This limited home warranty agreement (“warranty”) is not an insurance policy. It is an agreement between Mountain Warranty Corporation (“MWC”) and the home inspector whose name, signature, and ID appear on page 4 of this document (“Inspector”). Inspector acquired this warranty on behalf of Inspector’s client in order to provide added value to the inspection. The warranty is intended to provide for the cost of repairing certain types of failures of specific items at the property inspected by the Inspector. This warranty is effective on the day that the inspection is performed. Inspector and Inspector’s client understand that MWC is not an employee, agent, supervisor, or representative of the Inspector, and MWC bears no responsibility for the acts or omissions of the Inspector other than with regard to the warranty provided by MWC. By accepting the benefits of this warranty, Inspector’s client agrees to all of the terms and conditions set forth herein. By accepting the benefits of this warranty, Inspector’s client agrees to all of the terms and conditions set forth herein, and grants Inspector a full and complete release from further liability as set forth in paragraph 46.

I. One Hundred-Day Limit / $1,000.00 Limit

This 100-day limited warranty is effective from the date of the home inspection for period of 100 days. The date of the inspection is the first day of the 100-day period. If closing occurs after the expiration of the one 100-day period, the warranty will extend twenty-one (21) days following the closing, provided that the closing takes place within 121 days of the inspection. MWC must receive any notice of a claim on or before the expiration of the 100-day period (or, if applicable, the 21-day period following the closing) or the warranty is no longer valid. MWC’s maximum liability, in the aggregate, for any and all claims submitted pursuant to this warranty for any and all covered appliances, systems and components shall not exceed $1,000.00. No person may make a claim under this warranty who does not have legal title to the subject property at the time of the claim.

II. Coverage

MWC agrees to provide a payment for the covered costs to repair or replace the items listed in this warranty as being covered if any such items fail or become inoperable during the term of this warranty due to mechanical failure caused by routine wear and tear, subject to the terms and conditions of this warranty. “Mechanical failure” occurs when an item becomes inoperable or unable to perform its designed function. Mechanical failure is not covered if it is due to: conditions that existed prior to the inspection date; lack of routine maintenance and care; misuse; and rust and/or corrosion. This warranty provides coverage only for those items (appliances, systems or components) listed in this warranty as being covered. The lists of items in the following sections titled “Examples of items/conditions not covered” are not meant to be all-inclusive and are provided for example and illustration. They do not limit the right of MWC to decline coverage for items not on the lists. The claim payment will be prorated according to the age and condition of the item. Determination of the amount of the cost of repair or replacement will be made solely by MWC. Determination of the operating condition and the nature of any failure or inoperability will be made solely by MWC. Determination of coverage for any claim will be made solely by MWC.

III. Appliances

Description of items covered: The item covered must be an installed and permanent appliance in the primary kitchen limited to the range/stove/cook-top, oven, garbage disposal, exhaust fan unit located above the range, and built-in dishwasher. On the day of the inspection, the item must be visually observable and readily accessible; inspected by the inspector; not reported in need of correction, repair, or improvement; not reported in need of monitoring or further evaluation; not reported with any deficiency; not older than ten (10) years of age; not approaching, near, or at the end of its service life expectancy. Examples of items/conditions not covered: Commercial, high-end, or professional grade appliances; clothes washer and dryer; refrigerator; freezer; cooler; trash compactor; damage to cookware; doors; door seals and glass; filters and screens; food spoilage; ice makers; ice and liquid dispensers; water supply lines; knobs and handles; light bulbs and fixtures; locks and handles; cabinetry and panels; racks; rollers; rooftop or through-wall exhaust units; timers and clocks; self cleaning feature; any appliance 10 years of age or older.

The item covered must an installed and permanent system or component of the home. On the day of the inspection, the item must be within the scope of a home inspection as defined by the Standards of Practice to which the inspection was performed; visually observable and readily accessible; inspected by your inspector; not reported in need of correction, repair, or improvement; not reported in need of monitoring or further evaluation; not reported with any deficiency; not older than fifteen (15) years of age; not approaching, near, or at the end of its service life expectancy.

1. Roof Covering

Description of items covered: The standard materials that make up the roof covering that are in need of repair or replacement to correct a water leak; flashing around sewer vent pipes; flashing at chimney; flashing at wall-to-roof intersection. The roof system must be inspected at the time of the inspection. Examples of items/conditions not covered: Replacement of the entire roof covering; sheathing or deck boards under the roof covering; tar or felt paper; drip edge material; structural components damaged by excessive roof covering weight; any roof covering material that is 15 years of age or older.

