Selling a House with Termite Damage

Home sellers are required by law to disclose known termite activity and damage to potential buyers. This information typically is noted on a disclosure form; each state has a standard seller’s disclosure form.

The disclosure form should describe current or previous termite activity, termite treatment, and damage caused by termites, including any damage that has been repaired.

Even with a seller’s disclosure, certified termite inspections are still an essential part of the buyer’s due diligence process. After all, termite damage can be difficult to detect and the homeowner may not realize he or she has a termite infestation.

Selling a Home Treated for Termites
To help ensure a smooth transaction, sellers should be prepared to share all relevant termite treatment and damage information with potential buyers. Important paperwork may include bills or reports detailing inspection findings and treatment methods, or a termite bond with a service guarantee.

If you have controlled a termite infestation in your home, repaired any damage and kept up with your ongoing termite protection agreement, then previous termite damage should not affect your ability to sell your home.

However, it may be difficult to sell a house with termite damage that has not been repaired, or an infestation that has not been controlled. Generally speaking, a buyer should be wary of an as-is purchase where extensive damage may be hidden behind walls.