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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

May 22, 2025


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

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Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

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