K. Hovnanian® Homes: Homebuying Guide

Homebuying Guide

Table of Contents

Introduction

Welcome Letter Getting Started Your Feedback Homeowner Survey Process 45-60 Days After Closing Survey — Sample Form 12 Months After Closing Survey — Sample Form About K. Hovnanian® Homes

Appointment Log

Purchasing Your Home

Arranging Your Loan

Key Meetings — Form 14

18

Contact Information

20

The Purchase and Sale Agreement What Happens Next? Arranging Your Loan New Home Selections — Non-Looks Communities New Home Selections — Looks Communities

K. Hovnanian® American Mortgage, L.L.C. Online Registration and Loan Process Loan Application Mortgage Programs Loan Paperwork Loan Underwriting What to Expect After Approval Rate Lock Loan Closing

28

Introduction

Material Variations Availability Design Selections Completion

New Home Selections

Looks, Interior Collections

32

Introduction

Colors and Materials Material Variations

Contract Change Policy and Process

Product Awareness

36

Ceramic/Porcelain Tile

Tile Variation

Natural Stone and Natural Stone Tile Grout

Carpet

Visible Seams

Crushing and Matting Pilling, Fuzzing and Roll Crush Stain Release

Vinyl Wood Floors

Laminate Floors Window Treatments

Granite Slabs Quartz Countertops Engineered Marble Countertops Availability

Construction of Your Home

46

Introduction

Plans and Specifications Models

Regulatory Changes Topography and Homesite Conditions Utilities and Mailboxes

Changes in Materials, Products and Methods Routine Variations

Quality

Complete, Clean and Customer Ready "Ugly Duckling" Stages Trade Partners

Site Visits, Your Safety, Gold Key Meetings

52

Site Visits and Your Safety Gold Key Goals Gold Key Introduction Gold Key Framing Orientation

Scheduling the Closing

56

Construction Start Date Drywall Installation Date Fully Complete/ Occupancy Permit Date Construction Stages "Nothing is Happening" Gold Key Introduction — Sample Form Gold Key Framing Orientation — Sample Form

Gold Key Orientation and Delivery

64

Scheduling your Gold Key Orientation

Last-Minute Activity Your Preparation Gold Key Delivery Completion of Items Gold Key Orientation — Sample Form

Closing on Your Home

70

Overview

Closing Date

Location Documents

Final Cost Preparation House and Mailbox Keys First Mortgage Payment Document Storage Moving Tips Moving Preparation Checklist Packing Materials Moving Day Necessities

Introduction

Congratulations on choosing to join the K. Hovnanian® Homes family! We look forward to working with you, building a home that you will be proud of and enjoy for many years. Our goal is to provide an experience that pleases you so much that when asked, you won’t hesitate to recommend K. Hovnanian® Homes to family and friends.

One way we strive to ensure a positive experience is to set expectations for what will happen before, during and after construction. Our new Homebuying Guide is intended to help you along the way and to answer many of your questions.

Your involvement in all of the processes described in the Guide is vital to ensuring a smooth transition into your new home. Therefore, we ask for your engagement from the beginning of construction and throughout the entire process.

Your Community Team, led by your Sales Consultant and Community Construction Manager, will update you on the progress of construction of your new home. In addition, there will be strategically scheduled orientations designed to keep you informed, review our progress, and address your questions.

Please keep in mind that your Sales Consultant is available at the community five days a week to help answer any questions that may arise. The Sales Consultant will return all calls or emails by the end of business on the next scheduled work day.

Thank you for making us your #1 choice!

Sincerely,

The K. Hovnanian® Homes Team

Homebuyer understands and agrees that the Homebuying Guide is for information purposes only and does not create any legal obligations between Homebuyer and K. Hovnanian® Homes or any of its affiliates. All legal obligations are set forth in the written Purchase and Sale Agreement between Homebuyer and the K. Hovnanian® entity identified in the Purchase and Sale Agreement. The information contained in the Homebuying Guide is subject to change without notice to Homebuyer, and conditions may vary by geographic region. KHAM is an affiliated lender. You, as the homebuyer, may select the lender of your choice. However, certain incentives will only be made available to you if you select KHAM as your lender, as described in the Purchase and Sale Agreement.

Getting Started

Your new K. Hovnanian Homebuying Guide is conveniently divided into categories that span the entire process. Kindly review it carefully, and bring it to scheduled appointments.

purchasing your home

The Purchase and Sale Agreement and key legal papers stand at the heart of your transaction. The Guide will help you understand what these documents mean, how they work, and what to expect as they flow between us.

arranging your loan

This section outlines the details of financing your home. K. Hovnanian® American Mortgage L.L.C. (KHAM) offers a variety of loan programs that allow you to choose one that best meets your needs and financial qualifications.

new home selections

Whether you will visiting our Design Gallery or personalizing a Looks home, you have our experts’ full attention in creating the environment you envision.

construction of your home

Our building process is outlined here, all organized in one place, including outlines of meetings to attend.

gold key orientation & gold key delivery

During Orientation, our Associates demonstrate your home’s features, discuss maintenance, and confirm that it will be delivered with your selections installed.

closing on your home

Describes the important details of the closing process, and of the documents you will review and sign.

Your Feedback

K. Hovnanian® Homes is committed to earning your trust through open communication. As part of our commitment to continual improvement we encourage your feedback on every aspect of performance. Purchasing and building a new home is an incredibly rewarding experience, and with that said, it can be stressful at times. Your team of professionals is here to provide support through both challenges and celebrations.

Third Party Homeowner Surveys

At K. Hovnanian® Homes, our goal is to ensure excellent service, and we value and seek out customer feedback. During your first year in your new home, H2Insight, an independent third-party research firm will contact you with a survey measuring your satisfaction with our communities, homes and services. We’d be delighted if you complete a survey at each of these milestones:

45-60 Days After-Closing Survey (H2Insight)

12 Month After-Closing Survey (H2Insight)

Following Any Service Appointment (KHOV representative)

We would like to achieve a 100% response rate from our homebuyers, and to earn a score of “10” for “Strongly Agree” on all questions in the survey. Scores of “10” across the board do not necessarily mean perfection, but that you feel your team gave 100% effort in each service category. As mentioned earlier, the homebuying process is both challenging and extremely rewarding—and the best experiences are achieved through candid feedback and open channels of communication.

Want To Hear From You!

family have filled the year with the happy memories and special occasions that truly make a house a home. That’s why we build homes, and we hope that you have been comfortable and content in yours. We’ve been eager to follow up with you again to ask you about your homeownership experience. At K. Hovnanian’s® Four Seasons, we are committed to continual improvement in the quality of service we deliver to our homeowners. To accomplish this, we have partnered with H2insight, an independent market research firm, to conduct a series of satisfaction surveys with all of our homeowners to gather feedback. Your feedback is a vital part of our effort to further improve our standard of quality and customer satisfaction. We certainly realize how very busy you are, but we would greatly appreciate it if you would take a few minutes to complete this final survey. As a token of our appreciation, upon receiving your completed survey we will 1) automatically enter your name into a $500 sweepstakes contest; and, 2) make an annual contribution to the U.S. Institute Against Human Trafficking on behalf of all survey recipients. Thank you again for trusting K. Hovnanian’s® Four Seasons to be part of

deliver to our homeowners. To accomplish this, we have partnered with H2insight, an independent market research firm, to conduct a series of satisfaction surveys with all of our homeowners to gather feedback. Your feedback is a vital part of our effort to further improve our standard of quality and customer satisfaction. We certainly realize how very busy you are, but we would greatly appreciate it if you would take a few minutes to complete this final survey. As a token of our appreciation, upon receiving your completed survey we will 1) automatically enter your name into a $500 sweepstakes contest; and, 2) make an annual contribution to the U.S. Institute Against Human Trafficking on behalf of all survey recipients. Thank you again for trusting K. Hovnanian’s® Four Seasons to be part of your homebuilding dreams. We hope you and your family enjoy many years of happiness in your home!

