2024A-00779-CHC-ROC Notice of Hearing & Packet MAILED.pdf

2024A-00779-CHC-ROC · Registrar of Contractors · 2024-11-22

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Michael Brian Carnes , Case No. 2024-00779

COMPLAINANT, Docket No. 2024A-00779-CHC-ROC

v. NOTICE OF HEARING ON CONTESTED CASE D R H Tucson Construction Inc. License No. ROC 124600,

RESPONDENT. This Notice of Hearing is issued under A.R.S. § 41-1092.05(D).

HEARING INFORMATION The hearing is set for:

December 27, 2024 1:00 PM Samuel Fox Google Meet. A link will be provided directly from The Office of Administrative Hearings. Go to www.azoah.com to request to appear in-person.

If you have requested to appear in-person at the hearing, the hearing will be held at 1740 W Adams Street, Phoenix, AZ 85007.

You must attend this hearing. This is an adversarial hearing before an administrative law judge, and is conducted in a similar manner as judicial proceedings. Thus, you must be

prepared to present evidence, including witness testimony and documents, in support of your case.

STATEMENT OF LEGAL AUTHORITY AND JURISDICTION

The State of Arizona has determined that the licensing and regulation of construction contractors is a proper state function, and has vested authority in the Registrar of Contractors to administer Title 32, Chapter 10 of the Arizona Revised Statutes. A.R.S. §§ 32-1101 et seq. All hearings for alleged violations of Title 32, Chapter 10 are conducted under Title 41,

Chapter 6, Article 10. A.R.S. § 32-1156.

The statutes and rules governing the hearing can be found at: Arizona Revised

Statutes §§ 41-1092 to -1092.12, and Arizona Administrative Code R2-19-101 to -122.

PARTICULAR ARIZONA STATUTES AND RULES INVOLVED

The statutes and rules the Respondent is alleged to have violated are cited in the

complaint and citation, which were served on the Respondent on October 18, 2024. SHORT AND PLAIN STATEMENT OF THE MATTERS ASSERTED

The complaint and citation allege that the Respondent committed the following act(s): Charge: 1 A.R.S. § 32-1154(A)(3) - R4-9-108(a) Charge: 2 A.R.S. § 32-1154(A)(3) - R4-9-108(b)

Charge: 3 A.R.S. § 32-1154(A)(22)

THE PARTIES TO THE ADMINISTRATIVE HEARING Because Respondent is a licensee and is charged with an act(s) or omission(s) that is cause for the suspension or revocation of a license, Respondent is a party to this case and will be a party to the hearing. Because Complainant alleged Respondent committed an act(s) or omission(s) that is cause for the suspension or revocation of a license, Complainant is a party to this case and will

be a party to the hearing.

Respondent and Complainant, as the parties to the hearing, will present evidence and

argument to the administrative law judge.

The Registrar’s assigned investigator will appear as a witness at the hearing. RIGHT TO BE REPRESENTED The parties to the administrative hearing may choose to be represented by an attorney.

A.R.S. § 41-1092.07(B). If one of the parties is a company, the company may be represented

by an officer or employee if that person satisfies the conditions set forth in A.R.S. § 32-

1156(B).

CHANGE OF ADDRESS Each party must inform the Registrar and the Office of Administrative Hearings of any change of address within five (5) days of the change. A.R.S. § 41-1092.04.

HEARING PROCEDURES AND RULES The administrative hearing will be conducted in accordance with A.R.S. §§ 41-1092

to -1092.12, and A.A.C. R2-19-101 to -122. The parties should review the statutes, rules, and processes governing the administrative hearing. Copies of the statutes, rules, and articles regarding the administrative hearing process can be found at https://www.azoah.com/.

REGISTRAR’S APPEARANCE BY VIDEO CONFERENCE OR TELEPHONE

The Registrar’s investigators, employees, and attorneys will appear at the hearing via video conference or telephone unless requested by a party to appear in-person. Requests for the Registrar’s investigators, employees, or attorneys to appear in-person must be filed with the Registrar and the Office of Administrative Hearings no later than seven (7) calendar days prior to the hearing date.

HEARING PACKET

In the interests of administrative efficiency, the Registrar compiles and discloses

certain documents to the parties and the Office of Administrative Hearings. These documents are attached to this Notice of Hearing as the “Hearing Packet.” If any party wishes to submit additional evidence, they must do so during the hearing after completing a disclosure statement. See “Disclosure Statement” section below.

SUBPOENAS FOR TESTIMONY FROM A WITNESS OR DOCUMENTS

The parties to the hearing must be prepared to present evidence in support of their

case. If a party wants to obtain testimony from a witness or documents not in the party’s

possession, the party must prepare and file a written subpoena for the Administrative Law Judge to review and sign, if approved. A.R.S. § 41-1092.07(C). Forms for requesting a

subpoena can be found on the Office of Administrative Hearings’ website at www.azoah.com. The party seeking a subpoena must serve notice on all the parties to the hearing, and on the Registrar. A.R.S. § 41-1092.04.

DISCLOSURE STATEMENT

At least seven calendar days before the hearing, each party must prepare and serve a disclosure statement on all other parties, and file it with the Office of Administrative Hearings. A.A.C. R4-9-118; A.A.C. R2-19-108. The disclosure statement must include any exhibit the party will use at the hearing. A party’s failure to timely disclose any witness or exhibit, without good cause, may result in the administrative law judge excluding those witnesses or exhibits from being used at the hearing. A.A.C. R4-9-118(C). A sample disclosure form is available on the Registrar’s website at https://roc.az.gov/forms/RC-L-800A%20- %20Prehearing%20Disclosure%20Statement%2020191007v4.pdf

CHANGING THE HEARING DATE

The date of the hearing may only be advanced or delayed on the agreement of the

parties or on a showing of good cause. A.R.S. § 41-1092.05(C). The date of the hearing may

be changed by filing a written agreement of the parties to change the date of the hearing. The written agreement must be filed with the Office of Administrative Hearings, directed to the assigned Administrative Law Judge, and transmitted to the Registrar and all other parties. The assigned Administrative Law Judge may be found on the Office of Administrative Hearings’ web portal at www.azoah.com

If a party would like to move the date of the hearing without agreement of all parties, the party must file a written motion with the Office of Administrative Hearings, directed to the assigned Administrative Law Judge, and transmit a copy to the Registrar and all other parties. The motion must state in detail good cause for why the date of the hearing should be advanced or delayed, and the position of all other parties regarding the advancement or delay. A party may also file a motion asserting a right to an expedited hearing upon a showing of

extraordinary circumstances or the possibility of irreparable harm. A.R.S. § 41-1092.05(E).

RESOLUTION SHORT OF ADJUDICATION In any case which is resolved or settled by the parties, or which is withdrawn by the Complainant without objection from Respondent after the Notice of Hearing is issued, the parties must notify the Office of Administrative Hearings of the resolution or settlement. Any such cases will be listed on the Registrar’s website and its records under the category: “Closed

Complaints – Resolved/Settled/Withdrawn.”

Dated November 25, 2024.

By: /s/ Erika Hoskin Erika Hoskin Legal Assistant II Legal Department Arizona Registrar of Contractors

Copy mailed via USPS First Class mail November 25, 2024 to:

Respondent(s) D R H Tucson Construction Inc. 6875 N Oracle Road, Ste., 125 Tucson, AZ 85704 Respondent's Attorney Rosary A. Hernandez, Esq. 1850 N Central Ave Ste., 1700 Phoenix, AZ 85004 Complainant(s) Michael Brian Carnes 17001 W. Starr Rd Marana, AZ 85653

Copy sent electronically this same date to: Respondent at email address on record with the Registrar Complainant at email address on record with the Registrar Case No. 2024-00779 /

Complainant: Christina Muckey 17001 West Starr Road Marana, AZ 85653

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 Respondent: D R H Tucson Construction Inc 6875 N Oracle Road, Ste 125 Tucson, AZ 85704

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 January 23, 2024

Jobsite Inspection Notice Re: Complaint Number 2024-00779

Dear Complainant and Respondent:

A formal complaint has been filed with the Arizona Registrar of Contractors.

A jobsite inspection is scheduled for March 14, 2024 at 09:00 AM. The Complainant is required to be present. The Respondent’s attendance is requested and encouraged. The Registrar encourages both parties to make a good faith effort to resolve this complaint prior to the jobsite inspection.

COMPLAINANT: 1. Under A.R.S. § 32-1155(D)(1), the Respondent must be allowed, upon request, the opportunity to inspect the work complained of within fifteen (15) days of receiving this notice. If Respondent is not provided an opportunity to inspect the work within the fifteen (15) day time period, the Registrar may be prohibited from taking further action on this complaint. 2. The Registrar may also be precluded from taking further action on this complaint, if the work that is the subject of the complaint is subject to neglect, modification, or abnormal use. A.R.S. § 32-1155(D)(2) 3. You must provide safe access to any area to be inspected. If access to a roof or other elevated area is required, you must provide a means to safely access the area (ladder or manlift as appropriate). Additionally, please secure any animals.

RESPONDENT: 1. Enclosed is a copy of the complaint. Under A.R.S. § 32-1155(D) you must be allowed, upon request, the opportunity to inspect the work complained of within fifteen days of the date of receipt of this notice. 2. To assist the assigned investigator in evaluating the merits of the complaint, please submit a response to the enclosed complaint to the assigned investigator prior to the scheduled inspection. 3. If you do not attend the jobsite inspection, your absence may negatively impact the investigation, and your interests. 4. If a building permit(s) was required for this project, please have the building permit information available at the jobsite inspection.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 If either party needs to reschedule the jobsite inspection, please notify the assigned investigator at least three business days prior to the inspection date to schedule a new date and time.

If the parties resolve the complaint prior to the inspection, please notify the assigned investigator in writing and by phone as soon as possible.

Sincerely, John Smith, Investigator #194 (520) 483-0027 [email redacted] 1700 W Washington St,Suite 105 Phoenix, Arizona 85007-2812

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 A Guide to Jobsite Inspections

Purpose of the Jobsite Inspection When the Registrar receives a complaint against a contractor’s license alleging poor workmanship, the Registrar generally schedules a Jobsite Inspection. The Jobsite Inspection serves two purposes: 1. To give the contractor an opportunity to inspect the complaint items; and 2. To give the Registrar an opportunity to determine if the contractor’s work violates Arizona law.

Jobsite Inspection Rights and Responsibilities Access to inspect: The property owner has complete control over who they allow on the property. However, if the Registrar’s investigator or the contractor cannot inspect the work, the Registrar will not move forward with a citation.

Cooperation: Arizona law enables injured parties to seek relief for damages through several paths. When dealing with a licensed contractor, the Registrar of Contractors’ administrative complaint process may serve as one of those possible paths. However, in order to use that path, the Registrar relies on the cooperation of all parties to a complaint.

Minimum workmanship: The Registrar investigates workmanship complaints for compliance with minimum workmanship and professional industry standards. The Registrar does not issue citations for work that meets these standards.

Scope: The scope of the Jobsite Inspection is limited to items listed in the complaint filed with the Registrar’s office. It is the complainant’s responsibility to point out the complaint item(s) and the Investigators role to review the item(s). If the complainant identifies additional workmanship items not listed in the original complaint, they must file an addendum to the complaint. The Registrar’s Investigator may identify additional administrative violations by the contractor (e.g. work performed out of scope of the license and failure to provide a contract that meets requirements set by Arizona law) at the time of the inspection.

The Role of the Investigator At the Jobsite Inspection, the Registrar’s investigator will: ● Only investigate the items listed on the complaint form filed with the Registrar. ● Will gather evidence to make an informed decision about the complaint items.

What to expect after a Jobsite Inspection After doing a Jobsite Inspection, the Registrar’s Investigator will leave the jobsite and review the evidence provided during the inspection. Generally, the investigator does not make any determination at the time of the jobsite inspection regarding whether the allegations listed in the complaint are supported. ● If the allegations are confirmed, the Registrar’s Investigator may issue a Written Directive telling the contractor to correct the poor or incomplete work. ● If the allegations are not confirmed, the Registrar’s Investigator will close the complaint.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 If you have not filed a complaint yet or have not been assigned an investigator, you can reach the Registrar’s compliance department at (877) 692-9762.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 A Guide to Written Directives Purpose of the Jobsite Inspection When the Registrar receives a complaint against a contractor’s license, the Registrar generally schedules a Jobsite Inspection. The Jobsite Inspection serves two purposes: 1. To give the contractor an opportunity to inspect the complaint items; and 2. To give the Registrar an opportunity to determine if the contractor’s work violates Arizona law.

What to expect after a Jobsite Inspection After doing a Jobsite Inspection, the Registrar’s Investigator will determine whether the allegations listed in the complaint are supported. ● If the allegations are confirmed, the Registrar’s Investigator may issue a Written Directive telling the contractor to correct the poor or incomplete work. ● If the allegations are not confirmed, the Registrar’s Investigator will close the complaint.

Written Directives Access: In order to use the administrative process offered by the Registrar, a property owner must provide reasonable access to allow the contractor to fix their work as directed by the Registrar in a Written Directive. Complainants may not put any additional, unnecessary restrictions on the Respondent above and beyond the initial contract requirements agreed upon at the beginning of the project. Respondents are required to make repairs on items identified on any Written Directive, not otherwise restricted by local code or HOA limitations. Complainants must make access available to the Respondent to make the required repairs and failure to provide reasonable access may result in the Registrar dismissing the complaint.

Contractor obligations: The Written Directive will set a deadline for compliance. This is the period of time determined by the Investigator as necessary to complete the items listed in the Directive. ● The deadline for compliance assumes the contractor will promptly begin working on the items listed in the Directive. ● Do not wait. Both parties should communicate quickly to schedule the work.

Extensions: If good cause exists to extend this deadline, either party may submit a written request to the Investigator. The Registrar will review requests for extension and determine if the Directive should be extended.

Manner and method of performance: The Registrar does not provide specific instructions for how to correct poor work. A licensed contractor is expected to have the skill and professionalism to complete the work. Moreover, the complainant may not dictate the manner of repair. If the contractor fails to appropriately correct the work according to the contract, the Registrar will issue a citation.

Compliance Inspection: After the Written Directive expires, the Registrar’s Investigator will contact the complainant to determine if the contractor performed any corrective work. ● If the contractor did corrective work, the Investigator may schedule a Compliance Inspection to determine if the poor work is corrected. ● If the contractor did not perform any corrective work, the Registrar’s Investigator will not do a Compliance Inspection and will determine whether to issue a citation based on the administrative record.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 Work performed after the directive ends: After the Directive period ends, a property owner may choose to allow the contractor to continue its work. The Registrar encourages parties to work cooperatively, but cannot require a homeowner to continue to allow a contractor access to the property after the Directive period ends in order for the administrative process to continue. Denying access after the Directive ends is not grounds to close or dismiss a complaint.

Questions? If you have already filed a complaint and it was assigned to an investigator, you are encouraged to contact that investigator directly with the information listed in your jobsite inspection letter. If you have not filed a complaint yet or have not been assigned an investigator, you can reach the Registrar’s compliance department at (877) 692-9762.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 Complainant: Christina Muckey 17001 West Starr Road Marana, AZ 85653

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 March 6, 2024

Jobsite Inspection Notice Re: Complaint Number 2024-00779

Dear Complainant and Respondent:

A formal complaint has been filed with the Arizona Registrar of Contractors.

If the parties resolve the complaint prior to the inspection, please notify the assigned investigator in writing and by phone as soon as possible.

Sincerely, John Smith, Investigator #194 (520) 483-0027 [email redacted] 1700 W Washington St,Suite 105 Phoenix, Arizona 85007-2812

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 A Guide to Jobsite Inspections

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 Arizona Registrar of Contractors Jobsite Inspection Notes Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Complainant: Michael Brian Carnes Respondent: D R H Tucson Construction Inc

Present for the complainant: Michael Carnes, Christina Muckey Present for the respondent: Marlaina Spillios, Steve Gonzales, Sam Mils, and representatives from: Chas Roberts, XO Windows, and Primera.

Overview of project: This is a new construction home with the Settlement date listed as 7/29/2022 General Notes:

Complaint Item 1: “Replacement of the damaged shower handle, as per the observation that someone likely stepped on it.” Investigator’s Observations: Verified. The shower valve is not straight in the wall. The respondent acknowledged the valve will be replaced. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

Complaint Item 2: “This was confirmed as necessary by Curt, VP and noted on 90 day exception list with Matt.;” Investigator’s Observations: This statement by the complainant does not implicate a workmanship issue, or a violation of A.R.S. § 32-1154(A). Governing Rule: N/A

Complaint Item 3: “Straightening of the A/C ceiling register vent and fixing the drywall around the return air vent located in the living room adjacent to the master bedroom.” Investigator’s Observations: Verified. The vents in the living room ceiling, near the master bedroom, are not parallel with the wall. One is a return air grill. The other is a fresh air intake. Ducting from roof to the fresh air grill is kinked. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

Complaint Item 4: “This will necessitate drywall, texture, and paint. Noted on 90 day exception list with Matt, verbally expressed with Matt, Curt, Vickie, Reggie, and current Superintendent Steve multiple times. ;” Investigator’s Observations: This statement by the complainant does not implicate a workmanship issue, or a violation of A.R.S. § 32-1154(A). Governing Rule: N/A

Complaint Item 5: “Addressing the leak from the roof to the return air register” Investigator’s Observations: Verified. RCC100

Arizona Registrar of Contractors Jobsite Inspection Notes Remediation has been started. Drywall and insulation has been removed. Restoration has not yet been started. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

Complaint Item 6: “(noted to Steve that this was supposed to be rectified alongside the main register vent issue). This will necessitate drywall, texture, and paint, possible new vent.;” Investigator’s Observations: This statement by the complainant does not implicate a workmanship issue, or a violation of A.R.S. § 32-1154(A). Governing Rule: N/A

Complaint Item 7: “Replacement of seven (7) defective windows: one in the Jill bedroom, showing water retention and rust, both living room windows, both windows in the master bedroom, window in the bedroom next to the garage, and the window in the dining room. The Jill window and dining room window were identified by XO Windows specialist, Steve, as bowed and allowing dirt ingress.” Investigator’s Observations: Verified. All windows are single hung windows. • The bottom frames are bowed upwards, high in the centers. The bottoms of the operating sashes are bowed downwards, low in the centers. This is preventing adequate seals when closed. Bowing is as much as 1/4 inch in a three foot span. • Areas of gaps at vinyl seams/miters. • Some vinyl seams/miters are poorly filled with caulking. • One window has a hole on the interior side of the vinyl. • Miter gaps at exterior glazing strips/beads are excessive in some locations. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

Complaint Item 8: “Superintendent Steve and XO Steve called XO Windows manager Joe in front of homeowner and told him the windows needed to be completely replaced and were not rated for this development and weather. Windows were never ordered as XO came out in December and replaced glass in the Jill Bedroom. Contractual homeowner, Mike, had the XO Windows specialist look at the all other home windows and he noted that they all needed to be replaced, as Water was leaking through the bottom frame and were extremely bowed.” Investigator’s Observations: This allegation is NOT verified. There is no record of the respondent specifically stating “…the windows needed to be completely replaced.” The issue of “bowed” is addressed in Complaint Item 7. Governing Rule: N/A

Complaint Item 9: “Noted on 90 day exception list with Matt,, then Reggie, Vicki, VP Curt, and then Steve. Further, due to the placement of the windows this will require framing, drywall, texture, paint, and Stucco. ;” Investigator’s Observations: This statement by the complainant does not implicate a workmanship issue, or a violation of A.R.S. § 32-1154(A). Governing Rule: N/A

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Arizona Registrar of Contractors Jobsite Inspection Notes Complaint Item 10: “Comprehensive reapplication of stucco around the entire house due to multiple cracks, lath showing, non-uniform texture…” Investigator’s Observations: Verified. Recent stucco repairs have not been painted. There is stucco breaking off near the weep screed. There are small nail holes near the address plaque/tile. There are areas of flaking stucco/paint. Specific to stucco cracks; there are currently no cracks that exceed the acceptable tolerance of 1/16 inch. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

Complaint Item 11: “…and non-standard application (it yields under pressure, indicating it's not up to code” Investigator’s Observations: This allegation is NOT verified. The thickness of the stucco was not verified, or able to be verified, during this inspection. Governing Rule: N/A

Complaint Item 12: “—a fact backed by our expertise in residential and commercial home inspections). Note: House was painted two days after it was stucco not allowing proper curing time per International Building Standards. ;” Investigator’s Observations: This statement by the complainant does not implicate a workmanship issue, or a violation of A.R.S. § 32-1154(A). Governing Rule: N/A

Complaint Item 13: “Exterior Painting: After window replacements and proper curing time of stucco, the exterior of the house will need to be repainted.;” Investigator’s Observations: Verified. Recent stucco repairs have not been painted. There is stucco breaking off near the weep screed. There are small nail holes near the address plaque/tile. There are areas of flaking stucco/paint. Specific to stucco cracks; there are currently no cracks that exceed the acceptable tolerance of 1/16 inch. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

Complaint Item 14: “Painting the interior of the garage after fixing all horizontal cracking along walls and ceiling.” Investigator’s Observations: Verified. Recent drywall repairs have not been painted. Other drywall cracks are still present. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

Complaint Item 15: “Further, the exterior garage door will need to be painted as unpainted paneling is visible.;” Investigator’s Observations: Verified. Portions of the underlying base white color are visible around the perimeter of the overhead garage door. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner. RCC100 11/14

Arizona Registrar of Contractors Jobsite Inspection Notes

Complaint Item 16: “Rectification of tile grout as it has fallen through the tiles in the main areas of the home, along with the Master Bath. Grout has consistently deteriorated in various areas throughout the house.” Investigator’s Observations: Verified. There are several area of voids in the grout. There is one visibly chipped tile. There are several areas of grout cracks around the perimeter of the tiled areas. There are areas of low grout exposing the edges of the tiles. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

Complaint Item 17: “Further, grout was not properly sealed” Investigator’s Observations: This allegation is NOT verified. The contract documents provided to date, do not specify the respondent is contractually obligated to seal the grout. Governing Rule: N/A

Complaint Item 18: “and some tiles are higher than others.;” Investigator’s Observations: Verified. There are areas of lippage that exceed the acceptable tolerance of 1/16 inch for 1/4 inch grout joints. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

Complaint Item 20: “Provision of pad certification, as assured by Curt, VP, on 3/16/2023. ; We would also like to reiterate our request for a copy of the signed 90-day exception list that prior Superintendent, Matt, took from me and never provided a scanned copy this was witnessed by our Real Estate Agent, Krista Buelna. Further, I am attaching a copy that I took a photo of on the kitchen island. ;” Investigator’s Observations: This statement by the complainant does not implicate a workmanship issue, or a violation of A.R.S. § 32-1154(A). This document has been provided. Governing Rule: N/A

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Arizona Registrar of Contractors Jobsite Inspection Notes Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

Complaint Item 22: “Master Bedroom is at all times 10 degrees hotter than the rest of the house.” Investigator’s Observations: This allegation is NOT verified. Due to outdoor temperatures this time of year, this was not able to be accurately tested. Governing Rule: N/A

Complaint Item 23: “Representatives of Chaz Roberts have stated that it is because of the sun rising from the east and setting to the west, making them improper to diagnose the issue. (Noted by Superintendent Steve - Chaz Roberts has come out on multiple occasions stating that it is normal; however, our neighbors homes (same layout) are not hotter).;” Investigator’s Observations: This allegation is NOT verified. Due to outdoor temperatures this time of year, this was not able to be accurately tested. Governing Rule: N/A

Complaint Item 24: “Paint used by builder was below grade paint allowable to be purchased by any homeowner in Avra Valley. The contract does state it is a un-scrubbable paint (Flat); however, other homeowners on our street have been told by Sherwin Williams that the paint used was not purchasable as it is below grade.;” Investigator’s Observations: This allegation is NOT verified. The contract does not specify the brand, quality, or grade of paint. Governing Rule: N/A

Complaint Item 26: “Exterior Hose Bib on Northeast side of the home is not working properly as water does not come out. ;” Investigator’s Observations: Verified. There is currently no water to the northeast hose bib. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

Arizona Registrar of Contractors Jobsite Inspection Notes Investigator’s Observations: Verified. Recent corrective work has been performed; however, • Some shingles are peaking • Several shingles have exposed fasteners from past efforts to cover roof with a tarp • At least one roof vent is damaged / dented in • Exposed plastic roof cement at roof penetrations • Exposed underlayment at both sides of the entry dormer Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

Complaint Item 28: “Back door weather stripping is missing as the pressure of wind makes it sound like a little girl screaming. ;” Investigator’s Observations: This allegation is NOT verified. The threshold was adjusted during this inspection. After adjustment, there was no visible daylight around the door when closed. Governing Rule: N/A

Complaint Item 29: “Grading/dirt not compacted over Rip Rap south and west of house. It is falling through (was to be refilled and compacted per meeting with VP, Vicki, Matt, and Late Warranty Rep. Reggie).;” Investigator’s Observations: Verified. Just beyond the rip-rap, some areas of back-filled soil are eroding/sinking. The respondent stated this will be corrected. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

Complaint Item 30: “Certification of sceptic install by County as there were arguments about the compaction of dirt that was never complete when rip-rap was added after moving into the home.” Investigator’s Observations: This statement by the complainant does not implicate a workmanship issue, or a violation of A.R.S. § 32-1154(A). This document has been provided. Governing Rule: N/A

Complaint Item 31: “After a gnarly storm in December 2022, our Boat fell through causing water to pool in the front of the boat ruining our speakers and staining our interior. We added used black asphalt after they attempted to fix it, but have yet to receive anything certifying the work by the County. ;” Investigator’s Observations: This allegation is NOT verified as a violation of A.R.S. § 32-1154(A). The complainant acknowledged adding the black asphalt to this area. Governing Rule: A.R.S. § 32-1155(D): The registrar may not issue a citation for failure to perform work in a professional and workmanlike manner or in accordance with any applicable building codes and professional industry standards if…The contractor’s work has been subject to neglect, modification, or abnormal use.

