THE SECTION ENTITLED

Revised April 13, 2011 – Rancho Viejo

THE HOMEBUILDING PROCESS

TABLE OF CONTENTS

I. Introduction………………………………………………….…… 1

II. Purchasing Your New Home……………………………………. 2

The Purchase Agreement

Purchase Agreement Acceptance

III. The Mortgage Process…………………………………………… 4

The Loan Application

Mortgage Application Kit

Loan Approval

Interest Rates and Loan Locks

Notes

IV. New Home Selections……………………………………………. 7

Selections Process

Sales Center – Stage 1 Selections

Stage 2 All Other Options

Design Center

Structured Wiring and Low Voltage Selections

Custom Changes

Finalizing

Change Orders

V. The Construction Process……………………………………….. 10

The Rancho Viejo Representative…………………………………..10

The Customer Service Coordinator………………………………... 10

Homebuyer Communication Form………………………………… 10

Private Inspections………………………………………………… 10

Policy Regarding Unauthorized Work…………………………….. 11

Construction Site Safety……………………………………….….. 11

The Pre-Construction Meeting…………………………………….. 12

Plans and Specifications…………………………………………… 13

Quality Assurance…………………………………………………. 14

Schedules………………………………………………………….. 14

A Typical Construction Schedule…………………………………. 16

The Pre-Drywall Orientation…………………………………….… 17

Completion Date and Closing Letter…………………………….… 17

The Final Walk-Through Orientation……………………………… 17

Home Presentation Meeting……………………………………….. 19

Revised April 13, 2011 – Rancho Viejo

The Homebuilding Process – Table of Contents

VI. Utilities……………………………………………………………. 20

VII. Close of Escrow…………………………………………………… 22

The Closing Appointment

Closing Documents

Closing Costs

Homeowner‟s Insurance Policy

Builder or Lender issues

VIII. Warranty Service………………………………………………… 24

45-Day Follow-up

11-Month Follow-up

IV. Customer Satisfaction Survey…………………………………… 25

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I. INTRODUCTION

Building a new home is always an exciting experience. It is also a complex process with many

details to be decided and arranged. Now that you have selected your model and building site

and have signed the Purchase Agreement, you may be asking yourself: “What happens next?”

This section is designed to give you an overview of the entire homebuilding process from the

purchase through closing and the warranty period. The various sections have been arranged in

chronological order to walk you through the exciting months ahead, one step at a time. Since

building a new home is a team effort between the buyer, the builder, the lender and the various

trade contractors and suppliers, we recommend that you familiarize yourself with this guide to

prepare for the important role you will have in this process. If you have any questions, please

ask us! Rancho Viejo will be by your side every step of the way.

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II. PURCHASING YOUR NEW HOME

THE PURCHASE AGREEMENT

The terms of your new home purchase are found in the Purchase Agreement. This is the legal

document that represents your decision to purchase a home. It describes the general details of

your home and building site, along with the agreed purchase price. While the Purchase

Agreement and related documents will vary with each community and in each state, the

following is a typical list of details included with most Purchase Agreements:

 Property Description including subdivision, lot number, and address

 Plan Number and Elevation

 Escrow Instructions

 Contract Terms including Purchase Price, Earnest Monies, and Financial Obligation

 Materials and Specifications to be used in the construction of the home

 The Limited Warranty included with your home

 Buyer Broker Disclosure and Registration

Additional amendments may be added to your contract such as:

 Option Amendments: These amendments are added to your contract as you finalize your

new home selections and options with your Sales Representative and Design Consultant.

 Contingent Sale Amendment: This amendment is used when the purchase of your new

home is contingent upon the sale of your current residence.

 Acknowledgements: You will likely be required to sign several Acknowledgements with

your Purchase Agreement regarding such items as receipt of Homeowner‟s Association

documents; Declaration of Covenants, Conditions and Restrictions; Public Reports;

Community Information; Homeowners Manual; etc.

As the Purchase Agreement and related documents constitute the legal understanding and

agreement regarding the purchase of your new home, we encourage you to read the documents

carefully. If there is anything you do not fully understand, please ask your Sales

Representative for an explanation.

PURCHASE AGREEMENT ACCEPTANCE

Once you have signed your Purchase Agreement, the documents will be forwarded to the

Manager or Designated Broker responsible for the Rancho Viejo community that you have

chosen. After the contract is reviewed, accepted and signed by the Manager or Broker, copies

of the accepted Agreement will be forwarded to you, your Lender and the Title Company.

Once the Purchase Documents have been signed, you may want to use the tabbed Purchase

Contract section of this manual to store your documents for easy reference.

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IMPORTANT NOTE:

ALL AGREEMENTS AND CHANGES MUST BE IN WRITING!