Sincerely, Ara K. Hovnanian President Chief Executive Officer K. Hovnanian® Companies, LLC P.S. If you login at www.homeownerfeedback.com using the username and password provided above to complete this survey online you will be entered twice into our sweepstakes drawing!

Please Respond By: August 19, 2021 438937 Password: KFXk7Ex7

About K. Hovnanian® Homes

The value of a priceless heritage is measured by the purpose and dedication of its heirs. As a company devoted to building communities of excellence, K. Hovnanian® Homes is heir to a history of solid success, financial strength, award-winning standards of quality, and an authentic commitment to customer satisfaction. As your homebuilder, sharing this heritage with you is both our mission and our privilege.

In 1959, Kevork S. Hovnanian envisioned a development company whose homes would provide lasting advantages, and reward the people who owned them for many years to come. Since 1959, K. Hovnanian® Homes has become, and continues to be one of America’s most respected homebuilders. No matter what style or size of home you’d like, we can help realize your dreams.

Now in our second generation of family leadership, K. Hovnanian® Homes continues to be known as “The First Name in Lasting Value®.” To this day, our greatest pride is knowing that over the years we have earned the trust of more than 350,000 homebuyers. We know your home is the foundation of your family’s lifestyle, and we honor this by making sure yours meets our standards. We are especially pleased by the number of first-time buyers who have relocated or moved up to second and third K. Hovnanian homes—this underscores our customers’ confidence in us.

Our company also enjoys a sound legacy of commercial success. Hovnanian Enterprises, Inc. began trading on the New York Stock Exchange in 2001. Since then, we have grown to a position of financial strength, as well as top rankings among America’s finest National homebuilders.

Appointment Log

Community: Lot Number: Address: Plan Name: Elevation:

Contact Information

sales consultant:

Phone: Email: community construction manager: Phone: Email:

Appointment Log

Please fill in the following appointment dates as you schedule them. This will help remind you of all appointments during the building of your home through closing.

Date

loan application design gallery appointments (if applicable)

Date Date

Time Time Time

Phone Number Phone Number Phone Number

Contact Person Contact Person

Schedule no later than 5-days after your Agreement is executed. Loan approval should occur within 35-days or less per the terms of your Agreement as long as you provide the necessary documentation to your Lender. Please refer to Arranging Your Loan (pg. 19) for more information. Note: As a Hovnanian affiliate, K. Hovnanian® American Mortgage, L.L.C. will be referenced throughout this guide. You, as the homebuyer, may select the lender of your choice.

Contact Person

Scheduled by your Sales or Design Consultant, please take the first available appointment to keep the start of your home on schedule and avoid any delays in the construction of your new home. Complete your selections within 2-weeks of execution of your Agreement.

Appointment Log (Cont.)

gold key introduction

Review all selections and color choices for your new home and review your home site with your Community Construction Manager and Sales Consultant. This meeting will take place at the Community Sales Center. Please refer to Site Visits, Your Safety, Gold Key Meetings (pgs. 52/53) for additional information.

gold key framing orientation

Confirm with your Community Construction Manager that all selections and locations of the options in your new home are correct. This meeting will take place at your new home. Please refer to Site Visits, Your Safety, Gold Key Meetings (pgs. 52/53) for additional information.

gold key orientation

A tour of your new home with your Community Construction Manager and/or Homeowner Service Manager to demonstrate the features of your home, discuss its care, maintenance and warranties. Please refer to Gold Key Orientation and Delivery (pg. 64) for additional information.

gold key delivery

Prior to closing, you and your Construction Community Manager and/or Homeowner Service Manager will insure that all items you listed during the Gold Key Orientation are addressed and/ or corrected.

closing of your new home

Refer to Preparation (pg. 73) for all the items that need to be in place prior to closing.

Purchasing Your Home

The Purchase And Sale Agreement

We utilize electronic signatures for legal documents throughout the purchase of your new home, including for the Agreement and related addenda. The Agreement becomes binding once it has been executed.

Your Purchase and Sale Agreement has been thoroughly reviewed, complies with all state real estate laws, and once accepted, it becomes a binding contract. During this time, we review your Agreement once more for accuracy. You will receive an electronic confirmation along with a copy of the Agreement once it’s formally approved. If there are items requiring further discussion, your Sales Consultant will call you directly.

What Happens Next? cash purchasers

If you opt to pay cash for your home instead of financing it, we will require proof of funds at the time of contract. Please submit these statements to your Sales Consultant.

Arranging Your Loan

Now that you have signed the Purchase and Sale Agreement, the next step is to firm up the details of financing for your home. If you haven't already started this process, please complete your registration within 24 hours. You may complete the registration online at www.khovmortgage.com.

An Account Manager from K. Hovnanian® American Mortgage, L.L.C. (KHAM) will call you to discuss a financing package that meets your needs. Soon afterwards you will be notified of your loan approval status. Your Account Manager is available to answer all of your mortgage questions at any point in the homebuying process.

New Home Selections — Non-Looks Communities design gallery

An appointment will be arranged through a Home Design Professional or by your Community Sales Consultant. Making new home selections is your opportunity to personalize your new home to fit your lifestyle. If you purchased a Quick Move-In home, these selections have already been made by a Home Design Professional. Please take the first available appointment, or within 14 days, to keep your construction start date on schedule and to minimize delays.

New Home Selections — Looks Communities

Your Community Sales Consultant will guide you in choosing the look and palette that best expresses your style, and will discuss the time frame to finalization.

Remember: You, as the homebuyer, may select the lender of your choice. However, certain incentives will only be made available to you if you select KHAM as your lender, as described in the Agreement.

Arranging Your Loan

KHAM is an affiliated lender. You, as the homebuyer, may select the lender of your choice. However, certain incentives will only be made available to you if you select KHAM as your lender, as described in the Purchase and Sale Agreement. If you do select KHAM as your lender, the following processes will apply. These processes will vary if you obtain financing from a different lender.

K. Hovnanian® American Mortgage, L.L.C. kham

The next step in purchasing a new home involves registration and application for mortgage financing. KHAM offers you a wide array of financing options, a hasslefree loan application, and a timely loan commitment.

Online Registration and Loan Process

The best place to begin is at registration (www.khovmortgage.com). Before going to the website, please make sure all of your credit bureaus are unfrozen and/or unlocked. Once registered, a KHAM Account Manager will contact you within 24 hours. If you have already entered into contract your Account Manager will reach out to complete your loan application within five days.

To simplify the process while you register, KHAM utilizes Finicity, a Mastercard company that uses bank level security and allows us to gather the necessary data instantly.

The goal is to gather all income and asset information in one easy step, increasing efficiency and reducing the amount of documentation you need to provide to secure your home loan.

Loan Application

KHAM will work with you to create a loan package tailored to your finances. Our mortgage experts know your home, your community, and your financial options, because we focus exclusively on producing programs for K. Hovnanian® Homes customers.

Financing your home is easier than you might think. Just follow these simple steps and you’re on your way!