RCC100 11/14

Complaint Item 33: “This comes per County Representatives in Floodplain Management when homeowners were applying for floodplain permit post learning that we were on a floodplain developed hazard never disclosed until late 2023 by Blake Davis.” Investigator’s Observations: This statement by the complainant does not implicate a workmanship issue, or a violation of A.R.S. § 32-1154(A). Governing Rule: N/A

RCC100 11/14

Jobsite Inspection Photos 1 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 2 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 3 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 4 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 5 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 6 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 7 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 8 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 9 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 10 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 11 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 12 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 13 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 14 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 15 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 16 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 17 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 18 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 19 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 20 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 21 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 22 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 23 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 24 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 25 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 26 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 27 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 28 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 29 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 30 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 31 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 32 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 33 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 34 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 35 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 36 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 37 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 38 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 39 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 40 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 41 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 42 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 43 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 44 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 45 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 46 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 47 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 48 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 49 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 50 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 51 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 52 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 53 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 54 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 55 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 56 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 57 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 58 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 59 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 60 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 61 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 62 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 63 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 64 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 65 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 66 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 67 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 68 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 69 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 70 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 71 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 72 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 73 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 74 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 75 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 76 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 77 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 78 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 79 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 80 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 81 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 82 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 83 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 84 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 85 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 86 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 87 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 88 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 89 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 90 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 91 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 92 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 93 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 94 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 95 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 96 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 97 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 98 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 99 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Jobsite Inspection Photos 100 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

100 Jobsite Inspection Photos 101 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

101 Jobsite Inspection Photos 102 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

102 Jobsite Inspection Photos 103 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

103 Jobsite Inspection Photos 104 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

104 Jobsite Inspection Photos 105 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

105 Jobsite Inspection Photos 106 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

106 Jobsite Inspection Photos 107 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

107 Jobsite Inspection Photos 108 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

108 Jobsite Inspection Photos 109 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

109 Jobsite Inspection Photos 110 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

110 Jobsite Inspection Photos 111 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

111 Jobsite Inspection Photos 112 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

112 Jobsite Inspection Photos 113 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

113 Jobsite Inspection Photos 114 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

114 Jobsite Inspection Photos 115 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

115 Jobsite Inspection Photos 116 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

116 Jobsite Inspection Photos 117 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

117 Jobsite Inspection Photos 118 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

118 Jobsite Inspection Photos 119 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

119 Jobsite Inspection Photos 120 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 3/14/2024 Inspection Time: 9:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

120 Complainant: Christina Muckey 17001 West Starr Road Marana, AZ 85653

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Respondent: D R H Tucson Construction Inc 6875 N Oracle Road, Ste 125 Tucson, AZ 85704

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 March 26, 2024

License No. ROC 124600

Re: Complaint No. 2024-00779

WRITTEN DIRECTIVE FROM THE REGISTRAR

Dear Respondent:

After investigation, the Registrar determined that you failed to meet the requirements of A.R.S. § 32-1154(A), and now issues this Directive requiring you to take appropriate corrective action. Failure to comply with this Directive constitutes a violation of A.R.S. § 32-1154(A)(22) and may result in the issuance of a citation, discipline of your license, and a civil penalty pursuant to A.R.S. § 32-1154(E) of up to $500.00. You must notify the Registrar’s assigned Investigator of your compliance with this Directive prior to 5:00 p.m. on Tuesday, April 23, 2024.

RESTRICTIONS • You may not perform or hire other contractors to perform work that is outside the scope of your license. • If your license is currently suspended for administrative reasons1, or is inactive, expired, or cancelled, you may not perform any corrective work nor contract in any manner, which includes hiring other contractors to perform work, until the suspension of your license(s) has been lifted or your license(s) has been reactivated.

DIRECTIVE REQUIREMENTS You are directed to remedy the following violations by the appropriate means:

This means the license is suspended for lack of qualifying party, lack of bond, nonrenewal, Recovery Fund payout, or for any reason listed in A.R.S. § 32-1124(F).

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 The vents in the living room ceiling, near the master bedroom, are not parallel with the wall. One is a return air grill. The other is a fresh air intake. Ducting from roof to the fresh air grill is kinked. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

Complaint Item 5: “Addressing the leak from the roof to the return air register” Investigator’s Observations: Verified. Remediation has been started. Drywall and insulation has been removed. Restoration has not yet been started. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

Complaint Item 10: “Comprehensive reapplication of stucco around the entire house due to multiple cracks, lath showing, non-uniform texture…” Investigator’s Observations: Verified. Recent stucco repairs have not been painted. There is stucco breaking off near the weep screed. There are small nail holes near the address plaque/tile. There are areas of flaking stucco/paint. Specific to stucco cracks; there are currently no cracks that exceed the acceptable tolerance of 1/16 inch. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Complaint Item 13: “Exterior Painting: After window replacements and proper curing time of stucco, the exterior of the house will need to be repainted.;” Investigator’s Observations: Verified. Recent stucco repairs have not been painted. There is stucco breaking off near the weep screed. There are small nail holes near the address plaque/tile. There are areas of flaking stucco/paint. Specific to stucco cracks; there are currently no cracks that exceed the acceptable tolerance of 1/16 inch. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Complaint Item 19: “After 6 months of moving into the house, most walls bared visible horizontal cracking of about 8 to 10 feet. While the main hallway cracks were addressed repair is still needed in the three smaller bedrooms and as mentioned above the garage. Also, this will require texture and paint. ;” Investigator’s Observations: Verified. Texture of recent drywall repairs does not match/blend well. Other drywall cracks and nail pops are still present. There is cracking between the drywall and window frames. There are voids around some electrical boxes. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

Complaint Item 21: “Crack in master bath shower surround (noted by Superintendent Steve).;” Investigator’s Observations: Verified. There is a visible crack in a wall panel of the master shower. The respondent acknowledged this will be corrected. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Recent corrective work has been performed; however, • Some shingles are peaking • Several shingles have exposed fasteners from past efforts to cover roof with a tarp • At least one roof vent is damaged / dented in • Exposed plastic roof cement at roof penetrations • Exposed underlayment at both sides of the entry dormer Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

Complaint Item 32: “Rip-Rap northeast side of home was not completed per the County plans. It stops at the northeast side of house and not the driveway per the approved plans.” Investigator’s Observations: Verified. Currently, the rip-rap does not extend around the full perimeter of the home, as required per plans. The respondent stated this will be corrected. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

ITEMS NOT REQUIRING CORRECTION The following complaint items require no action by the Respondent:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Complaint Item 6: “(noted to Steve that this was supposed to be rectified alongside the main register vent issue). This will necessitate drywall, texture, and paint, possible new vent.;” Investigator’s Observations: This statement by the complainant does not implicate a workmanship issue, or a violation of A.R.S. § 32-1154(A). Governing Rule: N/A

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Complaint Item 20: “Provision of pad certification, as assured by Curt, VP, on 3/16/2023. ; We would also like to reiterate our request for a copy of the signed 90-day exception list that prior Superintendent, Matt, took from me and never provided a scanned copy this was witnessed by our Real Estate Agent, Krista Buelna. Further, I am attaching a copy that I took a photo of on the kitchen island. ;” Investigator’s Observations: This statement by the complainant does not implicate a workmanship issue, or a violation of A.R.S. § 32-1154(A). This document has been provided. Governing Rule: N/A

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Complaint Item 31: “After a gnarly storm in December 2022, our Boat fell through causing water to pool in the front of the boat ruining our speakers and staining our interior. We added used black asphalt after they attempted to fix it, but have yet to receive anything certifying the work by the County. ;” Investigator’s Observations: This allegation is NOT verified as a violation of A.R.S. § 32-1154(A). The complainant acknowledged adding the black asphalt to this area. Governing Rule: A.R.S. § 32-1155(D): The registrar may not issue a citation for failure to perform work in a professional and workmanlike manner or in accordance with any applicable building codes and professional industry standards if…The contractor’s work has been subject to neglect, modification, or abnormal use.

Please direct all questions regarding this Directive to the undersigned Investigator.

Sincerely,

John Smith, Investigator #194 (520) 483-0027 [email redacted] 1700 W Washington St,Suite 105 Phoenix, Arizona 85007-2812

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Complainant: Christina Muckey 17001 West Starr Road Marana, AZ 85653

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 March 26, 2024

License No. ROC 124600

Re: Complaint No. 2024-00779

AMENDED WRITTEN DIRECTIVE FROM THE REGISTRAR

Dear Respondent:

DIRECTIVE REQUIREMENTS You are directed to remedy the following violations by the appropriate means:

This means the license is suspended for lack of qualifying party, lack of bond, nonrenewal, Recovery Fund payout, or for any reason listed in A.R.S. § 32-1124(F).

ITEMS NOT REQUIRING CORRECTION The following complaint items require no action by the Respondent:

Please direct all questions regarding this Directive to the undersigned Investigator.

Sincerely,

John Smith, Investigator #194 (520) 483-0027 [email redacted] 1700 W Washington St,Suite 105 Phoenix, Arizona 85007-2812

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Complainant: Christina Muckey 17001 West Starr Road Marana, AZ 85653

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C007 12/23 Respondent: D R H Tucson Construction Inc 6875 N Oracle Road, Ste 125 Tucson, AZ 85704

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C007 12/23 May 3, 2024

Re: Complaint No. 2024-00779

Dear Complainant and Respondent:

After the initial filing of the complaint 2024-00779, the Complainant submitted addendum item(s).

A jobsite inspection is scheduled Tuesday, May 7, 2024 at 3:00 PM. The Complainant is required to be present. The Respondent’s attendance is requested and encouraged. The Registrar encourages both parties to make a good faith effort to resolve this complaint prior to the jobsite inspection.

COMPLAINANT: 1. Under A.R.S. § 32-1155(D)(1), the Respondent must be allowed, upon request, the opportunity to inspect the amended complaint items within fifteen (15) days of receiving this notice. If Respondent is not provided an opportunity to inspect the work within the fifteen (15) day time period, the Registrar may be prohibited from taking further action on the amended complaint items. 2. The Registrar may also be precluded from taking further action on the amended complaint items, if the work that is the subject of the amended complaint is subject to neglect, modification, or abnormal use. A.R.S. § 32-1155(D)(2) 3. You must provide safe access to any area to be inspected. If access to a roof or other elevated area is required, you must provide a means to safely access the area. Additionally, please secure any animals.

RESPONDENT: 1. Enclosed is a copy of the amended complaint. Under A.R.S. § 32-1155(D) you must be allowed, upon request, the opportunity inspect the work complained of within fifteen days of the date of receipt of this notice. 2. To assist the assigned investigator in evaluating the merits of the amended complaint, please submit a response to the enclosed complaint to the assigned investigator prior to the scheduled inspection. 3. If you do not attend the jobsite inspection, your absence may negatively impact the investigation, and your interests. 4. If a building permit(s) was required for this project, please have the building permit information available at the jobsite inspection.

If either party needs to reschedule the jobsite inspection, please notify the assigned investigator at least three business days prior to the inspection date to schedule a new date and time. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C007 12/23 If the parties resolve the complaint prior to the inspection, please notify the assigned investigator in writing and by phone as soon as possible.

Sincerely,

John Smith, Investigator #194 (520) 483-0027 [email redacted] 1700 W Washington St,Suite 105 Phoenix, Arizona 85007-2812

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C007 12/23 Arizona Registrar of Contractors Addendum Jobsite Inspection Notes Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

Complainant: Michael Brian Carnes Respondent: D R H Tucson Construction Inc

Present for the complainant: Michael Carnes, Christina Muckey Present for the respondent: Vicky Yanez, Marlaina Spillios, Steve Gonzales

Complaint Item 34: “…The stucco is 1/8” thick in multiple visible areas that have been exposed due to our windows being replaced…” Investigator’s Observations: Verified. Several areas of stucco are as thin as 1/8 inch. Product manufacturer specifies minimum thickness is required to be 3/8 inch. Quoted from the product manufacturer website: • “Application: Western 1-Kote Gray Concentrate is applied by approved applicators. The material may be applied by hand or plaster pump. Specific minimum thickness is required for application over various substrates. Consult product specifications and the IAPMO Evaluation Report #382 for specific details. The minimum thickness over any substrate, when used in conjunction with the Western1-Kote Gray Concentrate System, is three-eighths (3/8”) of an inch.” Additionally, as a result of current corrective work related to replacing windows: • Moisture barrier is not properly lapped at seams, and is not properly sealed at seams. • Foam insulation is not properly sealed at seams. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

Complaint Item 35: “…the wrong color shingles being placed on the roof…” Investigator’s Observations: Verified. Numerous areas of shingles are not the correct/matching color • Currently, there are four different colors of shingles on this house. Several areas of shingles have paint over-spray on the surfaces As a result of recent corrective work, some shingles are damaged As a result of recent corrective work, some shingles are not sealed down Areas of laminated shingles improperly cut and used as ridge cap shingles. Areas of ridge cap shingles covered with paint. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

RCC100 11/14

Addendum Item(s) Inspection Photos 1 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

Several areas of stucco are as thin as 1/8 inch.

Addendum Item(s) Inspection Photos 2 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

Several areas of stucco are as thin as 1/8 inch.

Addendum Item(s) Inspection Photos 3 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

Several areas of stucco are as thin as 1/8 inch.

Addendum Item(s) Inspection Photos 4 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

Several areas of stucco are as thin as 1/8 inch.

Addendum Item(s) Inspection Photos 5 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

Several areas of stucco are as thin as 1/8 inch.

Addendum Item(s) Inspection Photos 6 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

Several areas of stucco are as thin as 1/8 inch.

Addendum Item(s) Inspection Photos 7 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

Several areas of stucco are as thin as 1/8 inch.

Addendum Item(s) Inspection Photos 8 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

Numerous areas of shingles are not the correct/matching color

Addendum Item(s) Inspection Photos 9 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

Numerous areas of shingles are not the correct/matching color

Addendum Item(s) Inspection Photos 10 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

Numerous areas of shingles are not the correct/matching color

Addendum Item(s) Inspection Photos 11 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

Numerous areas of shingles are not the correct/matching color • Currently, there are four different colors of shingles on this house.

Addendum Item(s) Inspection Photos 12 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

Numerous areas of shingles are not the correct/matching color

Addendum Item(s) Inspection Photos 13 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

Numerous areas of shingles are not the correct/matching color

Addendum Item(s) Inspection Photos 14 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

Numerous areas of shingles are not the correct/matching color

Addendum Item(s) Inspection Photos 15 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

Numerous areas of shingles are not the correct/matching color

Addendum Item(s) Inspection Photos 16 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

Numerous areas of shingles are not the correct/matching color

Addendum Item(s) Inspection Photos 17 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

Numerous areas of shingles are not the correct/matching color

Addendum Item(s) Inspection Photos 18 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

Several areas of shingles have paint over-spray on the surfaces

Addendum Item(s) Inspection Photos 19 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

Several areas of shingles have paint over-spray on the surfaces

Addendum Item(s) Inspection Photos 20 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

Several areas of shingles have paint over-spray on the surfaces

Addendum Item(s) Inspection Photos 21 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

Areas of laminated shingles improperly cut and used as ridge cap shingles. Areas of ridge cap shingles covered with paint.

Addendum Item(s) Inspection Photos 22 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

Areas of laminated shingles improperly cut and used as ridge cap shingles. Areas of ridge cap shingles covered with paint.

Addendum Item(s) Inspection Photos 23 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

Several areas of shingles have paint over-spray on the surfaces

Addendum Item(s) Inspection Photos 24 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

Several areas of shingles have paint over-spray on the surfaces

Addendum Item(s) Inspection Photos 25 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

Several areas of shingles have paint over-spray on the surfaces

Addendum Item(s) Inspection Photos 26 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

Several areas of shingles have paint over-spray on the surfaces

Addendum Item(s) Inspection Photos 27 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

As a result of recent corrective work, some shingles are damaged As a result of recent corrective work, some shingles are not sealed down

Addendum Item(s) Inspection Photos 28 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

As a result of recent corrective work, some shingles are damaged As a result of recent corrective work, some shingles are not sealed down

Addendum Item(s) Inspection Photos 29 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

As a result of recent corrective work, some shingles are damaged As a result of recent corrective work, some shingles are not sealed down

Addendum Item(s) Inspection Photos 30 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

As a result of recent corrective work, some shingles are damaged As a result of recent corrective work, some shingles are not sealed down

Addendum Item(s) Inspection Photos 31 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

Areas of laminated shingles improperly cut and used as ridge cap shingles. Areas of ridge cap shingles covered with paint.

Addendum Item(s) Inspection Photos 32 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

Areas of laminated shingles improperly cut and used as ridge cap shingles. Areas of ridge cap shingles covered with paint.

Addendum Item(s) Inspection Photos 33 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 5/7/2024 Inspection Time: 3:00PM Address: 17001 W. Starr Rd., Marana, AZ 85653

Areas of laminated shingles improperly cut and used as ridge cap shingles. Areas of ridge cap shingles covered with paint.

Complainant: Christina Muckey 17001 West Starr Road Marana, AZ 85653

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 May 9, 2024

License No. ROC 124600

Re: Complaint No. 2024-00779

AMENDED WRITTEN DIRECTIVE FROM THE REGISTRAR

Dear Respondent:

DIRECTIVE REQUIREMENTS You are directed to remedy the following violations by the appropriate means:

This means the license is suspended for lack of qualifying party, lack of bond, nonrenewal, Recovery Fund payout, or for any reason listed in A.R.S. § 32-1124(F).

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Complaint Item 35: “…the wrong color shingles being placed on the roof…” Investigator’s Observations: Verified. Numerous areas of shingles are not the correct/matching color • Currently, there are four different colors of shingles on this house. Several areas of shingles have paint over-spray on the surfaces As a result of recent corrective work, some shingles are damaged As a result of recent corrective work, some shingles are not sealed down Areas of laminated shingles improperly cut and used as ridge cap shingles. Areas of ridge cap shingles covered with paint. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

ITEMS NOT REQUIRING CORRECTION The following complaint items require no action by the Respondent:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 The issue of “bowed” is addressed in Complaint Item 7. Governing Rule: N/A

Complaint Item 23: “Representatives of Chaz Roberts have stated that it is because of the sun rising from the east and setting to the west, making them improper to diagnose the issue. (Noted by

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Superintendent Steve - Chaz Roberts has come out on multiple occasions stating that it is normal; however, our neighbors homes (same layout) are not hotter).;” Investigator’s Observations: This allegation is NOT verified. Due to outdoor temperatures this time of year, this was not able to be accurately tested. Governing Rule: N/A

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Please direct all questions regarding this Directive to the undersigned Investigator.

Sincerely,

John Smith, Investigator #194 (520) 483-0027 [email redacted] 1700 W Washington St,Suite 105 Phoenix, Arizona 85007-2812

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Complainant: Christina Muckey 17001 West Starr Road Marana, AZ 85653

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 June 20, 2024

License No. ROC 124600

Re: Complaint No. 2024-00779

AMENDED WRITTEN DIRECTIVE FROM THE REGISTRAR

Dear Respondent:

DIRECTIVE REQUIREMENTS You are directed to remedy the following violations by the appropriate means:

This means the license is suspended for lack of qualifying party, lack of bond, nonrenewal, Recovery Fund payout, or for any reason listed in A.R.S. § 32-1124(F).

ITEMS NOT REQUIRING CORRECTION The following complaint items require no action by the Respondent:

Complaint Item 23: “Representatives of Chaz Roberts have stated that it is because of the sun rising from the east and setting to the west, making them improper to diagnose the issue. (Noted by

Sincerely,

John Smith, Investigator #194 (520) 483-0027 [email redacted] 1700 W Washington St,Suite 105 Phoenix, Arizona 85007-2812

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Complainant: Christina Muckey 17001 West Starr Road Marana, AZ 85653

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 July 22, 2024

License No. ROC 124600

Re: Complaint No. 2024-00779

AMENDED WRITTEN DIRECTIVE FROM THE REGISTRAR

Dear Respondent:

DIRECTIVE REQUIREMENTS You are directed to remedy the following violations by the appropriate means:

This means the license is suspended for lack of qualifying party, lack of bond, nonrenewal, Recovery Fund payout, or for any reason listed in A.R.S. § 32-1124(F).

ITEMS NOT REQUIRING CORRECTION The following complaint items require no action by the Respondent:

Complaint Item 23: “Representatives of Chaz Roberts have stated that it is because of the sun rising from the east and setting to the west, making them improper to diagnose the issue. (Noted by

Sincerely,

John Smith, Investigator #194 (520) 483-0027 [email redacted] 1700 W Washington St,Suite 105 Phoenix, Arizona 85007-2812

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Received by Investigations 8/8/24, 2:27 PM State of Arizona Mail - 2024-00779 08/07/2024 From the Complainant

John Smith <[email redacted]>

2024-00779 Christina & Mike Carnes <[email redacted]> Wed, Aug 7, 2024 at 11:27 AM To: John Smith <[email redacted]> Cc: Michael Brian Carnes <[email redacted]>

Good Morning John,

DR Horton re-roofed the entire home from Wednesday, July 31st, through to Friday, August 2nd. The re-roof included a truckload of sheathing, underlayment, peel-and-stick membrane, shingles, T-tops, vents, and pipes; however, the roofers did not have the z-flashing for the first two days and was installed after Stucco had foam-boarded and lathed the dormer walls. The z-flashing does not extend the length of the Dormer Wall, nor is it flush with the Dormer Wall Sheathing. Also, the step flashings are not flush with the wall, and some of the shingles are visibly peaking. Based on our driving up and down Starr Road, looking at where the dormer walls meet the roof on other homes, it appears that the z-flashing is flush and extends the length of the entire dormer, along with shingles going to the edge of the roof. Also, on the west side of the home, the sheathing was peaking due to a Truss that was a quarter inch taller than the surrounding trusses, and the framer had shaved down the truss.

