Once a builder or contractor has declared a project “substantially complete” it’s given a pre-final inspection. As this video outlines, the punch list – called a “snag list” in some other English-speaking countries – is the remaining set of tasks.
Tasks might include repairs to damaged windows or wall cracks, or final installation fixes like activating security systems or getting elevator permits.
Punch lists are frequently organized by the type of sub-contractor that does each job carpentry items, electrical items, plumbing tasks, and so on. Most contracts allow buyers to withhold final payment until these tasks are done, or conditions resolved to their satisfaction.
Don’t close escrow until the punch list items are addressed to your satisfaction; once you do close, you legally own it as-is.