In order to avoid misunderstanding and to ensure a fair and

equitable working relationship with our customers, it is our policy

that all agreements and changes must be in writing. If a change,

addendum, requisition, option, feature, or verbal representation is

not written and signed, that item will not be recognized.

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III. THE MORTGAGE PROCESS

THE LOAN APPLICATION

For most of our homebuyers, the first step after signing the Purchase Agreement involves

applying for mortgage financing. In some cases you may have already provided your Sales

Representative with some basic financial information; however, it will be necessary for you to

submit a formal application for your mortgage loan.

IMPORTANT NOTE: To keep your new home purchase on schedule, it is important to

apply for your mortgage within five (5) business days of signing the Purchase Agreement.

In most cases, applying for a mortgage loan will require meeting with the Mortgage Loan

Counselor in person. You will need to schedule this appointment yourself. The Mortgage

Loan Counselor‟s job is to understand your particular financial circumstances completely. He

will review the Purchase Agreement and all necessary information with you to complete the

mortgage application. Do not hesitate to discuss any questions or concerns you may have

regarding your loan or financial information. A situation rarely arises that the Lender has not

encountered in the past. It is critical that all information requested by the mortgage company

be provided to them as quickly as possible. This will keep your new home and financing on

schedule.

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MORTGAGE APPLICATION KIT

Be sure to ask your Sales Representative for an Estancia Homes Application Kit. This kit

includes a homebuyer questionnaire and a complete list of items that will be needed for your

mortgage application. Be sure to bring all information to the Mortgage Application Meeting.

LOAN APPROVAL

Before the processor submits your file to the underwriters for final approval, he or she will

verify the final sales price. Make sure that copies of all addenda such as Change Orders signed

after the original Purchase Agreement have been sent to the lender. Change Orders that are

received after final loan approval may require you to resubmit your loan application for a

higher amount or pay cash for the Change Orders.

Initial loan applications can take from 4 to 6 weeks to obtain complete approval. By submitting

all the required information in a timely fashion, and responding quickly and accurately to all

requests, you will help assure a smooth and timely process.

INTEREST RATES AND LOAN LOCKS

Interest rates vary widely depending on many factors. The Lender provides a valuable service

by making every effort to help the Homebuyer receive the lowest possible interest rate and the

best mortgage program to suit their particular needs and financial circumstances.

Interest rates often change daily based on market conditions. Many lenders allow you to “lock-

in” your interest rate for a period of time such as 30 or 60 days prior to your closing. Locking

your rate prematurely can result in extra expense if your home is not completed prior to the

expiration of the lock period. Rancho Viejo will notify you of your Final Walk-Through

Orientation and Closing Date in writing approximately 30 to 45 days prior to completion of

your home. We strongly recommend that you do not lock your loan until you receive the

formal Closing Letter. It is also wise to leave yourself a time cushion in case of unforeseen

construction, financing or title delays.

IMPORTANT NOTE:

Loan Locks are a service offered to the Homebuyer by the Lender. As such, Loan Locks

will be a matter of concern solely between the Homebuyer and the Lender. Rancho Viejo

will not be responsible for any events that may cause a Homebuyer’s Loan Lock to expire.

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NOTES

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IV. NEW HOME SELECTIONS

SELECTIONS PROCESS

One of the advantages of building a new home is the ability you have to select construction

options, finish materials, fixtures, appliances and colors to personalize your home. Some of

these selections will be made with your Sales Consultant while others will be made in our

exclusive Design Center. We require that you complete your option selections within the

time constraints associated with our three-stage selections process. This process is as

follows:

 Stage 1 – Structural Options: Complete within 7 days of Purchase Agreement date.

 Stage 2 – Designer Options: Complete within 30 days of Purchase Agreement date.

To help you prepare for the selections process, your Sales Representative will provide you with

an Options Catalog at the time you sign the Purchase Agreement. The options catalog contains

descriptions and pricing for most of the options and selections available on your new home.

Your prompt completion of the selection appointments will help prevent delays in processing

the construction paperwork and ensure a timely start of your home construction.

SALES CENTER – STAGE 1 SELECTIONS (within 7 days: structural

options)

Your Sales Representative will assist you with the Stage 1 selections for your new home.

These items include structural, exterior, and energy related items such as:

 Elevations and exterior finishes

 Exterior color schemes

 Garage options

 Bonus rooms and flex room option

 Courtyard walls and gates

 Covered patios

 Window options

 Etc.

