Advantage New Homes (“Advantage”)
Five Year Limited Warranty

Overview

The Warranty is for the exclusive benefit of a person or person purchasing a Home from Advantage (the “Homeowner”).This Warranty assures the Homeowner that:

1. Advantage will repair eligible defects in workmanship or materials supplied by Advantage during the first year of ownership.
2. Advantage will protect the Homeowner against major structural defects during the remainder of the Warranty period.
3. Advantage will appoint and pay for an arbitrator to handle any disagreements between the Homeowner and advantage during the first year after the date of purchase.
4. Advantage will assume financial responsibility of up to $35,000 in furtherance of the protections provided by this Warranty.

The warranty

Advantage warrants for one year that it will repair eligible defects in workmanship and materials and warrants that it will repair major structural defects during the remainder of the Warranty term according with the terms of this agreement.

During the first year after the purchase of the Home and subject to the procedures described herein in this Warranty Certificate, Advantage shall be responsible to carry out the repair of any defect in workmanship and materials (the “Defects”).

For five years after the purchase of the Home by the Homeowner, Advantage shall repair any Structural Defect, that is to say, where a load bearing component fails to provide stable and adequate support for the Home including any consequential damages caused to the Home arising directly from the Structural Defect.

Decisions regarding the investigation, method of repair or correction of Defects or Structural Defects and the retaining and payment of any third parties, consultants and repair contractors, shall be at the sole discretion of the Advantage and shall be final and binding on the Homeowner.

Exclusions 

The following are not Defects or Structural Defects:

a. Any workmanship, design or material, provided or contracted directly by the Homeowner with a supplier, manufacturer or tradesperson;

b. Damage arising from improper or inadequate maintenance by the Homeowner including damage caused by, or resulting from, failure to maintain proper grading of the ground, failure to make necessary telepost adjustments, water leakage or drainage, inadequate water/moisture seals, or the failure of the Homeowner to repair and maintain the Home or mitigate any damage thereto;

c. Damage caused by alterations or work done by the Homeowner or the agents or sub-contractors of the Homeowner;

d. Defects that were apparent and were accepted by the Homeowner at the Date of Possession;

e. Normal cracks in plaster, drywall, paint, masonry, stucco, parging, ceramic tiles, grout and other cementitious materials, and concrete;

f. Normal shrinking and warping of materials caused by drying after construction;

g. Normal soil movement or subsidence along utility lines or backfill consolidation of compaction around the Home;

h. Damage other than Structural Defects caused by soil movement or subsidence;

i. Damage arising from wear and tear, age or weathering;

j. Damage arising from dampness, condensation or fungal or bacterial contamination;

k. Accidental loss or damage caused by a third party or from acts of nature such as, but not limited to: fire, explosion, smoke, water escape, changes which are not reasonably foreseeable, the level of the underground water table, glass breakage, windstorm, hail, lightning, falling trees, aircraft, vehicles, flood and earthquake;

l. A Defect in any workmanship or materials specifically agreed between the Homeowner and Advantage to be excluded from this Warranty;

m. Any damage to the extent that it is caused or made worse by the Homeowner or a third party, including - negligent or improper maintenance or improper operation of any equipment by anyone other than Advantage or its employees, agents or sub- contractors;

n. Failure of anyone other than Advantage or its employees, agents, or sub¬contractors to comply with the Warranty requirement of manufacturers of equipment or fixtures;

o. Alterations to the Home or equipment by anyone other than Advantage or its employees, agents or sub-contractors;

p. Changes or failing to maintain the grading of the lot for the Home;

q. Matters directly or indirectly arising from or related to environmentally harmful substances or hazards, deleterious substances or toxic conditions or materials on, in or about the Home regardless of the party responsible;

r. Any loss or damage which arises while the Home is being used for non¬residential purposes;

s. Damage arising to the Home or equipment from the failure of the Homeowner to take timely action to prevent or minimize loss or damage, including failure to give prompt notice in writing to Advantage of a discovered loss or potential loss;

t. Any damage caused by insects, rodents or other animals;

u. Bodily injury, emotional anguish, inconvenience, damage to personal property, economic loss or damage to real property which is not part of the Home;

v. Diminution in the value of the Home.

Homeowner obligations

The Homeowner shall:

a. Immediately and within one (1) year from the Date of Purchase provide written notice to Advantage giving full details of any Defect and not later than sixty (60) days after the end of that year give to Advantage, written notice of any Defect which has not been repaired or replaced by Advantage;

b. Within five (5) years after purchase provide a written full details of any Structural Defect for Arbitration of the Structural Defect;

c. In case of a dispute with Advantage about a Defect or Structural Defect ,provide written notice for Arbitration of the dispute, the decision of which shall be binding upon both Advantage and the Homeowner;

d. Not undertake any unilateral action or remedy without the prior written consent of Advantage. The cost of such action and any consequent liabilities arising
therefrom, will be for the sole account of the Homeowner. Further, unilateral actions or remedies undertaken by the Homeowner without Advantage’s consent will be excluded from this Warranty and will result in this Warranty being voided entirely;

e. Allow timely, free and full access to the Home Monday through Friday, excluding statutory holidays, from 8:00 am to 5:00 pm to Advantage and its authorized employees, agents and sub-contractors for the purpose of monitoring complaints or claims, inspecting for required maintenance, investigating Warranty or claims issues, monitoring Warranty or claim issues, conducting further inspections as required, or to repair or replace Defects or Structural Defects; and

f. Have paid the full purchase price for the Home including all adjustments, holdbacks and extras to Advantage.

