Home Buying in San Diego>Question Details

Matteo, Renter in San Diego, CA

We're closing soon, I already paid the money to escrow and went through signing the loan docs on Friday...

Asked by Matteo, San Diego, CA Tue Aug 28, 2012

on Friday before signing, my real estate agent tells me that the house is getting fumigated on Monday for termites, they found some alive and will fumigate them and repair the visible damage. He sends me then the termite report yesterday to sign, it's dated 5/11/12 about 4 months ago? at disclosure time they marked NO to known pests! is this something normal? I'm doing an FHA... I'm now thinking that if I would've known about the termites before the inspection (when I received the disclosures)... maybe I could've acted differently. Is this normal? my real estate agent says it's normal because they planned on fixing the issue... so they didn't disclose it.

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Answers

9
This is not normal and your agent has dropped the ball. You're supposed to get part one of the termite disclosure within 7 days of the buyers accepting your offer. Now that you've just received it, you have 3 days to cancel your offer and get your full "good faith" deposit back. If you are happy with the house, negotiate for the sellers to pay for the full extermination and part two of the termite inspection. Remember that sellers have zero obligation to "fix" the termite problem, but the problem must be disclosed to you.

Personally, I would do a detailed check on your purchase agreement for other issues your agent might have missed. Hire a lawyer if you want to.

If you need more help, please feel free to contact us.

-William
GoldenLandInc.com
Golden Land Investments & Financial, Inc.
0 votes Thank Flag Link Sun Sep 9, 2012
The timing of the disclosures sounds curious which you have a right to discuss with your agent. What I can tell you is that termites in San Diego exist, in every single home with exposed wood. It is extremely rare to find a home here that does not need fumigation. I would not bow out of a deal because of that if everything else is to your satisfaction.
0 votes Thank Flag Link Thu Aug 30, 2012
Matteo,

Read your contract (Residential Purchase Agreement and attachments) for the details about:

1.) The termite inspection and reports (it should outline if you asked for a report, who pays for it, how and when any issues discovered will be handled etc... ).

2.) Disclosure rules and deadlines. Typically the seller has 7 days to turn over all disclosures and current reports to you so that you have time during your 17 day contingency period to review them and make informed decisions.

In my opinion it is NOT "normal" to review a termite inspection for the first time this late in the game, especially after loan documents are signed. Ask your agent when he/she received the report.

Lastly, speak with your agent further about this if you have more concerns. The important thing is that the termite issue is being handled and you are about to be a home owner! Congratulations.

Kind Regards,

Marcie Sands, REALTOR
SImply The Best Real Estate Co., Inc.
760-644-1562
0 votes Thank Flag Link Tue Aug 28, 2012
It obviously should have been disclosed if the termite inspection was done before the disclosure was signed. The question is, if you agreed that the seller would provide the termite report, were you given it with the rest of the disclosures within the first seven days of escrow (if that's how your contract was written)? Even if you were just delivered the termite report at this late date, you still have a period of time built into the contract, in which you can read it and decide if you want to move forward with the sale, unless your contract was written differently. Ask your agent to show you this paragraph.

Look at the date of the disclosure. Some of those are signed when the listing is, so it might have been disclosed before the termite inspection and report was done. It's up to you to look at these things, and if you're not OK with that, to request an updated one.

Almost all properties will show some kind of termite damage after an inspection. If you waited until you found a home with no termite damage or active infestation at all, you'd still be looking. There's not a lot of inventory out there!

Warm Regards,

Cory La Scala, REALTOR
Independence Realty
619-825-6421
0 votes Thank Flag Link Tue Aug 28, 2012
Bottom line is you will receive clearance stating that the house is free and clear of active infestation and it will come with a one year warranty. When was the disclosure signed by the seller stating no known pests? Was it dated AFTER the inspection or before? If before, they may have not know about the termites. If it was after, then they did know and it should have been disclosed. The only concern is if they try to get you to pay for it, but your contract should state who is responsible for the costs. As for timing, yes, it was suppose to be delivered to you within the contractual time frames and if it was just delivered, it may give you some time to reconsider the purchase. Talk to your agent, thats what they are getting paid for and if you are not happy with them, talk to their broker.
0 votes Thank Flag Link Tue Aug 28, 2012
Yes it is dated 5/11/12 and I made the offer on the house 7/25/12. They are paying for the fumigation now, but I wonder how extended was the damage since the house has been empty for over a year and in 5/11 the report states that there's damage to "unreachable parts" of the house. Besides, if it requires a tenting it means that there was an infestation. I just told my agent since that failure to disclose I want to request the seller pays for an extensive damage report and structural report as well... the house was made in 1963... I want to be sure
Flag Tue Aug 28, 2012
No this is not normal. Were there termites on the May report? Should have been disclosed to you up front. It's not unusual to have termites, but your agent should have given you the report in the first 17 days, because yes, it's your perogative to have all the information to make a decision about your purchase.

Thanks!
Sinead McAllister
Broker
McAllister Homes Real Estate
858-205-5215
brokermcallister@gmail.com
http://www.McAllisterHomes.com
0 votes Thank Flag Link Tue Aug 28, 2012
What you don't know, is if there were KNOW termites in May.
What you do know, is that you should have done your own Pest Inspection.

Who is paying for the Fumigation?
At this point, if it is expected to be YOU, I would talk to your Agent's Broker.

The way you word it, this is really not a big thing; it doesn't sound like the house is falling down:
Termites can move over to your house on any given day, particularly in a warm climate.

Good luck and may God bless
0 votes Thank Flag Link Tue Aug 28, 2012
Depending on what your contract states, you should have been given all reports and disclosures before you were asked to remove contingencies. The pest inspection report, if called for in the purchase contract, is one of the items typically delivered during the inspection phase of the transaction.

Is it "normal" to receive a disclosure or report so close to escrow closing? No.
0 votes Thank Flag Link Tue Aug 28, 2012
Yes, it is normal. termite reports are good for a year and there are ALWAYS termites. No big deal.
This was all stated in the contract you signed.
Deep breaths. All is ok....
0 votes Thank Flag Link Tue Aug 28, 2012
But here's the thing, if I would've known it before I could've made an informed decision on the property, or not?
Flag Tue Aug 28, 2012
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