STAGE 2 – ALL OTHER OPTIONS

A. DESIGN CENTER

Within a few days of signing the Purchase Agreement, you will need to schedule appointments

with the Design Center to make your Stage 2 options. At the Design Center, you will meet

with a Design Consultant who will help you personalize the interior of your home with such

items as:

 Cabinet styles, colors and options

 Appliance and kitchen packages

 Counter top selections

 Bath accessories and packages

 Plumbing fixtures

 Door and hardware styles

 Stair railings

 Flooring selections

 Tile and interior stone work

 Etc.

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Your Design Consultant will explain which items come standard with your home as well as the

many options and upgrades available. You are welcome to bring cushions or fabric swatches to

the Design Center to help coordinate colors. When possible, you may want to view your color

selections under both artificial and natural lighting to get an accurate impression of the color.

Be aware that color and texture variations can occur between the selected item and the

actual item installed due to dye lots, manufacturing processes and variations in natural

materials such as wood or stone.

B. STRUCTURED WIRING and LOW-VOLTAGE SELECTIONS

Many of our communities offer low-voltage options such as security systems, data cabling,

surround sound packages, room speakers, central vacuum systems and other high-tech options.

These items will typically be selected in conjunction with your Stage 2 appointment at the

Design Center. You will be assisted in your selections by either a representative of the low-

voltage subcontractor or by a Design Consultant specifically trained in this area.

C. CUSTOM CHANGES

IMPORTANT NOTE:

Some Estancia Homes communities do not allow custom changes. If you have questions

regarding custom changes, please contact your Sales Representative or Design

Consultant.

While we make every attempt to provide a wide range of products, options and upgrades at

each of our communities, occasionally a homebuyer desires a change or feature that is not

offered. In this instance your Sales Representative or Design Consultant may be able to submit

a Custom Change Request. You will need to provide as many details about your request as

possible. At some communities, you may also be required to pay a non-refundable review fee

with the Custom Change Request. When submitted, the Custom Change Request will be

reviewed by a committee that will decide the feasibility and pricing of the request. Rancho

Viejo reserves the right to deny any Custom Change at its sole discretion.

Please be aware that custom changes requiring a major structural change, footprint change,

custom engineering or a separate municipal plan review will likely be denied. To help avoid

this situation, Rancho Viejo offers a large selection of structural and flex-room options to help

you configure your home to your specific needs.

Since Custom Change Requests are time consuming and costly to process, we encourage you to

limit this service only to those items that are most important to you. Depending on the

complexity of the custom change requested, the planning and construction of your home could

be delayed up to several months.

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D. FINALIZING

We encourage you to be as thorough as possible with your selections. Costly errors can arise

from assumptions or incomplete selections. Please review all option paperwork and double-

check all numbers, names and colors. Once you have made all of your selections, the Sales

Representative or Design Coordinator will finalize them with an option addendum to the

Purchase Agreement. Additionally, we reserve the right to place a hold on your selections until

your lender has approved your loan and all contingencies are released. Occasionally a supplier

may discontinue one of your selections. When this happens we will contact you and ask you to

make an alternate selection.

NOTE: A tabbed section is included in this manual for your color selection sheets. You may

want to keep these for future reference.

CHANGE ORDERS

IMPORTANT NOTE:

Some Estancia Homes communities do not allow changes after contract finalization. If

you have

questions about making changes, please contact your Sales Representative.

The homebuilding process is most efficient when no changes are made after contract

finalization. Our two-stage selections process is designed to help you select exactly what

options you want in your home prior to the start of construction. However, in some cases we

may consider accommodating minor changes after contract finalization when necessary. Please

be aware that any change made after finalization will require an administrative fee ($300 per

item requested) in addition to the cost of the change. A check for the Change Order and

administrative fee must accompany the Change Order or no further action will be taken.

Changes can be costly and disrupt construction schedules so we ask that you limit them to only

those that are absolutely important to you.

In cases where Change Orders are accommodated, they will be subject to the following

deadlines:

Changes affecting: Must be made prior to:

 Stage 1 selections 7 days from Purchase Agreement date

 Stage 2 selections 30 days from Purchase Agreement date

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V. THE CONSTRUCTION PROCESS

THE RANCHO VIEJO REPRESENTATIVE

The Rancho Viejo Representative will be your point of contact throughout the

construction phases of your new home. He or she will coordinate with the Sales,

Construction, and Administrative offices to ensure your homebuilding process is running

smoothly.

In most of our communities a Rancho Viejo Representative will be your primary contact

throughout the construction phases of your new home. The Rancho Viejo Representative will

contact you to schedule the Pre-Construction Meeting, Pre-Drywall Orientation and Final

Walk-Through Orientation and in most cases will attend and/or conduct each of these meetings.

They will work closely with the construction team and may be involved in the quality control

process during construction.

