Ask Phyllis!

Who Pays For Termite Repairs

Dear Phyllis,
I look forward to your column and don’t recall you addressing termite repairs. We purchased our home five years ago. At that time, the seller provided termite completion as part of our regular contract. It was not a negotiation but just included. My son just opened escrow on a home in Long Beach and the seller is not offering to cover the termite. My son obtained a termite inspection and the repairs are just over $8,000. The regular inspector noted that the home needs a new electrical panel and the plumbing is old galvanized pipes. My son’s Realtor® is claiming that the termite is a negotiation and the seller is not required to pay for it. My question: Are termite repairs handled differently in Long Beach? Jeff

Dear Jeff,
Often certain fee allocations and negotiations are handled differently in other communities. Several years ago, the California Residential Purchase contract was revised to omit the section regarding termite reports and completion. Prior to this change it was customary (not required) that California home sellers provide the buyer with a termite report and Section I clearance.

This has since changed, and the termite report and clearance are now an inspection negotiation throughout California. It is no longer customary for the seller to provide a termite report or completion.

Without an upfront termite report, the seller would not have any indication of the cost. Imagine a home seller’s shock to learn that they agreed to thousands of dollars in termite repairs. Prior to this contract change, experienced listing agents ordered termite inspections before the home was listed for sale. Once the report was received the seller knew the extent of termite repairs and the cost.

When I first started selling real estate the contract stated that the seller would fix structural items such as chimneys. At that time, experienced real estate agents were adding verbiage in their counter offers that the “Property is sold in its present AS IS condition. There have been numerous changes to the California Real Estate Purchase Contract over the years. Each revision prevents inexperienced real estate agents from making major blunders.

Best of luck to your son on his negotiations.

  Phyllis Harb