In most cases, buyers pay termite prevention and seller pays termite treatment in closing costs. However, if the seller placed the house “as is”, buyers are responsible for all termite damage and future prevention costs. In California and most other states, seller pays for termite inspections. This is because some lenders ask the homebuyer for a termite certificate or report before financing a loan, no inspection, no loan, no sale of the home.
Usually, the seller is responsible for covering the cost of the WDO inspection. As a seller, you should expect to pay the cost of Section 1 termite inspection and termite treatment. If you negotiate an offer that indicates that you are not responsible for paying for Section 1 repair, make sure the buyer tracks whether or not the bank requires a termite certificate. If the bank requires it, be sure to schedule a termite inspection in advance so that the closure is not delayed.
Termites are the seller's or buyer's problem paying for termite repairs Photo courtesy of Brett Rockwell of Rockwell Pest. Brett is hardworking, nice and honest; we're friends on Facebook. If the seller needs to obtain short sale approval from their lender, a good way to leverage that short sale bank to agree to pay for termite repairs is to obtain an assessment that indicates termite repair as a condition of financing the buyer's loan. Information is considered reliable but not guaranteed.
The information is general and may not address your particular situation. Don't rely solely on this or any information you find on the Internet. You should consult directly with the relevant professionals about your real estate, finances, etc. In New Jersey, contracts limit the costs of repairs, giving the seller and buyer an EXIT if there is a big problem.
I always tell my buyers to be happy when they find termites, it's better to know now before owning the house than later, and usually the seller has to fix or treat it. And once the seller knows there are termites, they have to disclose it to the next buyer anyway. Steven: Thank you, and yes, even the type of transaction adds points of consideration for the parties to consider when negotiating this. Lisa, great explanation of termite information.
Someone just called me and asked me details about this and I found this post online. I guess they ask me because their agent doesn't know, or they don't trust their agent. What is the reason you are reporting this blog post? Are you sure you want to report this blog post as spam? Find CA Realtors & Palos Verdes Peninsula Realtors on ActiveRain. Legal and lender requirements aside, homebuyers can always include a termite inspection contingency in their purchase agreement.
If the seller refuses to cover a termite inspection, a prudent buyer will pay for their own termite inspection of the property, along with a regular home inspection. For example, if the buyer is eager to close the house, they could offer to pay for various repairs caused by termite damage, including spray treatments and wood replacement. One of the most common prevention recommendations is to remove soil from the base of the house to reduce the chance of termite infestation. That's not always the rule, as homebuyers may want to commission their own termite inspection as part of the home inspection process.
If the seller does not provide a termite inspection or termite inspection report, it is the buyer's responsibility to pay for the termite inspection. Sellers can include a pest inspection in their seller concessions to make the offer more attractive to potential buyers. If you receive a loan from a lender, some lenders require that you complete a termite inspection and submit it to the lender. If you live in an area of high termite infestation, getting a termite inspection before selling your home can help you avoid any problems.
By selling your home, you'll probably learn more about termites and wood-destroying organisms, or WDoS, than you ever thought in your entire life. The main problem a seller faces if a buyer pays for the pest report is that the seller has no control over the quality of that pest inspection. You can trust that Los Angeles termite inspectors at The Elite Group will find termites in your home, wherever they hide. When a buyer makes an offer on a home they are considering buying, they can ask the seller to conduct a termite inspection and pay for the repairs found in that inspection.
A good real estate agent can help you navigate the home sale process, including whether or not you should include a termite inspection, as well as the repairs you need to do before selling your home. Non-government backed lenders may require a termite inspection if termites are suspected, but they are generally not required otherwise. Termite inspectors observe several organisms that destroy wood in the home, such as termites and fungi. However, when a buyer makes an offer on a home they are considering buying, they can ask the seller to conduct a termite inspection and pay for the repairs found in that inspection.
This includes the cost of remediation, such as setting up tents or spraying to eliminate an active termite infestation. . .