THE CUSTOMER SERVICE COORDINATOR

The Customer Service Coordinator will become the point of contact after Close of Escrow.

The Customer Service Coordinator will schedule any necessary warranty service work and will

conduct the 45-Day and 11-Month Warranty Inspections with you.

HOMEBUYER COMMUNICATION FORM

Included with this manual, you will find a few copies of the Homebuyer Communication Form.

If you need additional copies, please contact your Rancho Viejo Representative or Sales

Representative. You can use this form for any questions that may arise during the

homebuilding process. Please fax, mail or drop off the completed form to your Rancho Viejo

Representative or Sales Representative. While you are welcome to call us at any time, your use

of the Homebuyer Communication Form will allow us to more efficiently track and follow

through on your questions or concerns.

PRIVATE INSPECTIONS

Rancho Viejo„s team of construction professionals will inspect each phase of work to ensure

your home meets our high standards of quality. Your home will also be inspected several times

throughout the construction process by County Building Inspectors. However, on occasion a

homebuyer may wish to hire an independent inspector for an additional peace of mind.

While you are welcome to hire a private inspector, there are a few guidelines that need to

be followed when using a private inspector:

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 Private inspectors are not to interfere with our supervisors and trade contractors.

 Private inspectors are required to follow all safety requirements including use of a hard hat

and proper eye and foot protection.

 Private inspectors must carry their own industrial and liability insurance. Rancho Viejo

will not be held responsible for any injuries or damage caused by the inspector.

 Private inspectors will not be allowed on the roof until after Close of Escrow or with

written permission of a Rancho Viejo representative.

 Private inspectors are not to attend Pre-construction or Orientation Meetings. However,

they are welcome to inspect the home and provide you with recommendations prior to these

meetings.

 All communications related to private inspections are to be between the Homeowner and

the Rancho Viejo Representative or Superintendent.

 The private home inspection industry does not follow a uniform system nor is it a regulated

industry. As a result, reports vary drastically in terms of quality, scope, detail and format.

Therefore, any desired corrections to your home are to be submitted by you in writing on a

Homebuyer Communication Form. It is the Homebuyer‟s responsibility to work with the

inspector and to interpret their report. Rancho Viejo will not accept and/or interpret reports

from private inspectors.

 Rancho Viejo will inspect each item requested for correction on a case by case basis and

will make sure the items meet local codes and our Quality Standards. All items will be

addressed in the normal sequence of construction.

POLICY REGARDING UNAUTHORIZED WORK

Please keep in mind that the home you are purchasing does not become your property until

after the Close of Escrow. It is not permissible for you or your agent to make any changes,

alterations or additions to your future home until it becomes your property. Because of strict

insurance, liability, building code, and government requirements, all work on your home must

be performed by licensed trade contractors who have signed Subcontract Agreements with

Rancho Viejo and are properly licensed, bonded, and insured. Rancho Viejo reserves the right

to remove any unauthorized changes and correct unauthorized alterations at the Homebuyer‟s

expense.

The trade contractors and field staff are required to construct your home according to the plans,

specifications, and option information provided to them by Rancho Viejo. Do not approach

any of the contractors or field staff to request work that is not included in the plans,

specifications, or your Purchase Agreement. Contractors or field employees who perform

unauthorized work are subject to disciplinary action, back charges, and/or termination of their

contract or employment. If you feel one of your selected options has been missed or if you

desire to make a change, please contact your Customer Service Coordinator or Sales

Representative.

CONSTRUCTION SITE SAFETY

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A new home construction site is exciting, but it can also be dangerous. Your safety is of prime

importance to us. Therefore, we must require that you contact your Rancho Viejo

Representative or Sales Representative before visiting the site. We reserve the right to require

that you wear a hard hat and that a member of our staff accompany you during your visit.

Please observe common-sense safety procedures at all times when visiting.

The following guidelines must be followed whenever visiting the construction site:

 All visitors enter the construction site at their own risk. Rancho Viejo is not responsible for

injury.

 Hard hats must be worn at all times while on the construction site. These are available at

the Sales or Customer Service Offices.

 Construction sites are especially dangerous for small children and those unaccustomed to

the construction debris and noisy activity. We discourage bringing small children to the

construction site.

 We urge you to conduct your visits under the supervision of a Rancho Viejo representative.

 Please confine your visits to only your home site.

 Please avoid interfering with any work activity.

 Do not enter the construction site while roofing, framing, or drywall crews are working or if

cranes, concrete pumps, tractors, forklifts or other heavy equipment are being operated.

 Do not enter any upper or lower level of your home that is not yet equipped with stairs and

guard rails.

 Stay a minimum of six feet from all excavations.

