California termite inspection reports: what home buyers and sellers should know
Who may inspect, what Bus. & Prof. Code 8516 requires in the report, Section 1 vs. Section 2 items, completion notices, certifications and Civil Code 1099.
Almost every California home sale involves a "termite report". The law calls it a wood destroying pests and organisms (WDO) inspection report, and it is governed in detail by section 8516 of the Business and Professions Code. Lenders usually require one, and when a report or certification is a condition of the sale or the loan, the seller must give the buyer a copy before the deal closes. Knowing how the report works helps buyers and sellers avoid expensive surprises.
Who may do the inspection
Only a company registered with the Structural Pest Control Board for Branch 3 (termite) may issue a WDO report, and the inspection must be made by a licensed Branch 3 field representative or operator employed by that company (section 8516(b)). Under section 8514, a Branch 2 or Branch 3 company may not start work or issue any opinion about pests until it has completed an inspection. Every listing on this site shows whether the office is registered for termite work; filter for "Termite" in your city to see only those companies.
What the report must contain
The report must be on a board-approved form and delivered to the person who ordered it and to the property owner or the owner's agent within 10 business days from the start of the inspection, and before any work begins. Section 8516 lists what it must include, among other things:
- the inspection date and the name of the licensed inspector;
- a general description of the building and a diagram of the structure showing infested or infected areas and the parts where conditions are likely to lead to attack;
- findings on the substructure, foundation, porches, patios, steps, vents, attic spaces, roof framing and other wood parts;
- conditions "usually deemed likely to lead to infestation or infection", such as earth-wood contact, cellulose debris, faulty grade levels, excessive moisture, roof leaks and insufficient ventilation;
- a bold statement saying whether the exterior surface of the roof was inspected (if not, the report tells you to contact a roofer licensed by the Contractors State License Board);
- any areas that were inaccessible or not inspected, with a recommendation for further inspection where practicable;
- recommendations for corrective measures, and the pesticides to be used for control.
A report can be complete, limited, supplemental or a reinspection. If inaccessible areas are later opened, the company must issue a supplemental report on what it finds.
Infestation versus conditions: the separated report
In practice, California reports separate "Section 1" items (active infestation or infection, and the damage it caused) from "Section 2" items (conditions likely to lead to infestation, such as a leaking shower or wood touching soil). The law behind this is section 8516(c): when you order a report, the company must tell you that a separate report is available, and if you ask for it, each recommendation must be identified either as an infestation or infection that is evident, or as a condition present that is deemed likely to lead to one. If the company fails to tell you and a dispute arises, it must provide the separated report within 24 hours, or by the next business day, at no extra cost.
The split matters in negotiations. Buyers and sellers commonly agree that the seller pays to fix Section 1 items and the parties negotiate Section 2 items, but that is a contract term, not a legal rule. Read your purchase agreement.
Bids, repairs and reinspection
If the person who ordered the report asks, the company must give an estimate or bid that separately prices each recommended corrective measure it regularly performs. If an estimate was given, the report must disclose that a reinspection will be performed on request. A reinspection checks only the items on the original report to see whether the recommendations were completed. You are free to have the repairs done by another registered company, or structural repairs by a licensed contractor (section 8514(d)).
Notice of completion and certification
When the company finishes work it must, within 10 business days, give the owner a notice of work completed and not completed, stating the cost of the work done and the estimated cost of work not done (section 8518). The company must also file the address of every property it inspects or works on with the board within 10 business days.
Escrow often asks for a "clearance". Section 8519 defines the certifications a company may issue on request, such as a statement that "no evidence of active infestation or infection was found in the visible and accessible areas", or that the property is now free of evidence of active infestation in those areas after the recommended work was completed. Note the limit: a certification covers visible and accessible areas only.
What the seller must hand over
Civil Code section 1099 requires the seller or the seller's agent, as soon as practical before title transfers, to deliver to the buyer a copy of the WDO report when certification or a report is a condition of the sale contract or of the financing. Any notice of work completed or certification the seller has received must be delivered too.
Check what has already been filed
Because companies must file the address of every inspection, the Structural Pest Control Board can tell you whether a WDO inspection was filed for a property in the last two years. Use the board's Wood Destroying Organism property search, ideally with only the street number and ZIP code, and then request copies of the reports in writing. A buyer who learns of an earlier report with different findings has something worth asking about.
Choosing the inspector
Look the company up on this site and on the DCA License Search, confirm it is registered for Branch 3 at an active office, and ask whether the inspector will open the attic and crawl space. Remember that the report is a professional opinion about visible and accessible areas on the inspection date, not a warranty.
General information only, current as of the date above. The information on California Pest Check is not a recommendation or a guarantee of anyone's work. A license record shows registration status on the date shown, not workmanship, insurance coverage at the time of your job, or suitability for your project. Confirm license, insurance and permits directly before you hire. Rules and programs change; check the official sources linked in this guide.