Who's Responsible For A Termite Inspection? Buyer Or Seller?

If you are in the process of buying a home, your mortgage lender may require a termite inspection to get loan approval. Homeowners should routinely be getting termite inspections as a line of defense against pests anyways.

Who Is Responsible For The Cost?

While termite inspection costs can vary depending on the vendor, most pest control companies offer free termite inspections. If there is a cost associated with the inspection, it’s usually minimal and in the $50-$150 price range.

If a termite inspection is conducted as part of a real estate transaction, there is usually a cost associated with it because the inspection covers other wood-destroying insects. Typically, the seller will cover any costs related to the service. Certain types of home loans, such as VA (Veteran’s Administration) or FHA (Federal Home Administration) loans, have additional requirements and restrictions on termite inspections. For example, in most states, the VA will not allow the buyer to pay for the inspection, and VA lenders require an invoice as proof of who paid for the inspection.

Individuals buying or selling a home will likely hear the words “termite letter” during the sale. A termite letter, or more accurately, a “wood destroying organisms report,” is a document that confirms a home for sale has been inspected for any signs of insects that may cause structural damage. For the buyer, the report provides peace of mind that they’re not purchasing a damaged home. For the seller, a termite letter can often expedite the sale. These letters outline the types of infestation and damage found, along with the recommended treatments. Many mortgage lenders will require the letter on file to complete the transaction.

Based on the findings of the inspection, the pest control company will recommend treatments or provide options for prevention and protection.