The annual inspection: a checklist for the housing company board

A new housing company’s annual inspection is one of the most important moments in the entire warranty period. It takes place at the earliest 12 and at the latest 15 months after the property is completed (Housing Transactions Act (843/1994), Chapter 4, Section 18), and after it the builder’s liability narrows considerably. This guide explains why the annual inspection is so critical and what the board and the shareholders should check, room by room.

This is a general guidance article. Always check the contracts for your own property and consult a lawyer where necessary.

What is the annual inspection?

The annual inspection is a joint review by the builder and the housing company, in which the defects and shortcomings observed in the property are gone through. In practice it is the last easy window to report visible defects: after the annual inspection, it is difficult to demand repairs for visible defects that were left unrecorded. The warranty period (typically 2 years from completion) continues after the annual inspection, but for unrecorded visible defects you can in practice only rely on hidden defects — faults that could not have been detected in an ordinary inspection.

For this reason the principle is simple: if a defect is detectable, it must be recorded and reported now. Even a minor cosmetic deviation is worth documenting — relying on it later is difficult or impossible.

Why timing is decisive

For the whole warranty period (typically 2 years from completion) a presumption of defect applies: the burden of proof rests with the builder — it must show that a fault is not its responsibility.
The annual inspection is the practical last moment to record visible defects. Once the warranty period ends, the burden of proof shifts to the housing company — the party making the claim must itself show that the issue is a defect within the meaning of the Housing Transactions Act. After the warranty period, you can in practice only demand repairs from the builder for hidden defects.
This is why it is worth starting to collect defects as soon as the property is completed, and to have the list ready 2–3 months before the annual inspection.

Note too that for serious hidden defects the builder may be liable for up to 10 years from the transfer of administration (the so-called ten-year liability). Relying on this is, however, more difficult and often requires expert help. The concept of a hidden defect and the ten-year liability are covered in more detail in the guide on hidden defects in a new home.

Timeline and deadlines

The annual inspection is not an isolated event but a single point on the timeline of the whole warranty period. The following table helps you see where things stand and what happens after each milestone.

Stage	Timing	What it means
Completion / handover	Handover of the property	The warranty period starts to run; it is worth starting to collect defects straight away
Move-in inspection	At the time of moving in	The first opportunity to record an apartment’s visible defects at the moment of handover
Annual inspection	12–15 months from completion (Housing Transactions Act, Ch. 4, s. 18)	The last easy moment to record visible defects in a whole-company review
Warranty period	Typically 2 years from completion	Presumption of defect in force: burden of proof on the builder
Renewal of the claim	Generally ~3 years from discovery	The right to claim may become time-barred unless it is renewed (verify the deadline with an expert)
Ten-year liability	10 years from the transfer of administration	Serious hidden defects may be claimable; burden of proof on the housing company

The apartment-level checklist for the move-in inspection complements this guide — see the move-in inspection checklist. The timeline milestones recur in the same form in every RS construction project, so following them is worth building into the board’s annual calendar.

How the board prepares

Collect defect reports continuously. Remind shareholders to report every defect they notice. Encourage them to test things in different seasons — heating in winter, drainage in spring.
Compile all the defects into a single list well before the deadline.
Consider an external inspector for technical spaces and structures. It costs money, but it finds what a layperson cannot. When your own expert is needed and what it costs are covered in the guide on when a housing company needs a building expert.
Prepare the claim in writing: defects classified, with photographs and references.
Give the builder a reasonable time to respond (typically 14 days — not a statutory requirement, but reasonable) and record the inspection meeting in the minutes.

If the builder disputes a defect, do not remove it from the list — note the disagreement and keep the item included.

After the annual inspection, follow-up continues: record the builder’s responses and repair records, and keep every open defect pending until it has been demonstrably repaired. If a repair is delayed or left undone, the matter is worth raising again in writing before the deadlines start to approach. For the disputed items, it is wise to confirm your own legal position with an expert at an early stage — not only when the deadline is already about to expire.

Checklist, room by room

At the annual inspection you go through the same points as at the move-in inspection, but now also the problems that have come to light while living in the property. Go through the spaces systematically, one at a time, and record every finding together with its location — the key observations by type of space are gathered below.

Bathroom and wet rooms

Signs of waterproofing at the threshold and at the wall/floor joint.
Floor fall towards the floor drain: pour water and watch whether it runs to the drain — no puddles.
Tile tap test: tap the tiles. A hollow, drumming sound means a loose “hollow tile”.
Silicone seals and the sealing of internal corners intact.
Extract ventilation is drawing: a piece of paper should stick to the vent.

