Kenmark stands behind the superior quality of its new home construction by extending valuable warranties to its customers. Kenmark warrants against any faults and defects in workmanship, materials, appliances, fixtures and equipment due to noncompliance with the construction standards for a period of one year. Exclusive vendors (VENDORS PAGE LINK) may extend longer manufacturer's warranties, which are separately disclosed. Kenmark is dedicated to ensuring that your home warranty expectations are satisfied.

The following document is our standard Builder Warranty Program:

WHEREAS, KENMARK CORP., BUILDER has constructed and/or caused to be constructed a home, BUYER/OWNER at a purchase price of $_______ on real estate described as follows: Address:_________________. Legal Description: __________________, ________________Subdivision, BILLINGS MONTANA.

I. COMMENCEMENT DATE: The commencement date of this BUILDER WARRANTY shall all be at ___________, whichever shall first occur.

II. BUILDER WARRANTS:

1. BUILDER warrants for a period of one (1) year, beginning on the commencement date set forth hereinbelow, the home shall be free from faults and defects in workmanship, materials, appliances, fixtures, and equipment due to noncompliance with the construction standards hereinbelow.

2. (a) Beginning on _____________ , BUILDER warrants for a period of one (1) l year the home shall be free from defects in the roof materials system (being shingles and tar paper); electrical system; plumbing system (including supply, waste, and venting); heating system; cooling system; and ventilation system of the home due to noncompliance with the construction standards hereinbelow; excepting appliances, fixtures, and equipment (all of which are not warranted by BUILDER beginning on __________________ the first (1) anniversary of this BUILDER WARRANTY because such items generally contain a manufacturer's limited warranty), including but not limited to stove, oven, dishwasher, refrigerator, compactor, hood and fan, microwave oven, garbage disposals, light fixtures, switches, receptacles, circuit breakers, panel boxes, furnace, heat pump, air conditioner, air cleaners, humidifiers, fans, sump pumps, tubs, showers, shower doors, toilets, sinks, door openers, intercoms, thermostats, and other controls.

III. WARRANTY EXCLUSIONS: Warranty exclusions are items not covered by this BUILDER WARRANTY, the exclusions are as follows:

1. Damage to real property or personal property which is not a part of the contract between BUILDER AND BUYERS/OWNERS.

2. Defects in retaining walls; fences; swimming pools; landscaping (including seeding, sod, trees, shrubs, and all other plantings); and other improvements not a part of the contract between BUILDER AND BUYERS/OWNERS.

3. After the first (1) anniversary defects in driveways; sidewalks; patios; walkways; concrete floors installed separate from the foundation and other structural components of the home.

4. Rodent and insect damage.

5. Damage or defect in, or caused by work or materials supplied or provided by BUYERS/OWNERS, their employees, subcontractors, or agents, or anyone other than BUILDER, BUILDER'S employees, subcontractors or agents.

6. Defect, fault, damage or loss which does not constitute a construction defect.

7. Damage to the extent it was made worse by or caused by improper operation, improper maintenance or negligence by anyone other than BUILDER, BUILDER'S employees, subcontractors or agents.

8. Damage to the extent it was made worse by or caused by alterations, additions, or changes to the home and changes of the ground grade around the house by anyone other than BUILDER, BUILDER'S employees, subcontractors or agents.

9. Damage to the extent it was made worse by or caused by failure to comply with manufacturer's warranty of appliances, equipment or fixtures by anyone other than BUILDER, BUILDER'S employees, subcontractors or agents.

10. Damage caused by failure to maintain adequate ventilation by anyone other than BUILDER, BUILDER'S employees, subcontractors or agents.

11. Damage which is covered by other insurance.

12. Normal deterioration or wear and tear.

13. Loss or damage resulting from fire, explosion, smoke, lightning, windstorm, ice damming, hail, flood, mud-slide, water escape, wind driven water, earthquake, volcanic eruption, accidents, Acts of God, riot and civil commotion, falling objects, aircraft, vehicles, or changes in the underground water table.

14. BUYERS/OWNERS costs for shelter, moving, storage, or related expenses arising from a necessitated BUYERS/OWNERS relocation in order that BUILDER can effect repairs.

