Real Estate Legal and Home Repair Service Agreement

Page 2

IV.                     Conditions:

The Member shall not admit or assume any liability, enter into any settlement agreement, or stipulate to any Repair Cost without the prior written consent of RERM  Only those Legal Fees and Repair Costs to which RERM has consented shall be reimbursable under the terms of this Plan.

In the event that a counter-claim, cross-complaint or similar action is filed against the Member in a suit, legal proceeding or action originally brought by the Member, RERM  has no obligation to provide reimbursement for the counter-claim, cross-complaint or similar action, regardless of whether the allegations of such counter-claim, cross-complaint or similar action would otherwise constitute a Covered Event.

In the event that an Event is instituted against the Member and the Member prosecutes a counter-claim, cross-complaint or similar action in defense of the Event, and Legal Expense incurred shall be reimbursed, subject to the Maximum Amount Reimbursable.

Any and all appeals shall be considered to be part of the underlying Event and treated as a single Event.  Any and all related lawsuits, arbitrations or mediation proceedings arising out of the Event shall be treated as a single Event.

It shall be a condition precedent to any coverage hereunder that the Member gives written notice to RERM of the institution of any Event within 10 days from the date of institution of the Event.

Cancellation – This Plan cannot be cancelled and will continue for 180 days from the close of escrow.

The Real Estate Broker shall provide to RERM a list of those sellers of homes who entered into Completed Contracts within 30 days of the close of escrow.  Failure to include a seller in a list submitted to RERM within 60 days of the Completed Contract shall prevent such seller from thereafter being listed and added as a Member.

If a Member contacts RERM with an Event and that transaction was not registered with RERM by the Real Estate Broker the Member will have 30 days to submit verification of the Completed Contract.

A Home Inspection by a certified home inspector or licensed building contractor must be completed prior to the close of escrow.  There will be no coverage for an Event when the Buyer has waived his right to inspect.

QUALIFICATIONS FOR MOLD COVERAGE:

All parties involved in the transaction must sign the RERM approved Toxic Mold Disclosure.

An RERM approved Certified Environmental Hygienist must complete a Toxic Mold physical inspection prior to the close of escrow. The Buyer and Seller must sign a disclaimer if he/she does not wish to have a physical mold inspection.

Any verbal dispute, written claim or demand must be reported to RERM  within 10 days of receipt and submitted to the Alternative Dispute Resolution and Mediation Services Division of RERM

QUALIFICATIONS FOR ROOF COVERAGE:

A complete roof inspection and roof certification must be done by a licensed roof inspector prior to the close of escrow.

Any verbal dispute, written claim or demand must be reported to RERM  within 10 days of receipt and submitted to the Alternative Dispute Resolution and Mediation Services Division of RERM