This answer is for Georgia properties; as stated previously, other states may have different requirements. There is no Georgia law requiring a termite clearance letter on existing construction. FHA does not require a termite letter unless the contract stipulates a termite letter or the appraiser notes evidence of "possible damage" and "recommends" a professional inspection. There is no law or rule requiring the seller to provide the clearance letter; this is a negotiated item. From a sellers prospective, it is probably a good idea to get a clearance letter when you decide to put your house on the market. Two reasons: 1 - you know immediately what expenses you will incur to provide a clear termite. 2- there are 2 kinds of houses in Georgia - those that have termites and those that are going to get termites. Our climate just makes it that way. With a clear termite, you remove that concern upfront and position your property as a better alternative when a purchaser is interested in more than just your property. From a buyers perspective, they are crazy if they work with an agent that does not require a termite. Many of our current sales are foreclosures where the seller refuses to provide a clear termite. When I work with a buyer who thinks a termite letter is unimportant, they have to sign a form that they have been advised to get a termite clearance letter and they understand how common and destructive termites are in Georgia. Just as a practical homeowner, it is a good idea to have your home inspected annually so you can catch any possible problems early on. We have Formosan termites in Georgia and they can cause a lot of damage very quickly-- catch them early.

I work in Florida and as far as I know there is no law that requires a termite inspection done to complete the sale of a home. If you seek financing, the lender may require it. Here, one of the local pest inspection services does an inspection for a house sale for nothing, or virtually nothing, hoping the new owners will seek their services if/when necessary. If you are in doubt, check with your city clerk's office to see if there is a law where you live.

Most counties and states do not require a pest inspection. However, a good buyers agent will insist that their client have at minimum a pest inspection. In retrospect, a seller should always anticipate that this inspection will take place and should spent the few dollars and have the pest inspection done themselves, right after or even before the listing takes place. By having the pest inspection done the seller can now hire a local contractor to do most of the work or complete some of it themselves at a lower price than the pest inspector. It also gives the seller an advantage when they can advertise their home as having a pest certification completed. The same holds true for a home inspection. My advice, spend the money and get the pest inspection as soon as you can.

No it's not required.
Better to do the inspection for your own sake.

Hank is correct, however I usually just call a local company whenever I am working with the buyer and they come out do a termite inspection/clearance letter for $25 that gets put into closing costs at the closing table. Some companies charge more than others for a clearance letter, so shop around. The clearance letter must be within 30 days of closing, so more often than not I have one done right away and then a second letter may be needed if we are not closing within 30 days, but usually the termite company will do a new letter free of charge if only a few days have past. It is a buyer responsibility to get the termite letter if the lender requires it. Even if the lender does not require it, it is realtively cheap compared to buying a home with termites.

It's not required by law. It may be required by the lender.

Typically in South Carolina this is a matter of standard practice rather than a legal matter. At our office, the policy is that If you are paying cash and are willing to sign a waiver acknowledging that your agent advised you to have an inspection performed but you chose not to, then that is fine. On the other hand, if you're getting a mortgage or other financing, the lender is most likely going to want to know that you have a clear CL-100 (aka termite letter). This doesn't just look for termites, but moisture problems & more!

According to US Inspect, there could be hidden damage. "One of the main characteristics of termites and termite colonies is their tendency to avoid open air and bright lights, meaning they will stay underground or within wood products. It is almost impossible for an inspector to visually identify or locate an active termite infestation just by looking at the finished surface of a wall or the accompanying trim."

To protect your investment, always get a termite inspection!

In GA there is no law for termites. Typically the lender would require a clearance letter dated within 30 days of closing, now however a termite inspection is considered part of the buyer's due diligence period. If termites are a concern, it's usually on the buyer to complete an inspection. That said, I still write my offers stating that the seller is to provide a termite clearance letter and termite bond at no cost to the buyer.

Hank

This is normally a requirement that is in the terms of the contract of any REALTOR. The termite inspection is required when there is any financing or mortgage taken out to pay for the purchase to protect the integrity of the collateral. Termites can do serious structural damage if not caught early in their arrival to a house. If paying cash it is the Buyer's risk of structural damage that exists and the inspection is normally paid for by the Buyer. If termites exist the treatment is normally negotiated to be paid for by the Seller, unless the Seller offered the property with know termites and subsequent damage, in such case it will be advertised "AS IS" at the Listed Price.

It depends on your state, county and other localities laws. You'd have to look up the laws and/or contact a KNOWLEDGABLE Broker in your area.

Usually government loans require pest inspections too.