12. Lichty Brothers Homes’ Limited Warranty

A. Introduction

B. State of Georgia Senate Bill 563

C. Lichty Brothers Limited Warranty

  1. Section 1: Coverage
  2. Section 2: What Will LBH Do?
  3. Section 3: What the Homeowner Must Do
  4. Section 4: Arbitration
  5. Section 5: Condominium
  6. Section 6: Major Structural Defect
  7. Section 7: Exclusions
  8. Section 8: General Conditions
  9. Section 9: Definitions

D. Warranty Service Request Procedures

E. Warranty Service Processing Procedures

F. Warranty Service Request Form

"They don’t make them like they used to."
Lucky for you!

Today’s new home is a better buy: Better planned kitchens; better planned storage space; better insulation; safer and better electrical components; many more modern conveniences; and much more.

Additionally, governmental agencies are doing a much better job of inspecting new homes as they are constructed. In some states, state and local licensing laws help to insure that Builders and other involved professionals are qualified.

Today’s new homes are also located in better planned communities. Roads, sewer and water and all infrastructure are taken into consideration. Almost all new developments are near golf courses, convenient shopping, and community parks and schools.

Helpful Hints:

Minor maintenance can help to eliminate problems in a home, even a new one!

Refer to your Caring for Your Home section for more helpful hints.

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12A. Introduction

Lichty Brothers Construction Inc. doing business as Lichty Brothers Homes and referred to as LBH in this document, certifies all our homes under this warranty

Team-work and knowledge build today’s improved housing. Building a good home takes leadership and good management. Thousands of component parts make up the final product. A professional makes sure that each component functions properly.

Your new home may be the largest single purchase you will make in a lifetime. LBH wants you to be able to enjoy and appreciate this major investment. Please read the following pages carefully. Remember that you, the Homeowner, have responsibilities just as we do. Continued care and maintenance are a must for a safe, happy home.

Our criteria for qualifying warranty repairs are based on typical industry practice in our region and meet or exceed those practices for the components of your home. These industry standards are included in this Homeowners Manual as the Residential Construction Performance Guidelines published by the National Association of Home Builders. We commonly exceed these guidelines, if common sense and/or individual circumstances dictate, without being obligated to exceed all guidelines to a similar degree or for all homeowners.

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12B. State of Georgia Senate Bill 563

Georgia law contains important requirements you must follow before you may file a lawsuit or other action for defective construction against the contractor who constructed, improved, or repaired your home. Ninety days before you file your lawsuit or other action, you must serve on the contractor a written notice of any construction conditions you allege are defective. Under the law, a contractor has the opportunity to make an offer to repair or pay for the defects or both. You are not obligated to accept any offer made by a contractor. There are strict deadlines and procedures under state law, and failure to follow them may affect your ability to file a lawsuit or other action.

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12C. Limited Warranty

In consideration of the home sales price received and subject to provisions of this certificate, LBH agrees to the terms and conditions that follow herein.

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SECTION 1: COVERAGE

A. During the first year of the warranty period, which commences on the day that title transfers on the Covered Home. LBH assures the covered unit will be free from:

1. Defects in materials or workmanship as defined in the Performance Standards attached hereto except as they apply to defects in appliances, fixtures and equipment which are not covered by this Warranty.

2. Defects in the electrical, plumbing and mechanical systems as defined in the Performance Guidelines including the wiring, piping and ductwork portions of the systems.

B. During the second year of the warranty period, one year after the day that title transfer is made to the original Homeowner(s), LBH assures that the Covered Home will be free from:

1. Defects in the electrical, plumbing and interior climate control systems as defined in the Performance Guidelines attached hereto including the wiring, piping and ductwork portions of the systems.

Defects in any of the systems resulting from failures in appliance, fixture or piece of equipment which are covered by a manufacturer’s warranty are NOT covered by this Warranty.

