Good gracious! I don’t do those.
No, we’re not talking about PDAs… but PDIs. There’s an important difference (although they are by no means mutually exclusive; heck, you may wish to proceed with a PDA after a successful PDI – to each their own, I suppose).
First, congratulations on buying a new-build property (doesn’t matter what kind of new-build… could be a stand-along, freehold home or a unit in a high rise condo).
Second, like a new car – you want to look it over thoroughly and take it for a spin before you buy. Same with a newly constructed property. Obviously.
Whenever you’ve purchased a newly constructed property and it’s (finally!) ready for you to move in, your real estate salesperson should emphasize the importance of completing the Certificate of Completion and Possession (CCP)/Warranty Certificate. On new build properties (that are entirely new from the ground up and constructed by a builder… not yourself), there is a one-year warranty, usually administered by Tarion.
The buyer (i.e. you) and the builder should both conduct a pre-delivery inspection (PDI) of your new place together before you take possession. The PDI form is the document the buyer can complete to list and describe any missing, incomplete, non-functioning, damaged or unauthorized substituted items observed in (and outside of) the property. Take your time with this walk-through and be thorough. Don’t rush it. The items listed should all be rectified before the buyer takes possession.
During this walk-through, both parties ought to sign the CCP, also. The CCP must be completed on or before possession of the property (because the builder then has to forward this completed document to the provincial new home warranty authorities within fifteen days of you taking possession).
FYI – Once the walk-though PDI is complete, the builder will typically remove the CCP sticker from the form and place it on the inside of the electrical panel (it contains registration information and enrolment numbers for the buyer’s future reference). If you then find or experience an issue within the first year warranty period, this information will be required for your application (to Tarion).
If your new property is a condo, the PDI/CCP will be done prior to taking ‘interim occupancy’ of your particular unit. While this means you can move into your new property unit, you won’t actually own it until the builder ‘hands it over to the condo corporation’ (i.e. once the condo corp is registered); effectively, what you will pay monthly during the ‘interim occupancy’ is a rent to the builder (i.e. you will NOT be paying down your mortgage). Confirm this ‘minor’ detail with the builder and ask if they have a firm timeline they expect for the condo registration. Regardless, once you have taken occupancy of your unit, the (one-year) provincial new home warranty start date will be of the date you first took possession.
So… while I’m sure you’ll be (understandably) super excited to walk through your new place, do contain yourself and keep your wits about you. Go through it with a fine toothed comb. You’ll be glad you did.
An ounce of prevention is worth a pound of cure, as they say.
