A deficiency walk-through is unique to new developments/buildings. It is a chance for a purchaser to walk through the property they are buying (with the developer or a representative of the developer) to ensure that everything is ‘as-new’ and point out anything that has been damaged. Any problems—deficiencies—are agreed upon, written down and will be dealt with by the Developer as laid out in the contract of purchase and sale.
When Should it be Done?
A Deficiency Walk-Through is done after subject removal but before completion. Ideally, it should be arranged so that there will be enough time to do any work that needs to be done before completion. This isn’t always possible, and the contract will often include wording that expressly allows the developer to complete the work up to a certain number of days after completion. *While it’s beyond the scope of this blog to discuss the exact wording that you may wish to use in a contract, suffice it to say that it is extremely important that you read and understand the terms around the walk-through! Developers’ contracts will likely weigh heavily in their favour, while a pre-written one from your REALTOR®’s Real Estate Board may include terms/holdbacks that a developer doesn’t wish to see. If your Realtor has dealt with the Developer before, he/she should be in a good position to advise.
What is reasonable to include?
Anything that isn’t ‘as new’. The most common deficiencies are cosmetic, but more serious deficiencies can exist. It’s a great idea to have your inspector highlight deficiencies with coloured tape (especially if you don’t trust your own eyes to catch everything!)
Here’s a quick (incomplete) list of things that may need a ‘fix-up’:
- Deep scratches in the flooring
- Incorrect installation of cabinets/drawers/doors/appliances/carpeting
- Broken blinds
- Problems with electrical outlets
- Incomplete construction/finishing
- Missing hardware or fixtures
Ultimately if your REALTOR® has experience with new construction, and hopefully a good sense of who the developer is and what their reputation is like, he/she should be able to guide you so that the contract is written to protect you and that your expectations are in line with that of the developer’s. Neither party wants surprises on the day of the walk-through! This is why it’s important to work with a Condo Expert – we have worked with some of the most well-respected developers in the Greater Victoria area. Contact us today!