 Always watch your step to avoid hazards that may cause tripping, puncture wounds or other

injury.

THE PRE-CONSTRUCTION MEETING

Shortly after your mortgage application and contract finalization are complete, you will be

contacted to schedule a Pre-Construction Meeting. This meeting will typically be conducted by

the Customer Care Coordinator and/or Construction Superintendent and will roughly coincide

with the groundbreaking of your new home. This meeting should take about an hour.

The purpose of the Pre-Construction Meeting is to review all information related to the

construction of your new home including:

 Floor Plan

 Elevation

 Garage Orientation

 Front Setback from Property Line

 Products and Options

 Custom Changes

 Colorization Selections

 Tentative Start Date

Out-of-Town Buyers

To accommodate our out-of-town homebuyers, at your request, Rancho Viejo will conduct the

Pre-Construction Meeting via telephone. If it is not possible for you to attend this meeting in

person, let the Rancho Viejo representative know when they call to schedule. We will mail all

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Pre-Construction Meeting information to you directly and will go over each item by telephone on

the scheduled date and time.

PLANS AND SPECIFICATIONS

The building department of the city, county, or state where your home is to be located must review

and approve the plans and specifications for your home. We construct each home to comply with

the plans and specifications approved by the applicable building department. Your specifications

become part of our agreements with trade contractors and suppliers. Only written instructions from

Rancho Viejo can change these contracts.

Regulatory Changes

From time to time, city, county, or state agencies adopt new codes or regulations that can affect

your home. Such changes are usually adopted in the interest of safety and are legal requirements

with which Rancho Viejo must comply. The codes and requirements in effect for each area can

vary. Therefore, builders may construct the same plan slightly different in two different

jurisdictions or at two different times within the same jurisdiction to comply with such codes and

regulations. If code requirements change after the building permit is issued on your home, Rancho

Viejo is not required to meet the new code requirements on your home.

Individual Foundation Designs

Variations between homes of the same plan can also appear in the foundation system. The

foundation design is often specific to each lot and/or subdivision. Based on the results of a soils

test, an engineer determines which foundation systems are acceptable for a given lot or

subdivision. Because of variations in soil conditions, your foundation may differ from your

neighbor‟s foundation or that of the same home in another neighborhood.

Changes in Materials, Products, and Methods

The homebuilding industry, building trades, and product manufacturers are continually working to

improve methods and products. In addition, manufacturers sometimes make model changes that

can impact the final product. As a result, we may use methods or materials in your home that

differ from those in our other homes. In all instances, any substitution of method or product will

have equal or better quality than that shown in our other homes. Since such substitutions or

changes may become necessary due to matters outside our control, we reserve the right to make

them without notification.

Plan Changes

In an effort to continuously improve our products and construction methods, we reserve the right

to make changes and improvements to our plans and specifications without notice.

Normal Variations

Your new home will be constructed by many different subcontractors and tradesmen.

Furthermore, not all the tradesmen will work on every home in a community. As a result, minor

variations will occur due to different methods of completing the same tasks. For example, the

exact placement of switches, outlets, registers, mechanical equipment, and so on will vary slightly

from the model and other homes of the same floor plan.

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QUALITY ASSURANCE

Rancho Viejo will build each new home to the quality standards demonstrated in our model

homes. Each home is a handcrafted product combining the efforts of many people with varying

degrees of knowledge, experience, and skill. We constantly coordinate, supervise, and inspect

these contributions in constructing your new home. Additionally, your new home will be

inspected several times by the local building officials and, where applicable, independent

inspectors.

Occasionally, during a process that takes several months and involves dozens of people, an error

or omission may occur. While we have systems and procedures for inspecting our homes to

ensure that the level of quality meets our requirements, we welcome any input you may have. If

you have questions or concerns regarding the construction of your new home please fill out a

Homebuyer Communication Form and mail, fax, or e-mail it to the Rancho Viejo Representative,

Sales Representative, or Main Office for your Community. We will review the concern and will

respond within two business days. Please be aware that our schedule has built-in periods of time

where we address work that needs correction or adjustment. Do not be surprised if several days go

by before a particular item is corrected, as this is part of the normal scheduling process.

Remember that during the construction process, every home being built experiences some days

when it is not at its best. Homes under construction endure wind, rain, foot traffic, and activities

that generate noise, dust, and trash. Material scraps are a by-product of the process. Although

your new home is routinely cleaned and trash is regularly hauled off, you may encounter some

messy moments during your visits to the construction site. Keep in mind that the model homes you

toured also had their own “ugly duckling” stages.