15. Consequential damages are excluded from this BUILDER WARRANTY.

IV. BUILDER RESPONSIBILITIES:

1. If a defect occurs in an item covered by this BUILDER WARRANTY, then BUILDER shall have the choice of repairing, replacing, or paying for the reasonable cost of repairing or replacing the defective item, limited to the hereinabove purchase price.

2. BUILDERS' repair or replacement of any defect shall not and will not extend the time of this BUILDER WARRANTY.

3. BUILDER'S total liability provided by this BUILDER WARRANTY is limited to the hereinabove purchase price.

4. BUILDER shall assign all manufacturer's warranties of appliances, fixtures and equipment to BUYERS/OWNERS.

V. BUYERS/OWNERS RESPONSIBILITIES:
1. BUYERS/OWNERS shall actively maintain the home to minimize any possible damage due to improper maintenance or neglect.

2. BUYERS/OWNERS shall actively maintain the slope of the soil around the foundation of the home to insure proper drainage of water away from the foundation; and BUYERS/OWNERS shall not install landscaping, scrubs or trees that interfere with the drainage of water from the foundation.

3. BUYERS/OWNERS shall actively clear obstructions, for example leaves, tennis balls, baseballs and other debris, from all gutters and downspouts to insure water flows away from the foundation of the home.

4. During lack of rainfall periods BUYERS/OWNERS shall observe with regularly the soil abutting the foundation should this soil shrink away from the foundation wall BUYERS/OWNERS shall maintain an adequate soil moisture content around the footings of the foundation.

5. BUYERS/OWNERS shall fill the kitchen sink, once monthly, if two compartment fill both compartments with hot water and discharge simultaneously.

6. BUYERS/OWNERS shall winterize every fall, check the furnace, clean or replace filters, remove hoses attached to exterior faucets, check and repair weatherstripping and caulking.

7. BUYERS/OWNERS shall check to insure the fireplace damper opens and closes before starting fires; and clean flue yearly.

8. BUYERS/OWNERS shall clean or replace furnace/air conditioning filters 30 days after occupancy then at least twice during each heating and cooling season.

VI. CONSTRUCTION STANDARDS: The below listed Construction Standards lists faults or defects that might be found in a home. The intent of these Construction Standards is to specify a standard for the home's construction and to determine the validity of any BUYERS/OWNERS complaint in faults or defects in materials or workmanship during the period of this warranty. If a standard for a fault or defect is not listed hereinbelow, then the industry standard for the County in which the home is located will apply. Faults or defects in, or caused by work or materials supplied or provided by BUYERS/OWNERS, their employees, subcontractors, or agents, or anyone other than BUILDER, BUILDER'S employees, subcontractors or agents are excluded from these Construction Standards as provided by Warranty Exclusions in III. 5. above.

