What Is a Termite Letter and Why Do I Need It?
Are you trying to sell or buy a property? We already know that you might be drowning in the paperwork, and acquiring a new document might not be an appealing thought. But there is nothing like being overly cautious when the money concerned amounts to a large chunk of your life’s savings.
What is Termite letter/termite bond– What is the difference?
A termite letter is a document that assures that the house or any property in sale has been visually inspected in the accessible areas by the professionals for termites or any wood-destroying insects. It further elaborates on the status of termite inspection in the mentioned property. If your property is clear, you will receive a termite letter, but you might want to get a termite bond if there is an infestation.
A termite bond, also known as termite contract, is actually a services contract offered by a termite company to the homeowner. On the basic level, the company offers initial treatment and annual inspection. According to the contract, a coverage period is fixed, and if an infestation is found within this period, then the company covers the cost to treat it. Depending on the company, the terms of the contract can vary.
Is the termite letter/termite bond mandatory?
In most cases, a termite letter is necessary for a smooth real estate transaction. As a seller, getting a termite letter for your property will help speeding up the sales process. Also, the buyer views the document as a source of security, and this can in turn increase the sales price of your property.
If you are a buyer, then make sure to review the termite letter since you don’t have to battle the termites soon after you get the property. Additionally, the damages listed in the termite letter if present will also help you understand the integrity of the structure.
The termite letter is required by financial institutions like banks and other loan institutions since they determine the property’s value. Besides, the termite letter is required for approval when applying for Federal Housing Administration (FHA) loan or a Veteran’s Assistance (VA) loan.
Termite bonds on the other hand are not mandatory while selling or buying the property. But the termite bond can be transferred to the new buyer moving into the place though this depends on the company involved. And no, you cannot transfer the termite bond from one property to another.
How do I get the termite letter?
To get the termite letter, a professional termite company has to be employed, and then the inspection for the termites is done. The cost for the termite inspection might range from $45 to $150, and it might be paid by the buyer or the seller depending on the possible arrangement.
A visual inspection is carried out by the professional for the termites or other signs of infestation like mud tubes and discarded wings. The inspector might check the heavy moisture areas, but the report does not give any report on the inaccessible areas. Most loan institutions might only consider the report authentic for 30 days since the inspection after which a new inspection might be needed.
Hi Tech Termite Control
We at Hi Tech Termite Control use the most advanced technologies for termite control and prevention. We also provide a three-year full-structure warranty for the primary and secondary termite control services. If you need a professional for acquiring a termite letter or termite bond, we are here to help.
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