This article was published on: 09/01/2006
LAW: Termites
Pest protection
BY PETE CARDILLO
Any house that’s constructed of wood — either outside or inside — could potentially be infested with termites or other wood-destroying insects. Following a few key steps regarding inspections and disclosures can help ensure your clients are protected.
Get it checked out
Although few states require a termite inspection, many lenders won’t make a loan without one. Even if an inspection isn’t mandatory, encourage the buyer to have the property inspected. A wood-destroying insect inspection report, which is prepared by a licensed pest control company, addresses the presence of any termite damage or evidence of treatment for termites. The report should also note exactly which areas were inspected and any areas not visible to the inspector.
And that last point is key. A wood-destroying insect inspection report isn’t a guarantee that termites aren’t present. Termite companies are required to report only what they encounter visually.
To help ensure that an inspection is thorough, it’s best if the buyer is present at the property while the inspection is taking place. A typical inspection will take between 45 minutes and two hours, depending on the size of the home.
If there’s a suspicion after the cursory investigation that damage may be present, the buyer can gain a greater level of comfort by requesting that a contractor or structural engineer conduct a follow-up inspection. Sagging and bowing of exterior walls might indicate deterioration inside the walls — a clear sign of termite damage. In a wood-frame home, other possible indicators of a problem are beams or posts that appear to be sinking.
The question of which party should pay for an inspection depends in part on local custom and negotiation between the parties. If a seller procures the termite inspection, the inspector may feel some pressure to ensure that the property report be spotless, which doesn’t necessarily signal that fraud’s involved.
But to avoid any potential conflicts of interest, it’s often desirable for the buyer to pay for the termite inspection. The buyer should also insist on using an inspection company other than one that has previously treated the house. Using an objective inspector can also benefit the seller in the long run. If a termite problem is discovered at a later date, the seller is better protected if the buyer had the opportunity to conduct an independent inspection.
In addition, the buyer should check on the inspecting company’s license. Most termite inspectors are regulated by state departments of agriculture, but this can vary by state. Finally, it’s a good idea to ask for a certificate of insurance from the termite inspection company. This certificate will provide you with a claim option in the event of fraud or negligence.
Don’t hold back
But sellers shouldn’t depend on an inspection to tell the whole story. They should disclose the property’s history of termites and termite damage. Generally this disclosure can be a part of the sellers’ overall disclosure statement. Buyers should also ask to receive proof (receipts or contracts) of any preventive measures against termites taken by the sellers. Erring on the side of full disclosure protects sellers, particularly in the Southeast where it’s rare for an older home not to have some kind of termite history.
An inspection doesn’t provide a guarantee that a house is termite-free, but a buyer who neglects this step in a home purchase is asking for trouble, particularly in some areas of the country.
Cardillo is a Tampa, Fla., attorney specializing in pest-control issues. Representing property owners, Cardillo’s practice focuses exclusively on eradicating termite-industry fraud and malfeasance. You can reach him at pete@cardillolaw.com.
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