BUYER Initials: / Date: / Time: / SELLERS Initials: / Date: / Time: /

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1 1 ADDENDUM 2 TO GREATER LOUISVILLE ASSOCIATION OF 3 REALTORS RESIDENTIAL SALES CONTRACT 4 FOR 5 SUBSTANTIALLY COMPLETED NEW CONSTRUCTION 6 This is an Addendum ( Addendum ) to the Residential Sales Contract (the Contract ) dated 20, 7 regarding the purchase of the property located at 8 in County, Kentucky. 9 This Addendum is for the exclusive use of Building Industry Association of Greater Louisville (the BIA ) builder 10 members in conjunction with the Greater Louisville Association of Realtors, Inc. s Contract. It is for use with 11 SUBSTANTIALLY COMPLETED new construction Paragraph 7 and 8 of the Contract are deleted in their entirety and the following provisions are added to the Contract 13 in place thereof: 14 NEW CONSTRUCTION WARRANTIES: The parties agree the property is SUBSTANTIALLY COMPLETED new 15 construction and Seller has offered to Buyer a written warranty. The Greater Louisville Association of Realtors recommends 16 and the Building Industry Association of Greater Louisville requires a written, minimum of one---year warranty be provided 17 when purchasing a newly constructed home. The agreed upon warranty is attached hereto as Exhibit A (the Warranty ) 18 and shall be effective as of the date of closing. 19 THE TERMS, CONDITIONS AND PROCEDURES SET FORTH IN THE WARRANTY ARE INCORPORATED HEREIN 20 BY THIS REFERENCE, EFFECTIVE UPON CLOSING. BUYER AND SELLER AGREE THAT SUCH WARRANTY 21 SHALL CONSTITUTE THE SOLE WARRANTY, INCLUDING ANY LIMITATION THEREOF, FROM SELLER TO BUYER 22 AND THE WARRANTY IS GIVEN IN LIEU OF ALL OTHER WARRANTIES, EXPRESS AND IMPLIED. 23 A Seller Disclosure of Property Condition form (CHECK ONLY ONE BELOW): 24 Has NOT been provided and Seller is NOT required to provide said form on a new home if a home 25 warranty is offered pursuant to KRS Has been provided Paragraphs 10.B.1 and 10.B.2 of the Contract are deleted in their entirety. The following provisions are added to the 28 Contract in place thereof and time is of the essence: BUYER Initials: / Date: / Time: / SELLERS Initials: / Date: / Time: / members of both Associations are working together on the same transaction. Page 1 of 6

2 33 B. INSPECTIONS (CHOOSE ONLY ONE OPTION): ACCEPT AS IS : 35 Buyer accepts this property and agrees to close on the property in its as is condition (but retaining Buyer s rights under 36 the Warranty). Buyer understands the risks associated with this decision and agrees to indemnify and hold harmless the 37 real estate agents and brokers from any damages sustained as a result of accepting the property and agreeing to close in 38 its as is condition. Notwithstanding the foregoing, Buyer and/or Buyers representatives (chosen by Buyer) have the right 39 to perform any and all desired inspections, within days of the acceptance of this Addendum, but Buyer may not 40 request the Seller to make any repairs, corrections, or replacements in lieu of closing, and Buyer agrees to purchase this 41 property regardless of the results of the inspections INSPECTIONS: 43 INITIAL INSPECTION CURRENT IMPROVEMENTS: Within days of the acceptance of this Addendum 44 (the Initial Inspection Period ), Buyer and/or Buyers representatives (chosen by buyer) may inspect the property for 45 any purposes (including wood destroying insects, lead hazard risk assessments using HUD protocol, radon assessment, 46 and/or lead based paint inspection using HUD protocol) at reasonable times and at Buyer s expense. Within the said 47 time period, Buyer may accept all improvements on property existing as of the acceptance date of this Addendum (the 48 Current Improvements ), as is without requesting any repairs, corrections or replacements. In the alternative, if Buyer 49 has hired a licensed home inspector or other licensed professional to inspect the Current Improvements and received a 50 completed inspection report, Buyer may, within the Initial Inspection Period, in writing, either declare the contract null and 51 void or request Seller to make repairs, corrections or replacements to the Current Improvements. If Buyer requests Seller 52 to make repairs, corrections, or replacements to the Current Improvements of the property, Seller shall respond in writing 53 to Buyer s request within days from Buyer s written notification to Seller. If Buyer and Seller cannot agree on which 54 items of the Current Improvements of the property shall be repaired, corrected, or replaced, or on payment of same, Buyer 55 has days following Seller s last response to notify Seller in writing that Buyer either accepts the Current Improve- 56 ments of the property as is (except for the items that Seller agrees in Seller s last response to repair, correct or replace) 57 or that Buyer voids this Contract. If Buyer declares this Contract null and void, Buyer and Seller shall sign a mutual 58 release within three (3) days authorizing a refund of all earnest money and the Contracted Work Deposit, if any, to Buyer. 59 If Seller agrees to make repairs, replacements or corrections to the Current Improvements of the property, all such repairs, 60 corrections, or replacements to the Current Improvements of the property shall be made in a workmanlike and timely 61 manner within days of Buyer s acceptance of Seller s offer of repairs, corrections, or replacements. 62 FINAL WALK THROUGH AND PUNCH LIST INSPECTION: Within days prior to closing, Buyer may inspect the 63 property, including any improvements specifically contracted to be completed by Seller following the acceptance date of 64 this Addendum, the plans and specifications of which are described on Exhibit B attached hereto (the Contracted Work 65 Order ), as scheduled with Seller, and give Seller, or Seller s agent, written notice of all items not completed (the Punch 66 List Items ). This inspection shall be called the Punch List Inspection. Seller shall use all reasonable efforts to complete 67 the Punch List Items prior to closing, but in no event shall those items be completed more than days after the 68 closing if they cannot be reasonably completed before said closing, specifically excepting seasonal items, items requiring 69 materials which are unavailable, and items further delayed by weather and/or acts of God. Buyer understands and agrees 70 that there may be certain Punch List Items which cannot be reasonably completed prior to closing, and that Buyer may not 71 delay closing because of the existence of these items. Seller agrees to give Buyer written notice at closing of the process 72 for completing each of the Punch List Items. 73 BUYER Initials: / Date: / Time: / 74 SELLERS Initials: / Date: / Time: / members of both Associations are working together on the same transaction. Page 2 of 6

