may request that the president of the Home Builders Association of Southeastern Michigan appoint an arbitrator who is a licensed builder actively engaged in residential building. The decision of the arbitrator on any dispute will be final and binding on the parties and enforceable in any court of appropriate jurisdiction. Any expense of the arbitrator will be shared equally by the parties.

Article XVII

Notices

All notices, deliveries, or tenders given or made in connection with this Contract will be deemed complete and legally sufficient if mailed by ordinary first-class mail or delivered to the party for whom the same is intended at the following addresses:

|Builder: |Purchaser: |

|[builder’s address] |[purchaser’s address] |

Article XVIII

Headings

The section headings in this Contract are for reference purposes only and will not affect, in any way, the meaning or interpretation of this Contract.

This Contract is made and entered into as of [date].

|Witnesses | |Builder |

| | |[Name of builder] |

|/s/____________ | |By: /s/____________ |

| | |[Typed name of authorized signer] |

| | |Its: [Title of authorized signer] |

|/s/____________ | |Purchaser(s) |

| | |/s/____________ |

| | |/s/____________ |

Specifications for

[Address]

| |Date: [date] |

Building Permits:

By Builder.

Insurance:

Worker’s compensation, builder’s risk, and contractor liability insurance are all carried by [insurance company] in the amount of $1,000,000.

Utilities:

New electrical service.

New gas hook up.

New sewer and water.

New storm sewer.

Site work and excavation:

Rough and finish grading only with soil on site. Specific work does not include rake grading for seed or sod, landscaping, or soil hauled on or off the lot or any other site improvements unless specified by owner and agreed to by Builder.

Lot clearing COMPLETE.

Dirt hauling COMPLETE.

Footings and foundation:

Footing: 20" x 10" five bag mix 3000 psi w/2 #4 rod.

Wall: 10" x 9" five bag 3000 psi w/2 #4 rod.

Drains: 4" perforated pipe discharged into sump.

Basement: Height: 9 feet. Waterproofing with rubber wall system by Water Tight.

Floor framing:

TJI-engineered floor joists, #2 or better plate stock with 3/4" hem fir plywood decking, glued, nailed, and later screwed to joists.

Exterior walls:

Framing material of SPF #2 or better 2" x 6" studs.

Roof framing:

24" OC Trusses & conventional per plans. 1/2" hem fir plywood.

Garage studio—rough frame.

Beams:

Size and weight per plan.

Exterior finishes, trim, and siding:

Clear wood siding and trim (painted).

Brick to print 300/m, standard mortar, acid washed and caulked; rollock under door sills and windows.

EIFS Dryvit System to print.

Wood overhangs per print (painted).

Roofing:

Independence 40-year shingles, ice shield, and metal drip edge.

Metal standing seam on barrel roofs (garage and house).

Roof vents.

2 electronic attic fans.

Rubber roof on deck areas.

Windows:

Windows: Marvin clad casement, low-E windows.

Entrance doors:

Front door: $[amount] allowance.

Entrance doors: wood-panel doors, oak adjustable threshold, no storm doors.

Hardware:

Baldwin $[amount] allowance.

Stairs:

Main and basement: oak rail system with solid oak treads and painted risers.

Rough stairs: 1" x 8" pine risers and 2" x 10" hem fir treads, carpet stringers, and treads.

Fireplaces:

Natural fireplaces.

Hearths: $[amount] allowance (labor and material).

Mantles: $[amount] allowance (labor and material).

Plumbing:

175-gallon, high-efficiency hot water heater.

Copper supply lines with hot water circulating pump.

PVC drains and vents per code, with cast iron quiet pipe drains in first-floor walls.

Fixtures: $[amount] allowance.

Heating and air conditioning:

Heating: Bryant furnace(s), 90 percent AFUE.

Air conditioning: Bryant air conditioner(s).

Gas line: furnace and water heater.

Chimney: vent through wall.

Venting: bath fans.

Note: 7-day programmable thermostat, humidifier(s), electronic air cleaner.

Electrical system:

Per code/300 AMP service.

Light fixture: $[amount] allowance (material only).

Alarm system:

Alarm system: $[amount] allowance.

Insulation:

House ceiling—R-38.

2" x 4" wall—R-13.

2" x 6" wall—R-21.

Bond—R-19.

Overhang—R-30.

OSB under all brick and siding.