We would like to add the following as addendum items for an ROC jobsite inspection:

1) Roofing; 2) Flashing at Dormer area; and, 3) Vents and pipes painted and overspray.

Additionally, we would like to add the following addendum items as they were not addressed as we were told they would be;

1) Visible cracking and pitting to the concrete driveway (was observed, multiple cracks outside tolerance, and nothing has been done); 2) Visible cracking upon entrance of the home to the post-tension slab; and, 3) Visible horizontal cracking in the work-out room; and 4) Visible cracking on hallway ceiling by air register and kitchen ceiling.

DR Horton has stated that they want the Stucco subcontractor to add stucco to the dormers covering the flashing immediately, which would not allow you to visibly see the application of the flashing. Are you able to expedite an onsite Jobsite inspection?

Thank you, Christina Muckey [Quoted text hidden]

https://mail.google.com/mail/u/0/?ik=78b31fbe7e&view=pt&search=all&permmsgid=msg-f:[number redacted]&simpl=msg-f:[number redacted] 1/1 Complainant: Christina Muckey 17001 West Starr Road Marana, AZ 85653

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C007 12/23 August 8, 2024

Re: Complaint No. 2024-00779

Dear Complainant and Respondent:

After the initial filing of the complaint 2024-00779, the Complainant submitted addendum items.

A jobsite inspection is scheduled August 14, 2024 at 08:00 AM. The Complainant is required to be present. The Respondent’s attendance is requested and encouraged. The Registrar encourages both parties to make a good faith effort to resolve this complaint prior to the jobsite inspection.

Sincerely,

John Smith, Investigator #194 (520) 483-0027 [email redacted] 1700 W Washington St,Suite 105 Phoenix, Arizona 85007-2812

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C007 12/23 Addendum Jobsite Inspection Notes

Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 8/14/2024 Inspection Time: 8:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Complainant: Michael Brian Carnes Respondent: D R H Tucson Construction Inc

Present for the complainant: Michael Carnes, Christina Muckey Present for the respondent: Vicky Yanez, Steve Gonzales, Marlaina Spillios, Roy, and three others.

Complaint Item 36: “1)Roofing;” Investigator’s Observations: Verified In response to previous complaint items, the respondent has re-roofed the house. Corrective work on the roof has been started, but is not complete. Current conditions include, but are not limited to: • Work in progress • Metal roof edge improperly installed on top of the underlayment. If the roof, and related, is not completed to the complainant’s satisfaction, this will be evaluated during a compliance inspection. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

Complaint Item 37: “2)Flashing at Dormer area; and,” Investigator’s Observations: Verified. In response to previous complaint items, the respondent has re-roofed the house. Current conditions include, but are not limited to: • Step flashing installed at sidewalls is improperly embedded in the stucco. • Step flashing at sidewalls is not under-lapped behind the moisture barrier. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

RCC100 11/14

Arizona Registrar of Contractors Jobsite Inspection Notes Complaint Item 38: “3)Vents and pipes painted and overspray.,” Investigator’s Observations: Verified In response to previous complaint items, the respondent has re-roofed the house. Corrective work on the roof has been started, but is not complete. Current conditions include, but are not limited to: • Areas of paint over-spray on the shingles • Work in progress If the roof, and related, is not completed to the complainant’s satisfaction, this will be evaluated during a compliance inspection. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

Complaint Item 39: “1) Visible cracking and pitting to the concrete driveway (was observed, multiple cracks outside tolerance, and nothing has been done);” Investigator’s Observations: This allegation is NOT verified as a violation of A.R.S. § 32-1154(A). This complaint item was not filed with the Registrar within the two year time period specified in A.R.S. § 32-1162(A)(1). The “Settlement date” for this house is listed as 7/29/2022. This addendum items was submitted to the Registrar 8/7/2024. Section 32-1162(A) provides a two year statute of limitations for when a complaint must be filed with the Registrar, and prevents the Registrar from proceeding against a contractor on complaint items that were not filed within the limitations period. Governing Rule: N/A

Complaint Item 40: “2) Visible cracking upon entrance of the home to the post-tension slab; and,” Investigator’s Observations: This allegation is NOT verified as a violation of A.R.S. § 32-1154(A). This complaint item was not filed with the Registrar within the two year time period specified in A.R.S. § 32-1162(A)(1). The “Settlement date” for this house is listed as 7/29/2022. This addendum items was submitted to the Registrar 8/7/2024. Section 32-1162(A) provides a two year statute of limitations for when a complaint must be filed with the Registrar, and prevents the Registrar from proceeding against a contractor on complaint items that were not filed within the limitations period. Governing Rule: N/A

Complaint Item 41: “3) Visible horizontal cracking in the work-out room; and,” Investigator’s Observations: Drywall cracks are included in Complaint Item 19. If the drywall is not completed to the complainant’s satisfaction, this will be evaluated during a compliance inspection.

Complaint Item 42: “4) Visible cracking on hallway ceiling by air register and kitchen ceiling.” Investigator’s Observations: Drywall cracks are included in Complaint Item 19. RCC100 11/14

Arizona Registrar of Contractors Jobsite Inspection Notes If the drywall is not completed to the complainant’s satisfaction, this will be evaluated during a compliance inspection.

RCC100 11/14

Addendum Item(s) Inspection Photos 1 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 8/14/2024 Inspection Time: 8:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Addendum Item(s) Inspection Photos 2 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 8/14/2024 Inspection Time: 8:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Addendum Item(s) Inspection Photos 3 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 8/14/2024 Inspection Time: 8:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Addendum Item(s) Inspection Photos 4 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 8/14/2024 Inspection Time: 8:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Addendum Item(s) Inspection Photos 5 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 8/14/2024 Inspection Time: 8:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Addendum Item(s) Inspection Photos 6 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 8/14/2024 Inspection Time: 8:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Addendum Item(s) Inspection Photos 7 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 8/14/2024 Inspection Time: 8:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Addendum Item(s) Inspection Photos 8 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 8/14/2024 Inspection Time: 8:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Addendum Item(s) Inspection Photos 9 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 8/14/2024 Inspection Time: 8:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Addendum Item(s) Inspection Photos 10 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 8/14/2024 Inspection Time: 8:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Addendum Item(s) Inspection Photos 11 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 8/14/2024 Inspection Time: 8:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Addendum Item(s) Inspection Photos 12 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 8/14/2024 Inspection Time: 8:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Addendum Item(s) Inspection Photos 13 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 8/14/2024 Inspection Time: 8:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Addendum Item(s) Inspection Photos 14 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 8/14/2024 Inspection Time: 8:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Addendum Item(s) Inspection Photos 15 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 8/14/2024 Inspection Time: 8:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Addendum Item(s) Inspection Photos 16 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 8/14/2024 Inspection Time: 8:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Addendum Item(s) Inspection Photos 17 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 8/14/2024 Inspection Time: 8:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Addendum Item(s) Inspection Photos 18 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 8/14/2024 Inspection Time: 8:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Addendum Item(s) Inspection Photos 19 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 8/14/2024 Inspection Time: 8:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Addendum Item(s) Inspection Photos 20 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 8/14/2024 Inspection Time: 8:00AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Complainant: Michael Brian Carnes 17001 West Starr Road Marana, AZ 85653

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 August 28, 2024

License No. ROC 124600

Re: Complaint No. 2024-00779

AMENDED WRITTEN DIRECTIVE FROM THE REGISTRAR

Dear Respondent:

DIRECTIVE REQUIREMENTS You are directed to remedy the following violations by the appropriate means:

This means the license is suspended for lack of qualifying party, lack of bond, nonrenewal, Recovery Fund payout, or for any reason listed in A.R.S. § 32-1124(F).

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Complaint Item 3: “Straightening of the A/C ceiling register vent and fixing the drywall around the return air vent located in the living room adjacent to the master bedroom.” Investigator’s Observations: Verified. The vents in the living room ceiling, near the master bedroom, are not parallel with the wall. One is a return air grill. The other is a fresh air intake. Ducting from roof to the fresh air grill is kinked. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

Complaint Item 10: “Comprehensive reapplication of stucco around the entire house due to multiple cracks, lath showing, non-uniform texture…”

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Investigator’s Observations: Verified. Recent stucco repairs have not been painted. There is stucco breaking off near the weep screed. There are small nail holes near the address plaque/tile. There are areas of flaking stucco/paint. Specific to stucco cracks; there are currently no cracks that exceed the acceptable tolerance of 1/16 inch. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

Complaint Item 21: “Crack in master bath shower surround (noted by Superintendent Steve).;” Investigator’s Observations: Verified. There is a visible crack in a wall panel of the master shower.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 The respondent acknowledged this will be corrected. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

Complaint Item 34: “…The stucco is 1/8” thick in multiple visible areas that have been exposed due to our windows being replaced…” Investigator’s Observations: Verified. Several areas of stucco are as thin as 1/8 inch. Product manufacturer specifies minimum thickness is required to be 3/8 inch. Quoted from the product manufacturer website: • “Application: Western 1-Kote Gray Concentrate is applied by approved applicators. The material may be applied by hand or plaster pump. Specific minimum thickness is required for application over various substrates. Consult product specifications and the IAPMO Evaluation Report #382 for specific details. The minimum thickness over any substrate, when used in conjunction with the Western1-Kote Gray Concentrate System, is three- eighths (3/8”) of an inch.” Additionally, as a result of current corrective work related to replacing windows: • Moisture barrier is not properly lapped at seams, and is not properly sealed at seams. • Foam insulation is not properly sealed at seams.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Complaint Item 38: “3)Vents and pipes painted and overspray.,” Investigator’s Observations: Verified In response to previous complaint items, the respondent has re-roofed the house. Corrective work on the roof has been started, but is not complete. Current conditions include, but are not limited to: • Areas of paint over-spray on the shingles • Work in progress If the roof, and related, is not completed to the complainant’s satisfaction, this will be evaluated during a compliance inspection. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner.

Complaint Item 42: “4) Visible cracking on hallway ceiling by air register and kitchen ceiling.” Investigator’s Observations: Drywall cracks are included in Complaint Item 19. If the drywall is not completed to the complainant’s satisfaction, this will be evaluated during a compliance inspection.

ITEMS NOT REQUIRING CORRECTION The following complaint items require no action by the Respondent:

Complaint Item 17: “Further, grout was not properly sealed”

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Investigator’s Observations: This allegation is NOT verified. The contract documents provided to date, do not specify the respondent is contractually obligated to seal the grout. Governing Rule: N/A

Complaint Item 28: “Back door weather stripping is missing as the pressure of wind makes it sound like a little girl screaming. ;” Investigator’s Observations: This allegation is NOT verified.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 The threshold was adjusted during this inspection. After adjustment, there was no visible daylight around the door when closed. Governing Rule: N/A

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Governing Rule: N/A

Please direct all questions regarding this Directive to the undersigned Investigator.

Sincerely,

John Smith, Investigator #194 (520) 483-0027 [email redacted] 1700 W Washington St,Suite 105 Phoenix, Arizona 85007-2812

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Complainant: Michael Brian Carnes 17001 West Starr Road Marana, AZ 85653

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov

C012 12/23 Respondent: D R H Tucson Construction Inc 6875 N Oracle Road, Ste 125 Tucson, AZ 85704

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov

C012 12/23 October 4, 2024

Compliance Jobsite Inspection Notice Re: Complaint No. 2024-00779

Dear Complainant and Respondent:

A Compliance Inspection has been scheduled for Tuesday, October 15, 2024 at 09:30 AM to determine the current status of the items listed on the issued Directive.

The Complainant is required to be present for this inspection. The Respondent is encouraged to be present but is not required to attend.

Complainant: SAFE ACCESS IS REQUIRED TO ANY AREA TO BE INSPECTED.

Sincerely,

John Smith, Investigator #194 (520) 483-0027 [email redacted] 1700 W Washington St,Suite 105 Phoenix, Arizona 85007-2812

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov

C012 12/23 Compliance Jobsite Inspection Notes

Complainant: Michael Brian Carnes 17001 West Starr Road Marana, AZ 85653

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 9/24 Compliance Jobsite Inspection Notes

Respondent: D R H Tucson Construction Inc 6875 N Oracle Road, Ste 125 Tucson, AZ 85704

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 9/24 Compliance Jobsite Inspection Notes

Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Complainant: Michael Carnes Respondent: D R H Tucson Construction Inc

Present for the Complainant: Michael Carnes, Christina Carnes Present for the respondent: The respondent was not present.

Number of days from issuance of the initial Directive to this inspection: 203

Days allowed for corrective work per the Directive: • 3/26/24: Initial Directive, specifying a due date of 4/23/24 • 4/3/24: Amended Directive, specifying a due date of 5/14/24 • 5/9/24: Amended Directive, specifying a due date of 6/4/24 o Included addendum items • 6/20/24: Amended Directive, specifying a due date of 7/5/24 • 7/22/24: Amended Directive, specifying a due date of 9/2/24 • 8/28/24: Amended Directive, specifying a due date of 9/30/24 o Included addendum items • 10/4/24: Scheduled Compliance Inspection to take place 10/15/24

Compliance Findings: The respondent has not taken appropriate corrective action to comply with the Directive. Governing Rule: A.R.S. § 32-1154(A)(22): Failure to take appropriate corrective action to comply with this chapter or with the rules adopted pursuant to this chapter…

Compliance Jobsite Inspection General Notes: This Compliance Inspection was to evaluate the current conditions of item(s) requiring corrective action as stated on the Directive. Those item(s) are listed below.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 9/24 Compliance Jobsite Inspection Notes

Complaint Item 1: “Replacement of the damaged shower handle, as per the observation that someone likely stepped on it.” Investigator’s Observations from the initial inspection (3/14/24): Verified. The shower valve is not straight in the wall. The respondent acknowledged the valve will be replaced. Compliance Inspection Findings for this item (10/15/24): This has been corrected. The complainant stated this is done.

Complaint Item 3: “Straightening of the A/C ceiling register vent and fixing the drywall around the return air vent located in the living room adjacent to the master bedroom.” Investigator’s Observations from the initial inspection (3/14/24): Verified. The vents in the living room ceiling, near the master bedroom, are not parallel with the wall. One is a return air grill. The other is a fresh air intake. Ducting from roof to the fresh air grill is kinked. Compliance Inspection Findings for this item (10/15/24): This has not been corrected. Some work has been performed; however, the current conditions do not meet ROC Workmanship Standards. The vents have been repositioned; however, as a result of corrective work: • Drywall repair is incomplete/unpainted. • Insulation in the attic is missing/insufficient.

Complaint Item 5: “Addressing the leak from the roof to the return air register” Investigator’s Observations from the initial inspection (3/14/24): Verified. Remediation has been started. Drywall and insulation has been removed. Restoration has not yet been started. Compliance Inspection Findings for this item (10/15/24): This has not been corrected. Some work has been performed; however, the current conditions do not meet ROC Workmanship Standards. The corrective work including replacing the roofing material, and repairing drywall. The drywall repair is incomplete/unpainted.

Complaint Item 7: “Replacement of seven (7) defective windows: one in the Jill bedroom, showing water retention and rust, both living room windows, both windows in the master bedroom, window in the bedroom next to the garage, and the window in the dining room. The Jill window and dining room window were identified by XO Windows specialist, Steve, as bowed and allowing dirt ingress.” Investigator’s Observations from the initial inspection (3/14/24): Verified. All windows are single hung windows. • The bottom frames are bowed upwards, high in the centers. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 9/24 Compliance Jobsite Inspection Notes The bottoms of the operating sashes are bowed downwards, low in the centers. This is preventing adequate seals when closed. Bowing is as much as 1/4 inch in a three foot span. • Areas of gaps at vinyl seams/miters. • Some vinyl seams/miters are poorly filled with caulking. • One window has a hole on the interior side of the vinyl. • Miter gaps at exterior glazing strips/beads are excessive in some locations. Compliance Inspection Findings for this item (10/15/24): This has been corrected. The complainant stated this is done.

Complaint Item 10: “Comprehensive reapplication of stucco around the entire house due to multiple cracks, lath showing, non-uniform texture…” Investigator’s Observations from the initial inspection (3/14/24): Verified. Recent stucco repairs have not been painted. There is stucco breaking off near the weep screed. There are small nail holes near the address plaque/tile. There are areas of flaking stucco/paint. Specific to stucco cracks; there are currently no cracks that exceed the acceptable tolerance of 1/16 inch. Compliance Inspection Findings for this item (10/15/24): This has been corrected. The complainant stated this is done.

Complaint Item 13: “Exterior Painting: After window replacements and proper curing time of stucco, the exterior of the house will need to be repainted.;” Investigator’s Observations from the initial inspection (3/14/24): Verified. Recent stucco repairs have not been painted. There is stucco breaking off near the weep screed. There are small nail holes near the address plaque/tile. There are areas of flaking stucco/paint. Specific to stucco cracks; there are currently no cracks that exceed the acceptable tolerance of 1/16 inch. Compliance Inspection Findings for this item (10/15/24): This has not been corrected. Some work has been performed; however, the current conditions do not meet ROC Workmanship Standards. • There areas of chipped paint exposing the underlying stucco • There are areas of uneven paint lines between colors • There are paint blemishes on the metal roof edge.

Complaint Item 14: “Painting the interior of the garage after fixing all horizontal cracking along walls and ceiling.” Investigator’s Observations from the initial inspection (3/14/24): Verified. Recent drywall repairs have not been painted. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 9/24 Compliance Jobsite Inspection Notes Other drywall cracks are still present. Compliance Inspection Findings for this item (10/15/24): This has not been corrected. Drywall repairs are incomplete/unpainted.

Complaint Item 15: “Further, the exterior garage door will need to be painted as unpainted paneling is visible.;” Investigator’s Observations from the initial inspection (3/14/24): Verified. Portions of the underlying base white color are visible around the perimeter of the overhead garage door. Compliance Inspection Findings for this item (10/15/24): This has been corrected. The complainant stated this is done.

Complaint Item 16: “Rectification of tile grout as it has fallen through the tiles in the main areas of the home, along with the Master Bath. Grout has consistently deteriorated in various areas throughout the house.” Investigator’s Observations from the initial inspection (3/14/24): Verified. There are several area of voids in the grout. There is one visibly chipped tile. There are several areas of grout cracks around the perimeter of the tiled areas. There are areas of low grout exposing the edges of the tiles. Compliance Inspection Findings for this item (10/15/24): This has not been corrected. Some work has been performed; however, the current conditions do not meet ROC Workmanship Standards. • There are several area of voids in the grout. • There are areas of inconsistent finish texture in the grout. • There are areas of low grout exposing the edges of the tiles.

Complaint Item 18: “and some tiles are higher than others.;” Investigator’s Observations from the initial inspection (3/14/24): Verified. There are areas of lippage that exceed the acceptable tolerance of 1/16 inch for 1/4 inch grout joints. Compliance Inspection Findings for this item (10/15/24): This has not been corrected. Some work has been performed; however, the current conditions do not meet ROC Workmanship Standards. • There is at least one tile remaining with lippage that exceeds the acceptable tolerance of 1/16 inch for ¼ inch grout lines.

Complaint Item 19: “After 6 months of moving into the house, most walls bared visible horizontal cracking of about 8 to 10 feet. While the main hallway cracks were addressed repair is still needed in the three smaller bedrooms and as mentioned above the garage. Also, this will require texture and paint. ;” Investigator’s Observations from the initial inspection (3/14/24): Verified. Texture of recent drywall repairs does not match/blend well. Other drywall cracks and nail pops are still present. There is cracking between the drywall and window frames. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 9/24 Compliance Jobsite Inspection Notes There are voids around some electrical boxes. Compliance Inspection Findings for this item (10/15/24): This has not been corrected. Some work has been performed; however, the current conditions do not meet ROC Workmanship Standards. • Drywall repairs are incomplete/unpainted. • There is cracking between drywall and some window frames. • At least one electrical cover plate has been removed, and not re-installed. • As a result of corrective work, carpet and pad have been removed from the front bedroom, and not re- installed.

Complaint Item 21: “Crack in master bath shower surround (noted by Superintendent Steve).;” Investigator’s Observations from the initial inspection (3/14/24): Verified. There is a visible crack in a wall panel of the master shower. The respondent acknowledged this will be corrected. Compliance Inspection Findings for this item (10/15/24): This has been corrected. The complainant stated the crack has been fixed.

Complaint Item 25: “Trusses - Over the course of the home build (8 months), homeowners would visit home. Prior to the trusses being installed, homeowners noted they were outside for a significant period of time prior to the home being built. It should be noted that the Trusses were under water on some visits and noted by neighbors living on street for 2 years.;” Investigator’s Observations from the initial inspection (3/14/24): Verified. The trusses are excessively aged and weathered. Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner. Governing Rule: A.R.S. § 32-1154(A)(3) – R4-9-108(b): Violation of any rule adopted by the registrar; Namely R 4-9-108(b): A contractor shall perform work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity. Compliance Inspection Findings for this item (10/15/24): This has not been corrected. Some work has been performed; however, the current conditions do not meet ROC Workmanship Standards. • No work has been performed to correct the specific issue of excessively aged and weathered trusses. • Other corrective work performed to correct truss defects included repairs to trusses. o There are no engineered to drawings to accompany repairs made to the trusses. o There is no indication that a permit was obtained for the truss repairs. • As a result of recent corrective work, insulation in the attic is missing, displaced, and insufficient.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 9/24 Compliance Jobsite Inspection Notes Complaint Item 26: “Exterior Hose Bib on Northeast side of the home is not working properly as water does not come out. ;” Investigator’s Observations from the initial inspection (3/14/24): Verified. There is currently no water to the northeast hose bib. Compliance Inspection Findings for this item (10/15/24): This has been corrected. The complainant stated this is done.

Complaint Item 27: “Roof tin vents leaking (causing the return air vent in living room to leak and show visible water damage). ; Visible white flashing roofing paper showing on roof above the front entrance. ;” Investigator’s Observations from the initial inspection (3/14/24): Verified. Recent corrective work has been performed; however, • Some shingles are peaking • Several shingles have exposed fasteners from past efforts to cover roof with a tarp • At least one roof vent is damaged / dented in • Exposed plastic roof cement at roof penetrations • Exposed underlayment at both sides of the entry dormer Compliance Inspection Findings for this item (10/15/24): This has not been corrected. Some work has been performed; however, the current conditions do not meet ROC Workmanship Standards. • Some shingles are lifting • Some shingles are not adhered down • Some shingles are damaged/torn • Areas of loose fasteners/debris between layers of shingles • Areas of shingles with paint over-spray on the surfaces • Areas of paint peeling from the roof vents • Corrective work on the roof included replacing areas of roof sheathing: o There is no indication that a permit was obtained for the sheathing replacement. o There areas of excessive deflection between sheets of sheathing. o There are areas of inadequate openings below the attic vents.

Complaint Item 29: “Grading/dirt not compacted over Rip Rap south and west of house. It is falling through (was to be refilled and compacted per meeting with VP, Vicki, Matt, and Late Warranty Rep. Reggie).;” Investigator’s Observations from the initial inspection (3/14/24): Verified. Just beyond the rip-rap, some areas of back-filled soil are eroding/sinking. The respondent stated this will be corrected. Compliance Inspection Findings for this item (10/15/24): This has been corrected. This has been corrected. Based on a visual observation, current conditions are considered to be meeting Workmanship Standards.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 9/24 Compliance Jobsite Inspection Notes Complaint Item 32: “Rip-Rap northeast side of home was not completed per the County plans. It stops at the northeast side of house and not the driveway per the approved plans.” Investigator’s Observations from the initial inspection (3/14/24): Verified. Currently, the rip-rap does not extend around the full perimeter of the home, as required per plans. The respondent stated this will be corrected. Compliance Inspection Findings for this item (10/15/24): This has not been corrected. As stated by the complainant, the rip-rap was extended; however, the newly installed re-rap is completely below grade. • Based on information from Pima County, previously provided by the respondent: Any additional improvements after initial completion, require Flood Control Approval. • There is no indication this recent work has been approved by Pima County Flood Control District.