SCHEDULES

Delivery Date

The delivery date for your new home begins as an estimate. We will update you on the estimated

delivery date at each of our construction meetings. You are also welcome to check with the

Rancho Viejo Representative for the most current target date. Please remember that these

target dates are estimates only. As completion nears we will give you a firm date for

Orientation and Closing. We will contact you by means of a Closing Letter approximately 30 to

45 days prior to the Close of Escrow with firm completion dates. Until you receive this letter, we

suggest you avoid finalizing your move date and Loan Lock. Any dates given to you outside the

regularly scheduled meetings or by someone other than the Rancho Viejo Representative or

Homebuilding Manager should not be considered applicable. Please see the “Mortgage Loan

Process” section of this manual for additional information about Loan Locks.

Construction Delays

Weather, inspection requirements, freight delays, and worker and material shortages can all affect

the schedule and delay the delivery date. Extended periods of wet weather or extreme

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temperatures can bring work to a virtual stop in an entire region. While some room is provided in

the schedule to accommodate minor delays, some delays are simply unforeseeable. Please

understand that we are as eager as you are to keep your home on schedule. We will do everything

possible to keep the construction process moving to deliver your home in a timely fashion.

“Nothing’s Happening!”

There will likely be several days during construction of your home when it appears that nothing is

happening. This can occur for a number of reasons and is part of the normal process. For

example, each trade contractor is scheduled days or weeks in advance of the actual work. This

period is referred to as “lead time.” Once the contractor starts, he has a period of time to complete

his work before the next trade begins. If he completes his work early, a day or two may pass

before the next trade is required to show up. Due to the scheduling lead times, it is often not

possible to bump a contractor schedule up on short notice.

Progress also pauses while the home awaits city, county or engineering inspections. Typically, no

work will be scheduled on the day of an inspection. Remember, these “dead days” are allowed for

in our schedule and should have no adverse effect on the delivery date.

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A TYPICAL CONSTRUCTION SCHEDULE

Below is the typical sequence of a construction schedule. While not all tasks will happen in this

exact order, this will give you a general idea of “what comes next.” Additionally, some steps may

be omitted or added depending on where the home is being built.

Building Permit Issued

Pre-Construction Meeting with Buyer

Site Work (If Required)

County Site Inspection (If Required)

Foundation

Layout

Excavate Footing and Place Steel

County Footing Inspection

Pour Footing Concrete

Set Stem Panels and Place Steel

County Stem Inspection

Pour Stem Concrete

Underground Plumbing and Mechanical

Excavate

Install Water and Sewer Lines

Install Underground Vents

County Soils Inspection

Concrete Slab

Shade, Backfill, Compact Trenches

Grade and Form for Slab

Dig Interior Bearing Footings

Install Underground Electric

County Pre-Slab Inspection

Termite Pretreat (if required)

Pour and Finish Slab Concrete

Rough Grade Lot

Deliver Lumber and Roof Trusses

Framing

County Strap and Shear Inspection

Fireplace Installation

Window Installation

HVAC Rough-In

Plumbing Top-Out

Gas Plumbing Installation

Roof Dry-In and Load Roofing Materials

Framing Pick-Up Work

Electrical Rough-In

Stucco Lath or Siding Installation

Home Systems Rough-In

Rough Punch Out Work

Pre-Drywall Orientation with Buyer

County 4-Way Inspection

Insulation

Drywall Stock and Hang

County Drywall Inspection

County Lath Inspection

Drywall Tape and Texture

Stucco Application

Fence Grading

Masonry Fence Construction

Doors and Trim

Paint Interior

Cabinet Installation

Bath and Shower Surrounds

Countertops

Paint Exterior

Roof Tile Installation

HVAC Trim

Plumbing Trim

Electrical Trim

Home Systems Trim

Door Hardware Trim

Concrete Drives and Walks

Flooring Installation

Final Grading

Punch-Out Drywall and Stucco

Landscaping

Interior Construction Clean

Final Punch Out

Window Screens Installed

Appliances Installation

County Final Inspection and C of O

Final Walk-Through Orientation

Walk-Through Adjustments

Close of Escrow

Home Presentation (Keys and Sign-Off)

45-Day Follow Up

11-Month Follow Up

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THE PRE-DRYWALL ORIENTATION (Frame Walk-Through)

Once the framing on your new home is complete, the Rancho Viejo Representative or

Superintendent will call you to schedule the Pre-Drywall Orientation (sometimes referred to as the

Frame Walk-Through). This meeting will take place once all of the rough-ins are completed and

just prior to insulation and drywall. Once again, we will go over your construction paperwork to

make sure all of your options have been installed and are properly located. The representative

conducting the Pre-Drywall Orientation will also answer any questions you may have and will

update your estimated completion date. In order to complete this meeting in a timely fashion we

request that only those purchasing the home be present. If your relatives, young children, realtor

or a private inspector would like to view the home, please arrange for this to take place before or

after the Pre-Drywall Orientation (see the section entitled “Private Inspectors” in this manual).