g. The Homeowner agrees that Advantage upon assuming liability under this Warranty Certificate is subrogated to all rights of recovery of the Homeowner against any person, corporation or other entity who may have caused or contributed to the occurrence of any liability under this Warranty. Advantage may bring action at Advantage’s expenses, in the name of the Homeowner or Advantage to enforce such rights. The Homeowner shall fully support and assist Advantage in the pursuit of its subrogated rights; and

h. Acknowledges that any notice required to be given to Advantage must in fact be given to Advantage in writing and within the time limits. Any oral notice given to Advantage is not effective notice to Advantage

Limits and exclusions

(a) The only Warranty given by Advantage, which is binding on Advantage, is contained in this Warranty Certificate.

(b) When a Structural Defect is not causing damage to the Home, Advantage may delay repairs until damage does occur.

(c) A Structural Defect caused by improper maintenance of or an alteration to the Home or Equipment by the Homeowner is not included in this Warranty.

(e) This Warranty shall be strictly limited to the repair or replacement of Defects or Structural Defects. Advantage shall have no liability other than to repair or replace Defects or Structural Defects and for which there is no monetary alternative. Advantage shall not be liable in any way, directly or indirectly, for any damage, loss, or expense whatsoever due to: emotional anguish, inconvenience, diminution in the value of property, economic loss, physical injury or damage to a person, or persons or to any personal property, or other property not covered by this Warranty. Any repairs or investigations undertaken, or costs incurred, by the Homeowner shall be at the sole expense of the Homeowner and not subject to reimbursement by Advantage.

(f) The limit of liability of Advantage for the costs of any and all repairs and third party investigation and consulting engineers under this Warranty Certificate, including the first year Builder’s Warranty and the Standard Structural Warranty is Thirty Five Thousand ($35,000.00) Dollars.

Termination of warranty

This Warranty shall terminate automatically if:

a. The Homeowner does not maintain the Home in a reasonable and prudent manner;

b. The Home is not used for residential purposes by the Homeowner, unless the Homeowner obtains the prior written consent of Advantage which consent shall be in the sole discretion of the Advantage;

c. The Homeowner fails to comply with the Homeowner Obligations as provided herein;

d. The Homeowner undertakes any unilateral action without the prior written consent of Advantage;

e. After the end of one (1) year from the Date of Possession with respect to the first year Warranty for repairs for workmanship and structural components; and

f. Five (5) years from the Date of Possession with respect to the Structural Warranty.

Transfer of warranty

If the legal title to the Home is transferred before the termination of this Warranty, then:

a. All of the applicable unused benefits under this Warranty shall be automatically transferred to any subsequent Homeowner;

b. Whether disclosed or not, prior actions or obligations of the Homeowner shall be binding upon any subsequent Homeowner and, in particular, any previous acts, omissions, defaults, or agreements of any kind made by the Homeowner with Advantage or the Advantage shall be binding upon any subsequent Homeowner;

c. Each Homeowner shall promptly deliver this Warranty Certificate to any subsequent Homeowner, and shall advise any subsequent Homeowner of any matter that may affect or limit the coverage contained in this Warranty Certificate; In the event this is not done, Advantage will have no obligation to inform the new owner whatsoever about the Warranty coverage; and

d. All of the Homeowner Obligations contained in this Warranty Certificate shall be binding on any subsequent Homeowner

Arbitration procedure

Advantage and the Homeowner shall be bound to the following arbitration process:

a. If there is a dispute between Advantage and the Homeowner with respect to the first year basic defect Warranty not resolved to the Homeowner’s satisfaction, then the Homeowner must provide Advantage with written notice requesting Arbitration of the dispute;

b. With respect to Defects, written notice must be received by the Advantage not later than sixty (60) days after the end of one (1) year from the Date of Possession;

c. With respect to a Structural Defect, written notice must be received by the Advantage. not later than five (5) years from the Date of Possession;

d. Advantage and the Homeowner must comply with the Advantage Arbitration procedures;

e. Upon receiving the written request for Arbitration, Advantage will advise the Homeowner of the Arbitration procedures which include, but are not limited to the following conditions:
• Inspection by Advantage are mandatory before the Advantage will do any repair work;
• The Homeowner must allow reasonable access to the Home Monday through Friday, excluding statutory holidays, from 8:00 am to 5:00 pm to Advantage and its authorized employees, agents and sub-contractors for the purpose of inspection or repair;
• The arbitrator decision shall be final and binding;
• The arbitrator shall inspect and approve the repair work.

f. If any issue with respect to anything in this Warranty is disputed, it shall be settled by Arbitration by a single arbitrator appointed and paid for by Advantage. It is expressly agreed that the Arbitration finding shall be final and binding on all parties. The arbitrator shall be an independent person with a professional designation or experience appropriate for arbitrating construction disputes.

Notice

Any notice required to be given must be given in writing and mailed at the addresses indicated below for the Homeowner and Advantage.

The Advantage address is:
PO Box 72
Amherst, NS
B4H 3Y6

The Homeowner address is the civic address of the Home unless designated otherwise herein.