Pre Delivery Inspections
Pre Delivery Inspections, which generally applies to newly-built homes, is a real estate term that means the buyer has the option (or requirement, depending upon how the real estate contract is written) to inspect the property prior to closing or settlement. These inspections generally takes place up to a week before a closing, and they generally allow buyers the first opportunity to inspect their new home. Additionally, the inspection is to ensure that all terms of the contract have been met, that the home is substantially completed, and that major items are in working order.
Along with a representative of the builder (generally the construction supervisor or foreman), the buyers may be accompanied by a home inspector of their choice. Any noted defects are added to a punch list for completion prior to closing. Often a second inspection is conducted to ensure that the defects have been corrected.
Many local governments within the United States and Canada require that new-home builders provide a home warranty for a limited period, and this typically results in home builders conducting a pre-delivery inspection with the buyer.
In a resale 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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