When buying or selling a home, one crucial inspection that often comes up is the termite inspection. In many real estate transactions, especially in states like California, the results of this inspection can impact the sale. One key term that buyers and sellers should be aware of is “Section One Termite Work.” But what does it mean, and why is it important?
What Is Section One Termite Work?
Section One termite work refers to active infestations, damage, or conditions that require immediate attention to prevent further structural harm. This includes:
- Live termites (subterranean or drywood)
- Wood rot and fungus damage
- Wood-to-earth contact (which can attract termites)
- Tunnels or shelter tubes created by termites
- Dry rot caused by moisture issues
These issues must typically be repaired before a lender will approve financing, especially for FHA and VA loans.
How Is It Different from Section Two?
While Section One covers current infestations and damage, Section Two refers to conditions that could lead to future termite problems—such as excessive moisture, poor drainage, or wood stored near the home. These are not required to be repaired before the sale but are often recommended as preventive measures.
Who Pays for Section One Repairs?
Responsibility for Section One repairs is negotiable in a real estate transaction. In competitive markets, sellers often agree to cover these costs to keep the deal moving. However, in a strong seller’s market, buyers may be expected to handle repairs themselves after closing.
For VA loans, the seller must cover Section One repairs as part of the loan requirements.
Why It Matters
Ignoring Section One termite work can lead to:
✔️ Delayed or canceled transactions
✔️ Structural damage that worsens over time
✔️ Additional costly repairs down the road
For buyers, reviewing the termite inspection report and negotiating repairs before closing is crucial. For sellers, addressing these issues early can help avoid last-minute surprises that could derail a sale.
Whether you’re buying or selling, understanding Section One termite work ensures a smoother, more informed transaction. Have questions? Contact a trusted real estate professional to guide you through the process! 🚪🔑🐜
If you’re considering a move or investment and require a trusted Real Estate Broker, we’re here to assist you. Contact us via email at TEAM@McDanielCallahan.com, complete the form below, or give us a call at 925-838-4300. We are ready to provide expert guidance and support for all your real estate needs. Terry McDaniel DRE License #00941526
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