3 77 Buyer s written notice of Punch List Items shall constitute a complete release of all obligations and liabilities of Seller 78 with respect to the construction, completion and delivery of all items that were observed, or reasonably could have been 79 observed, by or during the Punch List Inspection, except for the uncompleted Punch List Items, the release of which shall 80 survive the closing. Notwithstanding the foregoing, Buyer shall retain all rights under the Warranty and Seller s Obligations 81 to complete the agreed to Punch List Items shall survive the closing INSECT CERTIFICATIONS: Prior to closing, the Seller must (1) provide the Buyer with a soil treatment certificate 83 acceptable to VA, FHA, or FNMA or (2) if permissible under financing condition set out herein, obtain a satisfactory 84 certification (using NPMA---33 Form) and present the Buyer with a wood destroying organisms certificate acceptable 85 to VA, FHA, or FNMA and the respective mortgage lender showing the premises and improvements to be free from 86 infestation. Such inspection and report must be provided by a technician certified by the Kentucky Division of Pesticides 87 and employed by a duly insured and Kentucky licensed pest control expert. Seller acknowledges that current FHA and 88 VA guidelines may require soil pretreatment before FHA or VA financing can be obtained by Buyer TREES: Seller shall attempt to preserve certain trees on the lot. However, Seller gives no assurance that some of or 90 all the trees shall not be (or have been) damaged or removed during construction or grading of the lot or installation of 91 utilities and pipes. After delivery of deed, except those installed by Seller s landscaper and warranted by same, Seller 92 shall not be responsible for the removal of any dead or dying trees MANUFACTURER WARRANTIES: All manufacturers warranties possessed by Seller shall be furnished to the Buyer 94 at closing. Buyer understands and hereby acknowledges that the Seller has made no warranties, express or implied, in 95 connection with the heating and cooling systems, appliances, gas fireplaces (the Appliances ) to be installed in the 96 property, and the only express warranties of the Appliances, if any, are those made by the manufacturer. Buyer further 97 understands and acknowledges that his/her sole remedy for manufacturing defects is against the manufacturer. Seller, 98 however, agrees to cooperate with Buyer and make reasonable efforts to facilitate any such claims within one year of 99 the closing on the property. Buyer acknowledges materials and/or fixtures supplied and/or installed by Buyer shall not 100 be warranted by Seller, except as specifically covered by the Warranty, if any MAILBOX (CHOOSE ONE): 102 Mailbox IS included with this Contract. 103 Mailbox IS NOT included with this Contract CONCILIATION/ARBITRATION: Prior to the closing, any disputes that arise shall remain subject to Paragraph 26, 105 Mediation/Binding Arbitration of the Contract (the GLAR Dispute Process ). After the closing, (i) in the event the Warranty 106 provides both a mediation/conciliation type process and binding arbitration process within the Commonwealth of Kentucky 107 (the Warranty Dispute Process ), any and all disputes or claims arising under the Warranty shall be handled in 108 accordance with the Warranty Dispute Process and (ii) all other disputes shall be handled in accordance with the 109 GLAR Dispute Process. 110 Further, Buyer and Seller acknowledge that the Warranty mediation/conciliation (the Conciliation ) is intended to be an 111 informal, inexpensive and non---litigious settlement resolution process. Notwithstanding the foregoing and notwithstanding 112 any contrary provision contained in the Warranty, the Buyer, the Seller and/or BIA may bring a representative, legal or 113 otherwise, to the Conciliation provided the name and address of the representative is provided to the other party and to 114 BIA in writing at least ten (10) days prior to the scheduled date for the Conciliation. Where such notice is given, the other 115 party and/or BIA may then have a representative present at the Conciliation without satisfying the ten (10) day written 116 notice requirement. However, if either the Buyer or the Seller elects to have a representative present at the Conciliation, 117 then the other party and/or BIA shall each have the unilateral right to terminate Conciliation, whereby the Warranty 118 BUYER Initials: / Date: / Time: / 119 SELLERS Initials: / Date: / Time: / members of both Associations are working together on the same transaction. Page 3 of 6