To ensure that you receive the proper information, speak with your KHAM Account Manager first - you’ll receive a financing package that meets your needs.

After speaking with your Account Manager, the approval process will begin. This consists primarily of researching and verifying your financial qualifications and credit history.

To ensure that the application process is as smooth as possible, and to streamline the asset and income documentation process, ask your Account Manager for a link to Finicity. Alternative and/or additional items can be found in the included checklist; your Account Manager will let you know which items are needed for your loan, and these can be uploaded to the secured portal you created at the time of registration.

When you complete your mortgage application, your Account Manager will speak with you about loan programs and terms to consider when locking in your interest rate. We advise you to evaluate all relevant factors when locking in your rate and terms. Whether you decide to lock in for 30 days from closing, or choose a longer lock option - even as far as 364 days from closing - our goal is to educate you so you can make the most informed decision.

Please refer to your Agreement for specific, required timelines for loan application and approval.

Loan Application

(Cont.)

During the application process or appointment, please discuss with your Account Manager the allowable amount you may spend personalizing your new home with selections and looks. Throughout the loan process, if you need an update on the status of your loan, please call your Account Manager or Loan Processor.

Mortgage Programs

KHAM offers multiple loan programs to fit your individual needs. Here is a sample list of options available:

• Conventional 30, 20, 15 and 10 year Fixed Rate Mortgages

• Conventional 5, 7 and 10 year Adjustable Rate Mortgages

• Conventional, FHA, VA and USDA

• Construction to Permanent Financing

• Jumbo Mortgages

• Down Payment Assistance Programs (as applicable per state)

• Extended Rate Locks with options up to 364 days depending on loan program

Speak with your KHAM Account Manager for additional information regarding the specific features and benefits of the programs listed above, as well as other available programs not listed.

Loan Paperwork

After completing your application, please continue to work with your Account Manager to furnish any additional items needed for your final loan commitment to be issued.

Loan Estimate: The Loan Estimate (LE) lists the estimated costs you will incur at closing. Some of the numbers listed on this form are pro-rata (i.e. homeowner’s insurance, property taxes, interest); some are subject to change based on final price and the actual date of the closing; and others are set fees that should remain the same.

Loan Underwriting

Our goal is to deliver your loan commitment as quickly as possible. While requests for documentation can occasionally be cumbersome, the more quickly we receive them, the faster we can get your loan commitment finalized.

What to Expect After Approval

Loan commitments often carry conditions of approval. The sale of a current home or evidence of liquid funds for closing are just two examples. Discuss any questions you may have about your conditions with your Account Manager or Loan Processor, and provide any requested documentation as soon as possible. To further simplify this process, ask your Account Manager or Loan Processor for the Finicity link.

Once your Loan Processor has collected this documentation, you may be asked to write letters describing your assets, income or credit. Few loans are finalized without requests for additional information. Many of these requests occur just before the loan is submitted for the final approval.

Your Account Manager or Loan Processor may ask for similar documentation throughout the loan process, and he or she can provide some additional insight on what may seem to be redundant requests.

credit report and appraisal

K. Hovnanian® American Mortgage, L.L.C. (KHAM) or the lender of your choice, will order a credit report and an appraisal. Your credit report shows the amounts of money you owe to each of your creditors, minimum monthly payments and your payment history. The appraisal is an independent market valuation that confirms the value of your home. The appraisal will be ordered from an independent appraisal company approximately 45 days prior to the projected closing date. Your KHAM team will guide you through this step.

Between the time your loan was initially approved and the date of your closing, remember that any significant changes in your financial circumstances could impact your final loan commitment. For example, purchasing new furniture or appliances for the new home, a new car, or increases in your charge card balance will appear as new liabilities on your updated credit report. Such changes may have a negative effect on your loan approval. We therefore suggest that you hold off on major purchases until after closing.

Last minute requests are common.

documentation for all buyers

Using FINICITY may reduce total items needed

• Most recent 30-day pay stubs/pension awards letter/social security award letter

• W2s and/or 1099s for the last two years

• Complete federal tax returns for the most recent two years (All schedules. No state returns required)

• Signed copy of Social Security card/Green card EAD and/or Visa (Front and back, current/not expired)

• Copy of current driver’s license(s) or passports

• Most recent two months of checking, savings, and retirement account statements, including all pages of each statement

• Source of any deposit over normal direct payroll/pension/social security

• Copy of the earnest deposit checks you gave the builder, and the bank statements showing these funds clearing your account (once this occurs). If borrowed or unsecured funds were used, they must be paid back. Please contact your Account Manager for further information.

• Most recent mortgage payment statement to verify tax and insurance escrow (if applicable), and most recent copy of your HOA Annual Statement, Homeowner's Insurance statement, and property tax bills

documentation for self-employed buyers

• Business tax returns for the most recent two years (all schedules and pages) - if you own 25% or more of the company

• K1 for the most recent two years

• Copy of your most recent YTD P&L

documentation for va loans

• DD-214

• Certificate of Eligibility

• Statement of Service (Active Duty Only)

• Alive and Well Letter (Active Duty Only)

• Nearest living relative’s name, address and phone number

• Letter on any childcare expenses, signed and dated

additional documents required (if applicable)

• Copy of recorded Divorce Decree and Final Judgment, including property settlement agreement and all child support orders

• Copy of complete bankruptcy papers and discharge of debtors, and/or Foreclosure/Short Sale documentation

• Letter of explanation (example: derogatory accounts and miscellaneous inquiries)

• Copies of all current Lease Agreements, deposit/security check

• Copy of Specific Power of Attorney and/or Trust Agreement These items must be approved prior to closing.

The only thing anyone knows for certain about interest rates is that they will change. Do not rely on anyone’s predictions regarding rates. Your Account Manager will explain the various lock options at the time of loan application, and upon your request at any time during the loan process. K. Hovnanian® American Mortgage, L.L.C. (KHAM) offers locks from 30 to 364 days.

You are invited to lock in your best rate at any time, as long as it spans the full length of time to cover your closing date. Occasionally, labor and material shortages arise that are beyond our control, and might affect the scheduled day of settlement. If this happens, and a rate lock extension becomes necessary, you will be responsible for any additional costs related to the lock extension, just as you would with extra storage days or moving fees.

Rate Lock Loan Closing

Your Account Manager reviews your Closing Disclosure with you prior to closing. This will give you an opportunity to review your final payment and cash to close.

New Home Selections

design gallery

The time by which you will need to complete your selections is set forth in your Agreement.

Introduction

One of the most enjoyable parts of purchasing a new home is selecting colors, flooring, appliances, and optional features that reflect your personal tastes. You may make some of these choices at the K. Hovnanian® Home Design Gallery. As you make selections, consider your current lifestyle, and think about how you envision it in the future. Take into account your daily activities, hobbies, work, entertaining preferences, and family holiday traditions.

A Design Consultant or Community Sales Consultant will contact you to set up your appointment. Your Sales Consultant will inform you of our Home Design Gallery’s hours of operation.

All interior selections will be made at your scheduled Home Design appointment, which may take two or three hours. If you are delayed more than 15 minutes for your appointment, we may reschedule so that your time with your Design Consultant is not cut short by the next buyer's appointment.

Home Design Guidelines

Allow up to three hours for your Home Design appointment selection process. The timely completion of these selections allows the homebuilding process to move forward.

Realtors are welcome to accompany you to the Home Design appointment. Children are welcome, but kindly bring an extra adult who can watch them during your appointment so that you may concentrate on your selections.

