The short version
A termite inspection in a real estate transaction produces a Wood-Destroying Insect (WDI) or Wood-Destroying Organism (WDO) report that documents visible evidence of infestation, damage and things that attract termites on the day of inspection; it is not a warranty that the house is termite-free. Who orders and pays varies by state custom and by the loan program, and a report with findings usually leads to treatment, a re-inspection and a clearance letter before closing. The practical step is to schedule the inspection early in the contingency period so there is time to treat, re-inspect and negotiate without moving the closing date.
- A WDI/WDO report records what a licensed inspector could see and probe on one specific day, nothing more.
- Who orders and pays for the report is set by local custom, the purchase contract and the lender or loan program, not by any single national rule.
- Evidence of infestation, evidence of damage and things that attract termites are three different findings that call for three different responses.
- A clearance letter follows treatment and re-inspection; it is issued by the pest control company, not the lender or the agent.
- Termite bonds and warranties can sometimes transfer to the buyer, but only if the transfer is requested and any fee is paid before closing.
This guide is for listing and buyer agents, transaction coordinators and brokers who handle residential sales where a termite or wood-destroying insect report is customary, required by the lender or requested by a buyer. It also helps agents in cooler states who see WDI reports only occasionally and want a clear picture of the process before a VA or FHA loan puts one on the closing checklist.
What to look for
Timing compounds the problem. Many contracts push the termite inspection to the end of the due diligence period, after the general home inspection, and lenders often do not ask for the report until underwriting. If findings turn up at that point, the treatment needs to be scheduled, completed and re-inspected, and a clearance letter dated within the lender's window has to reach the closing file. Liquid soil treatments can be done in a day, but scheduling, weather, access to a crawl space and a re-inspection visit can stretch a simple fix across two weeks. Ordering the report early, before the general inspection contingency expires, is the single change that removes most of this pressure. A termite report is short, usually one to three pages, but it is written in a vocabulary that is easy to misread. An inspector who checks a box for evidence of previous treatment is not saying the house has termites. An inspector who notes earth-to-wood contact at the porch is not saying there is damage. A buyer who skims the form and sees the word termite in three places may still walk, and a seller who sees the same form may argue that nothing is wrong because the damage is old. Agents end up in the middle of a negotiation about a document neither side fully understands.
- 1Mud shelter tubes on foundation walls, piers or plumbing penetrations.
- 2Blistered or sagging paint over wood that sounds hollow when tapped.
- 3Discarded translucent wings on sills, in spider webs or near lights.
- 4Small piles of dry pellets below kick-out holes in trim or rafters.
- 5Wood that crumbles or shows layered galleries when probed with a screwdriver.
- 6Soft or spongy floors near tubs, showers and exterior doors.
- 7Buckling laminate or bubbling drywall with no plumbing leak found.
- 8Swarming insects indoors in spring, especially near windows.
Why it’s worth acting soon
- A late report leaves no time to treat, re-inspect and clear before the closing date, forcing an extension.
- Findings discovered after the inspection contingency expires leave the buyer with less leverage and the seller with more exposure.
- Active infestations keep feeding between the report date and closing, and lenders may require a fresh inspection if the first one ages out.
- Undisclosed known termite history can become a post-closing dispute that names the agent along with the seller.
- A bond that is not transferred before closing may lapse, leaving the buyer to pay for a new treatment and a new contract.
costs U.S. homeowners billions of dollars a yearTermite damageUSDA Treatment options and typical costs
WDI/WDO inspection and report (NPMA-33 or state form)
$75–$200
A licensed inspector examines accessible interior, exterior, crawl space, basement, garage and attic areas for live insects, evidence of past infestation, damage and things that attract termites, then records the findings on the NPMA-33 or the state-required form. Some companies waive or reduce the fee when they also perform treatment, so ask how the inspection is priced.
- Time
- 45 minutes to 2 hours on site; report same day or next day
- Best for
- Every transaction where the lender or contract requires one
Liquid soil termiticide treatment
$1,200–$3,500 for a typical single-family home
The technician trenches and treats soil along the foundation, drills and injects through slabs and porches where needed, and treats around plumbing penetrations. It is the most common pre-closing fix because it is completed in a single visit and most companies will issue a clearance letter shortly after.
- Time
- One day of work; clearance re-inspection scheduled after
- Best for
- Active subterranean termites found before closing
Termite bait station system
$1,500–$3,500 installed, plus $300–$500 per year monitoring
Stations are placed in the soil around the structure and checked on a schedule. Because elimination takes time, some lenders and buyers want a liquid treatment for active infestations and accept baiting as ongoing protection; confirm what the lender will accept before the seller commits.
