Should I still go ahead have termite work done if the lender is not asking for a termite report on the loan conditions ?

Asked by misterricc, Laguna Hills, CA Mon Jan 28, 2013

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Kawain Payne’s answer
Kawain Payne, Agent, Seal Beach, CA
Fri Feb 15, 2013
In your purchase agreement there should be an agreement regarding who pays fo what as it relates to termites. Follow the agreement no matter what the lender is asking for. Remember the purchase agreement is a contract between the buyer and the seller, and must be followed to the letter to avoid big headaches down the raod.

Kawain Payne, Realtor
0 votes
Shirley Smith, Agent, Bellflower, CA
Mon Jul 29, 2013
Yes! Even if the lender does not request a termite report on loan conditions, they should. I always follow the procedure according to our California Association of Realtors. My doing so, I am protecting the seller, buyer, agent (s), real estate office, etc. from possible future litigation.
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Gail Mercedes…, Agent, Beverly Hills, CA
Tue Jun 4, 2013
If you are the buyer in your purchase contract termite should have been a contingency. Hopefully, paid by seller. As buyer I would have termite work completed even if lender is not requesting. It is for the buyers benefit.

Gail Mercedes Cole
EXP Realty
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Cindy Davis, Agent, San Diego, CA
Tue Jan 29, 2013
Are you the buyer or seller? Everything comes down to what the purchase agreement was for If termite work was in contract then it needs to be done. If not, you don't have to do it.
0 votes
Michael Magaw, Agent, Torrance, CA
Tue Jan 29, 2013
If the bank is not requiring a termite report, then you did not request a termite inspection in your Purchase Agreement (or it was countered out). So treat any termite damage (there always is some) the same way you would treat any other repair. Get a qualified home inspector to look at the entire home. He will note if there are any obvious signs of termite or wood rot. You should then hire a termite inspector. Many will do the inspection for free, but if they charge it should be $50 -$75. Now you have the information that you need to make some decisions.
Here are your options:
1. You can move forward with the escrow and do any repairs after you own the home.
2. You can complete a Request for Repairs and ask the Seller to perform certain repairs or compensate you with a cash equivalent. Even if it is a bank (REO or Short Sale), there is always the option to negotiate. The bank does not want to start over with another buyer and have the same problem come up. If they do not agree, then you will have to decide if you still want the home.
3. You can cancel, assuming you have not removed your inspection contingencies.

Inspections are great, but you do not want to invest your money into repairs until you own the home.
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James Sanchez, Agent, Burbank, CA
Tue Jan 29, 2013
If I am correct, you are saying that the lender is not requiring the work to be done... which means on the report there was no "Section 1" termites found. This brings you to "Section 2". This is totally up to a buyer to have this done at their own cost, usually that is how an offer is written, seller pays section 1, buyer pays section 2. Section 2 is a possibility of termites in the future, because of water hitting the house, a planter box to close to the house...just an example. You can have it completed, depending on the cost, but I would wait till the house is yours and you crack that bottle of Champagne to celebrate.

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Maria Gilda…, Agent, Manchester, CT
Tue Jan 29, 2013
The scope of the home inspections you want performed in the property you are planning to buy is your own volition.

My question to you is this? Is it worth to spend a certain $$$ to give you a peace of mind that the house is termite-free?

Best of Luck.
0 votes
Ron Thomas, Agent, Fresno, CA
Tue Jan 29, 2013
You do not want to spend money on a house that YOU do not own!!!

If your Inspection revealed the termites;
The Seller is responsible for Section One repairs, which includes active termites, (even the Banks will do this on a Foreclosure), don't be afraid to ask,
I am hoping that you have an Inspection Contingency, but it doesn't matter in this case, ASK THEM,

But, if you're out in the cold, at least wait until it is your house; you could spend $1000 and then lose the deal, and NO ONE will pay you back that $1000!!!
0 votes
Shirley Smith, Agent, Bellflower, CA
Mon Jan 28, 2013
good evening,

Even if the lender is not asking for termite work as part of the loan conditions, the termite work is very important. If the termite work is not done, termite will eat your home's wood over time causing extensive damage and reducing the value. What may cost $3,000 today, will cost many times that as termite continue to cause damage. When escrow closes, make the termite work a priority.......

Read the real estate purchase agreement; i always include termite inspection and repair to be completed by the seller unless the seller is a bank. Short Sale and Foreclosure banks usually will not pay for this.
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