Colors Material Variations

We invite you to bring paint color swatches and furniture inspiration photos to choose your finishes. We encourage you to view color samples in both natural and artificial light to acquire accurate impressions of the colors. Also note that variations between samples and the actual materials installed are likely, and are not considered defects. Natural materials such as wood and granite often vary in color and texture, enhancing their beauty. Some variations occur due to manufacturers’ coloring processes (dye lots) and to the fact that over time, sunlight and other environmental factors affect the samples. Some colors will seem different when viewed in areas larger than the Home Design Gallery.

When viewing samples, please take source of light into consideration i.e. natural vs. fluorescent vs. LED lighting. It will vary.

Material variations in the following are not considered defects:

cabinets

Grain, texture and color variations exist in wood finishes and will be visible in your cabinet selection. These variations may range from even and consistent to varied and dramatic. These characteristics are to be expected and are natural within all cabinet selections.

hardwoods

Hardwood floors will vary in color from other wood items such as rails and cabinets. Kindly note that hardwood will show wear and tear, especially in high-traffic areas.

carpeting

Dye lot color variations may occur, and are beyond our control or that of the manufacturer. All carpeting may include visible seams. Berber carpeting will show seams more readily than other styles.

granite

Stone is created naturally and therefore varies in consistency, color and pattern.

Availability

With so many choices, we’re unable to predict when manufacturers will update an item or material. If a homebuyer selection has been updated by the manufacturer, the latest model will automatically be installed. If a manufacturer or supplier discontinues an item or material you have selected, we will contact you as soon as possible. Also, keep in mind that materials readily available now may be unavailable for replacement in the future. We regret any inconvenience this may cause, however such circumstances are beyond our control. We reserve the right to substitute substantially equivalent products or materials.

Design Selections Completion

In order for us to begin construction of your home in a timely manner, your home design selections must be finalized per the terms outlined in the Agreement.

New Home Selections

looks, interior collections

When viewing samples, please take source of light into consideration i.e. natural vs. fluorescent vs. LED lighting. It will vary.

Introduction

One of the most enjoyable parts of purchasing a new home is selecting colors, flooring, appliances, and optional features that reflect your personal tastes and needs. You will have the opportunity to personalize your home with one of the carefully curated Looks interior collections prior to your purchase. Take into account your daily activities, hobbies, work, entertainment preferences, and family holiday traditions. Your Community Sales Consultant will guide you in making choices that best suit your style.

Colors and Materials

We invite you to bring paint color swatches and furniture inspiration photos to choose your Look. We encourage you to view color samples in both natural and artificial light to acquire accurate impressions of the colors. Also note that variations between samples and the actual materials installed are likely, and are not considered defects. Natural materials such as wood and granite often

vary in color and texture, enhancing their beauty. Some variations occur due to manufacturers’ coloring processes (dye lots) and to the fact that, over time, sunlight and other environmental factors affect the samples.

Some colors will seem different when seen in an area larger than the one in which you viewed the Model Home.

Material Variations

Material variations in the following are not considered defects:

cabinets

Grain, texture and color variations exist in wood finishes and will be visible in your cabinet selection. These variations may range from even and consistent to varied and dramatic. These characteristics are to be expected and are natural within all cabinet selections.

hardwoods

Hardwood floors will vary in color from other wood items such as rails and cabinets. Kindly note that hardwood will show wear and tear, especially in high-traffic areas.

carpeting

Dye lot color variations may occur, and are beyond our control or that of the manufacturer. All carpeting may include visible seams. Berber carpeting will show seams more readily than other styles.

Stone is created naturally and therefore varies in consistency, color and pattern. granite

Contract Change Policy and Process

In order for us to complete your home in a timely manner, we emphasize the importance of making your selections fully and completely at the time of contract, per the agreement.

Product Awareness

Ceramic/Porcelain Tile

Tile comes in many sizes, styles, and colors with different textures and finishes. The dye lot of the showroom samples from which you have selected may vary in appearance from the actual ceramic/porcelain noted in your application. At this transition, a flexible caulking will be used. This caulking will have a similar, but not exact, match to the grout used throughout your home.

Tile Variation

Ceramic/Porcelain tile has an inherent, slight variation in size from piece to piece. Buyers should never expect tight grout lines.

The color, shade and pattern of all tile varies to some degree between pieces and production runs. Variation ratings have been associated with your tile selection.

Colors, shades and patterns viewed at the Design Gallery may differ to some extent from the actual tile installed in your home. These variations are not defects, and are considered standard in the industry. Field tile and trim shades often vary, and may not match exactly. Uniform Appearance

V1 Slight Variation

V2 Moderate Variation

v1 - uniform appearance

V3 Substantial Variation

V4

Minimal to no difference between pieces from the same production run because each tile is manufactured using the same glaze applications and body texture.

v2 - slight variation

Distinguishable differences in texture and/or pattern with similar colors.

v3 - slight variation

Although the colors present in a single piece of ceramic tile may indicate the colors to be expected on other tiles, the amount(s) of color(s) on each piece might vary significantly.

v4-random or dramatic variation

Random color variation from tile to tile, so that one ceramic tile may have a totally different color from that of other tiles. Thus, the final installation will be unique.

Natural Stone and Natural Stone Tile

Natural stone will have unique properties including color range, texture, shading, veining, and pitting. These bespoke qualities make stunning visual statements, and lend each stone floor we install its own level of natural beauty.

Marble, travertine, limestone, and slate are naturally soft and may etch or scar. Be cautious with sharp objects and chair feet, as they may scratch your stone. Use of proper protective pads on furniture legs is essential.

Tumbled stone looks as if it has been weathered or aged. The tumbling process results in desirable, highly visible variations in shape, color and texture. Voids and/ or pitting can be expected. Individual pieces or pieces used in a listel, mosaic or medallion can vary in height, resulting in a unique look after installation. Standard grout widths are noted in the grout description below. Natural stone tiles may require sealing as an ongoing maintenance process.

It’s not unusual for the foundation to expand, contract and settle. This movement may cause hairline cracks to appear in the tile or grout lines.

Tile that is installed in upstairs areas will be installed using industry-approved underlayment for added support. However, it is not possible to guarantee against cracks or separations from forming.

Mosaics may consist of tile, stone or glass pieces that are glued to a mesh backing for ease of installation. Once installed, the variation of individual placement on the mesh will become apparent.

Grout

Grout samples are representative pieces of color. Grout may vary in color and shading from area to area due to climate changes and moisture in the slab. Grout will also darken with age. Grout joints will be based on a standard of +/- 3/16" allowing tile variation to be absorbed within the joint. The installer will determine the exact grout joint width at the time of installation. The size of the grout joint is based on size calibration, edge type and the thickness of the product. Scalloped or chiseled-edged tile grouting will vary significantly. Tumbled-edge stones are set wider due to the nature of the product (no butt joint or narrow joints). Grout is porous. Sealing grout is an optional maintenance procedure.

Carpet samples shown in the Design Gallery are representative of color, style and texture. As with other floor coverings, variation in dye lots and production runs may occur. This is common and acceptable per industry standards. Any visible manufacturing defects should be noted during your walk-through.

Carpet Visible Seams

While every effort is made to properly install your carpet, it is virtually impossible to make all seams completely invisible. Certain styles of carpet are more prone to show seams, but visibility usually decreases over time.

Crushing and Matting

Crushing and matting are caused by heavy or concentrated foot traffic, and are not considered defects. They can be improved with proper care.

Pilling, Fuzzing and Roll Crush

These occur in all carpets and are not considered manufacturing or installation defects.

