What Is a Termite and Pest Inspection, and Who Pays for Repairs When Buying a Home in California?

A termite or pest inspection, formally called a Structural Pest Control Report in California, is a specialized inspection separate from a general home inspection that checks specifically for wood-destroying organisms like termites, wood-boring beetles, and dry rot, as well as fungus and moisture conditions that could damage a home's structure. It's required by most lenders for VA loans and is commonly requested for conventional and FHA purchases in Southern California, where termites are especially common given the climate. Understanding who's responsible for ordering it, what it actually covers, and who typically pays for any repairs it finds can prevent confusion—and unexpected costs—during escrow.

What Does a Structural Pest Control Report Actually Check For?

A licensed structural pest control inspector examines the accessible areas of a home—including the attic, crawl space, exterior siding, decks, and foundation—for active termite infestations, past termite damage, wood-boring beetles, dry rot, fungus, and excess moisture conditions that could invite future infestations, and issues a report dividing findings into Section 1 (active infestation or damage requiring immediate correction) and Section 2 (conditions likely to lead to infestation or damage if left unaddressed). The report doesn't evaluate the home's overall structural integrity, electrical, plumbing, or roofing condition the way a general home inspection does—it's narrowly focused on wood-destroying pests and the organisms and conditions that cause structural wood damage.

Who Typically Pays for the Termite Inspection Itself?

In California, there's no legal requirement dictating who pays for the inspection itself, so it's negotiable between buyer and seller as part of the purchase agreement, though it's common in many transactions for the seller to order and pay for the inspection, particularly when a lender requires it as a condition of financing. Some buyers choose to order their own independent inspection regardless of what the seller provides, especially if they want added assurance the report wasn't influenced by a relationship between the seller and the pest control company. Who pays for the report is simply a point of negotiation, and it's usually spelled out clearly in the purchase contract rather than left to assumption.

Who Pays for Section 1 vs. Section 2 Repairs?

Section 1 items—active infestation or damage—are typically expected to be corrected before close of escrow, and in many California transactions, sellers agree to pay for Section 1 repairs as a condition of sale, since lenders (especially for VA loans) often won't fund a loan with unresolved active infestation or damage. Section 2 items, which are conditions that could lead to future problems rather than existing damage, are more frequently negotiated, and it's common for sellers to decline responsibility for Section 2 corrections or to split the cost with the buyer. Because this can become a real point of negotiation once the report comes back, it's worth discussing expectations around Section 1 and Section 2 costs before the inspection is even ordered, especially in a competitive offer.

Is a Termite Inspection Required for a VA Loan?

Yes, VA loans require a termite inspection (called a wood-destroying insect report) in most of California, including Los Angeles and Orange County, as part of the VA's Minimum Property Requirements, and VA guidelines specifically state that the veteran buyer generally cannot pay for this inspection themselves—it must be paid by the seller or another party, such as the listing agent, rather than coming out of the veteran's own funds. This VA-specific rule often surprises first-time VA buyers and is worth bringing up early in negotiations so it doesn't become a point of confusion closer to closing.

What Happens If Active Termite Damage Is Found?

If active infestation or damage is found, the typical next step is treatment by a licensed pest control company, followed by repair of any damaged wood, and the pest control company then issues a clearance report (sometimes called a Section 1 clearance) confirming the issue has been resolved, which lenders generally require before funding the loan. The cost and timeline for treatment and repair can vary significantly depending on the extent of the damage, so a report showing substantial Section 1 findings can sometimes affect the overall transaction timeline, and in some cases becomes a point where buyers renegotiate price or request seller credits rather than proceeding with the original terms.

Frequently Asked Questions

Is a termite inspection the same as a general home inspection?
No. A general home inspection looks broadly at a home's systems and condition, while a termite or pest inspection is a separate, specialized report focused specifically on wood-destroying organisms and conditions that could lead to infestation.

How long is a termite inspection report valid?
Most lenders want a termite report that's no more than 90 days old at the time of closing, though some have shorter windows, so timing the inspection appropriately in the transaction matters.

Can a buyer waive the termite inspection in California?
A buyer can choose not to require one as part of their offer, but many lenders—including all VA lenders—require it regardless of what the buyer and seller agree to, so it's not always something a buyer can simply opt out of.

Does homeowners insurance cover termite damage?
Generally no. Most standard homeowners insurance policies treat termite damage as a maintenance issue rather than a covered peril, which is part of why catching it early through an inspection matters.

Updated for November 2026.