Complaint Item 34: “…The stucco is 1/8” thick in multiple visible areas that have been exposed due to our windows being replaced…” Investigator’s Observations from the Addendum inspection (5/7/24): Verified. Several areas of stucco are as thin as 1/8 inch. Product manufacturer specifies minimum thickness is required to be 3/8 inch. Quoted from the product manufacturer website: • “Application: Western 1-Kote Gray Concentrate is applied by approved applicators. The material may be applied by hand or plaster pump. Specific minimum thickness is required for application over various substrates. Consult product specifications and the IAPMO Evaluation Report #382 for specific details. The minimum thickness over any substrate, when used in conjunction with the Western1-Kote Gray Concentrate System, is three-eighths (3/8”) of an inch.” Additionally, as a result of current corrective work related to replacing windows: • Moisture barrier is not properly lapped at seams, and is not properly sealed at seams. • Foam insulation is not properly sealed at seams. Compliance Inspection Findings for this item (10/15/24): This has been corrected. The complainant stated this is done.

Complaint Item 35: “…the wrong color shingles being placed on the roof…” Investigator’s Observations from the Addendum inspection (5/7/24): Verified. Numerous areas of shingles are not the correct/matching color • Currently, there are four different colors of shingles on this house. Several areas of shingles have paint over-spray on the surfaces As a result of recent corrective work, some shingles are damaged As a result of recent corrective work, some shingles are not sealed down Areas of laminated shingles improperly cut and used as ridge cap shingles. Areas of ridge cap shingles covered with paint. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 9/24 Compliance Jobsite Inspection Notes Compliance Inspection Findings for this item (10/15/24): This has not been corrected. Some work has been performed; however, the current conditions do not meet ROC Workmanship Standards. • Some shingles are lifting • Some shingles are not adhered down • Some shingles are damaged/torn • Areas of loose fasteners/debris between layers of shingles • Areas of shingles with paint over-spray on the surfaces • Areas of paint peeling from the roof vents • Corrective work on the roof included replacing areas of roof sheathing: o There is no indication that a permit was obtained for the sheathing replacement. o There areas of excessive deflection between sheets of sheathing. o There are areas of inadequate openings below the attic vents.

Complaint Item 36: “1)Roofing;” Investigator’s Observations from the Addendum inspection (8/14/24): Verified. In response to previous complaint items, the respondent has re-roofed the house. Corrective work on the roof has been started, but is not complete. Current conditions include, but are not limited to: • Work in progress • Metal roof edge improperly installed on top of the underlayment. If the roof, and related, is not completed to the complainant’s satisfaction, this will be evaluated during a compliance inspection. Compliance Inspection Findings for this item (10/15/24): This has not been corrected. Some work has been performed; however, the current conditions do not meet ROC Workmanship Standards. • Some shingles are lifting • Some shingles are not adhered down • Some shingles are damaged/torn • Areas of loose fasteners/debris between layers of shingles • Areas of shingles with paint over-spray on the surfaces • Areas of paint peeling from the roof vents • Corrective work on the roof included replacing areas of roof sheathing: o There is no indication that a permit was obtained for the sheathing replacement. o There areas of excessive deflection between sheets of sheathing. o There are areas of inadequate openings below the attic vents.

Complaint Item 37: “2)Flashing at Dormer area; and,” Investigator’s Observations from the Addendum inspection (8/14/24): Verified. In response to previous complaint items, the respondent has re-roofed the house. Current conditions include, but are not limited to: 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 9/24 Compliance Jobsite Inspection Notes • Step flashing installed at sidewalls is improperly embedded in the stucco. • Step flashing at sidewalls is not under-lapped behind the moisture barrier. Compliance Inspection Findings for this item (10/15/24): This has been corrected. The complainant stated this is done.

Complaint Item 38: “3)Vents and pipes painted and overspray.,” Investigator’s Observations from the Addendum inspection (8/14/24): Verified. In response to previous complaint items, the respondent has re-roofed the house. Corrective work on the roof has been started, but is not complete. Current conditions include, but are not limited to: • Areas of paint over-spray on the shingles • Work in progress If the roof, and related, is not completed to the complainant’s satisfaction, this will be evaluated during a compliance inspection. Compliance Inspection Findings for this item (10/15/24): This has not been corrected.

Complaint Item 41: “3) Visible horizontal cracking in the work-out room; and,” Investigator’s Observations from the Addendum inspection (8/14/24): Verified. If the drywall is not completed to the complainant’s satisfaction, this will be evaluated during a compliance inspection. Compliance Inspection Findings for this item (10/15/24): This has not been corrected. Drywall repairs are incomplete/unpainted.

Complaint Item 42: “4) Visible cracking on hallway ceiling by air register and kitchen ceiling.” Investigator’s Observations from the initial inspection (3/14/24): Verified. If the drywall is not completed to the complainant’s satisfaction, this will be evaluated during a compliance inspection. Compliance Inspection Findings for this item (10/15/24): This has not been corrected. Drywall repairs are incomplete/unpainted.

Note:

Please review the complaint items listed above. If any of the items have not been corrected this complaint will be forwarded to the Registrar’s legal department and a citation may be issued.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 9/24 Compliance Jobsite Inspection Notes If all items are corrected after receipt of this letter, please notify the Registrar’s legal department by sending a notice of compliance signed by the complainant to fax number (602) 364-0416 or by mail to: Arizona Registrar of Contractors, P.O. Box 18244, Phoenix, Arizona 85005-8244. Sincerely,

John Smith, Investigator #194 (520) 483-0027 [email redacted] 1700 W Washington St,Suite 105 Phoenix, Arizona 85007-2812

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 9/24 Compliance Inspection Photos 1 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 2 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 3 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 4 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 5 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 6 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 7 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 8 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 9 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 10 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 11 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 12 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 13 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 14 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 15 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 16 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 17 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 18 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 19 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 20 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 21 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 22 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 23 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 24 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 25 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 26 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 27 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 28 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 29 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 30 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 31 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 32 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 33 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 34 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 35 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 36 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 37 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 38 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 39 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 40 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 41 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 42 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 43 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 44 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 45 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 46 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 47 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 48 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

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Compliance Inspection Photos 50 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 51 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 52 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 53 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 54 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 55 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 56 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 57 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 58 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 59 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 60 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 61 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 62 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 63 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 64 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 65 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 66 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 67 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 68 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 69 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 70 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

Compliance Inspection Photos 71 Complaint No.: 2024-00779 Investigator: John Smith #194 Inspection Date: 10/15/2024 Inspection Time: 9:30AM Jobsite address: 17001 W. Starr Rd., Marana, AZ 85653

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Michael Brian Carnes, Case No. 2024-00779 COMPLAINANT, v. D R H Tucson Construction Inc., CITATION License No. ROC 124600, RESPONDENT.

The Registrar issues this Citation to D R H Tucson Construction Inc., (“Respondent”)

under A.R.S. § 32-1155(A). If Respondent fails to answer this Citation by November 2, 2024, then under A.R.S. § 32-1155(C), Respondent’s failure to answer may be deemed an admission

of the act or acts charged in the underlying complaint, and the Registrar may then suspend or

revoke Respondent’s license(s).

THE WRITTEN COMPLAINT On January 22, 2024, Michael Brian Carnes (“Complainant”) filed a written complaint

with the Registrar. A copy of that Complaint is attached to this Citation.

A FORMAL STATEMENT OF THE CHARGES AGAINST RESPONDENT The Registrar investigated this matter and finds cause to charge Respondent with

violation(s) of Title 32, Chapter 10 of the Arizona Revised Statutes. Respondent is charged

with violating:

Charge: 1 A.R.S. § 32-1154(A)(3) - R4-9-108(a) Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A

contractor shall perform all work in a professional and workmanlike manner.

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Charge: 2 A.R.S. § 32-1154(A)(3) - R4-9-108(b) Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity. Charge: 3 A.R.S. § 32-1154(A)(22) Failure to take appropriate corrective action to comply with this chapter or with rules adopted pursuant to this chapter without valid justification within a reasonable period of time after receiving a written directive from the Registrar. The written directive shall set forth the time within which the contractor is to complete the remedial action. The time permitted for compliance shall not be less than fifteen days from the date of issuance of the directive. A license shall not be revoked or suspended nor shall any other penalty be imposed for a violation of this paragraph until after a hearing has been held. If the matter proceeds to a hearing and the administrative law judge determines that any of the charges listed above are supported by a preponderance of the evidence, then Respondent’s license(s) may be subject to suspension or revocation, and Respondent may be subject to other penalties provided by law, including civil penalties under A.R.S. §§ 32-1154(E) and (F). FILING A WRITTEN ANSWER Respondent must appear by filing with the Registrar a written answer to the citation and complaint showing cause, if any, why Respondent’s license(s) should not be suspended or revoked. A.R.S. § 32-1155(A). Respondent’s written answer should contain the heading

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 “Written Answer to Citation and Complaint” and should include the case number, which is Case No. 2024-00779. How to File a Written Answer: Respondent’s written answer may be submitted in the following ways: In-Person: 1700 W. Washington St., Ste. 105, Phoenix, Arizona, 85007-2812 Mail: P.O. Box 18244, Phoenix, Arizona, 85005-8244 Email: [email redacted] The Registrar’s normal office hours are 8:00 a.m. to 5:00 p.m., Monday through Friday. If Respondent submits a written answer by mail, it is not filed with the Registrar until the Registrar actually receives it. Deadline for Filing a Written Answer: Respondent must file a written answer with the Registrar no later than November 2, 2024. This deadline is calculated under A.R.S. §§ 32-1155(A) and (B), which provides a deadline ten days after service of the Citation. Service of the Citation and Complaint is complete five days after the Registrar mails a copy of the Citation and Complaint to Respondent’s latest address of record in the Registrar’s office. Consequences for Failing to File a Written Answer: If Respondent fails to answer, Respondent’s failure may be deemed an admission of the act or acts charged in the written complaint. A.R.S. § 32-1155(C). The Registrar may then suspend or revoke Respondent’s license(s). THE ADMINISTRATIVE HEARING If Respondent files a timely written answer contesting any charges in the Complaint, then the Registrar will request the Office of Administrative Hearings set a date for an administrative hearing and will notify all the parties at least 30 days before that hearing. A.R.S. § 41-1092.05(D). INVESTIGATOR’S APPEARANCE AS A WITNESS The Registrar’s assigned investigator will appear as a witness at the hearing. If either

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 party demands the attendance at the hearing of any other person, that party must obtain and serve a subpoena in compliance with the rules and processes established by the Office of Administrative Hearings. RESPONDENT’S RIGHT TO REQUEST AN INFORMAL SETTLEMENT CONFERENCE Under A.R.S. § 41-1092.06, if Respondent submits a request to the Registrar for an informal settlement conference, the Registrar must hold a conference within 15 days after receiving the request. Respondent’s request for an informal settlement conference must be in writing and must be filed no later than 20 days before the administrative hearing. A.R.S. § 41- 1092.06(A).

The Registrar will not close or settle any case without both parties’ appearance at the Settlement Conference. The parties participating in the settlement conference must have the authority to settle the case and must waive their right to object to the participation of the Registrar’s settlement conference representative in the final administrative decision. A.R.S. § 41-1092.06(B). Any statements, either written or oral, made by the parties at the conference, including a written document, created or expressed solely for the purpose of settlement negotiations, are inadmissible in the administrative hearing. A.R.S. § 41-1092.06(B). RESPONDENT’S PRIOR RECORD Under A.A.C. R4-9-117, in determining the appropriate discipline, the administrative law judge and the Registrar may consider not only facts in the current case, but also facts in prior cases and any documents regarding Respondent on file with the Registrar. Respondent’s prior disciplinary record and current license(s) status may be considered as a mitigating or aggravating factor in determining the appropriate discipline. EVIDENTIARY DISCLAIMER By issuing this Citation, the Registrar is directing Respondent to file a written answer to

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 the Citation and Complaint, showing cause, if any, why Respondent’s license(s) should not be suspended or revoked. A.R.S. § 32-1155(A). This Citation does not constitute proof that any charge or allegation in Complainant’s written complaint is in fact true. This Citation does not constitute proof that Respondent violated any statutory provision or rule adopted by the Registrar. Dated October 18, 2024. By: /s/ Meridith Bell Meridith Bell Legal Assistant II Legal Department Arizona Registrar of Contractors COPY of the foregoing mailed by Certified Mail, Return Receipt Requested, October 18, 2024 to: Respondent Certified Mail No: [number redacted] D R H Tucson Construction Inc. 6875 N. Oracle Road, Ste. 125 Tucson, AZ 85704 Copy mailed by USPS First Class mail this same date to: D R H Tucson Construction Inc. 6875 N. Oracle Road, Ste. 125 Tucson, AZ 85704

Complainant Michael Brian Carnes 17001 W. Starr Rd. Marana, AZ 85653

Copy sent electronically this same date to: Respondent at email address on record with the Registrar Complainant at email address on record with the Registrar

Case No. 2024-00779 /

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Licensed Complaint Form Departmental Use Only For Current or Suspended Licensees

Person Filing Complaint Full Name (First Middle Last) Business Name (if a licensed contractor or supplier) ROC License Number(s) (if any)

Michael Brian Carnes Mailing Address (Enter jobsite in Contract/Project section) City State Zip

17001 West Starr Road Marana Arizona 85653 Phone Number Email

[number redacted] [email redacted] I consent to receive communications electronically in connection with this case Name of Attorney (if any)

Street Address of Attorney City State Zip

Phone Number of Attorney Email of Attorney

Contractor Information Name (as shown on contract/invoice) ROC License Number(s)

D R H Tucson Construction Inc ROC 124600 Street Address City State Zip

6875 N Oracle Road, Ste 125 Tucson AZ 85704 Phone Number Email

(520) 572-5080 Name of Person(s) Representing License

Curt Scalf, VP Construction Contract/Project Information Contract Date Contract Amount Amount Paid

July 29, 2022 $346,000.00 $58,000.00 Date Work Started Date Work Stopped Date Work Was Completed

July 29, 2022 September 17, 2023 Close of Escrow (New Home) Move-In Date (New-Home)

Jobsite Street Address City State Zip

17001 West Starr Road Marana AZ 85653 Name of Construction Site Owner Construction Site Name (if applicable)

Avra Valley Acres Lot 216 Phone Number of Construction Site Owner Email of Construction Site Owner

This complaint is for Poor Work;Other I have contacted the contractor by Phone/Text;Email Have you filed a complaint in court? No Has any work been corrected? No

RCC099 12/05/18 Page 1 of 3 Licensed Complaint Form Departmental Use Only For Current or Suspended Licensees

The contract was Both All change orders were Both This project was Residential This project involved Other New Home/Moved-In/Repairs from 90 day exception not completed/ Nor was one year warranty problems addressed A building permit was obtained by Contractor P20BP08545 Pima County List and briefly describe each complaint item (Please do not write "see attached" or use additional pages unless necessary to further describe issues or list more complaint items) (limited to 100 characters per line)

Replacement of the damaged shower handle, as per the observation that someone likely stepped on it. This was confirmed as necessary by Curt, VP and noted on 90 day exception list with Matt.; Straightening of the A/C ceiling register vent and fixing the drywall around the return air vent located in the living room adjacent to the master bedroom. This will necessitate drywall, texture, and paint. Noted on 90 day exception list with Matt, verbally expressed with Matt, Curt, Vickie, Reggie, and current Superintendent Steve multiple times. ; Addressing the leak from the roof to the return air register (noted to Steve that this was supposed to be rectified alongside the main register vent issue). This will necessitate drywall, texture, and paint, possible new vent.; Replacement of seven (7) defective windows: one in the Jill bedroom, showing water retention and rust, both living room windows, both windows in the master bedroom, window in the bedroom next to the garage, and the window in the dining room. The Jill window and dining room window were identified by XO Windows specialist, Steve, as bowed and allowing dirt ingress. Superintendent Steve and XO Steve called XO Windows manager Joe in front of homeowner and told him the windows needed to be completely replaced and were not rated for this development and weather. Windows were never ordered as XO came out in December and replaced glass in the Jill Bedroom. Contractual homeowner, Mike, had the XO Windows specialist look at the all other home windows and he noted that they all needed to be replaced, as Water was leaking through the bottom frame and were extremely bowed. Noted on 90 day exception list with Matt,, then Reggie, Vicki, VP Curt, and then Steve. Further, due to the placement of the windows this will require framing, drywall, texture, paint, and Stucco. ; Comprehensive reapplication of stucco around the entire house due to multiple cracks, lath showing, non-uniform texture, and non-standard application (it yields under pressure, indicating it's not up to code—a fact backed by our expertise in residential and commercial home inspections). Note: House was painted two days after it was stucco not allowing proper curing time per International Building Standards. ; Exterior Painting: After window replacements and proper curing time of stucco, the exterior of the house will need to be repainted.; Painting the interior of the garage after fixing all horizontal cracking along walls and ceiling. Further, the exterior garage door will need to be painted as unpainted paneling is visible.; Rectification of tile grout as it has fallen through the tiles in the main areas of the home, along with the Master Bath. Grout has consistently deteriorated in various areas throughout the house. Further, grout was not properly sealed and some tiles are higher than others.; After 6 months of moving into the house, most walls bared visible horizontal cracking of about 8 to 10 feet. While the main hallway cracks were addressed repair is still needed in the three smaller bedrooms and as mentioned above the garage. Also, this will require texture and paint. ; Provision of pad certification, as assured by Curt, VP, on 3/16/2023. ; We would also like to reiterate our request for a copy of the signed 90-day exception list that prior Superintendent, Matt, took from me and never provided a scanned copy this was witnessed by our Real Estate Agent, Krista Buelna. Further, I am attaching a copy that I took a photo of on the kitchen island. ; Crack in master bath shower surround (noted by Superintendent Steve).; Master Bedroom is at all times 10 degrees hotter than the rest of the house. Representatives of Chaz Roberts have stated that it is because of the sun rising from the east and setting to the west, making them improper to diagnose the issue. (Noted by Superintendent Steve - Chaz Roberts has come out on multiple occasions stating that it is normal; however, our neighbors homes (same layout) are not hotter).; Paint used by builder was below grade paint allowable to be purchased by any homeowner in Avra Valley. The contract does state it is a un-scrubbable paint (Flat); however, other homeowners on our street have been told by Sherwin Williams that the paint used was not purchasable as it is below grade.; Trusses - Over the course of the home build (8 months), homeowners would visit home. Prior to the trusses being installed, homeowners noted they were outside for a significant period of time prior to the home being built. It should be noted that the Trusses were under water on some visits and noted by neighbors living on street for 2 years.; Exterior Hose Bib on Northeast side of the home is not working properly as water does not come out. ;

RCC099 12/05/18 Page 2 of 3 Licensed Complaint Form Departmental Use Only For Current or Suspended Licensees

Roof tin vents leaking (causing the return air vent in living room to leak and show visible water damage). ; Visible white flashing roofing paper showing on roof above the front entrance. ; Back door weather stripping is missing as the pressure of wind makes it sound like a little girl screaming. ; Grading/dirt not compacted over Rip Rap south and west of house. It is falling through (was to be refilled and compacted per meeting with VP, Vicki, Matt, and Late Warranty Rep. Reggie).; Certification of sceptic install by County as there were arguments about the compaction of dirt that was never complete when rip-rap was added after moving into the home. After a gnarly storm in December 2022, our Boat fell through causing water to pool in the front of the boat ruining our speakers and staining our interior. We added used black asphalt after they attempted to fix it, but have yet to receive anything certifying the work by the County. ; Rip-Rap northeast side of home was not completed per the County plans. It stops at the northeast side of house and not the driveway per the approved plans. This comes per County Representatives in Floodplain Management when homeowners were applying for floodplain permit post learning that we were on a floodplain developed hazard never disclosed until late 2023 by Blake Davis.

Signature I declare under penalty of perjury that the information and documents contained on this Complaint Form, included with this complaint, or hereafter submitted in support of this complaint are true and accurate to the best of my knowledge. I will assist in the investigation or in the prosecution of the contractor or other parties, and will, if necessary, attend hearings and testify to facts. Printed Name Signature Date

Michael Brian Carnes \complainant1\ \complainantd1\

RCC099 12/05/18 Page 3 of 3 DocuSign Envelope ID: 6E4016A7-8D7B-4882-A19A-A714B26449D6

EARNEST MONEY RECEIPT 01/22/2022 COMMUNITY: Avra Valley Acres LOT: 0216 [number redacted]

BUYERS: Michael Brian Carnes LOAN TYPE: Conventional (all checks for VA loans must be made out to Title Security)

Earnest Deposits Deposit Collection Due Date Collection Date Payment Type Check Number Amount Amount 01/22/2022 $1,500.00 $1,500.00 01/22/2022 Check 0 $1,500.00 Total $1,500.00 $1,500.00

Attach Check Here:

Earnest Money Receipt Avra Valley Acres LOT: 0216 Page 1 of 1 DocuSign Envelope ID: 6E4016A7-8D7B-4882-A19A-A714B26449D6

D.R. HORTON, INC. PURCHASE CONTRACT/DEPOSIT RECEIPT/ESCROW INSTRUCTIONS Stage of Construction: 03 Frame Stage

SELLER: D.R. HORTON, INC., a Delaware corporation dba D.R. Horton Homes, 3580 W Ina Rd Suite 100, Tucson, AZ 85741 The House will be constructed by D R H Tucson Construction, Inc., ROC license no. 124600, an affiliate of Seller.

BUYER: Michael Brian Carnes

Marital Status: Unmarried Taking title as: To Be Determined

Current Address: 1416 S Brown Ave, Tuson, AZ 85710, US City: Tuson

State AZ Zip: 85710 Home Phone: Business Phone: :

X Yes  No Buyer intends to occupy the Property as a primary residence:  [RdC.Buyer1] [RdC.Buyer12] Title Company and Escrow Agent: TITLE SECURITY AGENCY 1. Property. Seller agrees to sell and Buyer, jointly and severally if more than one, agrees to purchase the Lot and House (the "Property”) described below on the terms and

conditions set forth in this Contract: Lot: 0216 at Avra Valley Acres (“Subdivision"), the address of which is 17001 W STARR RD City: MARANA Arizona (the “Lot”), with Plan No H40I Elevation: A (the “House”). 2. Purchase Price. The total purchase price and estimated payment of monies with regard to this transaction are as follows

A. Total Purchase Price of Property as described on the "Job Initiation Order' or "Change Order” $340,640.00 ..…………………........................................... B. Closing Costs (Includes Loan Origination Fee and All Non-Recurring Costs) ..........................................................................................Estimate TBD

C. Prepaids and Prorations (Includes, but not limited to, Insurance, Taxes, Interest, & Assessments) ........................................................Estimate TBD

D. MIP, PMI, or VA Funding Fee ...................................................................................................................................................................Estimate TBD $340,640.00 E. Total Acquisition Cost …………….............................................................................................................................................................. Estimate $339,140.00 F. Mortgage Amount ("Loan") Total Loan to Value ....................................................................Estimate

G. Balance of Deposit including Closing costs, prepaids, prorations, loan fees, etc. Payable on or before Close of Escrow…………Estimate

Earnest Deposits Deposit Collection Due Date Collection Date Payment Type Check Number Amount Amount 01/22/2022 $1,500.00 $1,500.00 01/22/2022 Check 0 $1,500.00 Total $1,500.00 $1,500.00 AT THE TIME OF SIGNING THE “JOB INITIATION ORDER” OR “CHANGE ORDER,” BUYER SHALL PAY SELLER IN FULL FOR ALL DESIGN CENTER SELECTIONS AND CHANGES AND FOR ALL NON-STANDARD OPTIONAL ITEMS. BUYER WILL BE RESPONSIBLE FOR PAYMENT OF CREDIT REPORT AND APPRAISAL FEES. DEPOSITS NOT HELD IN NEUTRAL ESCROW ACCOUNT: PROSPECTIVE PURCHASERS ARE ADVISED THAT EXCEPT FOR VA BUYERS OR WHERE SELLER IS EXPRESSLY INSTRUCTED TO DO OTHERWISE, EARNEST MONEY DEPOSITS, DOWNPAYMENTS AND OTHER ADVANCED MONEY (INCLUDING ALL DEPOSITS) WILL NOT BE PLACED IN A NEUTRAL ESCROW. THIS MONEY WILL BE PAID DIRECTLY TO THE SELLER AND MAY BE USED BY THE SELLER. THIS MEANS THE PURCHASER ASSUMES A RISK OF LOSING THE MONEY IF THE SELLER IS UNABLE OR UNWILLING TO PERFORM UNDER THE TERMS OF THE PURCHASE CONTRACT. Any Deposits by Buyer to Seller will be made payable to Seller unless such Deposits are required to be held in a neutral escrow account in which case such Deposit checks should be made payable to and deposited with Escrow Agent. For VA Loans Only: The earnest money Deposit will be deposited in a trust account that is safeguarded from the claims of creditors of Seller until the Deposit either (i) has been disbursed for the benefit of Buyer at the Closing, or (ii) if the transaction does not materialize, is otherwise disposed of in accordance with the terms of the Contract.

