Are There Termites in Your Contract?

Published February 20, 2010

Is there a reference to the treatment for wood destroying insects in your real estate contract? The issue is an important one in the transfer of any improved property.

Page 2 of the Seller’s Disclosure Notice, Section 3 mentions active infestation, previous treatment, previous termite damage repaired and termite damage needing repair, if any. A Buyer should have an independent termite inspection. Do it early in the Option Period. Your general inspector can not inspect for termites, but can comment on structural integrity issues related to the effects of infestation.

If the contract says the Seller is responsible for treatment of termites then they can get an inspection to ascertain financial liability before signing the contract. This is a negotiable item, no matter how local custom has evolved. The Seller, if willing, can say in Paragraph 11,

Special Provisions, of the Purchase Contract, that they will pay for treatment pursuant to the attached bid. The Buyer can still get their own independent bid, as they should. If the two bids differ, it will need to be negotiated during the Option Period.

Sometimes the best time to treat is after the Seller has moved out and before the Buyer moves in. That could be the day of closing when the property is empty and more accessible for treatment.

Your Galveston Realtor can discuss how to prepare for the termite question.

Next week: Options in the Option Period.

David Bowers is President of the Galveston Association of Realtors® and is associated with House Company Realtors. Contact David at (409) 771-4637 or at david(at)davidbowers.com.

- Written By David Bowers

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