Check for termites before you buy

Q: I am planning to buy a home in Atlanta. What do I need to do to protect myself in case the home has termite damage?

A: While a termite letter is not required by law in a real estate closing, it is smart for the buyer to protect himself by obtaining a termite letter. Termite infestation of homes is a big problem in the state of Georgia because of the warm weather and humidity.

Subterranean termites and other wood-destroying organisms proliferate in such conditions and destroy the wood of many Georgia homes, if not properly controlled.

Before buying a house, you should have the house inspected for termite damage or require the seller to provide a termite letter at closing. Generally, if you are financing the house, the lender will require that a termite letter be provided as a condition of the loan, since the house will be serving as the lender’s security/collateral for the loan.

You should inquire with the seller as to whether the house was protected from termites by engagement of a pest control company. If so, you should ask the seller to obtain a clearance letter from such company and determine whether the company’s warranty, if any, is transferable. If you buy the home, you may want to continue the relationship with the same pest control company.

If you choose to have the house inspected for termite damage, you should hire a licensed pest management professional to perform a wood-destroying organism (WDO) inspection. If you can, you should attend the inspection to make sure the termite inspector conducts a thorough inspection.

The report will detail whether there is current infestation or whether there has ever been a previous infestation.

If there is any infestation, the report should attach a diagram showing where the infestation is located. The areas of infestation should be further inspected by a professional qualified to inspect structural damage.

As the buyer, it is in your interest to negotiate the repair of any damage with the seller before closing the transaction. With respect to the pest control company, you should make sure you have a termite bond/guaranty in place. The termite guaranty is a form of insurance against future termite infestations and damage.

The guaranty generally takes two forms, a treatment guaranty or a treatment/repair guaranty. A treatment guaranty provides that the pest control company will re-treat any areas that are found to be infested by termites. On the other hand, the treatment/repair guaranty provides that the pest control company will not only re-treat the infested areas, but also repair, at its expense, any structural damages as a result of the infestation.

You should make sure to read both your purchase and sale contracts carefully to understand your rights vis-a-vis the seller with respect to who pays for the costs of the termite letter and inspection. You should also read and understand the results of the termite inspection.

Finally, you should read and understand the contract you enter into with your future pest control company for your new home.

Raghu R. Raju, attorney of Weinstock & Scavo, P.C.; rraju@wslaw.net, www.wslaw.com. This column is designed to provide information in regard to the subject matter covered. It is not intended to render legal advice. Have a question you would like answered in this column? Please contact James J. Scavo c/o Weinstock & Scavo, P.C., 3405 Piedmont Road, Suite 300, Atlanta, GA 30305.