4 122 Dispute Process shall be cancelled and the Buyer and Seller shall then proceed in accordance with the GLAR Dispute 123 Process. All other warranties, rights, obligations and limitations thereof under the Warranty shall remain controlling. 124 Further, to the extent the Seller has any other unilateral right to cancel or terminate Conciliation in the Warranty which 125 is not also afforded to the Buyer, such unilateral right is hereby waived by the Seller SELLER GIVES NOTICE TO BUYER AND BUYER ACKNOWLEDGES RECEIPT OF NOTICE OF BUILDER S 127 RIGHT TO OFFER TO CURE CONSTRUCTION DEFECTS BEFORE BUYER MAY COMMENCE ARBITRATION 128 OR LITIGATION AGAINST SELLER. THE NOTICE AND OPPORTUNITY TO REPAIR ACT (KRS THROUGH ) CONTAINS IMPORTANT REQUIREMENTS BUYER MUST FOLLOW BEFORE BUYER MAY FILE A 130 LAWSUIT FOR DEFECTIVE CONSTRUCTION AGAINST A BUILDER OF A HOME. BUYER MUST DELIVER 131 WRITTEN NOTICE TO SELLER OF ANY CONSTRUCTION CONDITIONS BUYER ALLEGES ARE DEFECTIVE 132 AND PROVIDE TO SELLER THE OPPORTUNITY TO MAKE AN OFFER TO REPAIR OR PAY FOR THE DEFECTS. 133 BUYER IS NOT OBLIGATED TO ACCEPT ANY OFFER MADE BY THE SELLER. THERE ARE STRICT DEADLINES 134 AND PROCEDURES UNDER STATE LAW, AND FAILURE TO FOLLOW THEM MAY AFFECT BUYER S ABILITY 135 TO FILE A LAWSUIT Except as amended by the terms of this Addendum, all of the other terms and conditions of the Contract shall remain 137 in full force and effect. As to any inconsistencies between the terms and conditions of the Contract and the terms and 138 conditions of this Addendum, the terms and conditions of this Addendum shall govern and prevail. In the event a property 139 is determined to not have been substantially completed when this Addendum was executed, this Addendum shall still not 140 be rendered null or void. 141 Unless accepted in writing by am/pm, Eastern Time, on the day of, 20 this Addendum 142 shall become null and void. (I/We acknowledge receipt of a copy of this Addendum.) Printed Name of Seller Signature of Seller s agent Date and Time 145 RESPONSE: ACCEPTANCE/REJECTION 146 Seller s proposition is (ACCEPTED) (REJECTED) at am/pm, ET on the 147 day of, Printed Name of Buyer Signature of Buyer Date and Time Printed Name of Buyer Signature of Buyer Date and Time BUYER Initials: / Date: / Time: / SELLERS Initials: / Date: / Time: / members of both Associations are working together on the same transaction. Page 4 of 6

5 156 EXHIBIT A 157 WARRANTY 158 BUYER Initials: / Date: / Time: / 159 SELLERS Initials: / Date: / Time: / members of both Associations are working together on the same transaction. Page 5 of 6

6 162 EXHIBIT B 163 CONTRACTED WORK ORDER 164 Address 165 SUBJECT TO THE GLAR RESIDENTIAL SALES CONTRACT DATED, 20, AND THE 166 ADDENDUM DATED, 20, THE BUYER AND SELLER AGREE AS FOLLOWS: 167 Buyer shall pay directly to Seller, and not in escrow, a deposit of $ (the 168 Contracted Work Deposit ), which shall be separate and apart from the earnest money deposit described in paragraph of the Contract. 170 If the Buyer does not declare the Contract null and void before expiration of the Inspection Period, then the Contracted 171 Work Deposit is NON-REFUNDABLE (even if the financing and appraisal contingencies in paragraphs 3 and 5 of the 172 Contract have not been released by the buyer), except as set forth below: The Seller shall furnish all labor and materials required for the performance of the plans and specifications described 181 herein below or signed and attached hereto (the Contracted Work ) in a workmanlike manner. 182 Description of Contracted Work: Seller shall not be responsible for any materials and labor supplied by Buyer. No work shall be. done except as specified 191 herein or on the attached plans or expressly agreed to by Seller in writing. This Contracted Work Order may not be 192 modified except in writing, signed by the Buyer and Seller. 193 BUYER Initials: / Date: / Time: / 194 SELLERS Initials: / Date: / Time: / members of both Associations are working together on the same transaction. Page 6 of 6