HBW_307_090114
4
SECTION III.
THE OPTION TO REPAIR, REPLACE OR PAY FOR Defect AND/OR Structural Defect.
A. Provisions Applicable to Defect and/or Structural Defect.
The
Builder/Seller
shall have the option to repair, replace or pay
You
the reasonable cost of repair of any
Defect
. The
Warranty
Insurer
shall have the option to repair, replace or pay
You
the reasonable cost of repairing any
Structural Defect
. The design, method
and manner of such repair shall be within the sole discretion of the
Builder/Seller
or
Warranty Insurer
, as applicable. At the time the
Builder completes the repair, replacement or payment for the repair of any
Defect
or
Structural Defect
,
You
must:
1.
Assign to the
Builder/Seller
or
Warranty Insurer
any rights
You
may have against any other person with respect to the
Defect
or
Structural Defect
.
You
must not do anything to prejudice these rights of subrogation.
2.
Sign and deliver a full and unconditional release of the
Builder/Seller
or
Warranty Insurer
, in recordable form, of all legal
obligations with respect to the warranted items and conditions arising from those items.
If an improvement, fixture or property not constructed by the
Builder/Seller
is damaged or requires removal during the repair,
it is
Your
sole responsibility, and not the responsibility of the
Builder/Seller
or
Warranty Insurer
, to pay for the cost of repair or
removal of such improvement, fixture or property. No repair shall extend the term of this express limited warranty as to any
Defect
or
Structural Defect
, including without limitation, the
Defect
or
Structural Defect
that was the subject of the repair.
Homes With FHA/VA Financing Only
– In the case of cash payments regarding
Homes
with original FHA/VA financing still in effect,
the
Warranty Insurer
is required to make payment to
You
and
Your
mortgagee.
You
must provide the name and address of
Your
mortgagee, the FHA/VA case number and the loan number (
Your
HUD settlement statement will have this information) when
You
file a claim with respect to a
Home
with a FHA/VA financed mortgage, in order for these obligations to be performed.
B. Additional Provisions Applicable to the Repair of Structural Defect.
The repair of a
Structural Defect
is limited to:
1.
The repair of damage to designated load-bearing portions of the
Home
which is necessary to restore their load-bearing ability;
2.
The repair of designated non-load-bearing portions, items or systems of the
Home
, damaged by the
Structural Defect
,
which make the
Home
unsafe, unsanitary, or otherwise unlivable (such as the repair of inoperable windows, doors and the
restoration of functionality of damaged electrical, plumbing, heating, cooling, and ventilating systems); and
3.
The repair and cosmetic correction of only those surfaces, finishes and coverings, original with the
Home
, damaged by the
Structural Defect
, or which require removal and replacement attendant to repair of the structural damage, or to repair
other damage directly attributable to the
Structural Defect
.
Repairs of the
Structural Defect
are intended to restore the
Home
to approximately the condition just prior to the
Structural Defect
,
but not necessarily to a like-new condition.
C. Access to Your Home for Inspecting and Making Repairs.
In order to carry out the warranty responsibilities, the
Builder/Seller
or
Warranty Insurer
will require access to
Your Home
. If
Your
Home
is in a
Multi-Family Building
,
You
agree (after reasonable notice) to allow access to, or within
Your Home
during normal
business hours so repairs may be made to any adjacent unit or
Common Element
. If emergency repairs are necessary and
You
cannot be reached within a reasonable time period,
You
waive such notice. If
You
do not provide access to
Your Home
during
normal business hours to inspect, repair, or conduct tests on
Your Home
as may be required to evaluate or repair a
Defect
or
Structural Defect
,
You
are relieving the
Builder/Seller
and
Warranty Insurer
of all responsibility to make repairs, replace or pay for
any
Defect
or
Structural Defect
under this warranty.
In addition to the right to inspect
Your Home
, the
Builder/Seller
or
Warranty Insurer
shall have the right, in advance of any arbitration
concerning
Your Home
, to re-inspect
Your Home
if the request for arbitration is made more than sixty (60) days after the last claim
decision concerning the claim that is the subject of the arbitration.
D. The Limits of Your Warranty.
Every time
Your Builder/Seller
or
Warranty Insurer
pays a claim under this warranty, the amount of that payment is deducted from
the
Warranty Limit
. When the
Warranty Limit
is exhausted, there is no longer warranty coverage for
Your Home
. A claim payment
includes the cost to the
Builder/Seller
or
Warranty Insurer
of repairing a
Defect
or
Structural Defect
in
Your Home
covered under this
warranty. However, a claim payment does not include the cost of investigating the claim.
The
Warranty Limit
for
Common Elements
in a
Multi-Family Building
is equal to the sum of the unexpired
Warranty Limits
for all
Homes
in the building which are enrolled in the 2-10 HBW Program. In the event that all
Homes
in the
Multi-Family Building
were
not enrolled, the
Warranty Limit
for
Common Elements Defects
or
Common Elements
Structural Defect
coverage shall be reduced
pro-rata based upon the ratio of the original sale price of the non-enrolled
Homes
compared to the total original sales price of all
Homes
in the
Multi-Family Building
. If the claim payment is for a
Common Elements Defect
or
Common Elements Structural Defect
,
the
Warranty Limit
on each
Home
in the
Multi-Family Building
still covered by an unexpired warranty shall be reduced pro-rata in the
proportion which the
Common Elements
claim payment bears to the total original sales price of all enrolled Homes. Coverage for
Your