Stain Release

Carpet stain release that is topically applied will decrease in effectiveness with vacuuming and carpet cleaning. Stain release treatments do not guarantee or protect against all staining or soiling of the carpet. Pet stains are not warrantied except on specific carpets with Pet Warranties. Stairs are not included in carpet manufacturer warranties.

The vinyl samples in the Design Gallery may vary from what is installed in your home in color, texture, shading and design variations.

All sheet vinyl is subject to tearing, indentation or abrasions caused by furniture, shoes, harsh products, appliances or household accidents. Slab movement, settling and cracks may occur. Control joints are designed to minimize cracking in the concrete. Cracks and control joint expansion may become visible through vinyl, and are not considered defects in materials or workmanship.

Seams may be visible in vinyl depending upon the design and layout of the area.

Due to the process used in manufacturing vinyl floor products, it is not necessary to apply a wax or wax-based product. It is also recommended to avoid using rubber-backed area rugs, as they will cause discoloration of the vinyl surface over time. Discoloration may occur when vinyl is exposed to asphalt, tar, oil, driveway sealers, and some food products.

Vinyl Wood Floors

Hardwood flooring is a natural material and variations from the samples in the design showroom should be expected.

Wood will contain variations in graining, coloration and many have mineral streaks. In some cases, there may be a significant discrepancy between the color and grain patterns of these products. Wood floors are susceptible to indentations and scarring. Be cautious with sharp objects, high heels, chair feet, animal nails, etc. as they will scratch your floor. Felt pads are recommended for use on furniture feet to help minimize potential damage.

Wood expands and contracts with the climate, so it’s best to maintain your home at an even temperature throughout the year. You may also have movement in your floor due to moisture. Wood can absorb moisture from underlying concrete, humidity, spills or steam from appliances. As wood absorbs moisture it expands, and as it allows moisture to evaporate, it contracts. Occasional surface cracking due to low relative humidity is normal. Concrete slab variations may also cause wood planks to sound hollow. Wood manufacturers mill their pre-finished flooring to precise specifications, however, slight variations among individual boards is within industry tolerances.

Knots, blemishes and variations from the sample shown are to be expected. Wood will change colors due to exposure to direct or indirect sunlight. Wood trims and baseboards are intended to blend, but are not meant to match exactly.

Laminate Floors

Transition moldings in laminate floors are common and expected, as they allow expansion and contraction. If you don’t want transition moldings, this may not be the best product selection for you. Your Design Consultant can help you explore this further.

High Pressure Laminate (HPL) Wood Flooring is engineered to withstand the rigors of today's busy lifestyles; and is manufactured to resist scuffs, wear, fading and stains. While HPL offers excellent scratch resistance, it is not scratch-proof.

There is no guarantee of a color match between the natural wood products and/or the laminate wood flooring in your home.

Window Treatments

Optional

Multiple blinds installed in one opening may result in gaps that interfere with light control and privacy. In most instances, each blind will also have split cords (one on each side for tilt and lift). Multiple blinds in one window will have one common valance. Again, your Design Consultant may have suggestions on how to best approach window treatments.

Granite Slabs

Kitchen counters, especially islands, may have seam locations that differ from those demonstrated in the models. Seam placements are solely at the discretion of our fabricators.

Granite is a product of nature and differs from piece to piece. By definition, natural stone features variegated colors, veining, crystal structures, mineral formations and textures. Homebuyers will see and feel fissures, pitting and other natural attributes in stone surfaces, and these are not considered flaws. The actual stone installed may differ from the samples shown.

Irregularities in the finish and gloss levels of stone and other natural materials are common. Finish and gloss will vary from slab to slab and also within the same piece. Granite is susceptible to staining by oily or greasy substances, as well as by highly acidic liquids like lemon juice. To minimize staining, we recommend taking precautions to protect work areas from spills and other food preparation residue. We also recommend a reapplication of sealant not just to help protect the stone, but to maintain its beauty.

Although we take every precaution to avoid slab damage, minor chipping may occur during installation. Chips may be repaired with epoxy or polyester resin.

Locations of seams in the countertops are determined by our professional fabricators. Seams will be visible to the eye and sensitive to the touch, but we make every effort to ensure they are placed to maximize structural integrity and aesthetics.

Quartz Countertops

Fashioned from one of nature’s most durable minerals, quartz countertops retain their beauty and integrity for years. Your quartz countertops are a blend of 93% natural crystals, and 7% unsaturated polyester resin and inorganic pigments.

The product pattern density may vary in color, size, shape and distribution from batch to batch.

Quartz surfaces are heat-resistant; however, a trivet (with rubber or silicon feet) or an insulated hot pad should be used to protect the surface from heated cookware and high heat producing appliances. While quartz is scratch-resistant, don’t use knives or sharp objects directly on the surface. Also, protect quartz from prolonged direct sunlight, as UV rays may discolor the dye in the resin on countertop surfaces.

Quartz has low porosity and doesn’t require a surface sealant. If sealer is applied, it will void the warranty.

When viewing quartz surfaces from varying angles, you may see both high- and low-gloss areas. This is a natural characteristic of quartz, as various materials within the slabs react to finishes in their own unique ways.

Quartz comes in smaller slab sizes and can require more seam locations than granite. Locations of seams in the countertops are determined by professional fabricators. Seams will always be something you can both see and feel. Every effort will be made to ensure that seams are placed in the best locations for structural integrity and aesthetics.

Engineered Marble Countertops

Engineered marble is manufactured by utilizing natural stone and materials. Therefore, many characteristics that are inherent to natural materials will be present in the product. These may include variance in aggregate size, small pits and differences in color, none of which are considered defects. This product will scratch.

Availability

With so many choices, we’re unable to predict when manufacturers will update an item or material. If a homebuyer selection has been updated by the manufacturer, the latest model will automatically be installed. If a manufacturer or supplier discontinues an item or material you have selected, we will contact you as soon as possible. Also, keep in mind that materials readily available now may be unavailable for replacement in the future. We regret any inconvenience this may cause, however such circumstances are beyond our control. We reserve the right to substitute substantially equivalent products or materials.

Construction of Your Home

Introduction

Building a new home is a rare opportunity that differs from creating any other product. The process requires oversight by a Construction Manager and participation by multiple trade partners; and you can literally observe your home as it rises in front of your eyes.

You have a great deal of control over your new home’s design and finishes based on successful personalization tools we have created over time. We invite your design choices, timely communication of preferences, and your scheduled visitsopportunities to view your home during the construction process.

Please see Site Visits and Your Safety for further information, and contact your Sales Consultant with any questions you may have.

Your new home’s local city or county building and zoning departments must review and approve all construction plans and specifications. We build every home to comply with each department’s approved plans and specifications, and these become part of our agreements with Trade Partners and Suppliers. Many factors can cause variations between the model home you viewed and the home we deliver. These include, but are not limited to the items listed below.

Plans and Specifications Models

Model homes display a great variety of decorator items, window coverings, furnishings, mature landscaping, extra walkways, fences, lighting, fountains, signs and flags, many of which are not part of the home we build for you. Please review your home's specifications as well as information we provided about optional items displayed in the models carefully to avoid misunderstandings. Consult with your Sales Consultant if you have questions.

Finish sizes can vary somewhat, so please measure for window coverings in your own home rather than in a model or similar home under construction.

Regulatory Changes

City or county agencies may adopt new codes or regulations at any time, and these may affect your home. Changes are usually adopted in the interest of safety, and are legal requirements with which we must comply. For this reason, we may construct the same floor plan slightly differently in two different jurisdictions or at two different times within the same jurisdiction.

