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STATES WITH EXISTING NOTICE OF OPPORTUNITY TO CURE/RIGHT TO REPAIR STATUTES AS OF JULY 2004

Does the Builder need to respond to the claim?

ALASKA HB 340 ARIZONA HB 2620 CALIFORNIA SB 800 COLORADO HB 1161 FLORIDA SB 1286 GEORGIA SB 563 HAWAII SB 2358 IDAHO HB 133 INDIANA SB 451 KANSAS HB 2294 KENTUCKY 411.250-266 MISSOURI SB 1081

2004 05/21/2002 01/01/2003 07/01/2003 05/27/2003 05/13/2004 06/15/2004 03/27/2003 07/01/2003 07/01/2003 06/24/2003 2004

No No No No No No No No No No No No

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Yes No Yes No Yes Yes Yes No Yes Yes Yes Yes

Yes Yes Yes*2 Yes Yes Yes Yes Yes Yes Yes Yes Yes

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

No No*1 Yes*3 Yes Yes Yes Yes Yes Yes Yes*6 No*7 No

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Yes Yes Yes Yes Yes Yes Yes No*** No*** No*** No*** No***

No No Yes*4 No No No No No No No No No

No No Yes*5 No No No No No No No No No

No** No** No** No** No** No** No** No** No** No** No** No**

Does the statute conflict with the HBW warranty?

Are these notice requirements, referring to Subcontractors and Design Professionals?

Is the homeowner required to provide the Builder with written notice of the claim?

Is Builder Required to reference right to repair/Notice of Opportunity to Cure law at time of sale?

Does the list of claims need to be specified in writing?

Does the Builder have mandatory inspection rights?

Does the Builder have an absolute right to repair?

Does the Builder need to acknowledge the claim in writing?

Is there a Mandatory Procedure prior to filing a claim?

Does It Apply to All Homes?

Does It Apply to all major construction defects?

Is it Retroactive?

Effective Date

Is Mediation Mandatory?

State

STATES WITH EXISTING NOTICE OF OPPORTUNITY TO CURE/RIGHT TO REPAIR STATUTES AS OF JULY 2004

Is the homeowner required to provide the Builder with written notice of the claim?

Is Builder Required to reference right to repair/Notice of Opportunity to Cure law at time of sale?

Does the list of claims need to be specified in writing?

Does the Builder need to respond to the claim? Does the Builder have mandatory inspection rights?

Are these notice requirements, referring to Subcontractors and Design Professionals? Does the Builder need to acknowledge the claim in writing?

Is there a Mandatory Procedure prior to filing a claim?

Does It Apply to All Homes?

Does It Apply to all major construction defects?

Is it Retroactive?

MS SB 2547 MT SB 389 NEVADA SB241 OREGON SB 909 SCSB 433 TENNESSE SB 2931 TEXAS HB 730 VIRGINA CODE SECTION 55-70.1(D) WASHINGTON SB 6409 WEST VIRGINIA SB 440

07/01/2003 04/17/2003 08/01/2003 01/2004 07/02/2003 05/24/2004 09/01/2003 07/01/2002

No No No No No No No No

Yes Yes Yes Yes Yes Yes Yes Yes

Yes No No Yes No Yes Yes No

Yes Yes Yes Yes Yes Yes Yes Yes

Yes Yes Yes Yes Yes Yes Yes Yes

Yes Yes Yes Yes Yes Yes Yes Yes

Yes Yes Yes Yes Yes Yes Yes Yes

Yes*8 Yes Yes*10 Yes Yes*14 Yes No*15 No

Yes Yes Yes Yes Yes Yes Yes No*17

Yes Yes Yes Yes Yes Yes Yes Yes

No*9 No*** Yes*11 Yes Yes Yes Yes Yes

No No Yes*12 No No No Yes*16 No

No No Yes *13 No No No No No

No** No** No** No** No** No** No** No**

06/13/2002 02/2003

No No

Yes Yes

Yes Yes

Yes Yes

Yes Yes

Yes Yes

Yes Yes

Yes Yes*18

Yes Yes

Yes Yes

Yes Yes

No No

No No

No** No**

Is it Retroactive?

