Step 11 - The Termite Report.
After escrow is opened, a termite report is ordered for the property as stipulated in the RPA. The termite report is traditionally paid for by the Seller and is divided into two areas:

Section 1 - Existing Issues
Section 2 - Preventative Issues

Section 1 reports existing termite infestation and damage and is traditionally corrected and paid for by the Seller. Section 1 items must be cleared before the Buyer's lender will fund a loan on the property. Please note that Section 1 repair work could involve "tenting" the premises, sometimes a costly procedure. As such, we advise our sellers to have a termite report ordered at the time of listing their property to be aware of what costs to expect.

Section 2 reports items that may lead to future termite problems, otherwise known as preventative issues. The Buyer only pays for Section 2 work if they want to, and few buyers do.