Topography and Homesite Conditions

Each homesite is shaped differently. The position of your home on its site may differ from others in the community. You will receive a copy of a site plan (also known as a plot plan) that shows your home's unique positioning at your Gold Key Introduction.

Topography and Homesite Conditions (Cont.)

The exterior elevations of each home are affected by the topography, or surface contours of your homesite. For instance, slope on the site may affect the configuration of the driveway, walks, steps and rails that may be installed. These components may vary as required for the home you selected. The exterior finish varies in accordance with the slope of your homesite.

In securing the building permit for your new home, we must submit and comply with an approved engineered site plan, which determines house location, finished floor elevations, homesite topography, drainage easements, swales, additional storm water management requirements, and other items. This process ensures that your lot drains properly, and does not cause drainage issues for neighboring properties. We will elaborate on this at your Gold Key Introduction.

Prior to excavating your lot, we identify trees that must be removed to make room for your home and driveway. The reaction of remaining trees to construction activities on your lot are beyond our control, and we cannot guarantee their health or survival rates. Sometimes, additional trees may be removed to help ensure proper drainage.

Utilities and Mailboxes

The locations of meters, phone and electrical junction boxes, drainage boxes, community sidewalks and mailboxes are examples of items which K. Hovnanian® Homes doesn’t control. We are unable to make representations about final locations, as these are under the authority of the utility companies and the U.S. Postal Service.

Changes in Materials, Products, and Methods

The new home industry, building codes, building trades, and product manufacturers are continually working to improve methods and products. Manufacturers make model changes that often impact items like appliances, which manufacturers generally change every year. Our model homes show the most recent appliances at the time they were completed and installed. Therefore, appliance models may be different in your home, based on your selection, timing and availability.

As required by your Agreement, every substitution of method or product will be of equal or better quality than your original selection.

If the change involves your option selections, your Sales Consultant or Design Consultant will contact you regarding the change and/or required re-selection.

Routine Variations Quality

Dozens of Trade Partners will carefully construct your home. The same individuals rarely work on every home and, even if they did, each one would still be unique. The exact placement of items like thermostats, towel bars, switches, outlets and registers may vary from the model, and from other homes of the same floor plan. They may also vary in response to City or County requirements.

K. Hovnanian® Homes will build your new home(s) according to rigorous internal standards of quality. In the course of a process that takes several months and involves dozens of people, an error or omission may occur. We have systems and procedures for inspecting our homes to ensure that levels of quality meet our requirements. Any items requiring attention will be identified and corrected at each phase of construction. In addition, the county, city, and/or engineer(s) conduct a number of inspections at different stages of construction. Your home must pass each of these inspections before construction continues.

Complete, Clean, Customer Ready

We believe that one of the keys to satisfying homebuyers is to present our homes 100% complete, clean and customer ready. Our processes include the following:

quality assurance review (qar) quality standards inspection (qsi)

Our inspection process requires that Community Construction Managers inspect each home under construction for quality at key milestones.

At the completion of every home, a qualified experienced Field Associate conducts a rigorous inspection of your home.

“Ugly Duckling” Stages

Every home under construction experiences days when it’s not at its best. Homes under construction endure wind, rain, snow, foot traffic and activities that generate noise, dust, mud and trash. Material scraps are a by-product of the process, and although your new home is cleaned by each trade upon completion of work, during your visits you will encounter some messy moments. While we understand this may cause you some concern, please note that every home ever built, including our beautifully decorated model homes, endured an “Ugly Duckling” stage or two.

Trade Partners

Your home is built through the combined efforts of specialists in many trades— excavation, foundation, framing, mechanicals and insulation, drywall, trim and more. In order to ensure delivery of homes that meet the highest K. Hovnanian® Homes construction standards, only authorized suppliers, Trade Partners and Associates are permitted to perform work in your home. In addition, buyer modifications at any stage of construction are prohibited. For example, you cannot personally add or modify items such as speaker wire, telephone or cabling.

Each Trade Partner works on a limited portion of your home, and none are in a position to offer judgments on the project. All questions should go through your Sales Consultant and Community Construction Manager. We will obtain input from Trade Partners when it is appropriate.

Suppliers and Trade Partners have no authority to enter into agreements on behalf of K. Hovnanian® Homes. For your protection and theirs, the terms of our Trade Partner agreements prohibit alterations without written authorization from us.

Site Visits, Your Safety, Gold Key Meetings

Site Visits and Your Safety

We understand that you will want to visit your new home between construction orientations. Visiting a new home construction site can be exciting but potentially dangerous. Your safety is of prime importance to us. Therefore, you must set an appointment with your Sales Consultant and/or Community Construction Manager and sign a site visit waiver before visiting your home.

Unapproved, unscheduled, unsupervised visits to the site constitute a breach of the Agreement. Appointments are scheduled Monday – Friday. Once you have met the requirements outlined, we require that you wear a hard hat, and that a member of our staff accompany you during your visit. Please observe all of these safety procedures during your visit:

• Federal Occupational Safety and Health Act (OSHA) prohibits any person under the age of 18 to enter the construction site.

• Do not take even one step backwards anywhere in the home, including between stud walls. Look in the direction you are moving at all times.

• Please wear stable, hard sole shoes.

• Watch for boards, cords, tools, nails, or construction materials that might cause tripping, puncture wounds, or other injuries.

• Do not enter any level of a home that is not equipped with staircases and railings.

• Stay a minimum of six feet from all excavations.

• Give large, noisy grading equipment or delivery vehicles plenty of room. Assume that the driver cannot see or hear you.

• In addition to safety considerations, be aware that mud, paint, drywall compound, and other construction materials are in use, and may soil your clothing and/or damage your vehicle.

• Never enter the home un-escorted by a K. Hovnanian associate at any time. Entry is strictly prohibited on weekends, during evening hours, or while Trade Partners are working.

Gold Key Goals

The purpose of the Gold Key Introduction is to thoroughly review your home plan specifications and selected options. We will discuss the building process, site visits, homesite grading, house placement, construction stages, Trade Partner communication, safety - and your estimated closing timeframe.

Gold Key Introduction

You will have the opportunity to meet with your Community Construction Manager several times during the construction of your home. The first of these is a Gold Key Introduction.

A K. Hovnanian associate will schedule your Gold Key appointment prior to the start of construction, and after:

• Your contract has been accepted

• Your Home Design and structural selections are complete and finalized

• Your mortgage application is approved

• Your building permit is issued (in some instances)

Please bring this Guide and all of your questions to the Gold Key meeting.

This orientation is mandatory and will occur prior to the construction start of your home.

Gold Key Framing Orientation

Many buyers appreciate the opportunity to tour their homes just after the rough mechanical stage and after the insulation installation. The rooms have begun to take shape, but the inner workings are still visible. This is an opportunity for you to see the level of quality that goes inside the walls of your home.

Your K. Hovnanian associate will schedule your Gold Key Framing Orientation. This appointment usually takes approximately 60–90 minutes. Please remember to bring your Homebuying Guide, selection sheets, and any other contractual documents related to the construction and options for your new home. Due to the tight construction time frame to complete your home, there may be only a 48-hour notice for the appointment.

Although this orientation is important, it is intended as a courtesy to you. If you are unavailable to attend, we will conduct our own internal review of your contract documents, and will continue with the construction of your home.

