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

Public Realm Improvements

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

More For You

A Lake Tremblant Waterfront Estate Just Broke Québec's Residential Sales Record

A lakefront estate in Mont-Tremblant, listed at $19,800,000, has sold — setting a new record as the highest residential sale ever recorded in the region through the Québec Professional Association of Real Estate Brokers' Centris database.

The sale, brokered by Sotheby's International Realty Canada, involved a Canadian buyer represented through the Sotheby's Québec network. Further details of the transaction are being kept private.

Keep ReadingShow less

Transforming Toronto’s future means digging through its past – literally.

The anticipated 15.6 kilometre Ontario Line subway will transport riders across the city in 40 minutes — from Exhibition Station to Don Mills Road — and feature both underground tunnels and an elevated gateway.

Keep ReadingShow less
'Try Before You Buy' Lands In Vancouver For Buyers-To-Be

ACE Display Suites (Wesgroup)

Wesgroup Properties is giving qualified buyers something the Vancouver new development market has never offered before: a weekend to see for themselves.

In a city where new development purchases are typically made on the strength of a floor plan and a showroom visit, it's an experiential offer that (actually) changes the game.

Keep ReadingShow less
One Of Four: Converted Townhome Listed In Roncesvalles

There are four units in The High Park Garage. This is one of them.

121 Fermanagh Avenue spent most of its life as a working commercial garage just of Roncesvalles Avenue.

Keep ReadingShow less
Concert Properties, Brookfield Form Joint Venture For $1B Canadian Industrial Portfolio

Unsplash

Concert Properties Ltd. has announced the formation of a joint venture with a Brookfield affiliate for a Canadian industrial portfolio valued at approximately C$1 billion.

The deal brings together eight properties totalling roughly 5.3 million sq. ft across Vancouver, Toronto, Calgary, and Ottawa. The mix includes single-tenant and multi-tenant industrial properties, all fully leased to a diverse roster of credit tenants and positioned near highway, airport, and rail infrastructure.

Keep ReadingShow less
It's A Buyer's Market For Cottage Country, But Exceptions Apply
Muskoka (Shutterstock)

Since peaking in 2022, Ontario’s cottage market has been undergoing a slow but steady market correction that has seen sales fall, prices drop and inventory rise.

This trend continued in 2025 with a 12% year-over-year decrease in annual sales, and seven to nine months of inventory across the core cottage-country markets of Muskoka, Parry Sound, and Haliburton, according to Finding Your Muskoka.

Keep ReadingShow less
Ontario Invests $178M In Stalled Scarborough Junction Project By Republic, Harlo

A rendering of the approved Scarborough Junction project. (Republic Developments)

Just around a year after Toronto-based Republic Developments and private equity firm Harlo Capital listed their massive Scarborough Junction project last year, as first reported by STOREYS, the project has found a buyer. Kind of.

Instead of selling the project outright, Republic and Harlo have formed a joint venture with the Government of Ontario, which is making an equity investment of $178 million into the project through the Building Ontario Fund — the arms-length board-governed Crown agency established by the Government of Ontario in 2024.

Keep ReadingShow less
Expert: 5 Policy Changes That Could Actually Fix Ontario's Housing Market

Unsplash

Ontario’s housing market is no longer experiencing a temporary downturn. It is confronting the consequences of a structural policy failure decades in the making.

The evidence is now overwhelming: the market is unlikely to self-correct without significant intervention because government policy itself has become one of the principal drivers of unaffordability.

Keep ReadingShow less