Effective Date

Effective Date

State

State

STATES WITH EXISTING NOTICE OF OPPORTUNITY TO CURE/RIGHT TO REPAIR STATUTES AS OF JULY 2004

1

AZ ­ HB 2620 ­ Purchaser is only required to notify Seller; there are no specific requirements for the Seller to notify potentially responsible Subcontractors.

2

CA ­ SB 800 ­ Defines actionable defects a) re: water issues; b) re: structural issues; c) re: soils issues, d) re: fire protection issues, e) re: plumbing and sewer issues, f) re: electrical systems issues and g) re: other areas of construction.

3

CA ­ SB 800 ­ Builder is responsible for notifying potentially responsible Subcontractors. CA ­ SB 800 ­ Mandatory mediation ­ whether or not pre-litigation dispute resolution procedures are being followed. CA ­ SB 800 ­ Absolute right to repair/right to cure ­ essentially a forced right to repair. KS ­ HB 2294 - Within fifteen (15) days of receipt of Notice of Defect, Builder must serve a copy on potentially responsible subcontractors, supplies, and design professionals. KY - 411.250-411.266 - Claimant is only required to notify Builder. MS ­ SB 2547 - General Contractor or subcontractor (given notice by claimant) is required to notify each subcontractor, supplier, or design professional involved. MS - - SB 2547 - Claimant is not required to permit inspection, but a failure to do so creates a rebuttable presumption that the claimants damages could have been mitigated.

4

5

6

7

8

9

10

NV ­ SB 241 - Notice by claimant a) If claim is against contractor (Builder) claimant only needs to notify Builder, and Builder then has requirements/guidelines for which to notify subcontractors and b) If claim is against subcontractor, claimant must also give notice to subcontractor.

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NV ­ SB 241 ­ Claimant must permit inspection , within set time requirements. NV ­ SB 241 ­ Before an action is filed a matter must be submitted to mediation unless mediation is waived by both sides. NV ­ SB 241 ­ Claimant must give an opportunity to repair prior to being an action. SC ­ SB433 ­ Within fifteen days of receipt of notice of defect Builder must serve a copy on potentially responsible Subcontractors, suppliers and design professionals. TX ­ HB730 ­ Claimant only required to notify Contractor, which is identified as "Seller." TX ­ HB730 ­ If Claimant sues for damages greater that $7,5000, either party may move to compel mediation.

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STATES WITH EXISTING NOTICE OF OPPORTUNITY TO CURE/RIGHT TO REPAIR STATUTES AS OF JULY 2004

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VA CODE SCE 55.70.1(D) ­ Not specified whether Builder needs to acknowledge in writing.

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WV ­ SB440 ­ Claimant required to notify Contractor/Builder. Contractor required to send copy of notice of claim to all subcontractors, suppliers, and design professionals believed to have some responsibility. ** - It is believed that the Right to Repair/Notice and Opportunity to Cure Laws will not conflict with the terms and contents of the HBW warranty. However, in some instances, the particular law may provide the homeowner with additional warranty items/coverage, or possibly less coverage. It is strongly recommended that HBW Builders consult with an attorney, licensed in their particular State, with respect to this issue. *** - Such rights may be available if set forth in purchase agreement. Builder is advised to consult with an attorney in their particular State.

THIS RIGHT TO REPAIR/NOTICE OF OPPPORTUNITY CURE CHART DOES NOT INCLUDE ANY PROVISIONS, WHICH MAY BE CONTAINED IN A SPECIFIC STATE STATUTORY WARRANTY.