TYVEK Vapor Barrier around all studded walls.

POLYSEAL around windows, doors, electric plugs, and top and bottom places. Sill sealer between header and joists.

Drywall:

Walls: 1/2" thick, glued and screwed, taped and sanded.

Ceiling: 1/2" thick, glued and screwed, taped and sanded.

Garage: entire garage and studio.

Finish flooring:

Tile: $[amount] allowance (labor and material).

Oak flooring: $[amount] allowance (labor and material).

Carpet: $[amount] allowance (labor and material).

Studio: $[amount] allowance (labor and material).

Interior trim:

Base: 10" base.

Casing: 4" casing.

Doors: panel doors $[amount] allowance.

Book shelves: $[amount] allowance.

Crown: throughout first floor.

Closet organizers:

Organizer shelving: $[amount] allowance (labor and material).

Cabinets, vanities, and countertops:

$[amount] allowance (labor and material).

Appliance:

$[amount] allowance.

Painting:

Interior: Benjamin Moore eggshell, Benjamin Moore enamel oil finish on woodwork.

Exterior: oil base on doors, siding, and trim.

Garage: complete.

Mirrors, shower doors, and medicine cabinets:

$[amount] allowance (labor and material)

Garage:

Doors: $[amount] allowance (labor and material).

Floor: 4" concrete with 1/2" reinforcing rod, stop bumper, sloping to door.

Substitutions and modifications:

____________

____________

____________

____________

____________

Warranty

Limited warranty: Builder provides a limited warranty regarding the Home as set forth in the Contract Documents as follows. Builder makes no other warranty, express or implied, including any warranty of merchantability, fitness for a particular purpose, or habitability, other than the referenced limited warranty. Builder makes no guarantee, warranty, or representation relating to environmental issues affecting the premises or the Home.

All structural and mechanical defects, of which Builder is notified in writing within one year from the date of closing, will be repaired at Builder’s expense. This does not include any damage resulting from expansion or contraction of materials, nor from the effect of ground settlement. Builder’s liability under this limited warranty does not extend to any damage that may arise to wallpaper, floor coverings, or the contents of the building as a result of or in connection with Builder’s performance of this limited warranty.

This limited warranty is not transferable or assignable and becomes null and void if the Home is resold.

Emergency Items

Emergency items take precedence over other activities in Builder’s building operation. A phone call to Builder’s office will bring expeditious correction of any emergency problems covered by the limited warranty.

Exclusions from Coverage

Weather: Damage caused by abnormal weather, downpours, wind-driven rain, windstorms, or tornadoes (such as shingles blowing off, trees being uprooted, etc.).

Normal maintenance: Normal maintenance, or damage caused by the lack of maintenance, is the responsibility of Purchaser.

Modifications and alterations: Only materials supplied by Builder are warranted. Additions or modifications to structural or mechanical systems by anyone other than Builder will void the limited warranty regarding the item modified. In no event will Builder be responsible for damage to other systems that are a consequence of those modifications or alteration.

Ceramic tile work: Ceramic tile is prone to chipping, cracking, grout discoloration, and grout falling out. All of these are routine maintenance items that are the responsibility of Purchaser.

Drywall: Nail pops and small cracks will occur in new construction. Although these items are excluded from the limited warranty, should Purchaser wish to have Builder fix these items, Builder will do so and Purchaser will be responsible for the required painting. Color variations in touch-up repairs can be expected and are normal.

Door warpage: During the early months in a new house, exterior, interior, and cabinet doors will often warp but, in most cases, will straighten out during the first year. Unless a door warps or swells so badly that it is unusable, it is unadvisable to trim or adjust it until the end of a year. Requests for adjustment for excessively warped items may be submitted, in writing, only once during the limited warranty period. A door that cannot be opened or closed will be treated as a priority item. Wood entry doors, if used on the Home, will warp, swell, and shrink seasonably due to the nature of the material and temperature and humidity differences from inside to outside of the Home. Doors may not seal completely and will permit air infiltration under these circumstances.

Humidity and condensation: The humidity level must be controlled by Purchaser to avoid damage to the house. During the winter, the humidity must be kept high enough to prevent excessive drying and shrinkage of materials. However, too high of a humidity level will result in condensation of windows, skylights, recessed lighting fixtures, any vents ducted to the outside, and even on exterior walls or ceiling under extreme cold and windy conditions.