PLEASE NOTE: The Pre-Drywall Orientation is not a time to add or change options;

however, we may allow minor electrical adjustments on a case-by-case basis.

Out-of-Town Buyers

If you reside out-of-town and are unable to attend the Pre-Drywall Orientation, your Sales

Representative will walk the home with the Superintendent and/or Rancho Viejo Representative

in your place.

COMPLETION DATE and CLOSING LETTER

Approximately 30 to 45 days before the completion of your home, you will be contacted to

schedule the Final Walk-Through Orientation and Close of Escrow Date. The Rancho Viejo

Representative will formally confirm these dates by sending you a “Closing Letter.” The Close of

Escrow date will also be forwarded to your Sales Representative, Lender and Title Company. As

stated previously, we encourage you to wait for this confirmed closing date before locking in

interest rates or scheduling movers. It is a good idea to allow a buffer of several days on your

Loan Lock in case of unforeseen construction or financing delays. Letters will also be sent to the

utility companies to terminate services at your home shortly after the Close of Escrow. Please be

sure to set up all utility accounts in your name prior to closing.

THE FINAL WALK-THROUGH ORIENTATION

The Final Walk-Through Orientation will take place after the home is completed and

approximately five business days prior to the Close of Escrow. The Rancho Viejo Representative

or Superintendent will conduct this meeting. The Orientation should be attended by all Buyers

listed on the Purchase Agreement. Past experience has shown that the orientation is most

beneficial when buyers are able to focus all their attention on their new home and the information

presented. For this reason, realtors, private inspectors and relatives should not be present at this

meeting. We also suggest that young children and pets not accompany you at this time.

Arrangements can be made for others to view the home at another time.

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During this meeting, the representative will explain and/or demonstrate the various systems,

features, and appliances in your new home and will review important maintenance information.

You will also be shown how to shut off electricity, water and gas to the home in case of an

emergency. Additionally, this meeting will serve as a final walk-through, providing you with an

opportunity to note any discrepancies or incomplete work. Final Walk-Through Orientations

are conducted Monday through Friday by appointment during normal business hours only.

Please allow approximately two to three hours for this meeting.

Orientation Form and Acceptance

During the Final Walk-Through Orientation, you will have the opportunity to inspect the various

components and systems of your home. The Rancho Viejo representative will ask you to initial

various items on the Orientation Form signifying that they are complete and in good condition.

Because of the potential for these items to be damaged during move-in, Rancho Viejo will

not be responsible for damage to them following your Final Walk-Through Orientation if

they are not noted on the Orientation Form. Below is a list of some of these items:

 Cabinets

 Carpet and Floor Tile

 Doors and Hardware

 Countertops

 Tubs and Showers

 Mirrors and Shower Doors

 Painting

 Walkways, Patios, and Driveways

 Light Fixtures

 Windows and Screens

 Sliding Doors and Screens

 Garage Door

 Sinks and Fixtures

Space is also provided on the form to note anything that needs attention. Occasionally the

representative will generalize the items needing attention on the form. For example, if you find a

number of minor drywall blemishes, rather than listing each one on the form, the representative

will tag these and then make a general statement on the form such as “repair drywall as marked

throughout.” When the drywall repair technician comes, he will walk through the entire home and

repair all of the tagged drywall items.

Manufacturer’s Warranties

During the Final Walk-Through Orientation, the Rancho Viejo representative will provide you

with the Manufacturers‟ Warranties and Owner‟s Manuals for the appliances and consumer goods

in your new home. Because these items are exempted from the Limited Warranty on your home,

keep all manufacturer information in a safe place. Any warranty claims on these items are to be

made directly with the manufacturer. We also recommend that you study the Owner‟s Manuals to

familiarize yourself with their proper operation and maintenance.

Five-Day Punch Out and Completion of Walk-Through Items

Most Estancia Homes communities will schedule the Close of Escrow to take place approximately

five business days after the Final Walk-Through Orientation. During this period, Rancho Viejo

will work to make any adjustments or touch-ups noted on the Orientation Form. Any items not

completed before Move-In will be completed as quickly as possible. Under normal circumstances,

you can expect us to resolve all items within 30 working days after Close of Escrow. We will

inform you of any delays caused by backordered materials or scheduling delays. If work needs to

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be performed in your new home after Move-In, construction personnel are typically available for

appointments Monday through Friday, 7 a.m. to 3 p.m. When necessary, we will attempt to

schedule several service appointments on the same day to minimize conflicts with the your work

schedules.

