Deficiency List

Learn how a deficiency list works in Canadian real estate, when it's used, and how it helps protect buyers during new home purchases or inspections.

Deficiency List



What is a Deficiency List?

A deficiency list is a documented record of unfinished, incomplete, or substandard items identified during the inspection of a newly constructed or renovated property.

Why a Deficiency List Matters in Real Estate

In Canadian real estate, especially with new home builds or condo purchases, a deficiency list is typically created during the Pre-Delivery Inspection (PDI) or final walkthrough. It helps buyers and builders track outstanding issues that need to be resolved before or shortly after possession.

Common deficiencies include:
- Scratched flooring or countertops
- Incomplete caulking or paintwork
- Improperly installed fixtures or appliances
- Missing hardware, cracked tiles, or non-functional outlets

The builder is usually responsible for correcting listed deficiencies within a specified timeframe, often under the terms of a home warranty program like Tarion in Ontario. Buyers should document issues thoroughly with written notes and photos and follow up to ensure completion.

A complete deficiency list protects buyers from overlooking defects and supports warranty claims or legal recourse if problems are not addressed.

Example of a Deficiency List in Action

During the PDI of a new condo, the buyer notes five deficiencies including a broken cabinet hinge and scuffed walls. The list is submitted to the builder for correction before move-in.

Key Takeaways

  • Documents unfinished or flawed construction items.
  • Used during new builds and PDIs.
  • Guides builder repairs under warranty.
  • Helps ensure buyer satisfaction and protection.
  • Should be detailed and photo-supported.

Related Terms

Additional Terms

Rent Control

Rent control refers to government regulations that limit how much landlords can increase rent for residential tenants each year.. more

Receivership

Receivership is a legal process where a court or secured creditor appoints a receiver to take control of a borrower’s assets, such as property or. more

REALTOR

A REALTOR is a licensed real estate professional who is a member of the Canadian Real Estate Association (CREA) and adheres to its Code of Ethics and. more

Property Use History

Property use history refers to the documented past uses, functions, and occupancy of a property, which may affect environmental risk, zoning, or. more

Property Management

Property management is the oversight and administration of real estate assets on behalf of the owner, covering leasing, maintenance, financial. more

Property Maintenance

Property maintenance refers to the ongoing upkeep, repair, and management of a building or land to preserve its safety, functionality, and appearance.. more

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