In the summer, especially during the first year of occupancy, high humidity levels will result in condensation on pipes in the basement, ductwork, or even basement walls and floor. This is normal, and air conditioning will dehumidify as will a dehumidifier or ventilating the basement.

Air filtration: Because the house is sealed tightly from the weather, certain areas are likely to have noticeable cold-air leakage into the house in the winter. This air infiltration is normal and will occur at spots such as electrical openings in insulated ceilings and outside walls, ducted fans, and, to some extent, at windows, the base of walls, and doors.

Fireplaces: If the house has a wood-burning fireplace, the same tight insulation described above may result in it “smoking” or not “drawing” properly. It may be necessary to open a window or door wall slightly for the fireplace to draw.

Basement walls: Dampness of walls may occur in new construction. It is to be expected and is not considered a deficiency. The poured concrete walls of the basement are waterproofed on the exterior. Often leaks will occur in areas where the forms used for pouring the walls were held together by steel rods. These “rod-hold leaks” are normal and will be repaired during the first year of occupancy. They are not an emergency item since the quantity of water is usually very small. Circle them with a pencil, because often when they dry, they cannot be located again. Cracks in basement walls, as in any concrete product, are normal. Only cracks that leak are eligible for repair. Cracks larger than 1/4" are considered excessive, and surface patching is an expected remedy.

Cement flat work: Cracking of cement, due to the material’s brittle nature, is a normal occurrence. Cracks will not be subject to repair or replacement unless they are of sufficient vertical displacement to be a hazard, or exceed 1/4" width. Surface patching is an acceptable remedy. The decision to repair or replace is at Builder’s option. Exterior concrete, even with special care, will chip and show surface damage due to freeze and thaw cycles, which are common to this area. This damage, while it may be unsightly, does not affect the structural integrity of the concrete. The application of any salt or other de-icing chemicals will accelerate the freeze and thaw cycles and cause further surface damage. Vehicles exposed to road salt will often deposit these chemicals on exterior concrete when parked, which will result in surface damage. Cracks exceeding 1/4" in width and having a vertical displacement of 1/4" are considered excessive. Surface patching is an acceptable remedy.

Subfloor squeaks and noises: Due to normal expansion and contraction of materials, squeaks in subfloors, stairs, finished wood floors, and other areas will occur. These are normal and will not be repaired. However, a reasonable attempt will be made to correct the problem. Purchaser is responsible for removing and replacing floor coverings.

HVAC squeaks and noises: Noises, such as “ticking,” “cracking,” “water rushing,” etc., relating to plumbing lines and heat ducts are normal, will occur, and are not eligible for repair.

Wood floors: Hardwood floors, while durable, are not impervious to wear and require careful maintenance and eventual refinishing. Depending on Purchaser’s lifestyle and traffic patterns, signs of wear may appear shortly after occupancy. Because wood is a natural product, color variations from board to board will occur, and grain patterns will vary. Wood floors will show perceptible cracks between boards, especially in the winter, and may swell and show unevenness in humid conditions. Care should be taken to avoid spills and excessive moisture on wood floors, as it can blacken the wood or cause the finish to lift off. These floors also will develop squeaks, which is a normal condition. Homes without a humidifier will be subject to more shrinking and separation than a home with a humidifier.

Sump pumps and basement drains: If the Home is equipped with an electric sump pump that removes water collected from the perimeter drains installed outside the basement by collecting it in the sump well and pumping it out to ground level, Purchaser should periodically check to ensure that the sump pump is plugged in, the circuit breaker controller is on and that it is operational. These pumps may require repair or replacement from time to time, and this is a normal maintenance item. Failure of the pump or power outage will result in backup of storm water (not raw sewage) through the sump well or storm drain in the basement floor. Storm water may also enter in the area between the basement wall and floor or through cracks in the basement wall or floor. Because of this, Purchaser should never store valuable objects directly on the basement floor. Also, any finish materials on the walls or floor of the basement may be damaged by water leakage. Builder will not be responsible for damages resulting from this water leakage.