Note: Some Estancia Homes communities may schedule the Final Walk-Through Orientation and

Close of Escrow on the same day. Additionally, out-of-town buyers may request these be done on

the same day for scheduling purposes. In this event, you will need to provide access to Rancho

Viejo personnel and subcontractors to complete any remaining Walk-Through items in your home.

Future Service

After the Final Walk-Through Orientation, Rancho Viejo responds to Warranty Service Requests

according to the terms and conditions of the Limited Warranty Agreement. For more details,

please review the Warranty Guidelines section of this manual.

HOME PRESENTATION MEETING

Note: If you have your Final Walk-Through Orientation and Close of Escrow on the same

day, this meeting will be omitted.

Once you have signed all Closing Documents (see “Close of Escrow” below), and the Funding

and Recording have taken place, the Rancho Viejo Representative will provide you with your

house keys and garage door remotes (if applicable). This meeting is an excellent time to review

the Final Walk-Through list and sign off on the completed items. Some communities may also

use this meeting for orientation on the use and care of your new home if these items weren‟t

discussed at the Final Walk-Through. This informal meeting should take less than an hour.

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VI. UTILITIES

Rancho Viejo will have utility services for your home removed from its name two days after Close

of Escrow. It is the Homeowner‟s responsibility to set up all necessary utility accounts and to

notify all utility companies of your move so that service is provided in your name. We suggest

that you contact these companies well ahead of time to avoid any interruption in service. For your

convenience, utility company phone numbers are provided in the “Contacts” section of this

manual.

The following information will give you an idea of what is involved and when you should order

utility service based on your home‟s completion date. You will want to contact your Title

Company for your escrow number before calling to setup your utility accounts.

Electricity

In most cases, we will have the electric meter installed and the power on prior to your Final Walk-

Through Orientation. You will need to set up your account about a week before Close of Escrow

and request service to be transferred into your name on the Close of Escrow date.

Water and Sewer

You will need to set up your account one week prior to Close of Escrow and request service to be

transferred to your name on the Close of Escrow date.

Trash Collection

Set up your account about a week before Close of Escrow and request service to begin on the

Close of Escrow date.

Telephone

Your new home has been wired for the number of telephone jacks specified in the Purchase

Agreement. Activation of service usually takes between 10 to 14 days; however, in some fast-

growing communities, activation can take 30 to 60 days or more. We encourage you to establish

this account as soon as you receive your Closing Letter. Request service to be turned on any time

after Close of Escrow

Natural Gas

If your area is serviced with natural gas, you should set up your account 1 to 2 weeks before Close

of Escrow. Request the gas to be turned on as soon as you close escrow. Typically, the gas meter

cannot be installed until the home has passed Final City, County, or State Inspection, and the

electricity has been turned on. These items will be handled by the construction personnel prior to

the Final Walk-Through Orientation.

Cable Television

Your home has been pre-wired for the number of TV outlets specified in your Purchase

Agreement. The cable pre-wires may or may not include jacks or connectors depending on the

industry standard in your area. The cable company can install any necessary jacks at the time of

installation. Normally, you should allow 5 to 10 working days for connection. NOTE: Some

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areas may require up to 80% occupancy in the community before activating cable TV

service.

Mail Service

If your community is equipped with cluster-type mailboxes, your mailbox keys can be obtained

from the local Post Office. Please contact the Post Office one-week prior to key pick-up. You

may be required to show a copy of your closing statement to pick up your keys.

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VII. CLOSE OF ESCROW

THE CLOSING APPOINTMENT

Your Closing Date will be established approximately 30 to 45 days prior to Close of Escrow. In

most cases, this will take place a few days after your Final Walk-Through Orientation. The

closing will typically take place at the Title Company. You will need to contact your Escrow

Officer at the Title Company to schedule the Closing Appointment. All Buyers listed on the

Purchase Agreement will need to attend. Be sure to bring valid photo identification for each

Buyer and a cashier‟s check from a financial institution made payable to the Title Company. The

Escrow Officer will inform you of the amount of funds to bring when the appointment is

scheduled. Please plan on about one hour for this appointment.

During the Closing Appointment, you will sign loan documents and instructions related to closing

the loan from the Mortgage Company and transferring the title of the home you are purchasing.

You will give the Escrow Officer your cashier‟s check and will present your identification. The

Title Company is required by law to have funds deposited before escrow funds can be disbursed.

Due to delays associated with personal checks, only cashier‟s checks will be accepted at Closing.

CLOSING DOCUMENTS

Below is a list and brief description of the typical documents associated with the Closing. In

addition to these standard items, the Lender, Title Company, and/or Rancho Viejo may require