Final Inspection

By Jayson Schwarz LLM

Today we are going to address a small but incredibly important part of the process of buying that new home, the “Pre Closing or Pre Delivery Inspection” (“PDI”). As most of you know included in the adjustments on the purchase of a new home or condo (but not a conversion) is the cost of your Ontario New Home Warranty Program enrolment. Among the things that you are covered for are defects in the completion of your new home. Most of the Agreements of Purchase and Sale make the deficiency list prepared as part of your final inspection the only basis for repairs, subject to the major items such as foundation cracks. What does this all mean?

When it is time to do the PDI know that if you don’t list it, you may not be able to compel the builder to fix it. Therefore it is critical you list everything!!! Here is a minimum list of what I believe will help you in making sure you are covered:

1. Insist on having enough time to do the inspection and allow yourself enough time with no need to be anywhere else;
2. Write everything down yourself . . . don’t let the builder’s rep take charge;
3. Don’t Rush!!! Do not let the builders rep push you, insist at moving at you own speed;
4. Write or mark down everything, no matter how small or insignificant;
5. Do not accept promises of repair during inspection – if something is not right mark it down;
6. Try every light, socket, tap, drain, toilet, every door, every lock, every window, every appliance, every thing that could be defective now or go wrong later;
7. Watch for stains on carpet, scratches on wood floors, cracks in paint or drywall, areas where they forgot a 2^nd coat of paint, etc;
8. Look for water stains or spots on concrete basement floors or walls and if you see them insist on knowing why and where they came from;
9. Don’t forget the exterior – roof, drains, bricks, mouldings, is there sod? is grading complete? and is your driveway in? etc. Mark it all down!!
10. Condominiums- go check out the common areas –lobbies, garbage rooms, parking areas, lockers, pools, tennis courts, health clubs etc. – remember you own part of the common area and if parts are incomplete, wrong or defective, get them on the list!

Remember that this inspection is extremely important to deal with deficiencies, so make sure you check carefully. Some readers ask about what happens if the builder rushes them or something happened so they did not get the opportunity to finish. The answer is to IMMEDIATELY do a complete list and send it to the builder and to Tarion in order that the record is on file.

Good luck and happy home hunting!!!!!!!!!!!!!!!!!!!!!!!!!!!