C. Common elements of condominiums as they pertain to this Warranty will be warranted against defects as stated in sections A, B and D. Common elements are defined as any portion of a primary condominium structure which is provided for the common use of the residents of the structure. Coverage for common elements shall commence on the day the primary structure, housing individual units, is completed. Where applicable, repairs of major portions of the condominium common elements deemed defective by a licensed engineer (i.e., stairwells, decks, balconies and arches of the structure) selected by the builder, are covered under the warranty to assure that the health and safety of the occupants is not affected. If a defect in the common elements affects individuals units, these defects will also be covered.

D. MAJOR STRUCTURAL DEFECTS LIMITED WARRANTY

1. This certificate also provides coverage for Major Structural Defects as herein defined (SECTION 6), in the covered home, which occur during the ten (10) year term of the Warranty.

2. Subject to the limits provided in this warranty, LBH will repair or replace a covered Major Structural Defect or pay the home buyer the reasonable actual cost of such repair or replacement. The choice as to repair, replacement or payment to the purchaser shall be solely that of LBH and LBH shall have total discretion as to the method and manner of repair and/or replacement of the structural defect. The Homeowner herein agrees to the method and manner of repair and/or replacement selected by LBH.

Repair of the major structural defect is limited to:

a. The repair of damage to the load-bearing portions of the covered home, which is necessary to restore its load-bearing ability.

b. The repair of damage to the load-bearing portions of the covered home, which make the home unsafe, unsanitary or otherwise unlivable.

3. Unless prohibited by applicable law, LBH is responsible to you, the Homeowner, for construction deficiencies and structural defects arising during the term of coverage. The maximum amount payable under this Warranty is the actual cost to correct a deficiency or the original sales price of the property. Repair and/or replacement made under the terms and conditions of the warranty shall not extend the Warranty Term.

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SECTION 2: WHAT WILL LBH DO

If a defect occurs on an item during the applicable part of the warranty period, and the item is covered by the Warranty, LBH will repair or replace the defective item. LBH’s total liability under this Warranty for repair or replacement of defective items is limited to the original purchase price of the home. The choice to repair or replace any defective item is solely that of LBH. Any repair or replacement procedure shall not extend the warranty period or any applicable part thereof. The Homeowner herein agrees to the method and manner of repair and/or replacement selected by LBH.

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SECTION 3: WHAT THE HOMEOWNER MUST DO

A. If the home owner has a complaint on any item covered by this Warranty under Section 1, A,B, or C during the applicable part of the warranty period, the Homeowner must send a clear and specific written complaint to the LBH ( stating the date on which the defect occurred). This written notice must be received by LBH no later than 30 days after the expiration of the applicable part of the warranty period. In case of an emergency problem, the Homeowner must notify LBH immediately in order that further damages can be mitigated. The Homeowner should take immediate action if circumstances dictate the need. If such notice is not received by LBH by the deadline set forth above, a claim or complaint for the defect will be waived by the homeowner and the claim or complaint will be rejected.

B. Should a Major Structural Defect occur during the warranty term of the Warranty, the Homeowner(s) must notify LBH in writing within a reasonable time after the structural defect arises, and in any event no later than 30 days after the expiration of the warranty term, specifically listing:

1. The date the defect was first noticed.

2. The specific nature of the defect.

C. If, in the opinion of LBH there is reasonable cause to agree with the Homeowner(s) claim of a structural defect LBH will arrange to correct the problem. If LBH does not concur with the assertions of the Homeowner(s) may arrange for an independent State licensed engineer to observe the alleged defects. If the engineer’s written report does not identify the problem as being a Major Structural Defect under the Warranty, the claim will be denied. If the engineers written report identifies the problem as being a Major Structural Defect under the warranty, LBH will arrange to correct the problem.

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SECTION 4: ARBITRATION

If the Homeowner and LBH disagree on any claimed defective item(s) or resulting repair(s) in accordance with this Warranty and Performance Guidelines (attached hereto), LBH or Homeowner may request an impartial third party arbitration. This request should be made after all attempts at mediation between disagreeing parties have failed and should precede litigation (however, the right to judicial remedies may be exercised at any time) attempted by either party on items that are specifically included in this Warranty. Cost of arbitration shall be equally shared by LBH and Homeowner. LBH agrees to abide by any decision rendered through impartial third party arbitration.