1. Construction Standards For First Year Only:

(a)		Possible Defect: Soil settlement around foundation and utility ditches. Standard: Soil settlement shall not interfere with water drainage. Responsibility: BUILDER shall fill in settled areas and re-seed or sod, move and replace shrubs or other items affected by such fill.
(b)		Possible Defect: Surface water failing to drain away. Standard: Water should drain away within 24 hours after completion of a rainfall, or within 48 hours after completion snow and ice melting with temperatures above freezing. Responsibility: BUILDER shall fill in and grade areas ponding or retaining water for more than 24 hours and re-seed or sod, move and replace shrubs or other items affected by such fill.
(c)		Possible Defect: Cracks or leakage of water through the foundation wall. Standard: Cracks in the foundation wall in excess of 1/8" inch are unacceptable. Leakage of water through the foundation wall is unacceptable. Responsibility: BUILDER shall repair all cracks exceeding the above tolerances; and repair all causes for any leakage through the foundation wall.
(d)		Possible Defect: Cracks in concrete floors and flat-work. Standard: Cracks greater than 3/16" inch in width or 1/8" inch in vertical displacement are unacceptable. Expansion and control joint cracks greater that 3/4" inch in width and 3/8" inch in vertical displacement are unacceptable. Responsibility: BUILDER shall repair all cracks in exceeding the above tolerances.
(e)		Possible Defect: Uneven Concrete flat-work Standard: Concrete will be finished level not to exceed depressions of 1/4" inch in 36" inches. Responsibility: Builder shall repair any depressions exceeding the above tolerances.
(f)		Possible Defect: Pitting, scaling or spalling of Concrete flat-work Standard: The concrete flat-work surface should not disintegrate under normal weather conditions. Responsibility: BUILDER shall repair any pitting, scaling or spalling of the concrete flat-work surface. BUILDER shall not be responsible if salt or other chemicals were used on the flat-work.
(g)		Possible Defect: Concrete flat-work that settles, heaves or separates. Standard: Concrete flat-work should not settle, heave or separate more than 1" inch, under normal weather conditions. Responsibility: BUILDER shall take action and correct to meet the above tolerance.
(h)		Possible Defect: Fireplace footing settlement Standard: Fireplace footing should not settle more that 1" inch or the chimney wall should not move away from the house in excess of 1 1/2" inch at the intersection of the roof line and the chimney. Responsibility: BUILDER shall take action and correct to meet the above tolerance.
(i)		Possible Defect: Fireplace flu fails to draw Standard: Fireplace flu should draw properly, excepting during periods high winds. Responsibility: BUILDER shall take action and correct the cause.
(j)		Possible Defect: Cracks in Masonry joints. Standard: Hairline cracks are acceptable and should not exceed 1/4" inch. Responsibility: BUILDER shall repair cracks to meet the above tolerance.
(k)		Possible Defect: Cracks in Stucco Standard: Hairline cracks are acceptable and should not exceed 1/8" inch. Responsibility: BUILDER shall repair cracks to meet the above tolerance.
(l)		Possible Defect: Leaking Gutters and Down-spouts Standard: Leaking gutters and down-spouts are unacceptable, excepting that gutters may overflow during periods of heavy rainfall or when caused by obstruction to the flow of water. A little water may stand in the gutters. Standing water in a gutter in excess of 3/4" inch in depth is excessive. Responsibility: BUILDER shall repair leaking gutters and down-spouts and/or correct gutters that retain water in excess of 3/4" in depth.
(m)		Possible Defect: In adequate Insulation Standard: Insulation should meet the building code. Responsibility: BUILDER will add insulation to meet the building code.
(n)		Possible Defect: Cracks in Drywall Standard: Drywall should be free of nail pops, blisters, and cracks, while hairline cracks are acceptable, cracks in excess of 1/16" inch is unacceptable. Responsibility: BUILDER shall repair drywall nail pops, blisters, and cracks in excess of 1/16" inch.
(o)		Possible Defect: Fading, deteriorating, peeling paint surfaces Standard: Paint should not peel, fade, or deteriorate during the first year. Responsibility: BUILDER shall touch up as necessary, however, BUILDER shall not be responsible for a perfect match, because the painted surface generally oxidizes over time and touch up paint generally comes from a different batch of paint and has a different batch number.
(p)		Possible Defect: Bowed or out of plumb walls Standard: Walls shall not be bowed or out of plumb more than 1/4" inch in 32" inches. Responsibility: BUILDER shall take action to correct within the above tolerances.
(q)		Possible Defect: Inferior workmanship quality of interior finish carpentry and exterior trim carpentry Standard: Open joints in excess of 1/8" inch are unacceptable, excepting where necessary to prevent warpage from expansion and contraction. Responsibility: BUILDER shall repair or replace to conform with the above tolerances.
(r)		Possible Defect: Floor squeaks Standard: Minor squeaks are acceptable. Responsibility: BUILDER will correct if a construction defect.
(s)		Possible Defect: Un-level floors Standard: Floors variance shall not exceed 1/4" inch in 32" inches. Responsibility: BUILDER shall repair to conform with the above tolerance.
(t)		Possible Defect: Deterioration of exterior siding Standard: Exterior siding should not deteriorate. Responsibility: BUILDER shall repair or replace as necessary.
(u)		Possible Defect: Inadequate caulking Standard: Joints that provide weather protection or prevent air infiltration shall be caulked. Responsibility: BUILDER shall caulk as necessary.
(v)		Possible Defect: Door warpage Standard: Inoperable doors are unacceptable. Warpage of doors can be expected, however doors should not warp more than 1/4" inch. Responsibility: BUILDER shall repair or replace as necessary to conform to the above tolerance.
(w)		Possible Defect: Wood splitting Standard: Splits in wood that allows air infiltration or light through is unacceptable. Responsibility: BUILDER shall repair repaint/restain as necessary, however, BUILDER shall not be responsible for any mismatch of the paint or stain.
(x)		Possible Defect: Windows that won't operate or operate with difficulty Standard: Windows should operate as designed. Responsibility: BUILDER shall repair or replace.
(y)		Possible Defect: Air Infiltration Standard: Some air infiltration is acceptable. Responsibility: BUILDER shall correct by adjusting weather-stripping, windows or doors as necessary to reduce air infiltration.
(z)		Possible Defect: Cracked or loose ceramic tile Standard: Ceramic tile should be tightly secured and free from cracks. Responsibility: BUILDER shall repair or replace.
(aa)		Possible Defect: Wall coverings peeling. Standard: Wall coverings should not peel. Responsibility: BUILDER shall repair or replace, however, BUILDER will not be responsible for mismatch or color variations.
(bb)		Possible Defect: Loose carpet, deteriorating seams in carpet Standard: Carpet should be secure to the floor and should not become loose or separate at the seams. Responsibility: BUILDER shall repair or replace.
(cc)		Possible Defect: Mildew or fungus Standard: Some mildew or fungus may form on surfaces. Responsibility: BUILDER has no responsibility.
(dd)		Possible Defect: Cabinet and/or vanity warpage and operation Standard: Cabinet and vanity doors and drawers shall operate as designed and warpage in excess of 1/4" inch as measured along the face of the door/drawer is excessive. Responsibility: BUILDER shall repair or replace to conform to the above tolerance.
(ee)		Possible Defect: Nail pops under vinyl flooring Standard: Some nail pops are allowed, excepting those coming through the flooring goods. Responsibility: BUILDER shall repair or replace, however, BUILDER is not responsible for out of stock floor coverings or color variations.
(ff)		Possible Defect: Gaps in vinyl floor coverings Standard: Gaps in excess of 1/8" inch is unacceptable. Responsibility: BUILDER shall repair or replace, however, BUILDER is not responsible for out of stock floor coverings or color variations.
(gg)		Possible Defect: Chips, cracked, scarred, stains, fading, or marks in carpet, vinyl goods, equipment, and fixtures. Standard: These items should have been listed on the Move In Checklist and corrected prior to move in or within a reasonable time thereafter and are not covered. Responsibility: No BUILDER responsibility.
(hh)		Possible Defect: Garage Door and/or opener fails to operate Standard: Garage Door and/or opener should operate. Responsibility: BUILDER shall repair or replace.

