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.

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
- Pre-Delivery Inspection (PDI)
- Tarion Warranty
- New Construction
- Builder Compliance
- Home Inspection

An overview of Hedge Road Landing. (Alliance Homes)
6525 Mississauga Road and its surrounding context. (RBC Capital Markets & CBRE)
Property details for 6525 Mississauga Road. (RBC Capital Markets & CBRE)






National average resale-price growth and housing-starts growth, smoothed over three months. The comparison illustrates the cycle; it does not establish how much a price change causes construction to change.
Trailing 12-month starts in centres of 50,000 or more remove the usual monthly seasonality. Ownership combines the homeowner and condominium categories; rental is shown separately.
Six-month averages of provincial starts, expressed at annual rates. The smoothing reduces the influence of individual apartment projects.
The same August benchmark compared with two different starting points. Three-month changes are not annualized.
Average sale prices show the difference in purchase costs across markets. They do not measure affordability relative to local incomes or construction costs.
Newfoundland and Labrador remains above its pre-pandemic sales pattern, but August activity was below last year. Historical lines retain their original release vintages.



Average and median describe different aspects of the same month’s transactions. Both are affected by the mix of homes sold.
Category averages compare different homes and locations; the gaps are not estimates of the cost to upgrade an otherwise identical property.
The five categories shown account for 5,000 of the board’s 5,057 sales. The remaining 57 transactions were in other housing categories.
Monthly observations are not seasonally adjusted. Active listings count properties available at month-end; they are not construction inventory.
Average and median prices share one dollar axis. These unadjusted transaction measures do not control for changes in the homes sold.
TRREB’s 416/905 categories compare the apartments sold in each area. The difference does not isolate a location premium for equivalent units.
Highlights from the Delta Golf & Country Club listing brochure. (Colliers)