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Termite Letter

A termite letter is an inspection report which shows the existence of active or previous infestation of subterranean termites and other wood-destroying organisms. The inspection report is a standard state form which reveals whether there is any earth-to-wood contact on the property, if there were any areas of the structure that were not inspected, and if it appears that any previous termite treatment has been performed. The inspection letter often contains exclusions of liability printed on the back.

Most lenders require a termite letter dated within 30 days of the date of closing, indicating that the improvements are free from active infestation and damage. Depending on the type of loan, lenders may have heightened requirements concerning the termite letter. As soon as the termite inspection is performed, the buyer should ensure that his lender receives a copy of the report. Some states do not require that a seller provide a termite letter for closing; however, the contract generally places the burden of supplying this letter on the seller.

A termite bond is a contract between a property owner and a termite treatment company which addresses future termite infestations. There are two basic types of termite bonds: a retreatment bond and a repair bond. A retreatment bond obligates the termite company to retreat the property in the event that a future termite infestation is detected. A repair bond not only obligates the company to retreat the property if termites are found, but also to repair any damage caused by the infestation. Generally, a dollar amount limit for the repairs is specified in the bond.


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