Kitchen

Water-tightness of the sink and dishwasher — wipe the connections dry and watch whether any moisture remains.
Worktop seals to the wall and the sink intact.
Sockets, earthing and the residual-current device work. Test the residual-current device from its test button.

Living room and bedrooms

Floor evenness: bumps, creaks and gaps.
Cracks in walls and ceilings — in particular, diagonal cracks running from the top corners of doors can be a sign of structural movement.
Window seals, locks and condensation: mist between the panes means a failed glass unit.
Heating is distributed evenly, no cold radiators.
Smoke alarm works — test it from the test button.

Hallway

Front-door seals and closing, the operation of the main lock and the deadlock.
Lighting and switches, the door phone and its release function.

Balcony

Floor fall outwards or to the drain, the operation of the drain.
Railing fixing and height, the sliding and locking of the balcony glazing.

Balconies and the façade are a source of recurring defects in new-build properties — fall, drainage and coating defects, as well as cracks. The most common points and their tell-tale signs are gathered in the guide on balcony and façade defects.

Sauna and communal spaces

Fixing of the benches, the seams of the panelling, the safety clearances of the stove.
Communal spaces, technical rooms and fire compartments — these are the board’s responsibility in addition to the shareholder-specific inspections.

The most common defects that go unrecorded

Experience shows that certain defects are repeatedly left unrecorded — either because they only come to light in particular conditions, or because they are not considered “serious enough” to report. It is precisely these that later give rise to disputes, once a defect can no longer be easily claimed.

Faults that only appear in certain seasons. Uneven heating shows in winter, drainage and fall problems in spring during the meltwater, and inadequate ventilation in the summer heat. Encourage shareholders to test things in different seasons, so that these make it onto the list before the annual inspection.
Minor cosmetic deviations. A gap in the skirting board, a hairline crack in a corner or an uneven paint finish are easily left unrecorded — but after the annual inspection, relying on them is difficult.
Shortcomings in communal spaces and technical rooms. Shareholders focus on their own apartment, and stairwells, technical spaces and fire compartments go unchecked. These are specifically the board’s responsibility.
Disputed items that get removed from the list. If the builder denies a defect, it should not be removed — even a contested item is worth keeping on the list, with the disagreement noted.

Each of these is easier to head off when the defect has been properly documented at the very moment it is noticed.

Documentation is half the job

For every defect it is worth taking a photograph, recording the location and a description, and any relevant regulatory reference. A well-documented defect list is a considerably stronger basis for a claim than a verbal reminder. Practical guidance on photographs, measurements and the timeline can be found in the guide on how to document a construction defect. Once the defect list is ready, the written claim is built on the basis of it — the steps and the three-year renewal rule are gathered in the guide on making a written claim to the builder: how to do it correctly and on time. With VAREK you collect defect reports, photographs and floor-plan markings in one place and compile the claim at the click of a button.

Make the annual inspection a managed process

The annual inspection is not a formality but the housing company’s most important moment of quality assurance. Start in good time, document everything, and report comprehensively.

This is a general guidance article, not legal advice. Always check the deadlines and obligations against the contracts for your own property and, where necessary, with an expert.

Frequently asked questions

When is the annual inspection carried out?

The annual inspection takes place at the earliest 12 and at the latest 15 months after the property is completed (Housing Transactions Act (843/1994), Chapter 4, Section 18). It is the last easy window to report visible defects, so it is worth starting to collect defects as soon as the property is completed and to have the list ready 2–3 months before the inspection.

What happens if a visible defect is not recorded at the annual inspection?

After the annual inspection, it is difficult to demand repairs for visible defects that were left unrecorded. The warranty period continues after the inspection, but for unrecorded visible defects you can in practice only rely on hidden defects — faults that could not have been detected in an ordinary inspection. The principle is therefore: if a defect is detectable, it must be recorded and reported now.

Who is responsible for proving defects after the annual inspection?

For the whole warranty period (typically 2 years from completion) a presumption of defect applies: the burden of proof rests with the builder. Once the warranty period ends, the burden of proof shifts to the housing company, and you can in practice only demand repairs from the builder for hidden defects. For serious hidden defects, the builder may be liable for up to 10 years from the transfer of administration.

Is it worth hiring an external inspector for the annual inspection?

An external inspector is worth considering especially for technical spaces and structures. It costs money, but it finds what a layperson cannot. Expert help is also often needed if you want to rely on serious hidden defects within the ten-year liability period.

What needs to be checked at the annual inspection?

You go through the same points as at the move-in inspection, plus any problems that have come to light while living in the property: bathroom waterproofing and falls, kitchen water-tightness, floor evenness, cracks in walls and ceilings, window seals, even heating, balcony fall and railings, and the communal spaces and fire compartments. For every defect, take a photograph and record the location and a description.