As we say in Arizona....every home either has, does, or will someday have termites. They love our soil and are a very common problem here. There are several things to consider: If you want the seller to purchase a warranty for you, then a treatment HAS to be performed on the property so that the current infestation is eliminated. Only then will a company warranty the home. Depending on the extent of the damage and the type of treatment involoved, it could cost anywhere from a couple hundered dollars to five or six hundred dollars. Sometimes the infestation is so severe that they have to drill holes into the slab to properly treat. If you are getting financing on the home, then the bank will require a clear termite report. If the financing is VA or FHA, most times they will also require that any termite damage be repaired prior to closing and funding the loan. The appraiser will play a large roll in making this determination. If you are paying cash, then their are no rules that the report has to be clear, but it would be in your best interest to have the seller fix the problem. This is pretty common practice that if a home has termites during the sale that the seller is responsible. As far as the drywood problem, it is very common that most local companies will NOT include them in their warranty. The reason for this is that there is really no preventative measure to control them. With the subterrainnean variety, they can treat the soil and thus keep them away. Not so with the drywoods. Also, warrantys may vary from company to company, but you will find that most will not cover any damage done, either before or after the fact. The warranty company will do annual inspections to make sure the home is clear, if evidence is found during the term of the warranty, they will treat at no charge. Here are some links that you may find helpful:
http://www.sb.state.az.us or call 1-800-223-0618
Good luck with your purchase. I hope this info helps!
Realty Executives Southern Arizona