STATES WITH EXISTING NOTICE OF OPPORTUNITY TO CURE/RIGHT TO REPAIR STATUTES AS OF JULY 2004

SUMMARY OF RIGHT TO REPAIR CHART, AND EXPLANATION OF MEANING OF INDIVIDUAL QUESTIONS Summary The purpose of the attached "Right to Repair/Opportunity to Cure" grid is to provide a general guide as to some of the key features, and differences, of the specific bills, in each state which has adopted some form of this type of legislation. It is not meant to be an all inclusive analysis of the individual bills, and in this regard, it is noted that the laws in different states vary. Along these lines, it is strongly recommended that builders, or others who intend to utilize the information on the attached grid, consult with their attorney in their individual state, with respect to specific questions and/or requirements of each bill. It is also noted, that with only very few exceptions, the majority of these statutes are not actual "right to repair" laws, but are more of a "notice and opportunity to cure" nature.

Explanation of meaning of individual questions on grid 1. Effective Date? - refers to the date on which the specific statute became law, and thus in effect. 2. Is it retroactive? - answers the question as to whether the statute applies to any situations, which existed or occurred prior to the date that the statute became effective. 3. Does it apply to all homes? - for example, whether the statute applies to just single-family homes, or just detached as opposed to attached housing, or does it apply to all types of homes. 4. Is Builder required to reference the statute to the home buyer, in the purchase agreement at the time of sale? - does the statute require that the builder make specific written disclosures in the sales agreement with the home buyer, as to the existence and/or contents of the particular statute. 5. Does Statute Apply to All Major Construction Defects? ­ does the statue of limitations in any way the nature and scope of claimed defects which are subject to the statues provisions and requirement? 6. Is there a mandatory procedure by the homeowner, prior to being able to file a claim? - does the statute require that the homeowner follow a specific procedure, which if not followed, will prevent the homeowner form being able to present a valid claim/cause of action.

STATES WITH EXISTING NOTICE OF OPPORTUNITY TO CURE/RIGHT TO REPAIR STATUTES AS OF JULY 2004

7. Does the list of claims need to be specified in writing? - does the statute require the homeowner to present a written list of the specific claims for which relief is being sought, to the builder? 8. Is the homeowner required to provide the Builder with written notice of a claim? ­ does the statute provide that specific written notice be given to the Builder as to claims against the Builder? 9. Are there other notice requirements, in addition to the homeowner being required to provide written notice to the builder? - Is the homeowner required to also notify others who may be involved in the claim, such as subcontractors, design professionals, or suppliers? 10. Does the builder need to acknowledge the claim, in writing? - refers to whether the builder is required, by the statute, to notify the homeowner, in writing, that the builder has received the written notice from the homeowner.. 11. Does the builder need to respond to the claim? - in addition to acknowledging receiving the claim, is the builder required to respond in some manner, to the specific claims? 12. Does the builder have mandatory inspection rights? - In order to proceed with a valid claim, does the statute require that the homeowner provide the builder with an opportunity to inspect the home, with respect to the specific claims? 13. Is mediation mandatory? - does the statute require that the homeowner and builder participate in a mediation session, in an attempt to resolve the dispute, as a pre-requisite to further pursuing the claim? 14. Does the builder have an absolute right to repair? - In addition to the possible right that the builder may have to inspect, does the statute also require that the homeowner provide the builder with the right to make repairs as to the specific claimed defects, as a pre-requisite to further pursuing the claim? 15. Does the statute conflict with the HBW warranty? - Are there any provisions of the specific statute, particularly as it pertains to warranty coverage, that may conflict, or otherwise be inconsistent with the provisions contained in the HBW warranty?

STATES WITH EXISTING NOTICE OF OPPORTUNITY TO CURE/RIGHT TO REPAIR STATUTES AS OF JULY 2004

STATES CONSIDERING NOTICE OF OPPORTUNITY TO CURE/RIGHT TO REPAIR LEGISLATION AS OF JULY 2004 Alabama Illinois Maryland Nebraska Ohio Oklahoma Pennsylvania

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