- Time
- Installation in a day; colony elimination over months
- Best for
- Homes with slab or well construction limiting soil treatment
Localized or spot treatment for drywood termites
$300–$1,500 per treated area
The technician drills into infested wood and injects foam, dust or liquid directly into galleries. It addresses only the colonies found, so a report with multiple drywood locations may push the parties toward whole-structure fumigation instead.
- Time
- Half a day
- Best for
- Small, accessible drywood colonies in western and southern states
Whole-structure fumigation (tenting)
$1,500–$4,000 for smaller homes; $5,000–$10,000 for large or complex structures
The house is sealed under tarps and a fumigant gas is released, then aerated and certified safe before re-entry. It requires the seller to vacate with pets and plants and does not leave residual protection, so buyers often pair it with a warranty or bond.
- Time
- 2 to 3 days with the home vacated
- Best for
- Widespread drywood termite activity in California, Florida and Hawaii
Prices are typical published ranges. Ask what’s included before you compare quotes.
Check under the kitchen sink for dampness and soft cabinet wood. Plumbing walls are a common path for termites coming up from a slab.What a WDI report actually contains.
Section IV, on the back, is the fine print: the inspection is visual, limited to accessible areas, valid only for the day it was performed, and not a structural evaluation. Section III covers treatment history and recommendations. The form also lists obstructions and inaccessible areas, which is where crawl spaces with less than 18 inches of clearance, finished basements, stored goods and dense insulation get noted. Each finding is tied to a location on the property. Section II is the part everyone reads: a set of checkboxes stating whether the inspector found no visible evidence, visible evidence of a wood-destroying insect (with the species named), visible evidence of damage, or visible evidence of previous treatment. Section I identifies the property, the inspector, the license number and the date. The NPMA-33, used in most states, is a two-page form. Reading the whole form, not the summary boxes, is the difference between a smooth negotiation and a surprise. A report that marks half the crawl space inaccessible protects the inspector, not the buyer, and a lender may ask that the areas be opened and re-inspected. Second, the inaccessible areas list is as important as the findings. Old galleries with no live insects and no fresh mud still get the damage box checked, and the narrative should say whether activity appeared current. First, the inspector reports evidence, not conclusions. Two details matter for agents. State forms such as Florida's 13645 and California's structural pest control reports follow the same logic but add their own categories, and California in particular splits findings into Section 1 items (active infestation or damage) and Section 2 items (conditions likely to lead to infestation), which drive who pays for what under many California contracts.
Findings, damage and things that attract termites are three different things.
When damage is noted, the sensible next step is a contractor or structural engineer to look at the specific members and write an estimate. The report will say where, but it will not say how much or whether it affects the structure, because WDI inspectors are not licensed to make that judgment. Evidence of damage means wood that has been eaten, whether last month or twenty years ago. The species matters: subterranean termites are treated through the soil, drywood termites are treated in the wood or by fumigation, and the two are not interchangeable on a treatment proposal. This is the finding that triggers treatment and that lenders care about most. Evidence of infestation means the inspector saw termites, fresh shelter tubes, live activity in galleries, swarmers or frass that indicates a colony is present or was recently. On a report with no activity and no damage, things that attract termites are still worth putting in the repair request, partly because they lower the buyer's future risk and partly because some lenders, VA in particular, will ask that certain conditions be corrected before funding. These are the cheapest items on the report to fix and the easiest to overlook. Conducive conditions are the things that make infestation more likely: earth-to-wood contact at siding or deck posts, wood debris in the crawl space, mulch piled against the foundation, moisture from poor grading or a leaking hose bib, firewood stacked against the house, and crawl space clearance too low to inspect. Buyers should not accept a treatment invoice as proof that damage was addressed, because treatment kills termites and does nothing for the wood. A sill plate with surface scarring and a floor joist eaten hollow both get the same checkbox; only a repair evaluation separates them.
Sealing the gap where pipes enter the house takes away one of the easiest routes in. It won't replace treatment, but it helps.Treatment before closing, re-inspection and clearance letters.