[Rd.Buyer1] Notice of VA Loan.  Buyer intends to obtain a VA Loan,  X or Buyer does NOT intend to obtain a VA Loan. [Rd.Buyer12] If Buyer does not currently intend to obtain a VA Loan, but later decides to obtain a VA Loan, Buyer must promptly notify Seller in writing.

By initialing Buyer indicates approval of the provisions above.

[Init.Buyer1] Initials ________ Buyer

3. ALTERNATIVE DISPUTE RESOLUTION. BUYER AND SELLER AGREE TO RESOLVE ANY DISPUTE BETWEEN THEM THROUGH A PROCESS INVOLVING NEGOTIATION, MEDIATION AND, IF NECESSARY, BINDING ARBITRATION AS DESCRIBED IN MORE DETAIL IN SECTION 26.E BELOW. THE PARTIES UNDERSTAND THAT BY SIGNING THIS CONTRACT AND INITIALING BELOW THEY ARE WAIVING THEIR LEGAL RIGHTS TO FILE A LAWSUIT TO RESOLVE ANY DISPUTE BETWEEN THEM.

[Init.Buyer1] Initials ________ Buyer 4. Mortgage Program (“Loan Program”)

A. Lender: CARDINAL FINANCIAL Loan Type: Conventional

Buyer understands that loan interest rates and discount points can fluctuate until locked by Lender. Buyer has the sole responsibility for instructing Lender to lock discount

points and interest rate.

PURCHASE CONTRACT Avra Valley Acres LOT: 0216 Page 1 of 6 DocuSign Envelope ID: 6E4016A7-8D7B-4882-A19A-A714B26449D6

[Init.Buyer1] Initials ________ Buyer

B. Buyer agrees to make loan application within five (5) calendar days of Buyer’s execution of this Contract and will apply for the Loan on the Property in the amount and with Lender specified above. If Buyer obtains a Loan from Lender, Lender shall give Seller written notice of its approval of Buyer and its commitment to make the Loan to Buyer, satisfactory in form and content to Seller, in Seller’s sole discretion, not later than thirty (30) calendar days after Buyer’s execution of this Contract (the “Commitment Date”). C. Buyer agrees to use its best efforts to promptly, diligently and in good faith provide all information and documents required by FHA, VA, and/or Lender in order to obtain prompt approval of Buyer’s Loan application, and to execute such further documents and instruments and perform such acts as are reasonably necessary to obtain the Loan. Buyer’s failure to do so shall be a material default by Buyer under this Contract and, in such event, Seller shall be entitled to exercise any one or all of those remedies set forth in Section 26.B. Except as may be limited by law with respect to VA Buyers, any Buyer who withholds, manipulates, or provides false information resulting in a Loan rejection, regardless of intent, shall be in default hereunder. Buyer acknowledges and understands that the obligation to apply for and diligently pursue the Loan is for the protection of Seller who has removed the Property from the market in specific reliance upon Buyer’s obligations hereunder and that Seller would be materially and substantially injured if Buyer failed to use its best efforts to obtain the Loan. D. Except as otherwise agreed to in writing by the parties, Buyer acknowledges and understands that: (a) the interest rate and/or fees for the Loan and the terms and conditions of the Loan are a matter of concern solely between Buyer and Lender and shall not in any way affect the rights or obligations of the parties hereto; (b) Seller will cooperate with Buyer in obtaining the Loan, but Buyer acknowledges and understands that Seller has not agreed to provide or obtain any Loan to or for Buyer, nor has Seller or its agents offered any guarantee that Buyer will be able to secure any Loan or a Loan under any particular program; (c) Seller is in no way responsible for or a representative of any Lender, nor is Seller responsible for any representations, actions or omissions made by any Lender, and (d) the Loan is to be obtained by Buyer and Seller has no responsibility whatsoever in connection therewith. Buyer further acknowledges that this Contract does not constitute a loan application, a loan approval, or a commitment by any Lender or Seller.

[Init.Buyer1] Initials ________ Buyer

5. Contingency (if applicable). Buyer and Seller acknowledge that this Contract is contingent upon the sale and closing of Buyer’s home located at: _______________ __________ ____ This contingency shall be for a total of forty-five (45) calendar days and will expire on: 03/23/2022 Unless Buyer provides Seller, within ten (10) calendar days after execution of this Contract by Buyer, with documentation relating to their home currently listed for sale or in escrow to sell, which documentation is satisfactory to Seller in Seller’s sole and absolute discretion, Seller shall have the right to cancel this Contract. If Seller receives another acceptable contract, he shall notify Buyer in writing and Buyer shall have seventy-two (72) hours from receipt of notification to remove the contingency and proceed with normal closing. Notwithstanding any other provisions herein, Seller will not begin construction until all contingencies have been deleted in writing.

6. No Oral Changes or Representations Real Estate Certification. Seller wishes to avoid any misunderstanding concerning the purchase of the Property. The entire agreement between Buyer and Seller must be expressed in writing. Buyer, therefore, shall write, in the blank space below, any and all representations or provisions which are not set out in this Contract, but which have been made by Seller or its purported agents or employees and upon which Buyer is relying on in making this purchase, and if there are none Buyer shall so indicate:

NONE

[Init.Buyer1] Initials ________ Buyer

TO INDUCE SELLER TO ACCEPT THIS CONTRACT, BUYER ACKNOWLEDGES THAT, EXCEPT AS WRITTEN IN THE BLANKS IMMEDIATELY ABOVE, THERE ARE NO AGREEMENTS, UNDERSTANDINGS, REPRESENTATIONS, OR PROMISES OF ANY KIND THAT HAVE BEEN MADE TO INDUCE THE EXECUTION OF THIS CONTRACT EXCEPT AS SET FORTH IN WRITING IN THIS CONTRACT; THAT THIS CONTRACT SETS FORTH IN FULL THE ENTIRE AGREEMENT BETWEEN THE PARTIES; AND THAT BUYER HAS NOT RELIED ON ANY ORAL AGREEMENT, STATEMENT, REPRESENTATION, OR OTHER PROMISE THAT IS NOT EXPRESSED IN WRITING IN THIS CONTRACT. Buyer, Seller and Seller’s salesperson or broker certify that the terms and conditions of this Contract are true, to the best of their knowledge and belief, and that any other agreement entered into by any of the parties in connection with the real estate transaction is part of, or attached to, this Contract. No salesman, Broker, agent, subcontractor, or employee of Seller has any authority to modify the terms of this Section or the authority to make any oral representation or agreement upon which Buyer may rely to cancel, change, or modify any portion of this Contract. This Contract supersedes any and all prior understandings and agreements. This Contract may be amended or modified only by a written agreement signed by Buyer and Seller’s Authorized Corporate Officer.

7. Co-Broke. Upon the close of Escrow of this transaction, a commission equal to 3.00% of the Total Purchase Price of the house will be paid to Century 21 1st American. It is understood that Krista Buelna represents solely the Buyer in this transaction. Co-Broke commissions will be mailed by the Escrow Agent to the above named broker after all closing documents are properly recorded. (Usually within three to five working days after recording).

8. APPRAISED VALUE (Applicable to VA and FHA Loans Only). APPRAISED VALUE (Applicable to VA and FHA Loans Only). If Buyer is financing the purchase with an FHA loan, it is expressly agreed that notwithstanding any other provisions of this Contract, the Buyer shall not be obligated to complete the purchase of the Property described herein or to incur any penalty by forfeiture of earnest money deposits or otherwise, unless the Buyer has been given, in accordance with HUD/FHA requirements, a written statement by the Federal Housing Commissioner or a Direct Endorsement lender setting forth the appraised value of the Property of not less than $340,640.00. The Buyer shall have the privilege and option of proceeding with consummation of the Contract without regard to the amount of the appraised valuation. If Buyer is financing the purchase with a VA loan, it is expressly agreed that, notwithstanding any other provisions of this contract, Buyer shall not incur any penalty by forfeiture of earnest money or otherwise or be obligated to complete the purchase of the property described herein, if the contract purchase price or cost exceeds the reasonable value of the property established by the Department of Veterans Affairs. The Buyer shall, however, have the privilege and option of proceeding with the consummation of this contract without regard to the amount of the reasonable value established by the Department of Veterans Affairs. (Authority: 38 U.S.C. 501, 3703(c)(1)). The appraised valuation is arrived at to determine the maximum mortgage the Department of Housing and Urban Development or the VA, as applicable, will insure. HUD/VA, as applicable, does not warrant the value or condition of the Property. The Buyer should satisfy himself/herself that the price and condition of the Property are acceptable.

9. A. Construction. The House shall be constructed in substantial compliance with plans and specifications on file with Seller and the governing municipality, subject, however, to substitution, in Seller’s sole discretion, of materials or fixtures of substantially comparable or better quality. Seller agrees to erect the House in compliance with the applicable FHA/VA, Conventional Lender and applicable local governmental regulations, and the final inspection and acceptance of the House by the applicable governmental jurisdiction shall constitute substantial evidence that the House has been completed in accordance to the plans and codes. Seller shall have the exclusive right to orient the House on the lot in accordance with Seller’s normal construction practices.

B. Construction Schedule; Punch List. Seller has constructed, is constructing or will begin construction of the House pursuant to Seller’s normal construction schedule. In no event shall the construction period exceed two (2) years from the execution of this Contract, except for delays caused by matter beyond Seller’s control including, without limitation, delays caused by force majeure or acts or omissions of Buyer. No person other than an Authorized Corporate Officer of Seller has any authority to so bind Seller. Buyer may not rely upon the same unless evidenced in writing. The time by which the House shall be completed, if a time is set by Seller, may be extended by written agreement of the parties and shall be extended automatically by reason of any delays resulting from (for the purpose of illustration but not as limitation) labor strikes, slow downs, lock out, material or labor shortages, any action of federal, state, or local authorities having jurisdiction over the Property or affecting Seller’s ability to perform, the supply of utilities, war, civil disorder, fire, unusual weather conditions, acts of God, or any other construction delays (including Buyer-requested changes to the House) which may occur and are not wholly within the control of Seller ("Force Majeure Events").

It is expressly agreed that the House, though completed may be subject to certain "punch list" items for additional work. Notwithstanding that additional work may be required to resolve the "punch list" items, if the House is "livable," then the existence of such "punch list" items will not render the House incomplete. Minor items such as failure of operation of appliances, electric outlets, fixtures, touchup painting, minor corrective work or changes and the like shall not render the House "non-livable." Within a reasonable period of time following the Closing, Seller shall remedy the "punch list” items and make adjustments agreed to by Buyer and Seller in a walk-through inspection which will be scheduled by Seller and Buyer prior to Closing. Buyer agrees to make the House available, during Seller’s business hours, to Seller, its employees, agents and subcontractors for the purpose of completing the “punch list” items. The existence of such "punch list” items or other non-structural construction imperfections shall not entitle Buyer to cancel this Contract, withhold funds at Closing, or delay the Closing. After Closing, Seller shall have no further or continuing

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responsibility for periodic inspection, replacement, maintenance or repair of improvements except for "punch list" items identified before or at Closing or as may be covered by Seller’s limited warranty described in Section 21.

Buyer may authorize a home inspector (“Home Inspector”) to inspect the House with Seller and to prepare the “punch list” described above. In the event Buyer so authorizes a Home Inspector, Buyer understands, acknowledges and agrees that such Home Inspector’s inspection and completion of the “punch list” shall be in behalf of Buyer and Buyer shall not have the right to a separate inspection or “punch list” and further Buyer hereby indemnifies and holds harmless Seller from and against all damages, claims and causes of action relating to the acts or omissions of the Home Inspector with respect to the House, the Property or the Contract.

10. Buyer’s Actions Before Closing. Buyer agrees not to do or cause to be done any work or alteration of any nature whatsoever in or about the House before the Closing.

If Buyer violates this Section, it shall be a material default under this Contract. Buyer shall not meet with or give instructions to any subcontractors working on the House on behalf of the Seller unless agreed to in writing by Seller.

11. Buyer’s Selections and Options. Buyer agrees to make an appointment with Seller’s office to go to the specified design center within 14 calendar days of Buyer’s execution of this Contract to select colors, styles, and other similar materials for the House from the available samples. Buyer’s selections shall include, without limitation, all of Buyer’s interior color and material selections including, but not limited to, carpeting, flooring, cabinetry, countertops, and all other selections necessary and appropriate in order to complete construction of the House. Buyer’s selections shall be final and binding. If Buyer has not made such selections within said calendar day period, Seller, in Seller’s sole and absolute discretion, may make such color selections for Buyer and Buyer agrees, understands and accepts that in such case Seller’s selection shall be binding upon Buyer. At the time of signing the “Job Initiation Order” or “Change Order,” Buyer shall pay Seller in full for all design center selections and changes and for all non-standard optional items. Only (a) those standard items of personal Property, fixtures and equipment described in the plans and specification for the House (on file in the offices of Seller), (b) those standard optional items shown on a “Job Initiation Order” or "Change Order" accepted by both parties and stating the additional cost to Buyer therefore (collectively the "Options") and (c) those Non-Standard Optional Items (as defined above) shown on the “Job Initiation Order” or a "Change Order" accepted by both parties are included in this sale. Other than those items described in the preceding sentence, no other personal Property; fixtures; equipment; extra design features; decorations; floor coverings; decorator-like fixtures; wall coverings; window treatments (shutters, draperies, etc.); furniture; furnishings; mirrors; appliances; landscaping shown in any brochure, model, or in any advertisements; modifications of the House, or other optional items of any kind; are included in the sale. Additionally, Buyer fully understands and acknowledges that even though certain plans and specifications of Seller may show or include drawings or descriptions of various other optional items, they are not a part of this Contract and are hereby excluded unless specifically provided for in a "Job Initiation Order" or a "Change Order” accepted and signed by Seller’s Authorized Corporate Officer.

12. Escrow Agent. Buyer and Seller hereby employ the title company specified on page 1 to act as Escrow Agent (the "Escrow Agent") for this transaction. Delivery and acceptance of a fully executed copy of this Contract shall constitute employment of such entity as the Escrow Agent. Seller shall be responsible for payment of Escrow Agent’s escrow fees. Buyer shall be responsible for payment of all recording fees, all taxes and assessments described in Section 13, costs of the Loan and/or any other financing, including but not limited to points, origination fees, interest, discounts, credit reports, Lender’s title insurance policy charges, FHA/VA funding fees, mortgage insurance premium, appraisals and any other fees and costs charged by Escrow Agent or Lender for the Loan made to Buyer for the purpose of purchasing the Property, or as a result of any Loan applications submitted by Buyer, whether or not a Loan is made, and any other such items (collectively the "Closing Costs"), except to the extent Seller agrees in writing to pay any portion of such costs.

Upon Closing, Escrow Agent shall cause the recording in the appropriate County Recorder’s Office of all necessary documents to disburse all funds and issue to Lender, at Buyer’s cost, a Lender’s standard title insurance policy, insuring Lender’s interest in the Property in the amount of the Loan, and issue to Buyer, at Seller’s cost, an owner’s standard title insurance policy insuring Buyer’s title in the Property in the amount of the Purchase Price. If an ALTA owner’s policy is issued, Buyer shall be responsible for the difference in cost between that policy and a standard owner’s policy. The parties grant to Escrow Agent the right to execute on their behalf the Affidavit of Value, using the total consideration for the established value. Should Escrow Agent be closed on the day of compliance specified herein for Closing, the requirements will be met on the next succeeding day Escrow Agent is open for business.

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13. Conveyance and Prorations. Seller shall convey title to the Property to Buyer upon the Closing by special warranty deed, subject to all matters of record but free from all monetary liens and encumbrances except that relate to the Loan, if any. Once title to the Property has been so conveyed by Seller to Buyer, all claims and demands against Seller, including without limitation any claims of negligence, shall be waived, released, and forever discharged, except, however, any claims with respect to the warranty included in Section 21. At the Closing, current year’s taxes, general and special assessments, and homeowners” association assessments, if any, shall be prorated to the Closing Date on the basis of the latest available tax statement and the current assessments of the homeowners” association. Escrow Agent shall also collect from Buyer for the homeowners” association any working capital fund deposits, other prepaid deposits or transfer fees, required in accordance with the homeowners” association’s governing documents.

If at the time scheduled by Seller for Closing, Seller is unable to deliver title as required herein, Seller shall have a period, determined by Seller in its sole discretion, of up to ninety (90) calendar days to attempt, if Seller desires to do so, to clear any un-permitted exception to title, and, upon being able to do so, Seller shall advise Buyer and the parties shall proceed to Closing within seven (7) calendar days thereafter. If Seller determines that it cannot clear, or if Seller does not clear, the un-permitted exceptions within such period, either party shall have the right to cancel this Contract by giving written notice thereof to the other party and Escrow Agent. In such event, all Deposits previously paid by Buyer to Escrow Agent or Seller shall be refunded to Buyer, and neither party shall have any further duty, obligation, claim or responsibility to the other. If Seller does clear the un-permitted exceptions prior to cancellation of this Contract, the parties shall proceed to Closing within seven (7) calendar days thereafter.

14. Closing. Upon completion of the House as contracted herein, this transaction and escrow shall close, (the “Closing”) at the time specified by Seller in a verbal or written notice to Buyer. Upon receipt of such notice, Buyer shall take such steps as are necessary to effect the Closing on the date specified by Seller (the “Closing Date”), including execution of Loan documents. If Buyer fails to close on the Closing Date, but if Closing subsequently occurs, Buyer, shall pay to Seller at Closing (in addition to and not in lieu of all other amounts due from Buyer under this Contract) a late Closing fee equal to the greater of (i): $100.00 per calendar day or (ii) interest at the rate of twelve percent (12%) per annum on the Purchase Price, for each calendar day from and including the Closing Date specified above, to and excluding the actual day of Closing. This fee is in addition to (and not in lieu of) Seller’s remedies under Section 26.

Possession of the Property shall remain exclusively in Seller (and House keys shall not be given to Buyer) until all amounts due hereunder have been paid and all instruments of documents required in connection with the completion of this transaction have been executed and delivered by Buyer, the Deed has been recorded, Closing has occurred and the Purchase Price and all other amounts owing Seller are paid to Seller in immediately available funds (usually approximately 5 working days after closing documents are signed by Buyer and Seller). Buyer understands, acknowledges, and agrees that Buyer has the sole responsibility to arrange for utilities to be turned on to the Property. Any delays experienced or incurred in the scheduling of the actual date of turning on the utilities shall not permit Buyer to delay the Closing. Any delay in the Closing by Buyer due to the foregoing shall constitute a material default hereunder by Buyer. Buyer agrees to pay all utility costs incurred by Seller after Closing.

[Init.Buyer1] Initials ________ Buyer

15. Fences, Grading; Soil Compaction; Ceramic Tile; Other Changes. Buyer acknowledges and understands that (i) the location of utility lines, utility improvements (such as but not limited to junction boxes, transformers or pedestals) and sewer taps may vary; (ii) fences may encroach on either side of actual Lot lines; (iii) future construction on, grading, landscaping or excavation of the Lot by Buyer could disrupt drainage and or retention and cause ponding or flooding if not correctly engineered; (iv) Seller has provided for subsurface soil compaction to the extent required by city or county agencies and does not warrant soil conditions in excess of such requirements; (v) Seller reserves the right to make changes to the design of the Subdivision and in the plans and specifications for all Subdivision improvements, including but not limited to plans and selections of homes hereafter to be constructed within the Subdivision; (vi) the character and use of the Property surrounding and in the vicinity of the Subdivision may change; (vii) the concrete floor of the House may have joints in it and is subject to cracking due to settling, expansion, and contractions; and when ceramic tile is installed over any such crack or joint, the tile or tile joints may crack and Buyer understands and agrees that the same is, therefore, a maintenance item and the responsibility of Buyer; and (viii) Seller is not responsible for and does not warrant against concrete that has cracked because of over-watering near a House, walk, or drive-way that has created a condition of soil or ground settlement or expansion. Seller disclaims any responsibility or liability for the occurrence of any of the foregoing items described in this Section, and Buyer hereby releases Seller from any and all responsibility, obligations or liability whatsoever for the occurrence of same. Buyer also understands, acknowledges and agrees that if Buyer desires to do any grading, construction or any other work on the Property, Buyer shall first obtain all necessary approvals, permits and licenses required for such work from the controlling homeowners” association, and its architectural control committee (as applicable), and all applicable municipal, governmental or quasi-governmental agencies having jurisdiction over the Property. Any such work conducted on the Property by Buyer shall void and terminate Seller’s warranty provided to Buyer as described in Section 21 as to any part of the Property affected directly or indirectly, by such work.

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16. Time of Essence: General Provisions. Time is of the essence of this Contract. No waiver hereunder shall be effective unless in writing signed by the party against whom enforcement of the waiver is sought. The waiver of any breach of any provision of this Contract shall not constitute a waiver of said provision or a waiver of a future breach of that or any other provision. This Contract may only be modified by a written instrument executed by Buyer and Authorized Corporate Officer of Seller. This Contract has been executed in the State of Arizona, and the laws of the State of Arizona shall govern the construction of this Contract. This Contract shall be construed in accordance with its plain meaning and the provisions of this Contract shall not be strictly construed for or against any of the parties to the Contract. This Contract is binding upon the heirs, executors, administrators and successors of the respective parties, but may not be assigned by Buyer without the prior written approval of Seller and any attempted assignment by Buyer (whether voluntarily or by operation of law) shall be void. This Contract, together with any other concurrent or subsequent writing signed by both Buyer and Seller, constitutes the entire agreement of the parties and no other understandings, claims, statements, or representations shall be binding or effective. The singular in number as used herein shall be deemed to include the plural, and the masculine gender shall be deemed to include the feminine and neuter gender, and vice versa, whenever the context so requires.

17. Acceptance by Seller. Execution of this Contract by Buyer shall constitute an offer to purchase the Property. This Contract is not binding upon Seller until executed by Seller’s Authorized Corporate Officer. The Contract date shall be the date of execution by Seller’s Authorized Corporate Officer.

18. Broker/Licensee. Buyer acknowledges that Seller and certain employees of Seller have real estate licenses issued by the State of Arizona. Except for a co-broker fee or commission that Seller may agree in writing to pay to Buyer’s licensed real estate agent/broker, but which shall be binding against Seller only after acceptance and execution of a co-brokerage agreement by Seller’s Authorized Corporate Officer, Buyer represents and warrants that he has not dealt with any other agents, Brokers, salesmen, finders, or persons of any kind who will, might, or may make a claim for a commission or finder’s fee in connection with this transaction, and Buyer holds Seller harmless from and against any and all liability, responsibility, claims, losses, damages, costs, controversies, expenses, or attorney”s fees, sustained or incurred by Seller resulting from the actions of Buyer. This paragraph shall survive the Closing or termination of this Contract.

