As many of my clients are first time home buyers, the process of the termite inspection and termite/wood destroying pest repair process is often a bit confusing. Unlike any traditional repair requests that come up during the escrow process, the termite inspection and repairs are generally agreed upon prior to acceptance and are therefore contractual and non-negotiable during escrow.
During the offer there are two times the inspection and work can be mentioned. The Residential Purchase Agreement specifies whether an inspection will be performed and who will pay for it. Another document called the WPA or wood destroying pest addendum can also be included in the offer and goes into greater detail explaining what will be inspected, who will pay for it, and if there is any work needed per the inspection, who pays for the work. Most often sellers agree to pay for both the inspection and, what’s known as, section 1 recommendations. This often includes wood repair, spot treatment and sometimes fumigation (tenting). Every negotiation is different and some will not agree to pay for an inspection or the work. Regardless I advise my sellers to have an inspection even if they are paying for it themselves as simply put…it makes a big unknown more understood and decisions can then be based on the results. There are a number of challenges and problems that can be caused by the termite uncertainty and I’ve listed several here.