Per your Agreement, all structural options must be completed at time of initial contract signing. While the time to make changes has passed, the Gold Key Framing Orientation provides the opportunity to confirm that all of your previously requested changes and options are installed properly.

During the Gold Key Framing Orientation we will update you on the estimated target closing time frame. Discrepancies with your selected options will be noted and corrected prior to the installation of your drywall.

Scheduling the Closing

The closing date of a new home is determined by many factors, three of which are key milestones:

Construction start date

Drywall installation date

Fully complete/occupancy permit date

Construction Start Date

The construction start date is driven by a number of factors, beginning with your timely completion of all selections. It will depend upon how quickly required building permits are issued, the survey/stakeout plan, field conditions, weather issues, labor availability, and how many other future homes have already reached this Pre-Construction stage.

These variables make it hard to project a completion date at this stage. However, when all Pre-Construction requirements have been completed, we will start work on your home as quickly as possible.

Drywall Installation Date

Your home may appear to be on hold at the Pre-Drywall stage. It often takes weeks to take a home through the drywall installation inspection process, which depends on many factors, including the ability to schedule inspections. Once the inspection process has been completed and drywall has been installed, the process will continue to move along. Completion of your home usually occurs approximately 60 to 90 days later, depending on home size and other factors.

Fully Complete/Occupancy Permit Date

Other factors aside, a home cannot be delivered until the Occupancy Permit has been obtained by the local jurisdiction. Any and all schedules provided are tentative until the home is fully completed and the Occupancy Permit is received, so please keep your moving plans flexible. Once the home is completed and the Occupancy Permit is in hand, you must take prompt ownership of your new home.

Your Sales Consultant will keep you informed of any changes to your schedule during the construction process. With so many factors influencing the construction process, it can be difficult to provide reliable completion dates in advance. Since any particular home can finish ahead of or behind schedule, we will keep you informed to the best of our ability. Please remember that any Closing/Completion Dates provided to you are only estimates until you receive your formal Closing notice per the terms of the Agreement.

The list and sequence noted is a general informal guide that may change at the builder's discretion.

Construction Stages

Although the specific sequence of construction steps varies and overlaps, we generally build your home in the following order:

foundation

• Excavation

• Foundation prep

• Foundation check

• Foundation pour

framing

• First floor

• Second floor, if applicable

• Roof trusses

• Roof materials

exterior

• Windows and doors

• Finish materials (brick, stone, or siding)

• Trim

• Gutters, if applicable

• Exterior painting, if applicable

• Concrete flat work

• Fine grading

• Landscaping, if applicable

interior

• HVAC (heating, ventilation, and air conditioning)

• Plumbing

• Electrical

• Frame check

gold key framing orientation

close-in inspections

• Insulation drywall

• Hang

• Tape

• Finish coat interior trim

• Doors

• All interior trim details

Interior Painting

finish work

• Cabinets

• Countertops

• Flooring

• Appliances

• Light fixtures

• Plumbing fixtures

• Interior cleaning

• K. Hovnanian's Quality assurance inspection

• Certificate of occupancy

gold key orientation gold key delivery

“Nothing

is Happening”

Expect several days during the construction phase when it appears that nothing is happening—this is a normal part of the process. Construction activities are scheduled days or weeks in advance of the actual work, and time is allotted for completing each trade's work on your home.

Progress may also seem to pause while the home awaits local building department inspections. This is also normal and occurs several times for every home.

In addition, work at certain stages may progress more rapidly than at others depending on a home’s size, details and other variables.

If you have questions about the pace of work, please contact your Community Construction Manager or Sales Consultant for an update.

Gold Key Orientation and Delivery

The Gold Key Orientation is a required meeting that introduces you to your new home and its many exciting features. There is an established agenda for this walk-through to ensure that all areas of your home are addressed. The Gold Key Orientation provides you with:

• A demonstration of the products and systems in your new home

• A confirmation that all selections and options are installed per your contract

• An opportunity to verify all cosmetic surfaces are defect-free

• Warranty Information

• Instructions for required product registrations (Appliances, HVAC Systems, and others)

Scheduling Your Gold Key Orientation

Your K. Hovnanian associate will schedule your Gold Key Orientation as your home nears completion. Appointments are scheduled Monday through Friday. Beginning your orientation by early afternoon ensures sufficient daylight to view all surfaces adequately.

Your Community Construction Manager or Homeowner Service Manager will meet you at your new home at the scheduled time. Please allow at least two hours to properly complete your orientation. While we understand you may have to take time off from work to attend, this orientation is a critical step in the homebuying process and must occur prior to the Gold Key Delivery.

Last-Minute Activity

During the last few days of your home's construction prior to your Gold Key Orientation, Trade Partners and K. Hovnanian® Homes Associates will be fine-tuning and completing minor adjustments on your home. These finishing touches can only be performed after all of your home’s elements have been installed and tested. What appears to be a last-minute rush is just a normal phase of the construction process.

Your Preparation

Following these hints will help ensure that you get the maximum benefit from your orientation.

Please

orientation attendees

The orientation is most beneficial when only the purchaser(s) attend. This will allow you to focus your attention on your new home and the information presented without distractions.

Easily marred or damaged surfaces will not be addressed or repaired after closing, as the surfaces develop scratches and signs of normal wear. This includes but is not limited to all flooring surfaces, kitchen cabinets and counter tops, bath cabinets and vanity tops, mirrors, windows, appliances, plumbing fixtures, and electrical fixtures.

During your orientation, we will confirm that all surfaces are acceptable and defect-free.

cosmetic surfaces bring questions

If you have not already done so, please read the maintenance information, limited warranty, and warranty guidelines in the Homebuilder’s Limited Warranty and Defined Standards provided to you at by your Sales Consultant when you signed your Agreement. If you have questions, please note them and bring to your orientation.

comfortable attire

Wear shoes that are easy to remove, and clothing that will allow you to bend, kneel, and reach during the orientation. We will tour both the exterior and interior of your home, so anticipate some mud or dust.

get involved

We encourage you to listen carefully, take plenty of notes, and take a hands-on approach during your orientation. We want you to push buttons, flip breakers, and test doors and windows! This will help reassure you that everything is in working order, and help you remember important details about the operation of your new home.

quality

The overall quality of your new home should be move-in ready. We will list any items that we mutually agree need further attention, and schedule the appropriate work.

Gold Key Delivery

Gold Key Delivery orientation is a review of any items documented at the Gold Key Orientation and to verify those items noted on your orientation form are addressed and/or corrected. This review will usually last approximately 45 minutes and generally takes place the day before or the day of closing.

Completion of Items

Our goal is to have 100% of the items listed on the Gold Key Orientation form addressed or corrected prior to closing. Any tasks listed as seasonal items will be completed as soon as weather permits. If a part is back-ordered, we may also need to issue a service request and complete that item when the part arrives.

If work needs to be performed after your closing, we will schedule an appointment on a weekday, Monday through Friday. If any of the above items apply to your new home, we will record them on the Gold Key Orientation form with an estimated date of completion.

We ask that someone over the age of 18 be present for repairs. Due to insurance regulations, we are unable to accept a key to perform work in your home without your presence on-site.

As set forth in your Agreement, we will not delay settlement for incomplete items.

Gold Key Orientation

Closing on Your Home

Overview

At closing, K. Hovnanian® Homes transfers ownership to you, and this includes finalizing your loan and the actual sale itself. The funds are disbursed to the appropriate entities, title is transferred to your name(s), and the loan is recorded against your new property, if applicable.