19. Possession and Risk of Loss. Buyer, or their assigns (if permitted in accordance with Section 16) understand that they are not the legal owners of the Lot and House until the time their deed from Seller is recorded and Closing occurs. If pre-approved by Seller, Buyer may enter the Property solely to inspect same and, as stated above in Section 10, Buyer shall not undertake any work on the Property whatsoever prior to the Closing. Buyer shall not enter the Property without Seller’s prior approval, and if Buyer (with or without Seller’s approval) enters the Lot or House during the course of construction, or any time before Closing, Buyer and Buyers family and friends, assume the risk of bodily injury while in or on the Lot or House. BUYER AGREES TO INDEMNIFY AND HOLD SELLER HARMLESS FROM AND AGAINST ANY AND ALL PERSONAL INJURIES INCURRED BY BUYER, OR BUYER’S GUESTS, FAMILY, LICENSEES, OR INVITEES AT ANY AND ALL TIMES BEFORE CLOSING. Except as may be caused by Buyer’s acts, omissions, or negligence (which shall be the sole and complete responsibility of Buyer), Seller shall assume the risk of loss or damage to the Property by fire or other casualty until the Closing, at which time the risk of loss shall pass to Buyer.

20. Inconvenience and Personal Injury. Buyer understands and agrees that construction activity at the subdivision may continue after the close of escrow and occupancy by Buyer. Such construction activity will include, but is not limited to, noise, debris, and the transportation of labor, material, and equipment, which may cause inconvenience to Buyer. Buyer agrees to make no claim against Seller or its contractors as a result of such construction activity. Additionally, if Buyer or a member of Buyer’s family or any guests, visitor, or invitee of Buyer, goes into an area under construction, the same will be at his or her own risk, and if any such person suffers personal injury or Property damage, such person hereby waives any claim therefore against Seller, and Broker, their contractors and agents, and hereby releases Seller and Broker, their contractors and agents, from such personal injury or Property damage.

21. Limited One Year Warranty. In addition to any warranty of a third party warranty company which Seller may provide to Buyer, Seller warrants that all work performed by Seller in connection with the construction of the House will be of a quality which is standard in the industry in the county in which the Lot is located, and Seller warrants all such work against defective workmanship or materials for a period of one (1) year from the date of Closing. Seller, during normal business hours at its own expense, will make any and all necessary repairs and replacements, provided such repairs and replacements are necessary as a result of defective workmanship or materials and provided Seller is granted reasonable access to the Property during normal business hours. Seller’s obligations under this Warranty and under this Contract are limited to repair and replacement. No steps taken by Seller to correct defects shall extend the warranty period beyond one (1) year. This warranty is applicable only to matters reported in writing to Seller before the expiration of the one (1) year warranty. Seller has made no investigation to determine whether there is radon gas or other environmental pollutants either in the House or affecting the Property, although such conditions could exist anywhere in the State of Arizona; Seller has made no analysis or verification of the extent of any environmental or health hazard that may affect the Property or Buyer; and Seller makes no warranty or representation hereunder as to the presence or non-presence of radon or other hazardous environmental conditions, or the effect of any such condition on the Property or Buyer. THIS WARRANTY IS THE ONLY WARRANTY APPLICABLE TO THIS PURCHASE. IN RETURN FOR RECEIVING THIS WARRANTY, BUYER(S) AGREES TO FOREGO ALL OTHER EXPRESSED OR IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, HABITABILITY, WORKMANSHIP AND ALL OTHER WARRANTIES INCLUDING WITHOUT LIMITATION, ANY WARRANTIES, EITHER EXPRESSED OR IMPLIED, THAT COULD BE CONSTRUED TO COVER THE PRESENCE OF RADON OR OTHER ENVIRONMENTAL POLLUTANTS ANY WARRANTIES WHICH EXCEED THE FOREGOING OBLIGATIONS ARE HEREBY DISCLAIMED AND THE SAME ARE EXCLUDED FROM THIS CONTRACT. ADDITIONALLY, ANY IMPLIED WARRANTY, WHICH MAY EXIST DESPITE THE ABOVE DISCLAIMER IS HEREBY LIMITED TO THE ONE (1) YEAR DURATION OF THE EXPRESS WARRANTY. This warranty is intended to protect Buyer from faulty construction and defective materials used in the construction of the House and does not apply to defects caused, by way of example and not as a limitation, by normal wear and tear, insubstantial variances or defects, the elements, natural disasters or other acts or events beyond the control of Seller, or faulty maintenance, operation, or abusive use. Notwithstanding the foregoing, Seller’s warranty shall in no event extend to any consumer product, appliances, air conditioning units, furnaces, and water heaters and other products included in the House that are considered "consumer products" as defined by the Federal Trade Commission for the purpose of the Magnuson Moss Act (15 U.S.C. 2301, et seq.) that may be included in this transaction. The manufacturers of some products used in the House may provide a manufacturer’s warranty. Seller has no obligation or responsibility for the manufacturer’s warranty. Seller has no obligation or responsibility for the manufacturers performance, and Seller does not warrant any of these items for any use, fitness for use, workmanship, quality, or any other purpose. If a manufacturer’s warranty has been issued to Seller,

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LIMITATION OF LIABILITY: IT IS UNDERSTOOD AND AGREED THAT SELLER’S LIABILITY, WHETHER IN CONTRACT OR OTHERWISE, IS LIMITED TO THE REMEDY OF REPAIR OR REPLACEMENT AS SET FORTH ABOVE. UNDER NO CIRCUMSTANCES SHALL SELLER BE LIABLE FOR ANY SPECIAL, INDIRECT, OR CONSEQUENTIAL DAMAGES INCLUDING WITHOUT LIMITATION, ANY DAMAGES BASED ON A CLAIMED DIMINUTION IN THE VALUE OF THE PROPERTY. N O ACTION, REGARDLESS OF FORM, ARISING OUT OF THE TRANSACTIONS UNDER THIS CONTRACT MAY BE BROUGHT BY BUYER MORE THAN ONE (1) YEAR AFTER THE CAUSE OF ACTION HAS ACCRUED UNDER THE WARRANTY PROVISION HEREIN ABOVE PROVIDED.

22. Prior Sale/Acquisition of Property. This Contract is subject to any prior sale of the Property and, in the event of such prior sale, Seller may cancel this Contract at any time prior to Closing by sending written notice of such cancellation to Buyer. Upon such cancellation all deposits previously paid by Buyer to Seller or Escrow Agent and shown receipted in Section 2 shall be returned to Buyer by Seller or Escrow Agent, and thereafter neither party shall have any further duty, obligation or responsibility to the other under the Contract. Seller shall have the power and authority to determine, in Seller’s sole and absolute discretion, which of two or more sales shall be deemed to have occurred first in time if Seller’s written records do not conclusively indicate which sale of the Property occurred first in time. If, as of the Contract date, Seller does not own title to the Property and Seller is thereafter unable to acquire the Property on terms and conditions acceptable to Seller, in its sole and absolute discretion, Buyer understands that it will be impossible for Seller to perform its obligations under this Contract. In the event of such an impossibility, Seller will have the right to terminate this Contract and return the earnest money deposit to Buyer, and no cause of action shall accrue on behalf of Buyer because of such termination.

23. Insulation. Insulation will be installed in the House as follows where construction allows: WALLS SEPARATING REFRIGERATED AREAS FROM NON-REFRIGERATED AREAS: Type: BATT Thickness: 3.5” R-Value: R-13 CEILING (except over garage or un-refrigerated storage rooms: Type: BLOWN-IN CELLULOSE Thickness: 8” R-Value: R-30 . Notwithstanding the foregoing, insulation may be of lesser thickness and R-value than indicated in certain areas where the design of the House does not permit greater thickness. Examples of locations where thickness and R-value may vary include locations where studs are placed in walls, at corners and windows and where roof trusses attach to outside walls. The R-values are based on the representation of the manufacturer and/or installer of the insulation, and Seller does not warrant or represent that these R-values are correct. Seller has the right to make substitutions as to the type, thickness and R-value of insulation installed in the House without obtaining the consent of Buyer, as long as there are no substantial decreases in the R-value of the insulation installed in a substantial portion of the House.

24. Attorneys’ Fees and Costs. In the event of any arbitration or other action between the parties to this Contract, whether for breach of contract, express or implied warranty, personal injury or property damage, or otherwise, each party shall bear its own attorneys’ fees, expert witness fees, and costs of such action.

25. Notices. Except as otherwise provided in the Contract, all notices required or permitted under this Contract shall be in writing and shall be effective upon personal delivery to Seller or Buyer, or upon deposit in the U.S. mail, first class, addressed to the respective parties at the addresses specified in this Contract or to such other address as either party, from time to time, shall specify in the manner provided in this Section.

26. Failure to Obtain a Loan; Defaults and Remedies; Seller Right to Terminate for Unresolved Dispute; Three Day Buyer Cancellation Right; and Alternative Dispute Resolution.

A. Failure to Obtain a Loan. If Buyer is unable, without default by Buyer, to qualify for and obtain the Loan in full amount described in Section 2 by the Commitment Date, either party shall have the right to cancel this Contract by sending written notice of such cancellation to the other. In the event of such cancellation, Seller shall refund to Buyer and shall cause Escrow Agent to refund to Buyer all Deposits received from Buyer in respect of the total Purchase Price, less all amounts received by Seller or Escrow Agent from Buyer for any changes (including without limitation design and engineering costs) which are not part of Seller’s standard Option package ("Non-Standard Optional Items"), and less Two Hundred Fifty Dollars ($250.00) to reimburse Seller and Lender for Contract administration and costs incurred by Seller or Lender in obtaining appraisal and credit information concerning Buyer, or, if said costs are greater than $250.00, then less the actual costs for such appraisals and credit

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information and any other materials and expenditures obtained or made by Seller and / or Lender. In the event of a cancellation by either party pursuant to this Section 26.A, neither party shall have any further duty, obligation, claim or responsibility to the other under this Contract, except as otherwise set forth in this Section 26.A.

[Init.Buyer1] Initials ________ Buyer

B. Defaults and Remedies. Buyer shall be in default under this Contract if Buyer (a) advises Seller in writing or orally that Buyer does not intend to or will not fully perform any provision of this Contract, or (b) fails to fully perform any provision or this Contract, and does not fully cure that failure to perform within seven (7) calendar days from the date Seller or its Authorized Corporate Officer gives Buyer an oral or written demand or notice for compliance (whether or not a written demand or notice is received by Buyer); provided that, if Buyer’s failure to perform is a failure to close timely after delivery of written notice by Seller of the Closing Date, Buyer is not entitled to a seven (7) calendar day notice and cure period and shall be deemed in default hereunder immediately upon such failure to close. If Buyer has not cured its default within the time period herein provided, Seller may elect to cancel this Contract at any time thereafter by giving oral or written notice to the Buyer, or Seller may sue for damages or for specific performance or pursue any other remedies available at law or in equity, in Sellers sole discretion. Seller may retain Seller-held Deposits and may obtain from Escrow Agent the Deposits as part of Buyer’s performance of this Contract without electing to cancel this Contract, and without waiving Seller’s right to pursue specific performance of the Contract. If this Contract is executed by more than one (1) individual or entity as Buyer, each individual or entity shall be jointly and severally liable hereunder. Escrow Agent is instructed to pay to Seller the Deposits and any other payment of Buyer upon cancellation of this transaction and escrow by Seller as provided above or upon receipt of notice from Seller of its intent to enforce the specific performance of the Contract and requesting payment of the Deposits and other amounts as part of the performance of the Contract by Buyer.

If Seller elects to cancel this Contract as provided above, the parties acknowledge that the actual damages incurred by Seller are extremely difficult to estimate in advance and Seller’s retention of the Deposits and other amounts paid by Buyer to Escrow Agent constitute a reasonable estimate of Seller’s damages and shall be forfeited to Seller as liquidated damages and not as a penalty. All remedies of Seller hereunder shall be cumulative.

Subject to the terms and provisions of Section 13 for defective title or Section 9.B for Seller’s failure to complete timely the construction of the House, if Seller, prior to the Closing, otherwise fails to comply substantially with the terms and conditions of the Contract, and if Buyer shall have complied with all of its obligations hereunder, Buyer shall be entitled to deliver to Escrow Agent and Seller a written notice detailing the default of Seller. Seller shall have twenty (20) calendar days from the receipt of such notice within which to remedy the default. If Seller has not remedied the default within the time provided in the proceeding sentence, Buyer, as its sole remedy, may either (i) cancel this Contract and receive a refund of its Deposits or (ii) pursue specific performance of this Contract, Buyer hereby expressly waiving any other rights and remedies it may have at law or in equity. Notwithstanding the foregoing, if Seller fails to substantially complete construction within two (2) years from the date Buyer signs this Contract, subject to delays caused by matters beyond Seller’s Control including, without limitation, delays caused by force majeure or acts or omissions of Buyer, Buyer may pursue whatever remedies Buyer may have at law or in equity under any applicable law.

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C. Seller Right to Terminate for Unresolved Dispute. NOTWITHSTANDING any other provisions in this Contract (including but not limited to the provisions of Section 26.E), in the event that a bona fide dispute should arise between Buyer and Seller before the Closing of this Contract concerning boundaries, consideration, construction of improvements, or any matter relating to the Property or the interpretation of this Contract, and, if such bona fide dispute cannot in good faith be resolved completely and to the satisfaction of both Parties within ten (10) calendar days after such dispute has arisen, then Seller shall have the right, upon written notice to Buyer, to terminate and cancel this Contract and return the Deposits to Buyer, in which event neither party shall have any further duty, obligation, claim or responsibility to the other under this Contract.

[Init.Buyer1] Initials ________ Buyer

D. Three Day Buyer Cancellation Right. Buyer shall have until five p.m. on the date three (3) calendar days after Buyer executes this Contract in which to deliver in writing to Seller and Escrow Agent at the addresses set forth on page 1 of this Contract, Buyer’s election to cancel this Contract (“3-Day Cancellation Notice”). Provided Buyer delivers such 3-Day Cancellation Notice on or before five p.m. on the date three (3) calendar days after Buyer executes this Contract, then this Contract shall be cancelled, all deposits made by Buyer shall be promptly refunded to Buyer and neither party shall have any further duty, obligation, claim or responsibility to the other under this Contract.

[Init.Buyer1] Initials ________ Buyer

E. DISPUTE RESOLUTION PROCEDURES. BUYER AND SELLER DESIRE TO RESOLVE ANY DISPUTE BETWEEN THEM AS QUICKLY, INEXPENSIVELY AND EFFICIENTLY AS POSSIBLE, AVOIDING THE EXPENSE AND DELAY OF COURT PROCEEDINGS. THIS APPLIES TO EVERY POTENTIAL DISPUTE BETWEEN THE PARTIES. CONSEQUENTLY, THE PARTIES AGREE TO THE FOLLOWING SEQUENCE OF PROCEDURES TO RESOLVE SUCH DISPUTES.

[Init.Buyer1] Initials ________ Buyer

NEGOTIATION, RIGHT TO REPAIR. WHEN EITHER PARTY FEELS A DISPUTE HAS ARISEN THAT PARTY SHALL NOTIFY THE OTHER PARTY IN WRITING OF THE NATURE AND SPECIFIC DETAILS OF THE DISPUTE. WITHIN FIFTEEN (15) CALENDAR DAYS, A MEETING SHALL BE HELD BETWEEN THE PARTIES TO BEGIN A GOOD FAITH ATTEMPT TO NEGOTIATE A RESOLUTION. DURING THIS PROCEDURE THE PARTIES WILL COMMUNICATE DIRECTLY WITH EACH OTHER IN AN EFFORT TO REACH AN AGREEMENT WHICH SERVES THE INTERESTS OF BOTH PARTIES.

MEDIATION. IF NEGOTIATION DOES NOT RESOLVE THE DISPUTE, THE PARTIES SHALL SUBMIT THE MATTER TO A MEDIATOR, WHOSE ROLE IS TO FACILITATE NEGOTIATION BETWEEN THE PARTIES. THE MEDIATOR WILL NOT HAVE POWER TO DECIDE HOW TO RESOLVE THE DISPUTE, BUT WILL USE RECOGNIZED, ACCEPTED MEDIATION TECHNIQUES TO ASSIST THE PARTIES IN MAKING THAT DECISION. THE MEDIATION WILL LAST A MINIMUM OF TWO (2) HOURS.

ARBITRATION. IF THE DISPUTE IS NOT RESOLVED BY MEDIATION, THE PARTIES SHALL SUBMIT THE MATTER TO BINDING ARBITRATION. THIS MEANS THE POWER TO DECIDE THE OUTCOME OF THE DISPUTE WILL BE ASSIGNED TO THE ARBITRATOR, AND ALL PARTIES AGREE TO ACCEPT THE DECISION OF THE ARBITRATOR AS FINAL. IN MAKING THIS AGREEMENT, THE PARTIES ARE WAIVING ALL RIGHTS TO APPEAL THE DECISION OF THE ARBITRATOR TO A COURT OF LAW, AND ARE WAIVING THEIR RIGHTS TO FILE A LAWSUIT RELATING TO ANY DISPUTE BETWEEN THEM. ANY QUESTIONS REGARDING THE INTERPRETATION OF THIS ARBITRATION PROVISION OR THE ARBITRABILITY OF THE DISPUTE UNDER IT SHALL BE DECIDED BY THE ARBITRATOR, UNLESS SPECIFICALLY REQUIRED BY LAW TO BE DECIDED BY A COURT, AND THAT DECISION SHALL BE BINDING ON THE PARTIES. UPON A SPECIFIC SHOWING OF FINANCIAL HARDSHIP, AS DETERMINED BY THE ARBITRATOR, SELLER MAY ADVANCE ARBITRATION FILING FEES ON BEHALF OF BUYER.

NO CONSOLIDATION. NO NEGOTIATION, MEDIATION OR ARBITRATION ARISING OUT OF OR RELATING TO THIS CONTRACT SHALL INCLUDE, BY CONSOLIDATION, JOINDER, ASSIGNMENT, CLASS ACTION, OR IN ANY OTHER MANNER, ANY ADDITIONAL PERSON OR ENTITY NOT A PARTY TO THIS CONTRACT, EXCEPT FOR EMPLOYEES AND AGENTS OF SELLER AND BUYER AND EXCEPT BY WRITTEN CONSENT OF THE PARTIES HERETO AND ANY OTHER PERSON OR ENTITY SOUGHT TO BE JOINED. NOTWITHSTANDING THE FOREGOING, THIRD PARTIES INVOLVED IN THE CONSTRUCTION OF THE PROPERTY MAY BE JOINED IN ANY PROCEEDING AT SELLER’S DISCRETION.

SELECTION; RULES. THE MEDIATION AND ARBITRATION SHALL BE ADMINISTERED AND CONDUCTED BY A MEDIATOR AND AN ARBITRATOR MUTUALLY AGREEABLE TO THE PARTIES. IN THE EVENT THE PARTIES CANNOT AGREE ON THE SELECTION OF A MEDIATOR OR ARBITRATOR, EITHER PARTY MAY FILE A PETITION WITH THE PRESIDING JUDGE OF THE SUPERIOR COURT IN THE COUNTY WHERE THE PROPERTY IS LOCATED FOR THE APPOINTMENT OF A MEDIATOR OR ARBITRATOR. ANY ARBITRATION SHALL BE CONDUCTED IN SUBSTANTIAL CONFORMANCE WITH THE CONSTRUCTION INDUSTRY ARBITRATION RULES OF THE AMERICAN ARBITRATION ASSOCIATION (“AAA”); HOWEVER, THE ARBITRATION NEED NOT BE CONDUCTED BY OR THROUGH THE AAA. PURCHASE CONTRACT Avra Valley Acres LOT: 0216 Page 5 of 6 DocuSign Envelope ID: 6E4016A7-8D7B-4882-A19A-A714B26449D6

BUYER and SELLER ACKNOWLEDGEMENT. THE PARTIES UNDERSTAND THAT BY SIGNING THIS AGREEMENT AND BY INITIALING BELOW THEY ARE WAIVING THEIR LEGAL RIGHTS TO FILE A LAWSUIT TO RESOLVE ANY DISPUTE BETWEEN THEM. THIS MEANS THE FINAL DECISION OF ANY DISPUTE WILL BE MADE BY AN ARBITRATOR AND NOT BY A JUDGE OR JURY. THEY ARE NOT WAIVING THEIR RIGHT TO EMPLOY LEGAL COUNSEL TO ASSIST THEM IN ANY PHASE OF THE PROCESS. HOWEVER, EACH PARTY SHALL BEAR ITS OWN ATTORNEYS’ FEES, EXPERT WITNESS FEES, AND COSTS. THIS AGREEMENT IS AN ESSENTIAL ELEMENT AND PART OF THE CONTRACT BETWEEN THE PARTIES FOR THE PURCHASE OF THE HOUSE. FOR PURPOSES OF THIS SECTION 26, SELLER SHALL BE DEEMED TO INCLUDE DRH TUCSON CONSTRUCTION, INC., WHICH IS AN INTENDED THIRD PARTY BENEFICIARY OF THIS CONTRACT

[Init.Buyer1] Initials ________ Buyer

27. SEVERABILITY. The provisions of this Contract are severable and if any provision or part hereof or the application thereof to any person or circumstances shall be held to be invalid or unenforceable for any reason, the remainder of this Contract and the application of such provision or part hereof to other persons or circumstances shall not be affected thereby and shall remain in force and effect to the fullest extent permitted by law.

28. REGISTRAR OF CONTRACTORS. UNDER ARIZONA REVISED STATUTES SECTION 32-1155, A BUYER OF A DWELLING HAS THE RIGHT TO FILE A WRITTEN COMPLAINT AGAINST THE HOMEBUILDER WITH THE REGISTRAR OF CONTRACTORS WITHIN TWO YEARS AFTER THE CLOSE OF ESCROW OR ACTUAL OCCUPANCY, WHICHEVER OCCURS FIRST, FOR THE COMMISSION OF AN ACT IN VIOLATION OF THE ARIZONA REVISED STATUTES SECTION 32-1154 SUBSECTION A.

[Init.Buyer1] Initials ________ Buyer

BUYER IS ADVISED THAT BUYER MAY HAVE ADDITIONAL RIGHTS, REMEDIES AND WARRANTIES BEYOND THOSE CONTAINED IN THIS CONTRACT AS AR E PROVIDED BY LAW.

BUYER ACKNOWLEDGES THAT HE HAS READ AND UNDERSTANDS THE TERMS AND CONDITIONS OF THIS CONTRACT AND AGREES TO PURCHASE THE PROPERTY FOR AND UPON THE STIPULATED PRICE AND TERMS. BUYER HAS INSPECTED THE LOT PRIOR TO EXECUTING THIS CONTRACT.

BUYER FURTHER ACKNOWLEDGES THAT HE HAS RECEIVED A COPY OF THE DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS APPLICABLE TO THIS SUBDIVISION AND, IF THERE IS A HOMEOWNERS’ ASSOCIATION FOR THIS SUBDIVISION, BUYER HAS RECEIVED A COPY OF THE ARTICLES OF INCORPORATION AND BYLAWS FOR THAT ASSOCIATION.

BUYER AGREES AND ACKNOWLEDGES THAT BUYER MAY BE OBLIGATED TO COMPLY WITH ALL OF THE TERMS AND PROVISIONS OF THOSE DOCUMENTS, INCLUDING, BUT NOT LIMITED TO, PAYMENT OF ALL ASSESSMENTS AND FEES AND COMPLIANCE WITH ARCHITECTURAL CONTROL PROVISIONS AS MAY BE STATED IN SUCH DOCUMENTS. SELLER MAKES NO REPRESENTATIONS OR WARRANTIES AS TO THE ENFORCEABILITY OF ANY OF THE TERMS AND CONDITIONS OF SUCH DOCUMENTS.

