10. Pest Inspection Results: The termite company will either give you the written report at the time of inspection, or they may deliver or mail it to you or your agent. It is very important that your agent get the original inspection report as soon as possible. If you ordered the report yourself, please advise your agent by whom and when the inspection is being performed, so your agent can follow up on the paperwork. Copies must be faxed or delivered to all parties concerned, including the lender, closing agent, and the buyer or buyer’s agent. Negative Reports : Occasionally a negative report is received indicating that a termite infestation has been found, or worse than that, a wood- boring beetle infestation. Your contract may cover only certain types of pests. If you have a subterranean termite infestation, then a ground treatment is done which might involve boring holes in the slab. If you have a dry wood or boring beetle infestation, then your home may have to be tented. This can run over $1,000. Damage : If damage is indicated, then the lender or buyer might need to examine the damage before repairs are performed. This is their right. If repairs exceed your liability, you have the right to cancel the deal. However, you will still need to do the repairs for the next buyer, and all negative reports must be disclosed to all future potential buyers. This is the law. Wood Rot : If the property is cited for wood decay (and expect this to happen in at least 50% of all deals), then the lender will either require that the repairs be done, or they may send out an inspector to determine whether the wood decay has caused any structural damage. If the inspection determines the wood rot to be cosmetic only, then you might not have to do anything about it. Most wood decay problems are not very expensive to correct. After treatment and/or repairs are done, the lender may require another inspection by the pest company or by their own inspector.
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