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This letter responds to your letter of September 24, 2014, a copy of which is attached hereto without your enclosures, for your ease of reference At the outset of this response, let me go on record as saying that [redacted] ("***"), our Seller entity, absolutely denies that it has in any manner defrauded the [redacted] s In the attached [redacted] at [redacted] Purchase Contract, Deposit Receipt and Escrow Instructions dated June 9, ("Purchase Contract") between the [redacted] and ***, [redacted] agreed to sell the [redacted] Lot 113, and the [redacted] agreed to purchase Lot [redacted] made no representation with respect to the subject landscape area (1,square feet according to Mr [redacted] ) to the [redacted] much less a representation, which the [redacted] relied upon, resulting in damages to the [redacted] sIn fact, the [redacted] received more land than they claim they understood they were receivingAs a result, [redacted] cannot understand how Mr [redacted] can claim that the [redacted] were somehow defrauded and damaged as part of the purchase transaction When Mr [redacted] called the landscaped area issue to ***'s attention, we first learned that the utility services for Lot had mistakenly been constructed on Lot in the landscape areaWith the attached letter of November 13, to the [redacted] s, [redacted] therefore offered to relocate the utility services onto Lot or to leave the Lot utility services in place and pay the [redacted] $1,for additional re-landscaping or for other purposes as the [redacted] determinedThe [redacted] declined this offer In December of 2013, the [redacted] hired an attorney (Attorney [redacted] of Scottsdale, Arizona) to review this matter [redacted] had contact with this lawyer; however, the attorney took no legal action on the [redacted] s' behalf [redacted] did, however, through the [redacted] s' attorney, renew our offer to move the utilities onto Lot or to pay an increased amount to the [redacted] of $3,This offer was also rejected by the [redacted] s In addition to the attached Purchase Contract and our letter of November 11, to the [redacted] s, we are attaching one of the Addendum to the Purchase Contract relative to the Home Builder's Limited Warranty the [redacted] acknowledged receipt of as part of executing the Purchase ContractAlso attached is the Home Builder's Limited Warranty (PWC Form No117) which contains the limited warranty the •Kieiners received with respect to their home and the dispute resolution provisions for mandatory arbitration, which were also reflected and agreed upon by the [redacted] under Section of the Purchase Contract In our letter of November 11, 2013, we specifically suggested to the [redacted] that if they were not satisfied with our offer, they were entitled to pursue mandatory arbitration, and we in fact gave them a phone number of the Administrator of the mandatory arbitration service, Professional Warranty Service Corporation As recently as September 29, [redacted] ***, Vice President of Construction for [redacted] of Arizona, Inc., our general contractor company which constructed the [redacted] s' residence, spoke on the phone with Mr [redacted] in a continued effort to try and amicably settle the [redacted] s' claims During this discussion, Mr [redacted] reaffirmed to Mr [redacted] that when the [redacted] purchased their home from ***, it was the [redacted] understanding that the landscaped area was located on the neighbor's land (Lot 112) and was not part of the lands the [redacted] were purchasing (Lot 113) Since Mr [redacted] continues to complain about the landscape area in question being landscaped in a manner which made it look like it was part of Lot versus Lot 113, Mr [redacted] as a good will gesture suggested one way to amicably settle the [redacted] s' claim was for [redacted] to pay the [redacted] $5,in exchange for the [redacted] deeding the property constituting the subject landscaped area to the owners of Lot This would place the [redacted] in the same ownership position they say they understood they were in when they closed on the purchase of their Lot plus would compensate the [redacted] for their perceived damages Mr [redacted] , however, declined this offerWe totally reject Mr [redacted] 's assertion that he should be paid $50,in damages for settling a claim involving the mistake in locating Lot 112's utility services on Lot As another goodwill gesture, this matter could be resolved by re-rocking the complained of landscape area so it is absolutely clear that the area is part of Lot 113, which we would undertake at our cost, plus we would be willing to pay to the [redacted] for the utility easement for Lot the sum of $5,000, and the [redacted] would then retain ownership of the landscape areaPlease feel free to convey this offer to the [redacted] sIf the [redacted] reject this offer, then this civil dispute should be resolved per the Purchase Contract through mandatory binding arbitration by an independent arbitrator Our offers are not made as an admission of any legal liability to the [redacted] but rather as a good will gesture under our customer care program If you have any questions or would like to discuss this matter further, please feel free to contact [redacted] at our Arizona officeHis phone number is ###-###-#### or to call the undersigned

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