THE SELLER SHALL GIVE A PROSPECTIVE PURCHASER A COPY OF THE PUBLIC REPORT (SUBDIVISION DISCLOSURE REPORT) OF THE ARIZONA DEPARTMENT OF REAL ESTATE AND AN OPPORTUNITY TO READ AND REVIEW IT BEFORE THE PROSPECTIVE PURCHASER SIGNS THIS DOCUMENT.

BUYER:

[Sign.Buyer1] [Date.Buyer1] 1/22/2022 ________________________________ ________ ___ _ Buyer: Michael Brian Carnes Date SELLER'S ACCEPTANCE: BROKER’S ACCEPTANCE:

DR Horton, America's Builder [Sign.Escr1] [Date.Escr1] 1/23/2022 ______________________________________________ ____________ [Sign.Seller] [Date.Seller] ___ _ 1/28/2022 STAHL, ROBERT J ________________________________ ________ Date __ _ Seller's Designated Broker Kelly L Rayman [NameB.Seller] Date [TitleB.Seller] Officer, D.R. Horton Seller's Authorized Officer

PURCHASE CONTRACT Avra Valley Acres LOT: 0216 Page 6 of 6 DocuSign Envelope ID: 6E4016A7-8D7B-4882-A19A-A714B26449D6

JOB INITIATION ORDER (Addendum to the Contract) O.C.D. 01/22/2022 DATE: 01/22/2022 CONSTRUCTION STAGE #: 03 BUYER(S): Michael Brian Carnes

PRESENT ADDRESS: 1416 S Brown Ave CITY: Tuson STATE: AZ ZIP: 85710 HOME PHONE: BUSINESS PHONE: MOBILE PHONE: (520) 307-5210

SUBDIVISION NAME: Avra Valley Acres LOT: 0216 ADDRESS: 17001 W STARR RD

PLAN NAME: H40I A PLAN NO: H40I ELEVATION: A

DESCRIPTION PRICE

BASE PRICE $326,990.00

(No plan adjustments found.)

BASE PRICE WITH ADJUSTMENTS $326,990.00

LOT PREMIUM $10,000.00 (No lot adjustments found.) LOT PREMIUM WITH ADJUSTMENTS $10,000.00

TOTAL OPTIONS $3,650.00 (See Selection Sheet For A Detailed List of Options) TOTAL: $340,640.00 Subject to approval by authorized agent of Seller Corporation. BUYER:

[Sign.Buyer1] [Date.Buyer1] 1/22/2022 ________________________________ ________ ___ _ Buyer: Michael Brian Carnes Date SELLER'S ACCEPTANCE: BROKER’S ACCEPTANCE: DR Horton, America's Builder [Sign.Escr1] [Date.Escr1] 1/23/2022 _____________________________________________ ____________ [Sign.Seller] [Date.Seller] 1/28/2022 ____ _ ________________________________ ________ STAHL, ROBERT J Date __ _ Kelly L Rayman Seller's Designated Broker [NameB.Seller] Date [TitleB.Seller] Officer, D.R. Horton Seller's Authorized Officer

JOB INITIATION Avra Valley Acres LOT:0216 Page 1 of 1 DocuSign Envelope ID: 6E4016A7-8D7B-4882-A19A-A714B26449D6

BUILDER’S INCENTIVE AND CONCESSIONS ADDENDUM This BUILDER’S INCENTIVE AND CONCESSIONS ADDENDUM is attached to and made a part of the certain Purchase Agreement and Escrow Instructions dated 01/22/2022 between D.R. Horton, Inc., as Seller, and Michael Brian Carnes , as Buyer, regarding the Property therein described (the “Purchase Contract”). This Addendum, together with the Purchase Contract constitutes the entire agreement between Seller and Buyer with regard to any cost incentives, allowances, adjustments, credits, discounts, rebates, or other builder concessions of any kind or amount (collectively, “Incentives”) made, or to be made, by Seller in connection with the sale of the Property to Buyer under the Purchase Contract, and there are no agreements regarding such Incentives, whether written or unwritten, expressed or implied, between the parties except as set forth in this Addendum and the Purchase Contract. In the event of any conflict in terms set forth in this Addendum with any other provisions of the Contract, this Addendum shall control.

Buyer acknowledges receipt of a separate written Notice of Seller’s Business Affiliations from Seller (the “Affiliation Notice”) informing Buyer that Seller has affiliated business arrangements with DHI Mortgage Company, Ltd. (“DHI MORTGAGE”) and DHI Title of Arizona, Inc. (“DHI TITLE”) and that Buyer is not required to use either of these affiliated companies or any PREFERRED LENDER (described below) as a condition of Buyer's purchase of the Property or Buyer's access to settlement services in connection with the purchase of the Property

1. Seller hereby offers the following Incentives to Buyer upon successful close of this transaction. The offer of these Incentives is not conditioned on Buyer’s use of any particular lender.

a. Builder Incentive. Buyer shall be entitled to an incentive up to the amount of $___0______, which amount may be applied by Buyer as a credit toward the Purchase Price owed to Seller, which includes but is not limited to optional features, material upgrades, landscape improvements, or decorator items selected by Buyer and included in the purchase price of the Property as set forth in the Purchase Contract. No portion of this amount may be disbursed to Buyer.

b. Finance Incentive. Buyer shall be entitled to an incentive paid by Seller up to the amount of $0.00. This Seller finance incentive is to be applied towards the payment of the following fees to the extent applicable and in the following order: Origination Charge; Origination Fee; Upfront Unfinanced Mortgage Insurance (if applicable). If additional incentive remains it shall be applied as a general incentive credit towards other usual and customary closing costs charged to Buyer by other settlement service providers. No portion of this amount may be applied as a credit towards, or in partial payment of, the Purchase Price of the Property or disbursed to Buyer. Any excess unused incentive is forfeited by Buyer.

2. Offer of Additional Finance Incentive. In addition to the above Incentives, the following additional Incentive is offered in conjunction with the use of Seller’s PREFERRED LENDER(S) described below:

If Buyer does apply to a PREFERRED LENDER for a mortgage loan to finance the purchase of the Property and if the loan is approved and funded by the PREFERRED LENDER, Seller agrees to pay on behalf of Buyer, or to provide incentives, discounts or credits to Buyer for, the following costs in connection with the sale and financing of the Property:

Finance Incentive. Buyer shall be entitled to an incentive paid by Seller up to the amount of $4,000.00. This Seller finance incentive is to be applied towards the payment of the following fees to the extent applicable and in the following order: Origination Charge; Origination Fee; Upfront Unfinanced Mortgage Insurance (if applicable). If additional incentive remains it shall be applied as a general incentive credit towards other usual and customary closing costs charged to Buyer by other settlement service providers. No portion of this amount may be applied as a credit towards, or in partial payment of, the Purchase Price of the Property or disbursed to Buyer. Any excess unused incentive is forfeited by the Buyer.

[Init.Buyer1] Initials ________ Buyer

3. Preferred Lender. The PREFERRED LENDER relating to this Builder’s Incentive and Concessions Addendum is: DHI MORTGAGE. More information regarding DHI MORTGAGE is available at: www.dhimortgage.com.

BICA Avra Valley Acres LOT: 0216 Page 1 of 2 DocuSign Envelope ID: 6E4016A7-8D7B-4882-A19A-A714B26449D6

THE UNDERSIGNED ACKNOWLEDGE THAT EACH OF THEM HAS READ THIS BUILDER’S INCENTIVE AND CONCESSIONS ADDENDUM TO THE PURCHASE CONTRACT AND AGREE TO THE TERMS, CONDITIONS AND LIMITATIONS CONTAINED HEREIN.

[Sign.Buyer1] [Date.Buyer1] 1/22/2022 ___________________________________ _________ Buyer: Michael Brian Carnes Date

Approved by Seller:

By: DR Horton, America's Builder

[Sign.Seller] [Date.Seller]

__________________________________ 1/28/2022 _________ Kelly L Rayman [NameB.Seller] Date Officer, D.R. Horton [TitleB.Seller]

Avra Valley Acres 0216 Subdivision Lot

BICA Avra Valley Acres LOT: 0216 Page 2 of 2 DocuSign Envelope ID: 6E4016A7-8D7B-4882-A19A-A714B26449D6

Selection Sheet As of Change Order 0

Michael Brian Carnes, Buyer And DR Horton, America's Builder, Seller

Date: 01/22/2022 Plat Lot/Block/Phase: 216// Job #: [number redacted]

Agreement of Sale Dated: 01/22/2022 Lot Address: Community: Avra Valley Acres 17001 W STARR RD Plan/Elevation Name: H40I A MARANA, AZ 85653 Swing: R -

Color Selections

– Painting Option # Color Rev. # Rev. Date User

IKO Shinlges Dual Brown Must Enter Color: #1 Hopsack/Pier 0 01/22/2022 Body/Trim/ Accent  Location: Notes:

Selected Options

POS – Option # Rev. # Rev. Date User Qty. Unit Price Ext. Price 04001000 0 01/22/2022 Tania S Eckhoff 1.0000 $ 75.00 $ 75.00 P Color: Location: GR, Flat Panel In-Wall Setup (Excludes Cable Outlet) 45000500 0 01/22/2022 Tania S Eckhoff 1.0000 $1,045.00 $1,045.00 P Color: Granite will be White Napoli Location: Home Color Package - 1 Tile: Vicinity Natural Carpet: Hampton Valley Sandstone Kitchen Granite: 3CM Luna Pearl Cabinet: Arctic White Interior Paint: 7654 Lattice / 7006 Extra White Bath Vanities: Blanco Matrix Change 10/12/2021 Cabinet: Quality Woodstar Derby Birch / Cotton Paint ***CHANGE EFFECTIVE 11/01/2021*** Carpet: Hampton Valley II Riverstone 45010000 0 01/22/2022 Tania S Eckhoff 1.0000 $1,855.00 $1,855.00 P Color: Location: Home Color Package - Add Tile At Great Room INCSALE6 0 01/22/2022 Tania S Eckhoff 1.0000 $ 675.00 $ 675.00 P Color: Location: E-Series Blinds 2" FAUX 100 WHITE/SGD VERT FLAT 100 WHITE

Sub-Total $3,650.00

STD – Option # Rev. # Rev. Date User Qty. Unit Price Ext. Price 25100035 0 01/22/2022 Tania S Eckhoff 1.0000 $ 0.00 $ 0.00 P Color: Location: RANGE ELECTRIC PKG 1 STAINLESS

Sub-Total $ 0.00 Total: $3,650.00

[Init.Buyer1] Initials ________ Buyer SELECTION SHEET Avra Valley Acres LOT: 0216 Page 1 of 2 DocuSign Envelope ID: 6E4016A7-8D7B-4882-A19A-A714B26449D6

Selection Sheet As of Change Order 0

Price Summary: Amount Adjusted Base Price $326,990.00 Adjusted Lot Premium $10,000.00 Total Option Price $3,650.00 Current Selling Price $340,640.00

D. R. HORTON AMERICA'S BUILDER [Sign.Buyer1] [Date.Buyer1] 1/22/2022 _______________________________ _________ DR Horton, America's Builder ____ Date Buyer: Michael Brian Carnes [Sign.Seller] [Date.Seller] 1/28/2022 _______________________________ _________ ___ Date Kelly L Rayman [NameB.Seller] Officer, D.R. Horton [TitleB.Seller]

Selection Sheet (Rev. 09/10/2015) © DR Horton, America's Builder Page 2 of 2 DocuSign Envelope ID: 6E4016A7-8D7B-4882-A19A-A714B26449D6

PUBLIC REPORT RECEIPT The developer shall furnish you, as a prospective customer, with a copy of the Public Report required by the Arizona Department of Real Estate. It is recommended that you read the report before you make any written offer to purchase or lease an interest in the development, and before you pay any money or other consideration toward the purchase or lease of an interest in the development.

FOR YOUR PROTECTION, PLEASE DO NOT SIGN THIS RECEIPT UNTIL YOU HAVE RECEIVED A COPY OF THE REPORT AND HAVE HAD THE OPPORTUNITY TO READ IT. BY SIGNING THIS RECEIPT THE BUYER HAS ACCEPTED THE PUBLIC REPORT AND ACKNOWLEDGES THE INFORMATION IT CONTAINS.

Public Report Number: DM20-060322 Development Recorded Name: Avra Valley Acres Lot: 0216 Effective Date: December 7, 2020

I understand that the report is not a recommendation or endorsement of the development by the Arizona Department of Real Estate, but is for information only.

[Sign.Buyer1] [Date.Buyer1] 1/22/2022 ___________________________________ _________ Buyer: Michael Brian Carnes Date

1416 S Brown Ave, Tuson, AZ 85710, US, Tuson, AZ 85710 Buyer(s) Current Address

PUBLIC REPORT Avra Valley Acres LOT: 0216 Page 1 of 1 DocuSign Envelope ID: 6E4016A7-8D7B-4882-A19A-A714B26449D6

NOTICE OF SELLER’S BUSINESS AFFILIATIONS TO: Michael Brian Carnes [Homebuyer(s)]

PROPERTY: 17001 W STARR RD, MARANA, AZ 85653 FROM: D.R. HORTON, INC. [SELLER] DATE: 01/22/2022 3580 W Ina Rd., Ste. 100 Tucson, AZ 85741

This is to give you notice that the above referenced Seller has a business relationship with:

DHI MORTGAGE COMPANY, LTD. D.R. HORTON INSURANCE AGENCY, INC. 3580 W. Ina Rd., Ste.100 1341 Horton Circle Tucson, Arizona 85741 Arlington, Texas 76011

The nature of this business relationship is that these companies are corporate affiliates, each being wholly or partially owned by, or by a subsidiary of, the same parent corporation. Because of this relationship, this referral may provide Seller a financial or other benefit.

Set forth below is the estimated charge or range of charges by each company for settlement services listed. You are NOT required to use these companies as a condition of your purchase of the Property from Seller or as a condition of your application for, or settlement of, a mortgage loan on the Property in connection with your purchase. THERE ARE FREQUENTLY OTHER SETTLEMENT SERVICE PROVIDERS AVAILABLE WITH SIMILAR SERVICES. YOU ARE FREE TO SHOP AROUND TO DETERMINE THAT YOU ARE RECEIVING THE BEST SERVICES AND THE BEST RATE FOR THESE SERVICES.

DHI MORTGAGE COMPANY, LTD. Service Charge or Range Loan Origination Charge: 0% of Loan Amount plus $1,225.00 An additional 1% of the Loan Amount may apply for certain Affordable Housing Loan Programs Mortgage fees may vary depending upon whether the loan is originated or brokered by DHI Mortgage Company, Ltd.

NOTE: A Loan Estimate of all settlement charges will be provided to you at or within three business days after loan application.

D. R. HORTON INSURANCE AGENCY, INC. D.R. HORTON INSURANCE AGENCY, INC. is a licensed insurance agent that offers policies of property insurance as agent for one or more insurance companies qualified to transact insurance business in the State of Arizona. You will be provided a separate proposal or quote of the terms and conditions of any policy of insurance offered by D.R. HORTON INSURANCE AGENCY, INC. in which you express an interest. For comparison purposes, the cost for a hazard insurance policy for a home valued at $300,000 with commonly selected coverage items and deductibles would range between: $200 and $4075 per annum. The specific premium depends on various factors, including but not limited to, the value of the home, the location of the home, deductibles selected, and the amount of coverage selected. The quote will set out the estimated premium and other charges, or range of charges, by D.R. HORTON INSURANCE AGENCY, INC. for its insurance products or services

ACKNOWLEDGEMENT: I/we have read this disclosure form and understand that D.R. HORTON, INC. is referring me/us to purchase the above- described settlement services from DHI MORTGAGE COMPANY, LTD. and D.R. HORTON INSURANCE AGENCY, INC. and may receive a financial or other benefit as the result of this referral.

[Sign.Buyer1] [Date.Buyer1] 1/22/2022 ___________________________________ _________ Buyer: Michael Brian Carnes Date

SELLERS BUSINESS AFFILIATIONS – 7.21.2021 MTW Avra Valley Acres LOT:0216 Page 1 of 1 DocuSign Envelope ID: 6E4016A7-8D7B-4882-A19A-A714B26449D6

RECEIPT FOR HOME BUYERS INFORMATION I (We), the undersigned Buyer(s), acknowledge receipt of D.R. HORTON'S Home Buyers Information that outlines D.R. HORTON'S new home sales policy and procedures. I (We) also acknowledge that the D.R. HORTON Sales Associate has explained and we fully understand the following: A. I must make loan application with the Lender designated in the contract within five (5) days of signing the contract.

[Init.Buyer1] Initials ________ Buyer B. I must schedule an appointment with the flooring design center within five (5) days of signing the contract. Your appointment must be within 14 days of signing the contract. C. All changes affecting the footprint of the house must be chosen at time of contract. Any other changes, additions or deletions affecting construction or options must be incorporated into contract documents within 14 or 21 days of signing the contract. Changes to spec homes will be evaluated, based on the construction stage of the house prior to approval and will require management approval. D. I understand D.R. HORTON HOMES "Change Order Policy and Why We Say No." E. I have received, read and understand D.R. Horton’s quality complete closing policy and procedures. F. D.R. HORTON does not make any commitment for completion dates. All estimated dates are subject to unforeseen delays and D.R. HORTON is not responsible for any moving, storage, rent, loan rate lock-ins or any other expenses resulting from a delay. D.R. HORTON will give a firm close of escrow date only cabinets are installed.

[Init.Buyer1] Initials ________ Buyer G. D.R. HORTON does not make any commitment or offer any advice regarding loan interest rates, points, loan rate lock-ins, qualifications or other matters regarding my loan. H. D.R. HORTON advises that Centurylink at times experiences delays in providing new service hookups and suggests that I should contact Centurylink 45 to 60 days prior to the completion of my house to place my order for telephone service. I. Any agreements or representations regarding my purchase must be incorporated into contract documents. Oral representations will not be honored. All agreements must be in writing.

[Init.Buyer1] Initials ________ Buyer J. I understand that the block wall locations for my lot are approximate only. I further understand that D.R. Horton may extend the block wall on either side under terms of a purchase contract on an adjoining lot. K. I understand that the block walls may not be on property lines due to, but not limited to; the following: front, side or rear slopes; utility easements; zoning restrictions; and/or community specifications. L. I understand that the block walls are eight course walls; however, after final yard grading the block walls will show a minimum of 6 1/2 courses and that steps at top of walls will occur due to grade changes. These occur at sides, rear or front of each home. M I understand that the construction of a home is a manufacturing process and that during this process, corrections may be necessary and that the final product will be one of quality and lasting value. N. I understand that construction sites can be dangerous and agree to visit the home after all construction crews have left for the day. I further agree to visit the home only during day light hours, not after dark.

SUBDIVISION: Avra Valley Acres LOT NUMBER: 0216

[Sign.Buyer1] [Date.Buyer1] 1/22/2022 ___________________________________ _________ Buyer: Michael Brian Carnes Date

RECEIPT FOR HOME BUYER INFO Avra Valley Acres LOT:0216 Page 1 of 1 DocuSign Envelope ID: 6E4016A7-8D7B-4882-A19A-A714B26449D6

Post Tension Acknowledgement

Michael Brian Carnes , being the purchaser(s) Lot: 0216 in the subdivision known Avra Valley Acres of , the address of whichas:is: 17001 W STARR RD, MARANA, AZ 85653 , do hereby acknowledge their understanding that the concrete slab of the home constructed upon said property has been constructed pursuant to a design involving post tension cables. This design involves steel cables installed through the concrete slab in such a fashion that the cables are under constant pressure and tension.

Accordingly, the undersigned acknowledge that there should be no cutting of the slab of the home and no damage done to the slab of the home which could, in any way, alter or disturb the placement of said post tension cables. The undersigned further acknowledge that any act of cutting or altering the concrete slab of the home in any fashion that may affect the post tension cables could result in property damage and personal injury. No cutting of the slab should be done whether for a floor safe, plumbing, or other purpose, which may damage or interfere with the post tension cables.

This acknowledgement is given for the purpose of confirming that the undersigned has been made aware of these facts.

[Sign.Buyer1] [Date.Buyer1] 1/22/2022 ___________________________________ _________ Buyer: Michael Brian Carnes Date

POST TENSION Avra Valley Acres LOT:0216 Page 1 of 1 DocuSign Envelope ID: 6E4016A7-8D7B-4882-A19A-A714B26449D6

MOLD/MILDEW ADDENDUM This Addendum to Purchase Contract/Escrow Instructions is attached to and forms a part of the Purchase Contract/Escrow Instructions executed between Buyer and Seller to which this Addendum is attached.

The purpose of this Addendum is to provide information to Buyer regarding mold and to obtain from Buyer an agreement regarding the release of liability by Buyer of Seller in connection with mold caused by the action or inaction of Buyer.

WHAT HOMEOWNERS SHOULD KNOW ABOUT MOLD

Mold. Lately, mold has been in the news. Mold is a type of fungus. It occurs naturally in the environment and it is necessary for the natural decomposition of plant and other organic material. It spreads by means of microscopic spores borne on the wind, and is found everywhere life can be supported. Residential home construction is not, and cannot be, designed to exclude mold spores. If the growing conditions are right, mold can grow in your home. Most homeowners are familiar with mold growth in the form of bread mold, and mold that may grow on bathroom tile.

In order to grow, mold requires a food source. This might be supplied by items found in the home, such as fabric, carpet or even wallpaper, or by building materials, such as drywall, wood and insulation, to name a few. Also, mold growth requires a temperate climate. The best growth occurs at temperatures between 40ºF and 100ºF. Finally, mold growth requires moisture. Moisture is the only mold growth factor that can be controlled in a residential setting. By minimizing moisture, a homeowner can reduce or eliminate mold growth.

Moisture in the home can have many causes. Spills, leaks, overflows, condensation, and high humidity are common sources of home moisture. Good housekeeping and home maintenance practices are essential in the effort to prevent or eliminate mold growth. If moisture is allowed to remain on the growth medium, mold can develop.

Consequences of mold. All mold is not necessarily harmful, but certain strains of mold have been shown to have adverse health effects in susceptible persons. The most common effects are allergic reactions, including skin irritation, watery eyes, runny nose, coughing, sneezing, congestion, sore throat and headache. Individuals with suppressed immune systems may risk infections. Some experts contend that mold causes serious symptoms and diseases which may even be life threatening. However, experts disagree about the level of mold exposure that may cause health problems, and about the exact nature and extent of the health problems that may be caused by mold. The Center for Disease Control states that a causal link between the presence of toxic mold and serious health conditions has not been proven.

What Homeowner can do. The homeowner can take positive steps to reduce or eliminate the occurrence of mold growth in the home, and thereby minimize any possible adverse effects that may be caused by mold. The steps include the following:

1. Before bringing items into the home, check for signs of mold. Potted plants (roots and soil), furnishings, or stored clothing and bedding material, as well as many other household goods, could already contain mold growth. Avoid storing organic material in basements or damp areas.

2. Regular vacuuming and cleaning will help reduce mold levels. Mild bleach solutions and most tile cleaners are effective in eliminating or preventing mold growth.

3. Keep the humidity in the home low. Vent clothes dryers to the outdoors. Ventilate kitchens and bathrooms by opening the windows, by using exhaust fans, or by running the air conditioning to remove excess moisture in the air, and to facilitate evaporation of water from wet surface. Maintain and properly service your air conditioning system, furnaces, heat pumps, and humidifiers attached to furnaces to keep them in full working condition.

4. Promptly clean up spills, condensation and other sources of moisture. Thoroughly dry any wet surfaces or material. Do not let water pool or stand in your home. Promptly replace any materials that cannot be thoroughly dried.

5. Inspect for leaks on a regular basis. Look for discolorations or wet spots. Repair any leaks promptly. Inspect condensation pans (refrigerators and air conditioners) for mold growth. Take notice of musty odors, and any visible signs of mold.

[Init.Buyer1] Initials ________ Buyer 6. Seek to prevent water intrusion into the home by regular caulking and painting and maintaining the appropriate grade to allow water to drain away from the house and irrigation systems the proper distance from the home.

