Termite Inspection and Clearance
Termite reports can be the source of the biggest disputes between buyers and sellers. They are the main reason for delays in closing and can cost a bundle. A buyer has the right to know the properties true condition. Termite reports have become all inclusive reports on the condition of the house. They now include prevention suggestions as well as pest damage. Sellers are required to disclose all inspection reports performed on their home and Failing to do so could result in a very costly lawsuit after the sale.
Why Termite Reports Cause Problems
Termite reports are not required by law, but the lender will insist that one be performed and that all the issues raised be corrected. They certainly don’t want to lend on a property that is in bad shape. After all, they may own it someday. The problem begins here: buyers and sellers will enter into a contract to agree that one party will pay for repairs recommended in the termite report. I cant imagine a buyer that would not want all the work performed according to the report. This means that the seller may be forced to perform corrective work that may not be “required” under state law or under the purchase contract. Failing to do so could result in the loss of sale.
A seller may want to have more than one report since a lot of money is involved and a second opinion is reasonable approach to a very high set of corrective recommendations. To avoid the problem get a termite report before you put it up for sale. This way, you will know your maximum liability for structural damage, and you will have the option of having all the work performed before possibly scaring the buyer with the potential work required for clearance. The cost of a termite report is either the buyers or sellers determined through negotiation, unless you order one before you list.
The cost of the report is negotiable with tradition in your geographical area often setting a precedent or at least a guideline. In general, the seller agrees to pay for the repair work, or at least a portion of it, while the buyer pays for the termite report and any preventive work.
Abusive Pest Control Companies
Pest control companies which do termite inspections are licensed and regulated by a state structural pest control board, and all of their inspection reports must be filed with the board. The board makes available to the public copies of any report filed on a building during the preceding two years. Buyers: It can save you a lot of headache if you take the time to review the pest control reports for any property you are thinking of buying.
Termite reports cause numerous problems in escrow partly because the company which inspects a building also submits the estimate for doing the work. In other words, the termite company determines the extent of the damage, the work to be done and then bids the job. After the work is completed, the company also clears the report. If the inspector finds that some work needs to be done, he usually gets the job to do that work. If he doesn’t find anything wrong with the structure, he doesn’t get any work. Think self interest may play a part in some of the recommendations? After all, there is often more than one way to fix a problem and at least one most expensive way.
Protect Yourself From Outlandish Repair Estimates.
You can order more than one termite inspection report.
Ask a contractor or independent carpenter to bid on the work. Bids are free of cost.
Hire a Pest Control Company that will do the report but doesn’t do corrective work.
Many independent pest control specialists will do the work provided by a termite report much cheaper than the Pest Control Company and guarantee that their work will stand up.
Do the easiest work yourself.
Howard Bell for yourpropertypath. com