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The Termite Letter

By Kathy Tyson

Real Estate Agent with City of La Vergne, TN

June 19, 2007 05:31 AM

I learned something new today and I'm a little surprised by it. It's your typical "when you assume..." scenario. I just got off the phone with my buyer's lender to confirm that everything is lined up and ready to go. I learned we have a clear to close a full week ahead of schedule (my favorite three words in real estate are "clear to close")!

However, I told the lender that the seller had ordered the termite letter rather than the buyer because they didn't read the contract carefully. I asked if he as a lender would be okay with that termite letter provided by the seller. He said, "We don't even need a termite letter anymore." I was shocked! He added that they haven't required one for a year now. He explained that although not all lenders have a no-termite letter policy, there are many many lenders who now waive the termite letter requirement. Have you heard about this?

Let me end by duly noting that I will continue to urge my buyers to have the termite inspection done prior to closing, with a treatment and repair option in place!

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Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

We haven't had a buyer's lender require a termite inspection for about 2 years. I still have one because under every house in Maryland and Virginia, there is a colony of termites waiting for lunch.

So, I leave it in the contract to protect the buyer. I believe that FHA and VA loans still require a terminte cert.

Jun 19, 2007 05:39 AM

Anonymous

Mary De Luca

Each lender is different. I have lender not require termite for condos especially hi-rise condos. We also have townhouse condos and garden style condos. I agree with Lenn since I'm in the same area. I get a termite for anything that is not a hi-rise or garden style condos.

Last year I had a brick townhouse that was about 5 years old. There was termites in the mulch! So you just never know. Required or not- but the lender. It's important to get.

Jun 19, 2007 05:56 AM

Dick & Sandy Beals

Wilmington Real Estate 4U Wilmington, NC - Wilmington, NC

It is probably a liability problem for some lenders. I just read about an attorney in Florida, who makes a 7 figure income from termite litigation's that he handles, has not lost a case yet in 6 years, and he is branching out to some of the other termite affected states. Hang on to your pocket books

Dick Beals

Jun 19, 2007 06:01 AM

Pam Hofmann

Third Tennessee Realty & Associates, LLC - Crossville, TN

Your Crossville, Lake Tansi & Fairfield Glade Specialist

Here in Tennessee I thought it was a State thing that all Seller's must provide a clear termite report to the

buyer. It is written right in the language of our contracts on the back in the fine print. Since every house in Tennessee has some kind of termite (just kidding...) but it is a really good idea to have a termite contract on your home here.

Jun 19, 2007 06:19 AM

Kathy Tyson

City of La Vergne, TN - La Vergne, TN

Hey Pam! I'm in the Nashville area and it's a Nashville lender (with Suntrust) who said they didnt' need the letter anymore. That's why I'm so surprised - yes Tennessee loves its termites! ha.

Jun 19, 2007 06:23 AM

John

I am purchasing a condo for cash so there is no mortgage holder. The Condo is a two story brick frame and attached to about 10 other properties. The Homeowners Association handles the Termite Service, it is a national well known company starting with capital T. My question is since the HOA does the termite service, and I am not required to get a letter, why should I spend 50 to 75 dollars? In other words if termite damage is found 3 years from now, the HOA would need to repair the damage, correct? And if so, what good does a letter do now? My question would not exist except that previous owner paid HOA and I will be paying for this service anyway. Thanks for the help, not a typical question, I think

Dec 27, 2011 06:13 AM

The Termite Letter

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