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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: MJ who wrote (15309)	12/3/2003 11:31:33 PM
From: Les H	Read Replies (2) \| Respond to of 306849

Most lenders will require a recent termite inspection and certification as a condition for home loan approval. The inspection must be done within 30 days of settlement. We'll make the arrangements for the termite inspection company to get access to the property and deliver the Certificate to the lender. Termite inspectors typically charge $50-60 depending on home size for an inspection in which they inspect for active and past infestations. The buyer pays for the inspection and the sellers pay for treatment/repairs. If there is an active colony of any wood destroying insect, the contract generally will require that the seller have the infestation treated prior to settlement and any damage resulting from the infestation repaired. There is a limit of 2% of the purchase price to cover treatment and repairs. Rarely does treatment and repairs cost more than 2% of the contract price. The termite clause in the Maryland Residential Contract of Sale is negotiable. What isn't negotiable is that most lenders require a Certificate. The termite Certificate is only good for 30 days, so we generally order the termite inspection approximately one week before scheduled settlement. If settlement is delayed beyond 30 days of the Certificate, it will have to be updated. Termite inspections are visual and include the interior and exterior of the property, any out buildings and fences although lenders do not require that any part of the property be inspected other than the home itself. Also, the seller is not responsible for infestation/damage to outbuildings and fences. If the termite finds evidence of prior infestation that has been treated but damage has not been repaired, our contract requires that damage be repaired by the seller prior to settlement. Home owners can avoid termite damage repair only so long. Maryland is home to some vigorous and hardy termite colonies. They thrive on the moist climate, wood frame homes and mulch that most home owners use in flower beds. Home owners should have a termite inspection performed by a licensed company every year. Once you have had a colony eradicated, you never know when they'll be back. Better be safe than sorry. $50 is not much to pay for peace of mind. homefinders.com

To: MJ who wrote (15309)	12/4/2003 11:09:37 AM
From: Tradelite	Read Replies (2) \| Respond to of 306849

MJ, you didn't ask me, but.... In Virginia, unless something has changed in the past several years (which I doubt and which means you should consult your own agent in this matter for advice)...... the seller normally obtains and pays for the termite (and other wood-boring insect) inspection. The buyer is free to obtain his own inspection instead, and which party is to do this is usually negotiated along with other contract terms. The inspector's report must be "clean"--indicating no infestation and no damage from present or former infestations. If the report is not clean, the seller is solely responsible for treating any active infestation and repairing any wood damage cited by the inspector. No dollar limit is generally imposed on what this could cost the seller. It simply has to be done if he wants to sell the house. After treatment and repair, the property must be reinspected and a clean report obtained. This might be the point at which the buyer steps up and hires his own inspector if he didn't do that in the first place. Termite inspectors are not perfect. The seller might hire one who gives him a bad report, so without the buyer knowing it, the seller quickly hires another one which gives a clean report and discards the first report. I'd get my own inspector if I were buying a house and be physically present with him during the inspection. Take a screwdriver with you and poke any exposed wood in the basement area while the inspector is doing the same thing, particularly around the foundation and main-floor floor-joists and wall studs if exposed in the basement. Pay special attention to areas of dampness, which termites love--such as laundry rooms and basement bathrooms. You might find something he will miss. If a nice-looking piece of wood turns to sawdust when poked, there's a problem! Good luck with your purchase.