Terms & Conditions

Model Homes, if any, and any advertising or promotional materials used or displayed by Builder are for

display purposes only and are not the basis of the bargain between Builder and Buyer. The obligations of

Builder under signed Agreements shall be determined solely by reference to the plans and specifications

referred to between the parties and the terms of Agreements.

Sales Price and Schedule of Payments are included in contracts.

Any Change Orders may add to or subtract from the total sales price. Any such

Change Orders shall be binding upon the parties hereto and are incorporated by reference and

made part and parcel of this Agreement. All such Change Orders must be executed by the parties

hereto in order to be valid and effective. All Changes will be paid to Builder by the Buyer.

Builder will obtain and provide lender and/or cash buyer with a certificate of Builder’s

Risk Insurance Policy. Policy will cover 100% replacement cost of dwelling as stated above

under 2. This does not include the land. Builder will obtain a lien agent through LienNC Lien

Service.

Schedule of Construction: Construction by Builder shall commence upon completion of loan

approval, payment of deposits, construction loan documents, and issuance of required permits, and shall

be completed in accordance with Item 1 and settlement shall take place in accordance with Items 3 and 7

on or before on hundred twenty (120) days after house placed on foundation.

(a) In the event of delays caused by non-delivery of materials or inability to construct on

the premises due to acts of God, floods, rain, fire, strikes, bad weather, delays caused by other

independent parties such as governmental agencies or utility companies, etc., the time for

completion of construction shall be extended for a period of time equal to the length of the delay.

Such events do not constitute abandonment and are not included in calculating time frames for

payment or performance.

(b) In the event that Builder is unable to obtain the materials specified on the plans or

specifications or the items shown on the pre construction conference report through reasonable

sources of supply, Builder shall have the right to substitute materials of similar pattern and

design and substantially equivalent quality. Contract is subject to Department of Transportation

rules and regulations.

(c) The location and ground elevation of the home on the lot and the necessity, if any, to

reverse the plan of the house to conform to the existing lot contours are to be determined by

Builder and Buyer by mutual agreement.

(d) The buyer agrees to contact the electric and/or gas utility companies involved in the

purchase of the homes as soon as possible to order the utility company to engineer the utilities for the

lot. All costs of electrical and utility installation by the public utility will be the responsibility of the

Buyer and not Builder. This includes application fees, membership fees, easements, transformer

installations or repair of existing deficiencies.

Water: Water Districts will provide water to the home by installing a meter on site. It is agreed that Builder will provide a connection from the meter to the home.

Septic: It is agreed that Buyer will provide a septic system to meet state and local code

requirements.

Abnormal Conditions: In the event that rock, water or any other abnormal conditions are

encountered during excavation, work shall stop. Builder shall show the conditions to the Buyer and a

written agreement shall be made for the extra work necessary to correct the abnormal conditions.

The Buyer shall bear the costs of these abnormal conditions. In the event that abnormal soil conditions

are encountered on your lot, the Building Codes and/or Building Inspectors may require a soil

compaction test. This test may require an Engineer designed footer and/or foundation. In this event, all

activity by Builder will stop and we will show and explain the conditions to the Buyer. A written

agreement will be made for any and all cost of labor, materials and fees required to correct the abnormal

conditions. The Buyer will bear the cost of these abnormal conditions.

Settlement: After completion of construction in accordance with this Agreement, settlement

shall take place on a date and at a place to be selected by all parties. In the event that Buyer refuses to

settle at the date specified by Builder, in accordance with this paragraph, Builder at its option, may hold

the Buyer in default under Item 11, or Builder may elect, at its discretion, to extend the time for

settlement for successive periods of 30 days beyond the previously established date, provided that Buyer

pays to Builder a fee of 1% of the sales price in advance for each 30-day extension. Should Buyer not

settle within any extension, Buyer shall be in default of this Agreement under Item 11. The Buyer may

at time of settlement require full waiver of lien. Final payment shall constitute acceptance.

Possession: Possession of the house to be constructed by Builder as herein above described,

shall be granted to Buyer provided Builder has been paid in full for the purchase price including any

Change Orders, a Certificate of Occupancy has been issued by the proper building Official of the

county/city where the house is constructed, and Builder has granted its written consent for Buyer to take

possession. Occupation of the Home by Buyer prior to becoming entitled to possession shall constitute

default under the terms of this Agreement. Further, should the lender involved in any loan on behalf of

Buyer, require a three-day right to rescind the loan transaction, then Buyer again acknowledges that

possession will not be granted until the funds are released and paid to Builder.

