What is the difference between a Termite Clearance Letter & A Bond?

By
Real Estate Broker/Owner with Momentum Real Estate Group LLC GA BrokersLicense# 277342

What is the difference between a Termite Clearance Letter and a Termite Bond?Do I need a termite clearance letter?

When it comes to real estate in Georgia there are two types of homes:

1.  Houses that HAVE TERMITES.

2. Houses that WILL HAVE TERMITES.

Nearly every real estate contract written in Georgia stipulates a request that the SELLER PROVIDE, AT NO COST TO THE BUYER, A TERMITE CLEARANCE LETTER PRIOR TO CLOSING.

Many times that request will go on to request a TRANSFERRABLE TERMITE BOND (Warranty on the treatment) for one year at no cost to the buyer.

Understanding the distinction between a clearance letter and a bond is very important.

TERMITE CLEARANCE LETTER indicates that the property has been inspected by a certified, licensed professional pest control company and they found NO ACTIVE INFESTATION OF TERMITES.  

TRANSFERRABLE TERMITE BOND indicates that the property has previously been treated for termites and is under warranty with the pest control company.  

Read more...

Posted by

55+ Realty Advisor  MyMomentumTea.com Logo 

Jenna Dixon
Associate Broker

55+ Realty Advisor | Accredited Buyer Representative |
Certified Skilled Negotiator

DRA Homes Real Estate
MyMomentumTeam.com

Email: JennaDixon@Outlook.com
Direct: (770) 374-4230


DRA Homes Real Estate
An Affiliate of Maximum One Realty Greater Atlanta
5041 Dallas Highway, Suite 700, Powder Springs, GA 30127
Office Phone: 770-919-8825 ext. 318

 

 

 

Comments (7)

Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Interesting. I should know but was not aware of the bond.

Feb 22, 2016 10:42 PM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Knock on wood (pun intended) can't say that I've ever had a house with termites, nor have my parents.  Of course we do engage in regular pest control and keep our basement/crawl space free from debris that would invite them.

Feb 22, 2016 10:57 PM
Jenna Dixon

We've had a minor experience with termites that was detected by my beagle!  A quick treatment and an on-going bond has kept our assets protected.


This was inspired by a LOONG "argument" with a local agent who did not understand the difference between the letter and the bond.

Feb 23, 2016 12:38 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Jenna,  I've not heard of the bond ... we have clearance here. Some companies do warranty their work for a period of time.

Feb 23, 2016 04:53 AM
Jenna Dixon

Bond/warranty are interchangeable. Treatment is followed by a 1 year warranty or bond which must be renewed each year until the property needs to be retreated.

Feb 23, 2016 10:09 AM
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

Homes in Arizona are the same way. If you've never had termites, just wait a little while because you will at some point. The termite inspection is paid for by the buyer here as a part of the overall home inspection. 

Feb 24, 2016 12:05 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Jenna, nice post to clear up any questions buyers have on termite inspections.    

Feb 24, 2016 10:03 PM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

I have found it I get a house with termites then the next few will also have them. You are right a house has them or they will if you don't do something to prevent it.

Feb 29, 2016 10:36 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Jenna

Good information for buyers and sellers in Georgia to know. A termite inspection/report is not automatic thing here. Until the contract change in our areaw it was common fo rbuyers to ask for this, with repair to be completed by the seller, and the lender would require a clearance. No bond as far as I know termite companies do warrant their work for different periods. Now the inspection/report may or may not requested and it becomes part of the repairs requests, if the buyer wishes, to be negotiated with the seller.

We have the same saying here - about houses and termites. They have them, had 'em or will get 'em.

Jeff

Mar 02, 2016 06:55 AM

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