Limited Warranty This Limited Warranty sets forth the specific terms, Conditions and limitations of the limited warranty obligations of JSM Builders, Inc. (“JSM”) with regard to the workmanship and material incorporated into the home (the “Homes”) that has been constructed by JSM on the real property commonly known as:____________________ _____________________________________________________________________ Steamboat Springs _______, Colorado (the “Property”). The Limited of JSM in the City of ______________ is as follows: ARTICLE I… LIMITED WARRANTY 1.1 Warranty Terms: Subject to, and limited by the exclusions, the disclaimers and the limitations set forth in this Limited Warranty, JSM warrants for the benefit of the initial purchasers of the Home (the “Homeowners”) that the workmanship and materials incorporated into the Home shall be free from material defects (“Defects”) (as defined herein) for a period of one (1) year from the earlier of (i) the date of the closing of the purchase of the Homes by the Homeowners, or (ii) the date the Homeowners begin occupying the Home, whichever is earliest (the “Warranty Term”). Actions taken by JSM to correct or remedy Defects in the Home shall not act to extend the duration of the Warranty Term. This Limited Warranty is NOT an insurance policy, a maintenance agreement or a service contract. 1.2 Remedies of Defects: JSM’s liability pursuant to this Limited Warranty shall be limited solely to the remedies set forth in this document. In the exercise of its discretion, JSM may either: (i) repair or re-accomplish the workmanship or repair or replace material containing Defects, including any damage incurred in the direct course of correcting or curing the Defects, or (ii) pay to the Homeowners a sum equal to the reasonable cost that JSM would have incurred to repair or re-accomplish the workmanship or to repair or replace the material containing Defects, including any damage incurred in the direct course of correcting or curing the Defects. In either event, JSM shall be deemed to have cured and corrected the Defects and the Homeowners shall have no other or further claim against JSM, its officers, directors, shareholders, employees or associated parties or entitles. 1.3 Assignment: This Limited Warranty is for the exclusive benefit of the Homeowners and is not transferable or assignable in the event that the Home is transferred or conveyed. JSM expressly disclaims the extension of this Limited Warranty or any other warranty, express or implied, to any subsequent owner of the Home, any occupant thereof or any other person or entity claim in any legal or equitable interest in the Home or the Property. 1.4 Definition of Defect: For purposes of this Limited Warranty, a “Defect” shall be exclusively defined to mean that an aspect of the workmanship and /or the materials of the Home materially fails to comply with building, plumbing, electrical or other codes adopted by the governing municipality applicable to the Homes at the time of construction. JSM shall not be obligated to remedy or repair workmanship or remedy or replace any materials which contain or exhibit any deficiencies, inadequacies or failures that are not strictly within the definition of Defects set forth in this Section 1.4 ARTICLE II… EXCLUSIONS FROM LIMITED WARRANTY
1 Initials: Purchaser_______ Purchaser_______ Seller_______