Construction Loan Note & Deed of Trust: If lot is not in the name of Builder, then Buyer

agrees to provide construction note and first deed of trust acceptable to Builder, along with any

acceptable title opinion. Construction interest is not to exceed $ and shall be due and payable ten (10)

days after the completion of the work, or as soon as the loan can be closed. The buyer will be paying in

accordance with item 2.

Closing Costs/Settlement Charges/Prepaids: All closing costs/settlement charges (including

but not limited to all conveyance fees, recording fees), prepaid items (including but not limited to

mortgage insurance premiums, prepaid fire and hazard insurance premiums, prepaid real estate taxes,

and prepaid interest on mortgage) and all other lender required fees and charges shall be paid by Buyer.

Default by Buyer: Default by Buyer shall be deemed to have occurred upon Buyer’s failure

(a) on the date appointed, to tender at settlement the amounts called for herein and accept title, or (b) to

comply with any other terms of this Agreement. In the event of Buyer’s default under this Agreement,

all sums of money paid hereunder prior to such default shall be retained by Builder as liquidated

damages, or, in the alternative, Builder may seek specific performance of this Agreement or any part

thereof in any court of competent jurisdiction.

Refund: In the event Buyer is unable to secure necessary financing, Builder shall refund the

balance of the down payment remaining, if any, after deducting there from any costs incurred.

Cancellation by Builder: In the event that the Contract between Holmes Building Systems

and Builder (attached hereto and incorporated herein by reference) is terminated, canceled or cannot be

fulfilled in any way under the terms of said Contract, or in the event that specific materials or

substantially equivalent substitute materials (Items 3-d) cannot be obtained in thirty (30) days or in the

event that Builder shall determine, in good faith, and for reasons beyond its control, including all causes

specified in Paragraph 3 (a) and including any pending or declared governmental moratorium, that the

house purchased hereunder cannot be completed and made available for occupancy prior to the time

provide for settlement hereunder or within a reasonable time thereafter, or if Builder shall be unable to

deliver good and marketable title to the property this Agreement may be cancelled at the option of

Builder upon ten (10) days’ written notice to Buyer. In the event of cancellation as provided for in this

paragraph, Builder’s liability shall be limited to the return of all moneys paid hereunder by Buyer, and

upon such return, this Agreement shall be null and void and Builder shall be released from all

obligations hereunder.

Authority: Only Builder has the authority to execute this Agreement: only a duly authorized officer

who shall be specifically authorized in writing to so act shall have the authority to modify this

Agreement or execute any supplemental agreements for change orders of any kind or nature whatsoever.

If Buyer should deal directly with a subcontractor, he shall assume all extra costs and hereby releases

Builder from any liability and/or responsibility for such extra work or changes.

Warranties, Easements and Claims: Builder hereby warrants to Buyer that the house

described in this Agreement shall be in substantial conformity with the specifications set forth in this

Agreement and shall be free from material defects in materials and workmanship under normal use and

service for a period of twelve (12) months from the date Builder acquires Certificate of Occupancy.

Warranty claims must be made to Builder in writing. All workmanship shall conform to the guidelines

found in the publication Residential Construction Performance Guidelines – For Professional Builders

and Remodelers, National Association of Home Builders. If an item is not covered in that publication,

standard industry practice shall govern. The sole and exclusive remedy for any breach of this express

warranty shall be limited to the repair of replacement, at the option of Builder, of any part of such house

that is demonstrated, to the reasonable satisfaction of Builder to be defective and which is determined to

be Builder’s responsibility. Notwithstanding anything in this Agreement to the contrary, Builder hereby

disclaims any and all liability to Buyer or any other party, whether arising out of contract, tort (including

negligence), strict liability of any other cause or form of action whatsoever, for consequential,

incidental, special or punitive damages or lost profits resulting from any defect in materials or

workmanship of any house or any part thereof covered by this Agreement. Buyer agrees that Builder

may make and use photographs of the house. Builder reserves the right to make design changes required

by applicable building codes. Additional details of coverage and limits to warranty detailed and set forth

in Holmes Building Systems Builders Warranty, a copy of which will be provided to Buyer prior to

construction and made a part and parcel of this agreement. The conveyance of the property from

Builder to Buyer shall be specifically subject to any restrictive covenants, easements, rights of way and

reservations affecting said property and as set forth of record in the land records of Beaufort County.

Hardwood floors, if purchased, normally contract and expand depending on humidity. A humidifier

should be used during winter months to reduce joint opening. Hardwood floors are not guaranteed if

Buyer uses wood stove of any type. Hairline cracks in Poured Concrete are a normal result of drying and

shrinkage. Any bonus rooms are assumed to be for storage unless specified otherwise.

There are no written or oral agreements or

understandings directly or indirectly connected with this Agreement that are not incorporated herein unless they

are put in writing, signed by the parties and attached hereto.