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SECTION 5: CONDOMINIUM

A. When the home is a condominium unit, the Homeowner(s) may file and pursue any claim against LBH directly on his/her behalf or through a designed representative of the Condominium Association. Claims involving common elements may be filed by the Homeowner(s) or the Condominium Association directly against LBH.

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SECTION 6: MAJOR STRUCTURAL DEFECT

A. "Major Structural Defect" is actual physical damage to the following designated load-bearing portions of the covered home when the actual physical damage is caused by failure or defect of such load-bearing portions:

a. Foundation systems and footings

b. Support beams and headers

c. Ceiling and floor joists, girders

d. Lintels

e. Load-bearing columns, partitions and walls

f. Walls and partitions

g. Structural floor systems

h. Roof framing systems, roof rafters, sheathing and trusses

The actual physical damage must affect the load-bearing function to the extent that the covered home becomes unsafe, unsanitary or otherwise uninhabitable and the repair will be limited to ensure only that the covered home is restored to a condition approximating the condition just prior to the defect; not to a "like new" condition. However, LBH will repair or replace or pay the reasonable cost of repair or replacement of designated non-load-bearing portions of the home, and systems of the home, which make the home unsafe, unsanitary or otherwise unlivable and were damaged by a major structural defect, such as the restoration of the functionality of damaged windows, exterior doors, and electrical, plumbing, heating, cooling and ventilating systems. The option to repair or to pay the reasonable cost is solely LBH’s. All repairs and/or replacements made by LBH will be covered for the balance of the Warranty Term.

Specific examples of non-load-bearing elements which are deemed not to have structural defect potential are:

a. Non-load-bearing partitions and walls

b. Wall tile or coverings

c. Plaster, laths, or dry wall

d. Flooring and sub-flooring material

e. Brick, stucco or stone veneer

f. Any type exterior siding

g. Roof shingles and tar paper

h. Heating, cooling, ventilating, plumbing, electrical and mechanical systems.

i. Appliances, fixtures or items of equipment

j. Doors, trim, cabinets, hardware, insulation, paint, stains

k. Insulation

B. Should a major structural defect occur within the warranty term, the Homeowner must notify LBH in writing. This notification, fully describing the defect must be given within a reasonable time after the major structural defect arises, and in any event no later than 30 days after the expiration date of the Warranty. Any claims reported more than 30 days after the expiration of the Warranty term are not covered.

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SECTION 7: EXCLUSIONS

A. The following are excluded from coverage under this certificate:

1. Defects in outbuildings, including detached carports and detached garages (except those outbuildings which contain the plumbing, electrical, heating, cooling or ventilation systems serving the home); patios, walkways, driveways; swimming pools and other recreational facilities; fences, boundary walls, retaining walls; bulkheads (except where boundary walls, retaining walls and bulkheads are necessary for the structural stability of the home); landscaping (including sodding, seeding, shrubs, trees and plantings); off-site improvement, or any other improvements made after the effective date of this warranty; or ventilation systems or any other items covered under this warranty; or

2. Contamination caused or created by natural or man-made chemicals, compounds, or substances, or breakdown or adverse effect of compounds, chemicals, or substances used in the construction of the home which does not result in physical damage to structure. Such contamination is not covered even if the home is rendered uninhabitable unless physical damage is sustained; or

3. Damage to any covered property which is not included in the purchase price; or

4. Any damage that is caused or made worse by:

a. Dampness or condensation due to the failure of the Homeowner to maintain adequate ventilation; or

b. Changes of grading of the ground by anyone other than LBH or its employees, agents or subcontractors, and, authorized by LBH; or

c. Failure by you, the homeowner, to give notice to LBH of any defects within a reasonable time; or

d. Negligence in proper maintenance and/or operation by anyone of systems warranted under this warranty; or

e. Changes, alterations or additions made to the covered home by anyone other than those performed under obligations of this Warranty; or

f. Failure by you or anyone to comply with the warranty requirements of manufacturers of appliances, equipment or fixtures; or

5. Any defect in, or caused by, materials or work supplied by other than the LBH in the covered home, its employees or agents or subcontractors, or

