Pre-Delivery Inspection

The Pre-Delivery Inspection, which generally applies to newly-built homes, is a real estate term which means the option (or requirement, depending upon how the real estate contract is written) for the buyer to inspect the property prior to closing or "settlement. This inspection generally takes place up to a week before closing, and it generally allows a buyer the first opportunity to inspect his/her new home and to ensure that all terms of the contract have been met, that the home is substantually completed, and that major items are in workng order.

Along with a representative of the builder (generally the construction supervisor or foreman), the buyer may be accompanied by a home inspector of his/her choice. Any defects noted are added to a "punch list" for completion prior to closng. Often a second inspection is conducted to ensure that the defects have been corrected.

Many local governments within the US and Canada require that new home builders provide a home warranty for a limioted period, and this typically results in home builders conducting a pre-delivery inspection with the buyer.

In a re-sale situation

This type of inspection is often termed the "final walk through", and, based on the contract's provisions, it allows the buyer the opportunity to inspect the home prior to closing to ensure that agreed-upon repairs or improvements have been completed.

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