Ask Phyllis: a blog series of frequently asked real estate questions. Email us here
What happens when the termite company fails to inspect?
Dear Phyllis,
After two weeks of negotiating back and forth with the seller, we finally opened escrow. The seller’s Realtor provided us with a copy of a termite report and a completion notice (one month old) showing that the termite work had been done. We acknowledged receipt and approval of the seller’s termite report in one of our counter-offers. My Realtor recommended that we also have the home inspected by an inspector, which we did. Our inspector found evidence of additional termite damage not reflected in the seller’s termite report. What happens when the termite company fails to fully inspect?
1st time home buyer
Dear 1st timer,
Congratulations on your successful negotiations. Typically, your real estate contract would have provided you with a period of time to investigate the property, often between 10 and 17 days. I am assuming that you have not yet removed this investigative contingency. Depending on when this contingency expires, you may need to have your real estate agent request an extension.
Ask your Realtor to recommend a second (different) termite company for another inspection. If the second opinion is clear, the problem is solved.
If the second report identifies additional termite infestation, first review the termite completion issued by the seller. Did it certify that the property was free and clear of termites? If so, and if the original termite company’s warranty remains in effect, that company may have to perform any additional repairs or treatments at no cost to the seller.
In some real estate purchase contracts, the seller agrees to complete all Section I termite work. If the transaction falls through, the seller must disclose both termite reports to any future buyer.
Related Post: Pre-inspections before making an offer