Ice dams: Freeze and thaw cycles and the heat from the house can cause ice to build up on the roof, usually between the outside walls. This buildup, if severe enough, can result in water entering the house and damaging walls and ceilings. To prevent this, Purchaser should watch for large accumulations of ice or snow on the roof. If a certain area has chronic problems, installation of electric heat tape may be needed to keep it clear of snow and ice buildup. Exterior caulking will shrink and crack, or joints may open up due to normal movement of building materials. This can result in drafts, water, or insects entering the house and may also cause pipes to freeze. Maintenance of exterior caulking and damages resulting from failure to maintain is the responsibility of Purchaser.

Cabinet adjustment: Most cabinets have provisions for adjustments at the hinges. These adjustments are usually simple and are a normal maintenance responsibility of Purchaser.

Site drainage: The necessary grades and swales should be established to ensure proper drainage away from the house. Site drainage is limited to the immediate grades and swales affecting the structure. No standing or ponding of water should remain in this immediate area 48 hours after a rain, except swales that may drain longer than other areas after a rain or sump pump discharge. No grading determination will be made while there is frost or snow on the ground or while the ground is saturated. Purchaser is responsible for maintaining these grades once they are set by Builder.

Excavating and backfill: On request by Purchaser, Builder will fill excessively settled areas one time only during the first year of warranty. Purchaser will be responsible for any grass, shrubs, or other landscaping affected by placement of that fill. The standard for addressing the settling of ground around utility trenches or other filled areas is a maximum of 6 inches. Settling of backfill around the foundation will not interfere with water drainage away from the house.

Unit masonry (nonstructural): Small cracks are common in mortar joints of masonry construction. Cracks greater than 1/8" in width are considered excessive. Builder will repair cracks in excess of 1/8" by pointing or patching. These repairs should be made toward the end of the first year of the warranty period to permit normal settling of the Home to stabilize.

Windows: Windows will collect condensation on interior surfaces when extreme temperature differences and high humidity levels are present. Condensation is usually the result of a climatic or humidity condition. Unless directly attributed to faulty installation, window condensation is a result of conditions beyond Builder’s control. No corrective action will be taken.

Repair

Final repair or completion list: Every reasonable effort will be made to complete or correct all items on the final repair or completion list within 30 days from the date of closing unless that completion is prevented by weather conditions, unavailability of materials, or conditions beyond Builder’s control. Nicks or cracks on plumbing fixtures, appliances, mirror bifold doors, mirrors, countertops, ceramic tile, tub scratches or chips, marble, or other materials will not be repaired unless noted by Purchaser’s final repair or completion list.

Emergency items: Emergency items take precedence over other activities in Builder’s building operation. A phone call to Builder’s office will bring expeditious correction of any emergency problems covered by the limited warranty. Emergencies are usually confined to plumbing, heating, electrical, and water leakage into the house.

Routine minor items: In this category are the multitude of minor items that do not hinder the physical liability of the house even though they are subject to correction under the limited warranty.

Repair list: Repair requests will be accepted only if in writing and turned in within one year of Purchaser’s closing date. Builder will process one list of nonemergency items in addition to Purchaser’s final closing list. This list must be submitted to Builder’s office, in writing, within one year of Purchaser’s closing date. The processing of a repair list includes an inspection by Builder’s representative to ascertain the validity of the request under the terms of the limited warranty, and the follow-up and correction of all items that are found eligible under the guarantee. This one written repair list will be processed shortly after it has been received but no sooner than 60 days after Purchaser has moved into the Home.

Access to Home: Repair cannot always be scheduled at Purchaser’s convenience, although Builder will try to accommodate Purchaser’s schedule when possible. Therefore, Purchaser must allow Builder access to the Home during normal working hours, Monday–Friday, 8:00 a.m.–4:00 p.m.

Acknowledgment of repairs: Purchaser must sign an acknowledgment of the completion of each repair made pursuant to the limited warranty on the repair order as each repair is completed. Purchaser’s failure to sign an acknowledgment, on request, will terminate the limited warranty and relieve Builder of any further obligation to make additional repairs.

Note: Many trades are usually involved in even the very simplest of adjustments. The job of scheduling and coordinating trades for these repairs is vastly time consuming and creates difficulties that require patience and understanding on the part of all parties involved. Purchaser understands and acknowledges this condition.

|Witnesses | |Builder |

| | |[Name of builder] |

|/s/____________ | |By: /s/____________ |

| | |[Typed name of authorized signer] |

| | |Its: [Title of authorized signer] |

|/s/____________ | |Purchaser(s) |

| | |/s/____________ |

| | |/s/____________ |

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