What Is This Clause?
A clause that limits the builder's repair obligations to only those items specifically identified on the pre-closing punch list (walkthrough checklist). Any issues not documented during the walkthrough are deemed accepted by the buyer, and the builder has no obligation to address them.
How It Works
Before closing on a new construction home, the buyer typically does a final walkthrough with the builder's representative. During this walkthrough, the buyer creates a 'punch list' — a checklist of items that need to be completed or repaired before (or shortly after) closing.
A punch list limitation clause states that the builder's obligation to make repairs is limited to the items on this list. Anything the buyer does not identify during the walkthrough is considered accepted. This is particularly problematic because most buyers are not trained inspectors and may miss issues that a professional would catch — wiring defects behind walls, plumbing problems, roofing issues not visible from the ground, and similar hidden defects.
Additionally, verbal promises from the builder's sales agent or the buyer's real estate agent are typically unenforceable unless they appear on the written punch list. Buyers frequently report being told 'we'll take care of that after closing' only to find that the builder later refuses because it wasn't on the formal punch list.
Why It Matters
Defects not caught during a single walkthrough may become the buyer's responsibility to repair, even if they were caused by the builder.
Most buyers are not trained inspectors and will miss issues that are hidden, intermittent, or require professional expertise to identify.
Verbal promises to fix items after closing are legally meaningless if the contract limits obligations to the written punch list.
Which Builders Use This Clause
The following builders have been documented using this clause type in their purchase agreements.
State-by-State Enforceability
Punch list limitation clauses are generally enforceable, though they typically cannot override the builder's express warranty obligations for defects discovered after closing. In states with strong implied warranty protections, the punch list limitation may not prevent claims for latent (hidden) defects discovered after the walkthrough.
What Buyers Can Do
- 1Hire a licensed, independent home inspector to accompany you on the pre-closing walkthrough.
- 2Document everything — take photos and videos of every issue, no matter how minor.
- 3Do not rely on verbal promises. If the builder agrees to fix something, get it in writing on the punch list.
- 4Understand that the punch list limitation may not apply to hidden defects covered by the builder's warranty or state implied warranty protections.
- 5Request a second walkthrough to verify punch list items are completed before closing.