2. Primary Central Air Conditioning (Cooling) System

Description of items covered: Standard mechanical parts and components of one (1) centrally ducted air conditioning system. One system with maximum capacity of five tons, and designed for residential application. The system must be turned on and activated during the home inspection, weather permitting. Examples of items/conditions not covered: Wall units; window units; condensate drain pans, pumps, and lines; asbestos insulated ductwork or piping; embedded, encased, or inaccessible ductwork; duct cleaning; dampers; air or fuel filters; fossil fuel control systems; energy management systems; geothermal or water source systems and components, including wells, pumps, coils and piping; heat recovery units; humidifiers; refrigerant gas lines internal and external of the equipment; gas or water filters; maintenance and cleaning; panels and cabinetry; registers, grills, diffusers; structural components; water pumps; valves and lines external of the equipment; water cooling towers; gas or chilled water systems; any noise without a related mechanical failure; any air conditioning system that is 15 years of age or older.

3. Primary Central Heating System

Description of items covered: Standard mechanical parts and components of one system, either hot-water/steam heating system or centrally ducted forced-air heat pump/electric/gasfired/ oil-fired heating system. Electric baseboard units are covered, if they are the primary source of heating the property. The system must be turned on and activated during the home inspection, weather permitting. Examples of items/conditions not covered: Chimneys, flues, and liners; condensate drain pans, pumps, and lines; asbestos insulated ductwork or piping; inaccessible water/steam pipes; embedded encased or inaccessible ductwork; duct cleaning; dampers; air filters; fuel control systems; energy management systems; geothermal or water source systems and components, including wells, pumps, coils, and piping; heat/air recovery units; humidifiers; refrigerant gas lines external of the equipment; panels and cabinetry; registers, grills, diffusers; structural components; water pumps; valves and lines internal and external of the equipment; fuel storage tanks, lines, and filters; fuel filters; individual space heaters; secondary units; free-standing or portable heating units; maintenance and cleaning; pressure regulators; radiant heating systems in walls, floors, or ceilings; any noise without a related mechanical failure; solar heating systems; gas log systems, including gas lines and valves; fossil or solid fuel burning or gas burning stoves, fireplaces, inserts and units; wall units; window units; any heating system that is 15 years of age or older.

4. Plumbing System

Description of items covered: Standard mechanical parts and components of the following items that are located within the perimeter of the main foundation and outer load-bearing walls: water valves; shower and tub valves; toilets; leaks at water supply pipes and leaks at drain, waste, and vent pipes, except those caused by plumbing stoppages/blockages. All fixtures, including but not limited to tubs, showers, sinks, faucets, and toilets, must be inspected and turned on with running water and then drained during the home inspection.

Examples of items/conditions not covered: All plumbing in or under the ground, foundation, floor, or concrete slab; inaccessible plumbing; all piping and plumbing outside the perimeter of the foundation and outer load-bearing walls; any piping or plumbing related to detached structures; geothermal or water source systems and components, including wells, pumps, coils, and piping; bath tubs; bidets; caulking or grout; embedded plumbing; conditions of insufficient or excessive water pressure; conditions of water flow restriction due to scale, rust, minerals and other deposits; holding or pressure tanks; pressure regulators; plumbing stoppages/clogs/blockages; conditions, leaks, or breaks causing or caused by plumbing stoppages/clogs/blockages; exterior hose bibs; faucets; freeze damage; jet pumps; laundry tubs; lawn sprinkler systems; repair and finish of any walls, floors, or ceilings; septic systems on-site tanks and components; sewage ejector or grinder pump systems; gray water drainage or pump systems; sewer, water, and gas laterals; shower enclosures and base pans; shower heads; sinks; sink cabinetry; solar systems; toilet tank lids and seats; water damage; any noise without a related mechanical failure; color or quality of the water; water filters; water purification systems; water softeners; private wells, pumps, lines and related components; polybutylene plumbing; whirlpools, spas, saunas, hot tubs, and their plumbing and mechanical components; swimming pools and related structures, components, and systems.

5. Hot Water Source System

Description of items covered: Standard mechanical parts and components of one hot water source (water heater), including electric or fuel-fired water heater tank, tankless water heater, and domestic coil of a boiler. The hot water source must be turned on and producing hot water during the home inspection. Examples of items/conditions not covered: Solar and heat recovery units; auxiliary and secondary holding/storage tanks; geothermal or water source systems and components, including wells, pumps, coils, and piping; base pans; color or quality of the water; flues; vent pipes; insulation; any noise without a related mechanical failure; point of service and/or instant hot water dispensers; racks; straps; timers; meters; sediment build-up; conditions of insufficient or excessive water pressure; conditions of water flow restriction due to scale, rust, minerals and other deposits; domestic coil unit separate from a boiler system; boiler mates; secondary tanks; any hot water source that is 10 years of age or older.

