Punch List
Definition and meaning of Punch List in real estate.
A punch list is a document created near the end of a construction or renovation project that details minor tasks, repairs, and adjustments that must be completed before final payment is released.
In more detail
This list is typically compiled during a walk-through inspection involving the builder, the contractor, and the buyer or property owner. It includes items such as paint touch-ups, missing hardware, malfunctioning light switches, or minor drywall cracks. For new construction homes, completing these items is often a condition for closing the sale and transferring the deed.
The list ensures that all details of the contract are fully met to the satisfaction of the buyer before the contractor receives their final draw of funds.
Key facts
| Category | Buying & Selling |
|---|---|
| Timing | Completed during the final walk-through |
| Participants | Buyer, builder, or general contractor |
| Primary goal | Resolve minor construction defects |
During the final walk-through of their newly built home, the buyers add a scratched kitchen cabinet door and a loose bathroom faucet to the punch list for the builder to fix before closing.
Frequently asked questions
Who is responsible for completing the items on a punch list?
The general contractor or homebuilder is responsible for fixing all items on the punch list at their own expense before receiving final payment.
Can a buyer close on a home with an incomplete punch list?
Yes, buyers can close with incomplete items, but they typically hold back a portion of the payment in an escrow account until the work is finished.