Abstract: Buildings and walls are commonly constructed with exterior walls composed of fiber exterior panels, such as fiber cement panels or glass reinforced gypsum exterior sheeting. The spaces between the exterior panels are sealed using the system and method of the present invention. The space is first filled with an acrylic flexible joint compound. A thermally set, spunbonded, reinforced, polyester non-woven joint tape is then applied. The tape is then covered with a ceramic mud. After curing of the ceramic mud an acrylic elastomeric coating is sprayed, brushed or rolled on the fiber cement panels. A cement-free stucco coating or a variety of other coatings may then be applied over the exterior panels.