6. Electrical System

Description of items covered: Standard mechanical parts or components located within the perimeter of the main foundation and outer load-bearing walls, including standard light switches, main breaker panel/box, and wall receptacles. A representative number of wall receptacles, lights, and switches must be inspected. The electricity and supply at the entire property must be turned on and fully operable and active during the inspection. Examples of items/conditions not covered: Attic, bathroom, and/or whole house exhaust/ventilation fans; direct current (DC) wiring and systems; back-up power systems; door bells and chimes; exterior wiring and components; any wiring or components servicing a detached structure; exhaust fans; fire, smoke, or carbon monoxide alarm and/or detection systems and batteries; intercom or speaker systems; lighting fixtures; surge protectors; load control devices; low voltage systems; service entrance cables; telephone systems; timers; touch pad components; transmitters and remote controls; utility meter base pans; wall and ceiling fans; knob & tube wiring; aluminum branch circuit wiring. Failures, damage, and conditions caused by incorrect, improper, or inadequate wiring installation, wiring capacity, circuit overload, power failure/shortage or surge, and corrosion caused by moisture are not covered.

7. Garage Door Opener

Description of items covered: Standard mechanical parts and components of a single primary unit as follows: drive trains, motor, receiver, relays, switches and sensors. The garage door opener must be activated and inspected during the home inspection. Examples of items/conditions not covered: Batteries; damage caused by door malfunctions; all door parts including door panels, tracks, rollers, hinges, cables and springs; lights; touch pads/buttons; transmitters and remote controls; electrical supply wiring; any opener that is 10 years of age or older.

9. Sump Pump

Description of items covered: Standard mechanical parts and components of the pump assembly located within the perimeter of the main foundation and outer load-bearing walls. The pump system must be installed and inspected during the home inspection. Examples of items/conditions not covered: Any unit located outside the property or inside window wells; any unit not professionally or adequately installed; back-up power units; sump buckets or containers; underground piping; pumps not professionally installed to code or standard.

10. Jetted Bathtub

Description of items covered: Mechanical parts and components of the bathtub as follows: accessible electrical controls; accessible plumbing lines; primary circulating pump and motor; drain pipes; gaskets; jets. The tub must be filled and the jets turned on during the inspection.

Examples of items/conditions not covered: Bathtub shell itself; caulking and grout; conditions of water flow restriction due to scale, rust, minerals and other deposits; failures due to dry operation of equipment; gaining access to electrical and plumbing parts; tiles and marble; tub enclosure.

11. Structure System

Description of items covered: Standard parts and components as follows: Load-bearing components of the home which are the foundation system, beams, girders, lintels, columns, floor joists, plates, roof framing rafters and trusses that were readily visible and inspected during the inspection; sections of the poured concrete and concrete block foundations that were readily visible and inspected during the inspection are covered. Examples of items/conditions not covered: Foundations other than poured concrete and concrete block; defects caused by settlement or movement of the structure; any and all parts of the foundation and load-bearing components not readily visible during the home inspection; footings; defects, failure, problems caused by hydrostatic pressure or other forces coming from the ground outside the foundation exterior surface; exterior drainage systems; grading of soil or the ground outside; damage caused by wood-destroying insect infestation; non-load bearing components; wall coverings; plaster, lath, drywall; flooring and sub-flooring material; brick, stucco, stone or veneer; any type of exterior siding material, including wood, vinyl, EIFS, and stucco; trim and finish boards; basement, crawlspace, and garage concrete floor slabs; interior concrete floor slabs; concrete cracks or scaling.

V. General Exclusions and Limitations

1. This warranty provides coverage for the mechanical failure of only those appliances, systems, and components listed as covered. This warranty does not cover any items not specifically listed as covered.

6. This warranty does not cover costs associated with construction, carpentry, or other modifications made necessary by the repair or replacement of existing equipment or installing equipment. This warranty does not cover cosmetic repairs.

VI. Properties Eligible for Coverage

This warranty covers a single-family residence, including condominium or townhouse used solely for residential purposes. Two-unit multi-family property (duplex) owned and operated as a residential income producing property is also eligible for coverage. Multi-family residential income property of more than two units is not eligible for coverage. Any dwelling used in whole or in part for commercial purposes will not be covered. Mobile homes are not covered. Homes listed in any historical register are not covered. Common area items shared by non-warranted units are not covered.

VII. Warranty Payment Limits

26. Under any and all circumstances, the maximum liability, in the aggregate, for any and all claims submitted per term of this warranty for any and all covered appliances, systems and components shall not exceed $1,000.

VIII. Making a Claim

To make a claim, the following must be completed immediately:

31. Contact MWC at 1-800-671-4351 or submit a claim through the web site at www.limitedhomewarranty.com. If you fail to notify MWC of any failure or problem prior to the expiration of the 100-day limit of this warranty during which the failure occurred (or, if applicable, the 21-day period following the closing), the warranty is invalid.

IX. Other Legal Provisions

36. The exclusive venue for any legal action by any person or entity against MWC, its directors, officers, shareholders, agents, or employees arising out of this warranty or the facts and circumstances surrounding it shall be in the District Court of Boulder County, Colorado. If MWC substantially prevails in any such action, the other party shall pay MWC’s reasonable attorneys fees and costs.