6. Normal wear and tear or normal deterioration; or

7. Any loss or damage which you, the Homeowner(s), have not taken timely action to prevent or minimize; or

8. Any damage caused by soil movement, if compensation is provided by state legislation or covered by other insurance or any damage as a result of insufficient (or change in) adequate load-bearing capacity of the soil, sub soils or surfaces of the soil, sub-soils, or surfaces, or sub-surfaces; or

9. Insect damage; or

10. Loss or damage not caused by defect in the construction of the covered home by LBH, its employees, agents or subcontractors, but resulting from accidents of riot or civil commotion or Acts of God, including but not limited to fire, explosion, smoke, water escape, windstorm, hail, lightning, falling trees, aircraft, vehicles, flood, mudslide, sinkhole, earthquake, volcanic eruption and changes in the level of underground water table; or

11. Any loss or damage which may arise while your home is being used primarily for non-residential purposes; or

12. Any condition which does not result in actual physical damage to the covered home; or

13. Cost of transportation, food, storage, moving, shelter or other incidental expenses related to relocation during repair; or

14. Any claim reported to LBH after an unreasonable delay or later than 30 days after the expiration of warranty term; or

15. CONSEQUENTIAL DAMAGE: Any surface, finishes and coverings, not original with home, or not damaged by the structural defect which do not require removal and replacement attendant to repair of the structural defect; personal property items, not a part of the defect.

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SECTION 8: GENERAL CONDITIONS

A. Resale: Each successor in title to the home including Mortgagee in possession is automatically entitled to coverage under this policy for its unexpired term. There is no limit under this certificate to the number of successions during the term of the policy.

B. Arbitration: Should LBH or the Homeowner disagree with warranty decisions the contesting party may call for a arbitration to be conducted by an arbitration board.

C. Delay: If LBH’s performance of any of its obligations is delayed by any event not resulting from their own conduct, they will be excused from performing until the effects of that event are remedied. Examples of such events are: Acts of God or common enemy, war, riot, civil commotion, sovereign conduct, or act of persons who are not parties to this Warranty.

D. Warranties: In the event LBH repairs or replaces, or pays the cost of repairing or replacing any defect covered by this warranty for which you are covered by other insurance or warranties, you must, upon request by LBH assign the proceeds of such repair, replacement or payment.

E. Other Rights: This warranty gives you specific legal rights. You may also have other legal rights which vary from state to state. This Warranty does not affect any rights you or LBH may have through any other express or implied warranty.

F. Independence: This Warranty is independent of the contract between you and your builder for the construction of the home and/or its sale to you. Contract disputes which are not warranty disputes as covered under this contract are not eligible for dispute settlement hereunder. Nothing contained in any other contract between you and LBH can restrict or override the provisions of this Warranty.

G. Access to Premises: By accepting this Limited Warranty or Extended
Warranty, the Homeowner(s) agree to and understand that access to, on, through or within the premises during reasonable workday hours will be available so that any deficiency may be corrected and the warranty service performed.

H. Cancellation: In the event of FHA, VA or FmHA financing this Warranty can not be cancelled during the period of coverage.

I. General: Should any provisions of this contract be deemed by a court of competent jurisdiction to be unenforceable, that determination will not affect the enforceability of the remaining provisions. Use of one gender in the Warranty includes all other genders; and use of the plural includes the singular as may be appropriate. This Warranty is to be covered by and construed in accordance with the laws of the state in which the home is located.

J. Other Insurance and/or Warranties: If LBH repairs or replaces, or pays such costs of repair or replacement of any defect covered by this Warranty for which you are covered by other insurance or Warranty you must, upon request of LBH, assign the proceeds of such repair, replacement or payment.

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SECTION 9: DEFINITIONS

A. Dwelling or Home: A single or multi-family structure individually owned

B. Approved Standards: The federal, state, county, or local building standards or codes affecting construction standards, plumbing, electrical, heating, cooling and ventilating systems in the area in which your home is built.