2. Construction Standards For First Year Only:

(mm)		Possible Defect: Leaks in roofing materials, valley and other flashing. Standard: Leaks in the roofing system, including materials, valley and step shingle flashing is unacceptable, excepting during wind driven rains and ice damming. Responsibility: BUILDER shall repair or replace as needed to prevent leaks through the roof, excepting where the cause is wind driven rain and ice damming.
(nn)		Possible Defect: Standing water on a flat roof Standard: Water shall drain from the roof within 2 hours after completion of a rainfall. Responsibility: BUILDER shall repair or replace to ensure proper water drainage from the roof.
(oo)		Possible Defect: Leaks through attic vents or other openings. Standard: Attic vents provide ventilation and are necessary. Responsibility: BUILDER has no responsibility.
(pp)		Possible Defect: Inadequate heating or cooling Standard: At 20 degrees below zero outside temperature the heating system will maintain 68 degrees in the center of each heated room at 5' feet 6" inches above the floor. At 92 degrees outside temperature the cooling system will maintain 78 degrees in the center of each cooled room at 5' feet 6" inches above the floor. Responsibility: BUILDER shall correct the heating or cooling systems to meet the above tolerances.
(qq)		Possible Defect: Defective heating/cooling equipment, fixtures, materials, valves. Standard: All equipment, fixtures, valves and materials should operate as designed. Responsibility: BUILDER shall repair or replace to obtain proper operation.
(rr)		Possible Defect: Noisy ductwork Standard: Ductwork expands and contracts when heated and cooled. Responsibility: BUILDER has no responsibility.
(ss)		Possible Defect: Oil-canning Standard: Oil-canning is unacceptable. Responsibility: BUILDER shall correct to eliminate the noise.
(tt)		Possible Defect: Freezing or leaking plumbing pipes, drains, waste Standard: Freezing or leaking water, drains and waste pipes are unacceptable. Responsibility: BUILDER shall take corrective action to prevent freezing and leaking of water, drain and waste pipes.
(uu)		Possible Defect: Defective plumbing fixtures, equipment, fittings and leaking faucets Standard: Leaking faucets and fittings are unacceptable. Responsibility: BUILDER shall repair or replace defective plumbing fixtures and shall take corrective action to stop leaking faucets and fittings, excepting condensation.
(vv)		Possible Defect: Pipe hammering Standard: Pipe hammering is unacceptable, however some noise is normal. Responsibility: BUILDER shall take action to correct pipe hammering.
(ww)		Possible Defect: Circuit breakers tripping or fuses blowing Standard: Circuit breakers tripping or fuses blowing is unacceptable, excepting ground fault interrupters. Responsibility: BUILDER shall repair or replace circuit breakers and/or fuses and check the wiring of such to determine ascertain the problem and conformity to the electrical code. BUILDER shall have no responsibility correcting ground fault interrupters.
(xx)		Possible Defect: Defective wiring, outlets, switches, equipment or fixtures. Standard: All wiring, outlets, switches, equipment or fixtures should operate as designed. Responsibility: BUILDER shall repair or replace to return to designed function.

