What is a Termite Letter for Closing
What is a Termite Letter?
A termite letter, also known as a Wood-Destroying Insect Report (WDIR), is a report that a professional inspector provides after inspecting for the presence of any such organisms in the home.
This letter, or WDIR, contains essential information about the structural health of the home. Lenders require this letter during a real estate transaction.
A termite letter contains information about all wood-destroying organisms, such as:
- Carpenter ants
- Carpenter bees
- Powderpost beetles
- Wood- decaying fungi
Why Do You Need a Termite Letter for Closing?
If you are buying, selling, or investing in a home, you must be willing to know that there is no structural damage caused by termites in the building. The insects are notorious for silently destroying the wooden framework of a house. Getting a termite letter for closing is important as it:
Protects Buyers
A perfectly looking home from the outside can have unseen damage beneath the surface. The termite letter gives buyers peace of mind by confirming every detail about current or past infestations and damage that exists.
Satisfied Lender Requirements
Most mortgage lenders require a termite letter before finalizing a home loan, especially in areas where termite infestation is common. The purpose behind getting a termite letter before closing is just to save the investment.
Encourages Transparency
Getting a termite letter before listing the home adds an extra layer of trust between buyer and seller. It depicts that everything is out in the open and there is no hidden damage in the property.
Can Impact the Sale Price
If an active infestation is found, it can trigger price negotiations or require the seller to handle treatment and repairs before the sale can move forward. It’s just like catching a structural defect in the building.
What is Included in a Termite Letter
A termite letter by the professionals after a thorough inspection contains information about:
Visual Inspection Results
The pest inspector looks at all accessible areas of the home, including crawlspaces, attics, baseboards, and the perimeter of the property.
Presence of Wood-Destroying Insects
Whether there are signs of termites, carpenter ants, or any other destructive pests, the termite letter contains all the needed information about them.
Treatment Recommendations
If the letter contains information about the presence of termites or they have caused some damage, the report contains essential steps to get rid of the termites and to get repairs for the damaged area.
Who Should Get a Termite Letter Before Closing
In real estate transactions, typically, the buyer pays for a termite letter before closing, as this letter is required by their lenders. If a seller gets this letter earlier while listing the home, then it can speed up the whole selling process.
What Happens if Termites are Found
If termites are found, the next step can be:
If You are a Seller
If you are selling a home and you have discovered that termites are present in the home and have caused some damage, it is better to get rid of them and get the repair work for the damage. This way, you can sell your home for a better price.
If You are a Buyer
If you are buying a home and the termite letter contains information about the presence of the WDIs, you should discuss with the professional inspector to know the extent of damage and negotiate accordingly. You can ask the seller for a repair or to reduce the price.
If there is Severe Damage
If the certified inspector finds severe damage caused by wood-destroying organisms, it is better to follow the instructions in the termite letter and consult structural engineers as soon as possible to make the repairs.
Difference Between a Termite Letter and a Termite Bond
Most people get confused when it comes to a termite letter and a termite bond. These are not the same thing.
A Termite Letter is a document that states the results of a termite inspection conducted to proceed with a real estate transaction, while a termite bond is a guarantee of treatment by a pest control company. According to this, the company will cover the cost of the removal of the termite infestation until the agreement lasts.
How Long Is a Termite Letter Valid
Termite letters for closing are valid for 30 to 60 days, depending on the condition of the property, the termite infestation ratio in the area, and the policy of the service provider. This letter just explains the current status of the termite infestation while both parties are proceeding to close the deal.
Final Thoughts
A termite letter for closing is a piece of paper containing information about any infestation. Lenders require this letter. Knowing details about a property’s issues can help you secure your investment. Meanwhile, with the help of this letter, the buyers can make essential repairs in a timely manner to make the transaction smooth.
If you are also going to sell, purchase, or invest in a property, let our certified inspectors inspect the property and get a termite letter. It can help you to make the best decision and secure your investment.