Some companies charge a small fee for a re-issued letter with a new date; that is normal. If the closing date moves, check whether the clearance is still within the window before assuming it is fine. Lenders want that document dated inside their validity window and usually want the original inspection and the treatment paperwork together in the file. Once the work is done, the company returns, confirms the treatment was completed and no new evidence is visible, and issues the clearance letter or an updated report with the treatment section completed. The seller typically signs and pays, though the contract can shift this. The treating company writes a proposal that should itemize the method (liquid, bait, spot treatment or fumigation), the product used, the linear feet or areas covered, whether slab drilling is included, the warranty or bond offered and its term, and the fee for the post-treatment inspection. When a report shows active infestation, the sequence is treatment, re-inspection, clearance. Get the transfer confirmed on paper and put the renewal date on the buyer's calendar, because a lapsed bond means a new treatment at full price when the next inspection finds activity. Most companies allow transfer for a flat fee if requested around closing and some require an inspection first. Both are contracts with the property owner, so the seller's contract does not help the buyer unless it is transferred. A repair bond adds a damage benefit up to a stated limit and costs more. A retreatment warranty obligates the company to treat again if termites return during the term, usually one year renewable. Warranties and bonds are the piece most often lost in the shuffle.
Coordinating sellers, inspectors and disclosure.
Many bonds require that company to perform inspections and retreatment, and a competing company's findings can lead to a standoff about who is responsible. If the seller has a current bond, coordinate with the bond holder first. Attach the paperwork to the disclosure package; a treatment record with a warranty is a selling point, not a liability. Anything the seller knows about past infestation, treatment or damage belongs on the state disclosure form where one exists, and in states without a mandatory form it still belongs in the conversation with the buyer's agent, because most states prohibit active concealment of a known material defect and license law usually requires agents to disclose material facts they know. Sellers often have a treatment invoice, a bond renewal notice or a memory of a tented house that they will mention if asked and forget if not. On the listing side, ask about termites at the listing appointment, not after an offer. That structure keeps a termite finding from becoming a closing delay. Put dates, not adjectives, in the repair addendum: treatment completed by a specific date, clearance letter delivered by a specific date, bond transfer confirmed at closing. When findings come back, translate them for the client in three parts: what is active, what is damaged, and what is merely conducive, with a separate response for each. Give the pest control company the lender's form requirement and validity window on paper. On the buyer side, schedule the WDI inspection during the general inspection period and, where possible, on the same day so the general inspector and the termite inspector can compare notes on moisture and damage. Ask the bond company whether the report it produces is on the lender's form and whether the bond transfers.
What affects the price
- Square footage and linear feet of foundation, which drive both chemical volume and labor for liquid treatments.
- Foundation type: crawl spaces are easier to trench; slabs, sunrooms and attached garages require drilling.
- Termite species: drywood treatments and fumigation are priced very differently from subterranean soil work.
- Whether the inspection fee is stand-alone or credited toward treatment by the same company.
- Re-inspection and clearance letter fees, which some companies include and others bill separately.
- Repair of structural damage, which is carpentry work billed outside the pest control contract.
- Bond or warranty type: retreatment-only contracts cost less than repair bonds with a damage benefit.
- Access problems such as finished basements, tight crawl spaces, dense landscaping or stored goods against the foundation.
When to call for help
If the seller has an existing bond, the bond holder is usually the right company to inspect, since another company's report may not be honored under the bond and may create a dispute over who treats. Ask whether the inspector will provide the NPMA-33 or the state form the lender wants, how many days the report is valid, what the re-inspection fee is and how quickly a clearance letter can be issued after treatment. The pest control company should hold the license or certification your state requires for WDI reporting, which in most states is a separate category from general pest control. Do not wait for underwriting to request it. as soon as the contract is signed if the loan is VA, if the property is in a state where a termite letter is customary, if the home has a crawl space, wood siding near grade or a history of moisture problems, or if the general inspector flags mud tubes, damaged wood or earth-to-wood contact. For an agent, the question is less whether to call a professional and more when.
What you can do yourself
There is no do-it-yourself version of a WDI report. Lenders, title companies and most purchase contracts require the form to be completed by a licensed inspector, and in many states the person signing must hold a specific wood-destroying organism license and carry errors-and-omissions coverage. A homeowner's own walk-through, a general home inspector's comment or a hardware store bait stake does not satisfy any of those requirements. The same goes for treatment: a clearance letter after a seller applies over-the-counter termiticide is not something a licensed company will sign. Where an agent and seller can help themselves is in preparation. Before the inspector arrives, the seller can clear stored items away from foundation walls in the basement and garage, make sure the crawl space hatch and attic access are open, remove debris and firewood stacked against the house, and locate any past treatment paperwork, warranty or bond. Those steps reduce the number of areas the inspector has to mark inaccessible, and fewer inaccessible areas means fewer questions from the buyer's lender and fewer reasons for a second visit.
