Depending on the purchase offer and negotiations prior to opening escrow, the seller usually pays for the Termite work and fumigation. However I am noticing that is not the case when buying Foreclose or Short Sale homes. These banks are selling the properties "AS IS" with no Termite work done.
Why Termite Inspections Are Required
In order to purchase a home, lenders require an official Wood Destroying Insect Inspection on government loans such as FHA and VA loans. The inspection is not required on conventional loans unless the appraiser notes there is wood-to-earth contact. The lender is trying to determine whether the property is structurally sound. Since termites and other wood-destroying insects and organisms can cause thousands of dollars in damage, the lender wants to make sure that the property is in a condition worthy to finance. No matter the age of the property, you may be required to have a termite inspection performed. On a newer home especially, it may seem an unnecessary inspection, but it is more important than you might realize. Even a new house can be attacked by termites within days of completion. A professionally conducted termite inspection can make or break a transaction and can give valuable insight into the condition of a property.
What Is A Termite Inspection?
A termite inspection is a visual inspection performed by a professional. And while the inspection is commonly termed as a "Termite Inspection," it is in actuality a "Structural Pest Control Inspection." This is because the professional examines the easily accessible areas of a property looking for evidence of all wood-destroying organisms and insects. The inspector will look at the entire interior of a home, including any basements or crawlspaces. In certain regions, the inspector may access the attic and examine the area for Drywood termites. The exterior of the home will also be inspected.