Closing Date

We recognize that timing is vitally important in planning your move and locking in your loan. We can specify a date when construction reaches a point at which weather, material and labor availability, lender issues, or changes are unlikely to affect the completion of your home.

With this in mind, all dates are tentative until the final certificate of occupancy has been obtained, where applicable. The closing takes place shortly after your Gold Key Delivery, and in most cases this occurs on the same day. Prepare for the closing process to take approximately two hours.

Location

The closing on your new home will take place at the location indicated on your Closing Notice.

Documents

Contact your Account Manager at K. Hovnanian® American Mortgage, L.L.C. to finalize any last minute details. At closing, the documents necessary to deliver your home to you and to close the loan from the mortgage company will be signed and delivered. In addition to these standard items, the lender, title company, and K. Hovnanian® Homes may require other documents to be signed. The principal documents include the following:

special warranty deed

The Builder Special Warranty Deed transfers ownership of the home and homesite to you, subject only to permitted exceptions.

title commitment

At or before closing, we will send you a standard form for an American Land Title Association (ALTA) owner’s title insurance commitment to ensure a saleable title of your home in the amount of the purchase price. This is subject to the permitted title exceptions that may be described in the Agreement.

The title insurance company will mail the actual policy in the weeks following the closing.

On the day of closing, you will receive a document that promises to issue the policy. Lenders require title insurance, and this fee is based on the amount of the mortgage.

Title insurance protects the lender in the event the title search missed anything. If you choose to order your owner’s policy from the same company that issues the lender’s policy, the title insurance company will usually issue a second policy at a lower rate.

Review the title commitment carefully and discuss any questions with your title company. Within 90 days after the closing, the title company mails a standard ALTA owner’s title insurance policy, ensuring you the title to your home in accordance with the commitment you received at closing.

homebuilder’s limited warranty

At closing, you will sign an acknowledgment form, and K. Hovnanian will process the enrollment of your new home on your behalf.

deed of trust

This encumbers your home as security for repayment of the promissory note when financing the purchase.

Final Cost

Certain customary items in connection with the property will be prorated to the date of closing, including prepaid expenses, or reserves required by your lender (prepaid interest, prepaid real estate taxes, prepaid homeowner’s insurance, prepaid mortgage insurance) and Homeowners Association (HOA) dues. Proration of general real property taxes and assessments will be based on the current year’s taxes and assessments, or, if they are unavailable, on the taxes and assessments for the prior year.

The final cost figure is available near the actual closing date. While a reasonably accurate estimate may be determined before the closing, the proration of several included items may be affected by the date itself, and cannot be calculated until the date is set. The Real Estate Settlement Procedures Act (RESPA) provides you with various rights and information regarding closings.

Preparation

Please address the details below during the weeks before closing to prevent last-minute delays. Preparation will ensure a smooth closing.

form of payment

Plan to wire transfer funds to the closing attorney/title company prior to your settlement appointment to avoid delays. Your closing attorney/title company will provide you with instructions. In your planning, be sure to allow time to arrange for and obtain these funds. Keep in mind that some banks place a hold on monies moved from another account. Please bring two forms of valid identification as well.

insurance

Please provide proof of a homeowner’s policy from your insurance company. Your insurance agent should know exactly what is needed. We suggest you arrange for this at least three weeks before the expected closing date. The mortgage and title companies will need this information prior to your closing appointment and are not able to close your home without it.

have questions?

The title company or closing attorney is not authorized to negotiate or make representations on behalf of any of the parties involved in the closing. Therefore, please discuss any questions, agreements, or other details directly with us or KHAM in advance of the closing.

utilities

We will have utility services removed from our name two business days after closing. Please notify all applicable utility companies of your move so that service is transferred into your name. We suggest that you contact these companies five business days prior to your closing date to avoid any interruption in service. If you ordered a security system for your home, you can arrange to activate that system by contacting the monitoring service for a connection appointment. You will receive a notification from us listing your utility companies with your closing date.

House and Mailbox Keys

You will receive the keys to your home at the time of closing if all funds have been received by the title company or closing attorney. U.S. Postal Service regulations in some jurisdictions prohibit us from delivering mailbox keys to you. Mailbox keys, where applicable, are available from your post office. You will need proof of identity and homeownership and you will be asked to sign for your keys. See your Sales Consultant for your community specific information regarding mailbox keys.

First Mortgage Payment

Your lender will provide information on where to send your mortgage payments and when the first payment will be due. Many lenders supply payment coupons for you to send in with your payments.

Document Storage

We suggest storing your closing documents with other valuable papers, in a safe place. You will need them for tax purposes and when/if you refinance or sell your home.

Moving Tips

Take precautions to protect vulnerable surfaces such as hardwood or resilient floors. Cover rails with moving pads or blankets. Remove doors where furniture might be a tight fit. You can protect carpet with ribbed, plastic runners.

Professional movers should have insurance for any damage they might accidentally cause. Friends and relatives will not. They are also unlikely to have the training and skills of professional movers. If you are moving yourself, organize the schedule to avoid rushing and include rest breaks. People who are tired or in a hurry are more likely to hurt themselves or your belongings.

Moving Preparation Checklist

Compare proposals of professional movers

• Costs for services such as packing and unpacking

• Costs of packing materials and boxes

• Distance and weight charges

• Insurance

• Availability and notice needed

Plan a self-move well in advance

• Make truck reservation early

• Include a reservation for a dolly and moving pads

• Reconfirm one week prior to moving

Create a file for storing documents about your home and manufacturer literature.

Retain receipts for tax purposes, moving costs may be deductible.

Notify subscription publications or clubs once your closing is scheduled.

Give the forwarding order to your old post office to ensure uninterrupted service.

Alert interested parties regarding your new address.

Transfer medical and dental records, if necessary.

Arrange for homeowner’s insurance and obtain the certificate you need for closing.

Order checks with your new address; update financial records.

Update your driver’s license, car, and voter registration information.

Properly dispose of flammable or hazardous materials that should not be moved.

Packing Materials

• Boxes of various sizes; cartons for mattresses

• Packing tape and heavy string

• Packing paper, newspaper, bubble wrap

• Labels to identify boxes (include a number, room/name)

• “Fragile” labels for special items

• Markers

• Master packing list (list each box by number with name/room and brief description of contents)

• Scissors

• Furniture pads, blankets, rugs

Moving Day Necessities

• Children’s toys and games

• Toilet paper

• Beverages and snacks

• Paper towels

• Soap and hand towels

• Trash bags

• First aid kit

• Prescription medication

• Medical supplies for special needs

• Pad and pen

• Small tools: Tape measure, scissors, screwdrivers, hammer

• Ice maker hook-up kit

• Dryer vent flex hose

• New hoses for washing machine

Enjoy Your Home!

Dear

Thank you for taking this journey with us!

We wish you great happiness in your new home, and hope you will refer K. Hovnanian® Homes to friends and family!

All the best, Your K. Hovnanian Team

Homebuyer understands and agrees that the Homebuying Guide is for information purposes only and does not create any legal obligations between Homebuyer and K. Hovnanian® Homes or any of its affiliates. All legal obligations are set forth in the written Purchase and Sale Agreement between Homebuyer and the K. Hovnanian® entity identified in the Purchase and Sale Agreement. The information contained in the Homebuying Guide is subject to change without notice to Homebuyer, and conditions may vary by geographic region. KHAM is an affiliated lender. You, as the homebuyer, may select the lender of your choice. However, certain incentives will only be made available to you if you select KHAM as your lender, as described in the Purchase and Sale Agreement.