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Buying & Building a Home

Buying, Building, or Selling a House with Termite Damage

Buying a home is a big decision and an even bigger investment. Whether you are purchasing an existing home or buying a newly constructed home, you want to make sure the investment is sound and that the home is well maintained and of good quality.

In addition to hiring an expert home inspector, you also should complete the following two steps during the due diligence period before purchasing a home:

  • Hire a licensed termite inspector from a reputable pest control company to inspect the home for signs of past and present infestations.
  • Ask if the seller will include the transfer of the existing termite prevention and control contract (termite bond) in the contract. If there is not an existing bond, plan to purchase your own agreement.
  • A termite bond (also known as a termite letter) is essentially a guarantee from a pest control company that it will provide retreatment and/or repair damage from future termite infestations for as long as the contract is valid. Guarantee language varies between companies and across state lines, so make sure to read your bond carefully to understand what it does and does not cover.

Buying a House: Termites Disclosure
Home sellers are required by law to disclose known termite activity or damage before closing. However, it is still very important for buyers to hire licensed termite inspectors to check for past and present signs of termite activity. Homeowners may not be aware of an infestation that is hidden beneath walls or around the home's foundation.

Termite damage is not necessarily a sign that a buyer should walk away from a home. A professional termite inspector can help you understand the extent of damage and the control methods that have been used or could be used to manage the infestation.

Building a House: Termite Prevention
When you hire a builder, you should include your requirements for termite prevention in your contract. Licensed termite specialists with knowledge of local termite activity can help you understand which methods of prevention are most effective and cost efficient.

In some states, builders are required to provide a one- to five-year termite protection guarantee. If your builder is not required to offer such a guarantee, you may consider purchasing a bond from a pest control company to help protect your home.

Buying a Home with Termite Damage

Should I buy a house with termite damage? That is a common question from buyers. Any damage should be evaluated by a qualified building expert to provide guidance and whether repairs are necessary. Most termite damage can be repaired.

How To Read a Termite Report

Termite inspection report forms are issued for inspections connected with real estate transaction. The most common form is the NPMA-33, and this is required by lenders and HUD unless there is a state form required by regulations.

New Construction Subterranean Termite Soil Treatment Record

The New Construction Subterranean Termite Treatment Record is the revised form required by federal housing authorities (NPMA-99b) and is the record submitted for closing transactions showing that the structure was properly treated.

Pre-Construction Termite Control

Typically lenders in subterranean termite areas require termite prevention prior to loan approval. Pest control companies apply a liquid soil application prior to construction or a baiting system or borates are applied after construction.

Selling a House with Termite Damage

Somes states require sellers to disclose any past defects regarding wood destroying insect infestation including termites. The listing agent should know the state requirements and should advise the sellers as to requirements.

Subterranean Termite Soil Treatment Builder's Guarantee

For new construction, the Department of Housing and Urban Development as well as most conventional lenders require Builder's Guarantee, the NPMA-99a verifying that termite prevention was completed for areas prone to termite infestation.

Subterranean Termite Soil Treatment Builder’s Guarantee

For new construction, the Department of Housing and Urban Development as well as most conventional lenders require Builder's Guarantee, the NPMA-99a verifying that termite prevention was completed for areas prone to termite infestation.

Termite Damage and Real Estate Transactions

Many people become overly concerned if the house they are buying is inspected and termites or termite damage is discovered. Generally termites can be controlled and costmetic or structural damage can be repaired with reasonable cost.