C. LBH: Lichty Brothers Homes

D. Major Structural Defect: Actual physical damage to designated load-bearing portions of the covered home when the actual physical damage is caused by failure or defect of such load-bearing portions. The actual physical damage must affect the load-bearing function to the extent that the covered home becomes unsafe, unsanitary or otherwise uninhabitable (see section 6).

E. Consequential Damage: Any property damage or bodily injury which follows as a result of structural damage, including defects in plumbing, electrical, heating, cooling or ventilation systems or any other items covered under this Warranty.

F. Performance Guidelines: The standards attached to this Warranty as the Residential Construction Performance Guidelines published by the National Association of Home Builders, which specify industry wide quality construction standards for home construction. They are used to determine the validity of homeowner complaints related to deficient workmanship and materials and major mechanical systems on warranted items during the one (1) year warranty period for workmanship and materials and two (2) year warranty period for major mechanical systems.

G. Warranty Document: The written terms of this Warranty.

Our warranty service system is designed based on your written report of non-emergency items. This provides you with maximum protection and allows us to operate efficiently, thereby providing faster service to all homeowners. Emergency reports are the only items taken by phone.

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12D. Warranty Service Request Procedures

Thirty-Day Report

In order for our service program to operate at maximum efficiency, as well as for your own convenience, we suggest that you wait 30 days before submitting a warranty list. This allows you sufficient time to become settled in your new home and thoroughly examine all components.

One-Year Report

Near the end of the eleventh month of your materials and workmanship warranty, you should submit a year end report. The materials and workmanship portion of the warranty expires one year from your closing date and the year-end report is due by this date. We will also be happy to discuss any maintenance questions you may have at that time.

Warranty Evaluation and Request

1. Check your warranty materials to determine if your items’ categories are covered.

2. Read through the appropriate chapter(s) in your Homeowners Manual and Performance Guidelines.

3. Determine if your specific items are maintenance areas that are your responsibility or are ours, LBH.

4. For items that are the homeowner’s responsibility, refer to your Homeowners Manual for useful maintenance suggestions and advise.

5. For items that are LBH’s responsibility,

a. For each item determine if it is an emergency, priority or general repair:

i. Emergency - threats to your personal safety such as: flooding, gas leaks, hazardous conditions or having no HVAC in extreme temperatures.

1. Contact your superintendent, ________________________ immediately at ____________________.

2. Document contact in writing and send copy to the contact information listed below.

ii. Priority - leaks or system problems that will not result in damage to your home.

1. Contact LBH the next business day by phone and in writing at the contact information given below.

iii. General - one-time paint touch up, caulking, woodwork and the like

a. Document the issue on your warranty request form

b. At the appropriate warranty period mail, fax or email the warranty request form to the contact information listed below.

b. Contact information

i. Mailing Address

Lichty Brothers Construction
c/o Warranty Service
22 Hillwood Circle
Newnan, GA 30263

ii. Fax Number - (770) 502-9415

iii. Email Address - becky@lichtybrothers.com

6. A time frame in which the work will be completed will be provided to you upon completion of an inspection of the requested repairs by your Project Manager.

The quality of your home is very important to us at Lichty Brothers Homes. Every effort will be made to complete your warranty request in a timely and efficient manner.

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12E. Warranty Service Processing Procedures

When we receive a warranty service request, we will contact you for an inspection appointment. Warranty inspection appointments are available Monday through Friday, 7 a.m. to 4 p.m. We inspect the items listed in your written request to confirm warranty coverage and determine appropriate action. Generally reported items fall into one of three categories.

If a trade contractor or an in-house employee is required to complete repairs, we will issue a warranty work order and the appropriate trade contractor or the Warranty Manager will contact you to schedule the work. Warranty work appointments are available Monday through Friday, 7 a.m. to 4 p.m. We intend to complete warranty work orders within 6 weeks of the inspection unless you are unavailable for access. If a delay is caused by a back ordered part or similar circumstance, we will let you know.

If the item is home maintenance, we will review the maintenance steps with you and offer whatever informational assistance we can. Lichty Brothers Homes does not provide routine home maintenance.

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12F. Warranty Service Request Form

You may download a printable copy of the Warranty Service Request Form here. (18kb PDF)

 



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