3. Construction Standards For First Year Only:

(yy)

Possible Defect: A load bearing structural defect in the home which causes damage to the load bearing portions of the home. A load bearing structural defect being defined as "physical damage to the load bearing portions (being footings, grade beams, foundation, columns, beams, girders, lintels, load bearing walls, floor joists, sub-floor, roof trusses or (ceiling joists, rafters, knee bracing, collar beams, ridge board and ridge bracing) of the home which resulted from the failure of said load bearing portions which affected their purpose and function to the extent that the home becomes unlivable or unsafe. Standard: The home shall be free from load bearing structural defects. Damage to flooring and sub-floor materials, brick, stone, stucco, siding, drywall, plaster, wall coverings, tile, shingles, roof sheathing, concrete flat-work (except load bearing concrete flat-work), insulation, paneling, plumbing, electrical, heating, cooling, appliances, fixtures, equipment, hardware, millwork, doors, windows, cabinets, painting does not constitute a load bearing structural defect. Responsibility: BUILDER shall repair or replace those load bearing items or portions that made the home unlivable or unsafe and those items necessary to bring the home into compliance with the above construction standards.

VII. ARBITRATION:

1. If BUILDER and BUYERS/OWNERS disagree regarding a defect or damage, then either party may demand arbitration. In such event each party will select an arbitrator. The two arbitrators will select a third arbitrator. All arbitrators shall have a minimum five (5) years new construction experience of single family homes. The decision agreed to by two of the arbitrators will be binding on the BUILDER. Local rules of law as to procedure and evidence will apply. The standards listed in VI. CONSTRUCTION STANDARDS above, will apply; should a defect occur and that defect is not listed in the Construction Standards then the arbitrators shall determine the accepted industry standard for the County in which the home is located. Unless both parties agree otherwise, arbitration will take place in the county in which the constructed home is located.

2. Each party will pay the expenses it incurs, and bear the expenses of the third arbitrator equally.

VIII. EXPIRATION DATE: This BUILDER WARRANTY, as provided herein, shall expire, and be of no further force or effect on ______________, upon the transfer of the title of the home to a subsequent purchaser of the home, whichever shall first occur, excepting where provided by law.

IX. OTHER:

1. Should any provision of this BUILDER WARRANTY be deemed unenforceable by a court of law, then that determination will not affect the enforceability of the remaining provisions of this BUILDER WARRANTY.

2. This BUILDER WARRANTY shall not be assignable to nor extend to subsequent purchasers of the home, excepting where provided by law.

IN WITNESS WHEREOF, the parties have hereunto caused this BUILDER WARRANTY to be executed and commenced (at closing or first occupancy, whichever shall first occur) this ____ day of ____________, 20__.

BUILDER:_____________________________ BUYERS:____________________________

KENMARK CORP.
____________________________