Nearly all the yards in the new developments look like this. Poorly installed pre-cut sections of sod that are ankle breakers. How do we reoprt on this?
That looks like Bahia grass.
It is pretty dormant in the winter & will grow to fill in after winter.
You say new development. …
Typical of new construction with the squares/pieces of sod used. As Marc stated it appears dormant. Unless the grade is bad due to not rolling it in, or the pieces are definitely dead (typically trampled to death) the only thing to report is for the client to monitor it until growing season to ensure it survived.
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What has been your rainfall amount in your area? Sod strips will shrink without proper watering.
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Pretty sure Manny has your reporting narrative. 
But what about when they are so bad you cant walk through the yard without twisting an ankle?
Are you laying in the yard now with a twisted ankle? 
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Note it as information; " The sodding of the yard has separations between the sodding layout. Traversing the yard may pose a tripping hazard or other hazards and rutting. Verify with the ‘builder, seller etc’ if the lawn will be smoothed by various means to rectify the separations."
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The picture in his post is a live shot from the inspection. 
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The only thing you can do here is apply sand to fill in.
Not gonna happen. It will not be like that forever… … …
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When I find it like that I just take a chunk with me and roll it up and smoke it… it never occurred to me to report on it. 
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I’ve seen the sand fill in. Question is: Is the builder going to do it?
doubt it
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That Rudy’s going to pay $148m ? Me too…
stop it
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Report what you observe, if you tell the truth and describe accurately, you can not go wrong. If you have extra knowledge about any particular subject that is a plus. Photos are a great backup to your observations. Looks like potential ankle twisters/safety hazards in the OP post to me. Maybe it will “grow in” in the future, but that is not the current condition. That is IMHO, YMMV. 
We don’t. Yard grass is not covered by the SOP.
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Even if it affects grading and drainage around the home?
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Yes. I report on the grading and grass as a result, I.e. I report dead spots. I don’t go beyond “grubs or poor irrigation” or if it’s somehow standing in water and killed the grass, but I point it out.
It’s just an observation, I make no warranty on it, other than “here’s something, you, as a home buyer, might want to consider when you’re thinking about what this home may cost in the larger context”
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