I advise my clients to NOT make a termite inspection in a bank owned sale, a short sale, or a sale where the seller will not agree to clear the section one findings, part of the contract. Why? Because if it's on the purchase contract, the bank asks for it. If it's not on the purchase contract - unless it's a VA loan - the bank is not interested. You - however - should be VERY interested, and always, always, always get a termite inspection as part of your due diligence, just like you would a home inspection. If there are significant findings - renegotiate if possible, or maybe reconsider the purchaseâ€¦if the findings are fairly minor - a few thousand dollars maybe - factor that into the cost of buying this house, and know you'll need to take care of the report sooner than later. One should not let an active infestation go ignored, as it can and will lead to more damage.
The biggest reason not to make a termite inspection a contingency in the contract in this case is this though: If the seller can't or won't clear it, and the bank knows about it, you're stuck. Can you authorize and pay for termite repairs on a property you don't own yet? Yes - if the seller allows it - but what if something goes wrong and you don't close? You're still stuck with the bill, and likely, the seller will use part of your earnest money deposit to pay it. Do the inspection - but keep it off the contract - that's my vote.