It’s overwhelming – the amount of information you need to know when buying a new home. One of the most important is the pre-delivery inspection of new homes (PDI). This article will cover: what needs to be inspected, who needs to go, how long it will take, what you need to bring with you, what documents you will be asked to sign, and what documents you should receive. Finally, what to do if something is left off the POI list!
The purpose of the PDI is to minimize any potential dispute between the homeowner and the builder. The builder is in the business of selling new homes, and he wants to make sure that his employees have done a good job of keeping his customers happy. The new homebuyer wants to ensure that the home is completely finished at the time of ownership and that a certain standard of quality is provided. The POI is usually the only opportunity the owner has to do this before taking possession.
During the PDI, the builder and owner make a list of the items that are incomplete, missing, damaged, or not working on the PDI Form. The PDI Form provides a formal record of the existence of the condition of the home before the owner takes possession. Problems discovered after the PDI may still be covered (see 30-Day Warranty Form below), but it will be the homeowner’s responsibility to prove that the problem existed prior to the PDI or that the problem arose for reasons beyond the control of the property owner. .
What needs to be inspected
Your Tarion Warranty covers workmanship and material deficiencies on many items. Check out the Construction Performance Guidelines – a 268-page document that covers acceptable performance standards, applicable warranty, and steps the builder or owner must take to correct the problem.
The checklist covers everything from appliances to HVAC to basement leaks to a missing coat of paint. Here is a partial list:
- Foundation/ Basement
- wall framing
- floor structure
- Exterior finishes
- ceilings
- Plumbing
- Electric
- Indoor air conditioning
- Finishing of walls and ceilings
- inside FINISH
- Cabinets and Countertops
- flat
- Fireplaces and Chimneys
- Garages and Exteriors
Be sure to inspect the interior and exterior of the house.
Who should go?
You can ask whoever you want to accompany you or you can also designate someone to take your place. You can even choose to have a home inspector accompany you or take on this role. I think it’s a great idea to bring a home inspector with you! If you choose to designate someone to go in your place, you will need to sign a form in advance to authorize it. See the Designee Appointment Form on Tarion’s website.
Don’t bring your children or friends with you, this is not the time to celebrate your new purchase. You will need to concentrate and take notes on what the builder’s representative tells you. Listen carefully to the instructions provided on the use of mechanics in the home, since the guarantee depends on proper use. Ask about the builder’s after-sales service policy and who to contact in the event of a problem or emergency.
How long will it take
Try to make the appointment first thing in the morning and don’t schedule any appointments afterward. You don’t want to put yourself in a position where you don’t have enough time to do a thorough inspection. Keep in mind that it takes about 3 hours for a professional home inspector to inspect a home.
Don’t feel pressured to rush! Remember that anything not written may not be covered under warranty later.
What you need to take with you
Be sure to bring a copy of your Purchase and Sale Agreement to verify all the items, upgrades and finishes that were stipulated in your contract and help you determine if something is a permissible substitution.
Also, don’t forget to print a copy of the POI checklist from Tarion’s website.
Documents you will need to sign
The forms you will be asked to sign at the PDI appointment are:
- the PDI Form (the list of deficiencies you discover during your inspection), (Make sure ALL outstanding items are complete before signing the PDI form),
- the Certificate of Completion and Possession, also known as the New Home Warranty Certificate (fax this to your real estate attorney right away; you’ll need it to close), and
- the Confirmation of Receipt of Owner Information Packet form. The Homeowner Information Packet contains important information about the dates of the legal guarantee process, as well as the 30-day and year-end guarantee forms.
30-day and year-end forms
What if you discover something after the POI? You can fill out the 30-day warranty form, but you may have to deal with the question of whether it existed at the time of inspection and, if so, why it wasn’t listed. If it’s something that happened after the PDI, the 30-day warranty form and the year-end warranty form are specific to these types of issues.
A 30-Day Statutory Warranty form must be submitted within the first 30 days of possession. You can list things that haven’t been addressed or anything new that has been discovered.
Note: You can only submit one of these 30-day forms. So wait until near the end of the 30 days to see if anything is discovered, and then send it before the 30th in person or by certified mail. This form is available on the TARION website or in the TARION owner pack. If you don’t ship it on time, you must wait until the last 30 days before the year ending after your purchase anniversary.
TARION Claims
It is important to realize that PDI is not a claim under Tarion’s warranty. In the first year, there are two opportunities to make warranty claims. They are forms that are delivered to you at the POI that you fill out regardless of the constructor and the POI. The first opportunity is the 30-day form and the second is the year-end form, to be submitted in the last thirty days of the first year. For both, you must complete the corresponding forms and submit them on time. The 30-day form must include anything that was missed during the PDI or things that were not corrected after being noted during the PDI. Ideally, the end of the year form will capture any of the effects of settling down and surviving a winter season.
Summary
The PDI is a form of communication between the builder and the owner. List items that are incomplete, missing, damaged, or non-operational in the home. It alerts the builder that these items need to be corrected and prevents the owner from being held liable for pre-existing conditions. Finally, it’s an important opportunity to ask questions, take notes, and learn about the care and maintenance of your new home.
WARNING: This article does not contain legal advice and may not be related to such.