Berkeley Realtors Berkeley Realtor - Barbara Hendrickson
Serving Buyers and Sellers in the Bay Area including Albany, Berkeley, El Cerrito, Kensington, Oakland, Rockridge, Piedmont and the surrounding San Francisco East Bay Area

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The Home Buying Process... Who Pays What? | Checklist for Loan Application | Components of a Mortgage Payment | The Loan Process | Shopping For A Lender | Getting Pre-Approved | The Inspection Process | Physical Inspection | Calculating Tax Savings

The Inspection Process

When you make an offer on a home, your Purchase Contract will likely contain provisions allowing you various inspections of the property. The purpose of these inspections is to educate you as to the physical condition of the property you are purchasing. While these inspections do not provide guarantees of the condition of the property, they do provide valuable information to you as a Buyer. It is important to remember that your Purchase Contract may provide for withdrawal from the contract if these reports are unsatisfactory. Inspections should not be considered an open door to renegotiate the purchase price, or a way to "weasel" out of a contract.

Structural Pest Control Inspection
Often referred to as a "Termite Report", the Structural Pest Control Inspection is conducted by a licensed inspector. In addition to actual termite damage, the Pest Report will indicate any type of wood destroying organisms that may be present, including Fungi (sometimes called "dry rot"), which generally results from excessive moisture.

Section 1 Conditions
Most Pest Reports classify conditions as Section 1 or Section 2 items. Section 1 conditions are those which are "active", or currently causing more damage to the property.

Section 2 Conditions
Those which are not currently causing damage, but are likely to, if left unattended. A typical Section 2 item is a plumbing leak where the moisture has not yet caused fungus decay.

Who Pays?
Your Purchase Contract will specify who is responsible for the cost of the inspection and making these corrections. Typically, a seller will provide a pest inspection with their other disclosure documents.
Read more about "Who Pays For What"

Does this work have to be done?
Most lenders do not require a "clearance". If you are buying the property without section 1 work being performed, there should be no reference to the pest control report in the contract.

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Barbara Hendrickson

Phone: 510-708-3800

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