Simple ways to keep termites away
- Order the WDI report during the general inspection window, not at underwriting.
- Ask the seller for treatment records, bond or warranty paperwork at listing, before an offer arrives.
- Confirm with the lender on paper which form is required and how many days it stays valid.
- Have the seller clear foundation walls, open crawl and attic access, and move firewood before the inspection.
- Check whether an existing bond requires the bond holder to perform the inspection.
- Build treatment, re-inspection and clearance time into the contract calendar with dates, not phrases like promptly.
- Recommend a separate structural evaluation whenever the report notes damage, since inspectors do not assess structural integrity.
- Note things that attract termites in the repair negotiation even when no activity is found; they are inexpensive fixes now.
Keep the inspection diagram, treatment record and warranty together. Buyers and inspectors will ask for them later.Did you know?
The standard NPMA-33 form is officially titled the Wood Destroying Insect Inspection Report.
Subterranean termites live in every state except Alaska.
A single termite colony can hold hundreds of thousands of workers.
Questions people ask
What is the difference between a WDI report and a WDO report?
In Real Estate Agents, termites are best caught early through inspection, because the damage is hidden inside wood until it is far along. In Real Estate Agents, a professional inspection looks for mud tubes, damaged wood, and swarming activity, and treatment targets the soil and the colony rather than just the visible wood.
Who pays for the termite inspection, the buyer or the seller?
Read the contract and the lender's conditions rather than assuming. For VA loans, the veteran buyer was historically barred from paying the fee, and although the VA relaxed that rule in 2022 to allow the veteran to pay in some cases, many contracts and lenders still assign it to the seller. Elsewhere the buyer orders it with the other inspections. In many southern and southeastern states the seller customarily provides the termite letter. It depends on state custom, the purchase contract and the loan program.
Does an FHA or conventional loan require a termite inspection?
Local lender overlays can add requirements, so ask early. VA is the strictest, requiring a WDI report in most states where termites are a recognized problem regardless of what the appraiser sees. FHA follows a similar rule: the appraiser flags conditions and the lender then requires an inspection and any needed treatment. Conventional loans require one only if the appraiser or underwriter notes evidence of infestation or damage, or if the contract calls for it.
What does a clearance letter mean on a termite report?
Most lenders want it dated within 30 to 90 days of closing. It does not certify that the house is free of termites, does not cover inaccessible areas and does not evaluate structural soundness. A clearance letter, sometimes called a termite letter or clear letter, is a statement from the licensed pest control company that on the date of inspection there was no visible evidence of active infestation in accessible areas, or that any infestation found has been treated.
How long is a termite inspection report good for?
Build the window into the contract calendar when the closing date is set. If closing slips past the window, the lender will ask for a re-inspection, which is usually cheaper than the original inspection but still takes a scheduled visit. The report itself has no expiration printed on it, but lenders set a validity window, commonly 30 days for VA and up to 90 days for other programs, and some title companies and contracts set their own.
Can a termite bond or warranty transfer to the buyer?
A bond that has lapsed or was never transferred provides the buyer nothing. Ask the seller for the contract, call the company to confirm the transfer terms and get the transfer on paper. Some require a current inspection under the bond before transferring. Most companies allow transfer to a new owner if the request is made before or shortly after closing and any transfer fee, commonly a modest flat amount, is paid. Often, but not automatically.
Do I have to disclose a past termite treatment when selling a house?
When in doubt, disclose and attach the treatment paperwork. Agents have their own duties under license law in most states to disclose material facts they know. A few states remain closer to caveat emptor, though even there a seller usually cannot actively conceal a known defect. Many states have a mandatory seller disclosure form that asks directly about past infestations, treatments and damage, and a knowing false answer can support a claim after closing. Disclosure obligations vary by state.
What happens if termites are found before closing?
Lenders generally require treatment of active infestation before funding, so this is rarely something that can be pushed past closing. If the report notes damage, the buyer may request a structural evaluation and repairs or a credit. Typically the seller pays for treatment by a licensed company, the company re-inspects and issues a clearance letter, and the buyer receives a copy along with any warranty. The parties negotiate under the contract's inspection or repair provisions.
Sources (6)
The facts in this article come from the public sources listed above. Every home is different, so ask the company you talk to about pricing and what’s included. Published by Termite Exterminator · Updated September 11, 2026 · How we write these guides