7. Should mold develop, thoroughly clean the affected area with a mild solution of bleach. First, test to see if the affected material or surface is color safe. Porous materials, such as fabric, upholstery or carpet should be discarded. Should the mold growth be severe, call on the services of a qualified professional cleaner.

MOLD Avra Valley Acres LOT:0216 Page 1 of 2 DocuSign Envelope ID: 6E4016A7-8D7B-4882-A19A-A714B26449D6 Various resources are available to learn more about mold issues and procedures for remediation of mold problems. These sites include, but are not limited to the following governmental internet sites (hereinafter, collectively, the “Governmental Internet Sites”) including the web site of the United States Environmental Protection Agency, http://www.epa.gov/iaq, the New York City Department of Health, http://www.ci.nyc.ny.us/html/doh/html/epi/moldrpt1.html, the Center for Disease Control and Prevention (CDC), National Center for Environmental Health, http://www.ci.nyc.ny.us/html/doh/html/epi/moldrpt1.html, the Minnesota Department of Health, http://www.health.state.mn.us/divs/eh/indoorair/mold/index.html, and the California Department Health, http://www.dhs.ca.gov/ps/deodc/ehib/ehib2/topics/Moldhome%20Eng.html

There may also be other sources of information on mold.

DISCLAIMER AND WAIVER

Whether or not you as a homeowner experience mold growth depends largely on how you manage and maintain your home. Our responsibility as a homebuilder must be limited to things that we can control. Buyer will need to take actions after the Close of Escrow to prevent conditions which cause the mold or mildew. This is part of the responsibility of home ownership. Buyer agrees to assume responsibility for following the recommendations in this document and act in accordance with the best practice guidelines contained on the Governmental Internet Sites, as set forth herein. Buyer further acknowledges that if there is any water damage or water intrusion to Buyer's residence, Buyer will take immediate action to prevent conditions which cause mold or mildew to develop.

Buyer acknowledges and agrees that Seller will not be liable for any actual, special, incidental or consequential damages based on any legal theory whatsoever, including, but not limited to, strict liability, breach of express or implied warranty, negligence or any other legal theory with respect to the presence and/or existence of molds, mildew and/or microscopic spores caused by the acts or omissions of Buyer. Buyer, on behalf of itself and its family members, tenants, invitees and licensees, hereby releases Seller and Seller's officers, directors, partners, members successors and assigns from and against any and all claims, actions, damages, causes of action, liabilities and expenses (including without limitation, attorneys’ fees and costs of enforcing this indemnity) for property damage, injury or death resulting from the exposure to microscopic spores, mold and/or mildew and from any loss of resale value due to the presence and/or existence of mold, mildew and/or microscopic spores caused by the acts or omissions of Buyer.

BUYER ACKNOWLEDGES THAT THIS ADDENDUM CONTAINS A RELEASE PROVISION WHICH HAS LEGAL CONSEQUENCES. Buyer has read, reviewed, and understands the information set forth herein and agrees to be bound by the provisions and releases set forth in this Addendum.

[Sign.Buyer1] [Date.Buyer1] 1/22/2022 ___________________________________ _________ Buyer: Michael Brian Carnes Date

MOLD Avra Valley Acres LOT:0216 Page 2 of 2 DocuSign Envelope ID: 6E4016A7-8D7B-4882-A19A-A714B26449D6

DR HORTON CHANGE ORDER POLICY AND WHY WE SAY NO DR HORTON CHANGE ORDER POLICY IS ALL NEW HOME BUYERS MUST COMPLETE ALL CHANGES, OPTION SELECTIONS, AND UPGRADES WITHIN 14 DAYS OR 21 DAYS OF SIGNING THE PURCHASE AGREEMENT (14 OR 21 DAYS DEPENDING ON THE PARTICULAR COMMUNITY). NO CHANGES WILL BE ALLOWED AFTER THE 14 OR 21 DAYS.

YOUR PURCHASE AGREEMENT DATE IS: 01/22/2022 FINAL DATE FOR SELECTING OPTIONS AND UPGRADES AND MAKING CHANGES IS: .

WHY WE SAY NO Periodically our customers contact us and say, “I know it’s after the 14 days, but I would like to make a change to my home. Since all I want to do is change a (window, cabinet, light fixture, door, or whatever) and the foundation is just being poured I don’t see how this would be a problem.”

We understand how you feel; numerous buyers have felt the same way! (It’s normal!). In an effort to explain to you WHY WE SAY NO! we offer the following explanations: 1. DR Horton is proud of the concise construction schedule we follow. Changes after the purchase orders go out from our office delay our schedule and increase costs. You would not get your home when you expect it. a. When your home is delayed it gets out of sequence. Therefore, even though the change may only take 2 or 3 days to occur, it may take us 2 weeks or more to get the home back into the construction sequence. 2. Quality is most important to DR Horton. If one superintendent has 15 houses that have changes being made after construction has started; he or she cannot monitor the quality effectively nor schedule completion in a timely manner. 3. Completion time becomes questionable when we continually make changes. This takes away from our efficiency as a builder and costs everybody. Potentially this could cause your home to be delayed enough to lose an interest rate lock. 4. Even though you don’t see them installed, many items that go into the home are ordered even before you see action on your home site. Cabinets, windows, and plumbing fixtures, for example, are confirmed and purchased long before they are installed. We own them and therefore you own them as part of your purchase. So a simple desire to have a larger or smaller window does not eliminate our paying for the original window. Therefore, if we make the change then you, the purchaser, need to pay for 2 windows in the window example.

As you can see from these examples, a change is not as simple as it seems. We would much rather explain to you up front what our policy is and WHY WE SAY NO! than have you think we are gouging you on the price or that we can’t deliver a quality home on time.

In an effort not to disappoint you we have a substantial list of featured options for your home. Please make sure you discuss the options lists with your sales consultant.

COMMUNITY: Avra Valley Acres LOT NUMBER: 0216

[Sign.Buyer1] [Date.Buyer1] 1/22/2022 ___________________________________ _________ Buyer: Michael Brian Carnes Date

CHANGE ORDER POLICY Avra Valley Acres LOT: 0216 Page 1 of 1 DocuSign Envelope ID: 6E4016A7-8D7B-4882-A19A-A714B26449D6

QUALITY COMPLETE CLOSING POLICY AND PROCEDURES

Buyer understands that D.R. Horton Homes Quality Complete Closing Policy and Procedures are as follows:

1. D.R. Horton's Homes' Quality Complete Closing Policy states that: No new buyer will close escrow (key release and move in) until DR Horton is 100% completely satisfied the home is Quality Complete before close of escrow and key releases.

2. After cabinets are completely installed in the new home, a confirmed closing (move in) date will be given to the new home buyer.

3. Approximately four to six weeks after cabinets are installed; D.R. Horton's contract administrator will schedule with the buyer the pre-closing orientation (walk-thru) date and time; and date and time of signing of the closing documents at the title office. In an effort to help make your closing and move in as smooth as possible, please do not schedule anything regarding your move (travel plans, moving vans, or give notice at your current residence, etc) without receiving your final closing information from D.R. Horton Homes contract administrator.

4. D.R. Horton will schedule your new home pre-closing orientation (walk-thru) and signing of the closing documents. Both appointments usually occur on the same day. The pre-closing orientation takes place with a D.R. Horton representative and at least one or all the buyers appearing on the contract and usually takes up to 2 hours.

5. At the orientation, the D.R. Horton representative will demonstrate and orient the buyer to the new home. A checklist form will be filled out with any missing, defective or damaged items noted during the orientation. D.R. Horton will proceed with repairs and/or replacements of any "punch list" items. These "punch list" items will be completed to D.R. Horton's performance standards within five days after the orientation.

6. D.R. Horton's representative will schedule an acceptance re-inspection with the buyer on or before five days after the orientation. At this acceptance re-inspection, the buyer will review all "punch list" items, and sign off as an acceptance of the home.

7. After buyer accepts the new home, and all closing documents are signed, the closing documents are sent to the lender for funding. Funding and recording of the transaction usually occurs the same day the buyer signs off at the re-inspection. D.R. Horton will release keys only after 4:00pm on the day that recordation occurs. Keys will be picked up from the D.R. Horton Sales Associate at the sales office.

*CONSTRUCTION DATES ARE SUBJECT TO CHANGE DUE TO UNFORESEEN DELAYS.

My signature below is indication that I have had D.R. Horton Homes Quality Complete Closing Policies and Procedures thoroughly explained to me and that I fully understand the closing procedures and policies.

SUBDIVISION: Avra Valley Acres LOT NO.: 0216

[Sign.Buyer1] [Date.Buyer1] 1/22/2022 ___________________________________ _________ Buyer: Michael Brian Carnes Date

QUALITY COMPLETE Avra Valley Acres LOT: 0216 Page 1 of 1 DocuSign Envelope ID: 6E4016A7-8D7B-4882-A19A-A714B26449D6

DRAINAGE ADDENDUM

Addendum to purchase agreement dated: 01/22/2022 by and between Michael Brian Carnes as Purchaser(s) and D.R. Horton as Builder for lot: 0216 Of Avra Valley Acres,MARANA , AZ In accordance with ,^COMMUNITY-CITY^, MARANA or other appropriate Arizona. governing authority requirements and paragraph #15 of the Purchase Agreement, the developer and or builder has provided for all necessary drainage and bank protection on this lot. Any additional landscaping, bank protection, or drainage requirements (other than front yard landscaping if provided by builder) shall be the responsibility of Purchaser(s).

[Sign.Buyer1] [Date.Buyer1] 1/22/2022 ___________________________________ _________ Buyer: Michael Brian Carnes Date

DRAINAGE Avra Valley Acres LOT: 0216 Page 1 of 1 DocuSign Envelope ID: 6E4016A7-8D7B-4882-A19A-A714B26449D6

ADDENDUM TO CONTRACT POOLS & PERIMETER WALLS BETWEEN Michael Brian Carnes , AS BUYERS AND D.R. HORTON, SELLER OF LOT NO. 0216 LOCATED AT Avra Valley Acres THE ADDRESS OF WHICH IS: 17001 W STARR RD, MARANA, AZ 85653

1. SELLER MAKES NO REPRESENTATIONS AS TO THE SUITABILITY OF THE PROPERTY REGARDING THE CONSTRUCTION OF SWIMMING POOLS, SPAS, OR OTHER SIMILAR STRUCTURES OR IMPROVEMENTS. NOR DOES SELLER GUARANTEE ANY APPRAISED VALUE OF SUCH IMPROVEMENTS.

2. PERIMETER WALLS WILL TYPICALLY BE PLACED ON THE PROPERTY LINE OR AT THE TOP OF A SLOPE, WHICH MAY OR MAY NOT BE ON THE PROPERTY LINE. THE FINAL DECISION AS TO PLACEMENT WILL BE AT THE SOLE DISCRETION OF THE BUILDER (D.R. HORTON). WALLS WILL BE LOCATED BASED ON GRADE CONDITIONS AND SETBACK REQUIREMENTS, AMONG OTHER CONSIDERATIONS. BUYER UNDERSTANDS THAT BLOCK PERIMETER WALLS ARE EIGHT COURSE WALLS HOWEVER, AFTER FINAL YARD GRADING THE WALL WILL SHOW A MINIMUM OF 6 ½ COURSES AND THAT STEPS AT TOP OF WALLS WILL OCCUR DUE TO GRADE CHANGES. THESE STEPS MAY OCCUR AT SIDES, REAR OR FRONT WALLS. BLOCK WALLS MAY NOT BE ON PROPERTY LINE. WALLS MAY BE AT TOP OF SLOPES.

[Sign.Buyer1] [Date.Buyer1] 1/22/2022 ___________________________________ _________ Buyer: Michael Brian Carnes Date

POOL Avra Valley Acres LOT:0216 Page 1 of 1 DocuSign Envelope ID: 6E4016A7-8D7B-4882-A19A-A714B26449D6 DISCLOSURE ADDENDUM TO PURCHASE CONTRACT

Community: Avra Valley Acres Lot: 0216

CONTRACT, ADMINISTRATIVE INFORMATION, CHARGES, AND CLOSING

1. If you were told something that is not on the Contract, make sure it is written in the contract package. Many options are "discussed" when purchasing a new home. You are responsible for making sure ALL OPTIONS YOU WANT show up on the paperwork. It is not the responsibility of the sales associate to remember your options.

2. Construction delays: Seller makes no representation as to the actual date of completion of the home and Seller will not be responsible for any inconvenience, loss, or expense to Buyer resulting from delays in construction completion. From time to time, Seller may provide, as a courtesy to Buyer or Buyer's Lender, an estimated or anticipated completion timeframe, but cannot guarantee an actual completion date at the initial contract.

[Init.Buyer1] Initials ________ Buyer

3. D.R. Horton and its representatives/agents do not interpret the legal documents (i.e., the Deed, Covenants, Conditions and Restrictions, etc.) and we suggest you consult your own attorney or advisor if you have questions regarding them.

4. Please order phone service upon your initial purchase date. Please follow up with your phone company throughout the building process in order to ensure that you will have telephone service at your closing date. D.R. Horton makes no representation as to phone service being available upon your closing date.

5. If you choose to hire an independent home inspection service and want them to conduct an inspection prior to the close of escrow, the inspector must provide proof of insurance which meets certain criteria prior to entering the premises. We recommend that any inspections be done after a scheduled walk-thru, as they will not be allowed to accompany you during the actual walk-thru. Our walk-thru is designed for your benefit and information. We are happy to review any items noted, but will only address those that do not meet our specifications and/or quality standards. In the event that an independent inspector is in the home and their presence interferes with our normal work, they will be asked to leave until our work is complete. Please see your sales associate for access arrangements to the home, and any other information you may need.

[Init.Buyer1] Initials ________ Buyer

6. INCENTIVES. Seller typically pays a commission ("Broker Commission") upon home closing to licensed brokers who introduce buyers to Seller's communities. Such a commission may be paid in connection with Buyer’s home purchase. In addition, Seller from time-to-time offers incentives programs ("Incentive Programs") to brokers, such as additional commissions for sales within a certain time period or for multiple sales within a certain time period. Incentive Programs, before or after the date Buyer signs the Contract, may be offered to Buyer’s broker. If Buyer wants more information regarding Broker Commissions or Incentive Programs applicable to Buyer’s home purchase, Buyer may notify Seller in writing. Broker Commission is subject to limitations, if any, on total broker compensation imposed by Buyer’s lender.

CONSTRUCTION, LANDSCAPING, POOLS, RESTRICTIONS, AND INFORMATION

7. Gas meter locations are predetermined and cannot be moved under any circumstances. Please check with your sales associate for details. Gas stubs for hot tubs are not an available option in subdivisions where gas is included.

8. Due to the different number of subcontractors we use to meet production schedules, trim items such as shelving may be different from the models. 9. Features, options and construction design vary from subdivision to subdivision.

10. D.R. Horton reserves the right to add, delete or relocate any l10 outlet. The l10 volt GFI outlet in the garage is not a dedicated circuit. To operate a freezer or some power tools, you will need to purchase a dedicated outlet.

11. When higher profile vehicles are driven beneath the garage door opener, they can catch the release cord to the opener and release the door from the guide. This can cause the door to be pulled from the tracks, or fall down on the vehicle.

12. The heating/air conditioning is a split system with a condensing unit located on the ground in a predetermined location and an air handling unit located in the attic or on the garage floor (depending on the plan).

13. When air handlers are used for the first time, it is not unusual for smoke to be seen initially. They may also set off the fire alarm.

14. The optional soft water loop does not go to any hose bibs, kitchen sink (cold water supply) nor the icemaker supply line.

15. Because Aquapex plumbing is run through the attic, buyers may experience warm water in their cold water supply.

16. Please check with your sales associate for air conditioning pad and furnace locations. The location may vary from what is shown at the model.

17. Prices, included features and options shown in brochures and advertisements are subject to change without notice.

[Init.Buyer1] Initials ________ Buyer DISCLOSURE Avra Valley Acres LOT: 0216 Page 1 of 5 18. Envelope DocuSign Color variations will exist in cultured marble shower panels, vanity tops and cabinets. ID: 6E4016A7-8D7B-4882-A19A-A714B26449D6

19. There may be optional upgraded light fixtures, plumbing, and accessories shown in models.

20. The models may be shown with decorator features that are not available as options such as built-in desks, decorator wall tile, fixtures, wallpaper, paint colors, etc.

21. If optional oak stair rails are selected, they will be treated with a stain or paint. Therefore, they will not match cabinetry

[Init.Buyer1] Initials ________ Buyer

22. The windows and garage door styles in the home you are purchasing may be different than the windows in the models and/or the windows shown on sales brochures and renderings displayed in the sales office. Windows and vaulted ceilings may vary per elevation and subdivision.

23. Driveway finishes and garage door styles vary with each exterior elevation. Please check with your sales associate for details.

24. The tinting and shading in windows may appear different, depending upon the size of the window.

25. Shade/solar screens are not included on your home. Insect screens are on all operable windows and sliding glass doors, not on french doors.

26. If exterior French doors are ordered, they will not have any window dividers.

29. All interior walls will be painted Summer White or Dover White, not as shown in the models. Flat wall paint is standard. It is not a “scrubable” finish. A more durable upgraded paint is available.

30. Optional fireplaces are a decorator item and are not designed or intended to heat your home. Blowers are not standard, but may be purchased as an option in some neighborhoods.

31. Street lights, fences, utility lines, junction boxes, transformers, TV boxes, phone boxes, pedestals or sewer taps may encroach across lot lines or may vary from subdivision plans. The locations of utility lines, junction boxes, TV boxes, phone boxes, curb cuts and street light locations are predetermined, however the measurements and orientations are approximate and are subject to change in the field. The location of electric service panels and gas meters may vary from the models. Your home layout may differ from the plot plan based on utility requirements. Walls may need to be erected around some utility boxes.

32. A front-yard landscape package may be included.

[Init.Buyer1] Initials ________ Buyer

33. Due to the characteristics of soils and their direct effect on a home’s foundation, D.R. Horton recommends that all plant material, including turf that requires watering be kept a minimum of 24” from the foundation, and all exterior concrete areas such as driveways, sidewalks and patios.

[Init.Buyer1] Initials ________ Buyer

34. Buyer is aware that the lot dimensions, building setbacks, building footprints, walkway, and driveway locations are approximate and the decision to purchase should not be based on the dimensions on the site plan. The home may be situated in the opposite orientation of the model home. Please see your sales associate regarding the positioning of your home on the lot.

[Init.Buyer1] Initials ________ Buyer

35. Buyer understands that garage orientations are predetermined, but may be subject to change in accordance with municipal regulations, building permit requirements, garage orientations of homes previously sold, off-site requirements, and other reasons at the discretion of D.R. Horton. The garage orientation of a home cannot always be determined prior to the purchase of your home.

36. Curbs in this community may have handicap requirements which could include scoring, depressions, or additional landings which may alter your driveway apron.

37. D.R. Horton does not have an option to move fences up any further than the standard location per plan. Masonry walls are built with courses of block however, after final yard grading, the wall will show a minimum of 6.5 courses. Steps at top of walls may occur at any point along the fence line due to changes in grade elevation. Block walls constructed by D.R. Horton may not meet pool fence requirements of the city, town or county. Additional pool fencing may be required. It is the buyer’s responsibility to investigate this.

38. You are not permitted to add or alter any components in the home such as wiring, insulation, custom built-in features, etc., prior to closing.

[Init.Buyer1] Initials ________ Buyer DISCLOSURE Avra Valley Acres LOT: 0216 Page 2 of 5 DocuSign Envelope ID: 6E4016A7-8D7B-4882-A19A-A714B26449D6 [Init.Buyer1] Initials ________ Buyer

39. Keyed and corner lots may have a "visibility triangle" in the back and/or front yard depending on the municipality requirements. In some cases, this will require the fence or wall to be built on this line in lieu of the property line. In addition, there may be height limitations and other restrictions which may confine landscaping and other improvements within the triangle.

40. Some home sites have utility easements that may run along the side of the property or across the back yard. All lots have a Public Utility Easement in the front yard. All corner lots have an easement that runs the length of the side yard. No swimming pools or permanent structures can be built in this easement. Your neighborhood may have perimeter lots with a 1-foot vehicular non-access easement, which would prohibit you from taking down the perimeter walls for any means of access to your property. Please consult with your sales associate.

41. There may be a berm or slope in the rear or side yard of your lot, which will affect the height of your privacy wall. In addition, depending on the conditions of your lot, a retaining wall may be constructed to supplement your privacy wall. The berm, slope, and/or retaining wall could affect the usable area of your yard, and could also restrict pool construction. All representations as to wall locations are tentative until the home is laid out on the lot. Please consult with your sales associate regarding these potential effects.

42. Some home sites are designed to retain on-site water and will have standing water from time to time.

43. Construction of pools may require additional expense due to size limitations on the side yard, soil conditions, and/or the need for a special equipment dig. Also, per ordinance, all new homes with pools must be constructed with secondary barriers including, but not limited to, interior fencing around pools, self-closing doors, door alarms, or pool and spa covers. D.R. Horton does not supply nor offer these items as options.

44. In an effort to increase efficiency, D.R. Horton reserves the right to build homes out of sequence, line build, and/or parcel build. This could mean that construction of your home may not be started in the order of when you purchased, possibly resulting in a delay in the start of construction, as well as the completion of your home. Please consult your sales associate for additional information.

[Init.Buyer1] Initials ________ Buyer

45. Models may have wrought iron fences that are not standard or an available option. Wrought iron may be removed at the close of escrow at D.R. Horton’s discretion. Please see your sales associate for details.

46. Each wall or fence located on or adjacent to the dividing line(s) between the buyer’s lot and any adjacent lot(s), even if the wall or fence is located entirely on buyer’s lot, constitutes a party wall. The use and enjoyment of, and repair obligations relating to, the party wall will be shared proportionately by the buyer and the owner(s) of the adjacent lot(s).

47. When purchasing a home with a side-entry garage, note that a 2-3 point turn may be necessary to enter or exit the garage.

MODELS, DESIGN CENTER, OPTIONS AND UPGRADES

48. Model homes are for show only and vary from community to community. The model homes you see at one D.R. Horton community may or may not be built the same as models at another D.R. Horton community, even though they may have the same name or plan number. Certain municipalities have different requirements. You should review the plans for the home you are purchasing with the sales associate at the community in which you purchased to assure yourself of the proper plan. In all cases, your home will be built in accordance with the plans at a community and will not necessarily be exactly the same as the constructed model homes. In addition, the construction plans for model homes may give us an option as to how to handle individual situation. Different trade partners may select a different option per the plans. Finally, plans are updated and/or redlined from time-to-time. Please assure yourself how the home is built at the community in which you purchase.

49. Appliances are selected at the time of your Design Center appointment. Please check with your sales associates regarding which model shows standard appliances. The Design Center can give you the purchase price.

50. Beveled laminate, bull-nose laminate, tile, granite and solid surface countertops are optional and must be discussed at your Design Center appointment. All countertop selections may vary in size and/or shape due to the type and style of various materials.

51. If you have not selected and finalized your Design Center upgrades and appliances within the contract deadline, D.R. Horton is authorized to select standard interiors and appliances to be installed in the home.

[Init.Buyer1] Initials ________ Buyer

MORTGAGE-RELATED INFORMATION

52. The selection of excessive upgrades may affect the appraisal of the home. Buyers will be required to pay cash for the amount that is not mortgageable.

[Init.Buyer1] Initials ________ Buyer DISCLOSURE Avra Valley Acres LOT: 0216 Page 3 of 5 53. Envelope DocuSign Past credit ID:problems may affect your receiving a loan. Please consult with your Sales Associate. You should stay in touch with your 6E4016A7-8D7B-4882-A19A-A714B26449D6 loan officer so that your loan is complete at time of close of escrow. VA loans may take longer due to volume of loans going through the Veteran’s Administration.

54. DO NOT LOCK YOUR INTEREST RATE until the estimated completion date has been confirmed with our Closing Coordinator. If your lock expires, you will close at the l