The Termite Report on Your Mar Vista Home: What Section 1 and Section 2 Mean When You Sell

A California termite report sorts what the inspector found into two groups. Section 1 is active infestation, active infection like dry rot, or damage those things have already caused. Section 2 is conditions that are likely to lead to a problem later if nobody deals with them, such as moisture or wood touching soil. In most Mar Vista sales, Section 1 is where the negotiation happens. Section 2 is usually treated as information for the buyer.

Neither section is a verdict on your house. The report is a list of findings with a price next to each one. What happens next is a conversation about who pays for which items, and when.

Much of Mar Vista is original mid-century single-family housing. Many of those homes sit on raised wood floors over a crawl space, with wood siding, wood eaves, and decades of paint layers. That is a lot of wood, and in Southern California wood attracts two kinds of termites. Drywood termites live inside the wood itself and leave small pellets behind. Subterranean termites come up from the soil and build mud tubes along foundations and framing.

Because of that, the wood destroying pest inspection is a routine part of a Westside sale. It is done by a company licensed by the California Structural Pest Control Board, and the purchase contract says who orders it and who pays for it. Sometimes the seller orders one before listing so the findings are known up front. Often the buyer orders one during the inspection period. Either way, the report tends to land in the middle of escrow with a dollar figure attached, and that figure gets attention.

Here is how the findings break down on a typical report.

• Section 1: active problems. Live termites, active fungus or dry rot, and wood that has already been damaged by either. Common examples are drywood termite pellets in the attic, damaged fascia boards, or rot at the base of a door frame.
• Section 2: conditions that invite problems. Nothing is being damaged yet, but the setup is there. Excess moisture under the house, a leaking hose bib, wood trim buried in soil, a planter built against the siding, or grading that sends water toward the foundation.
• Further inspection items. Areas the inspector could not see or reach. A finished garage wall, a stored-full crawl space, or a locked room. These are not findings. They are open questions, and a careful buyer will ask for them to be answered.

The inspection covers what can be seen and reached without opening walls or pulling up flooring. That means the report reflects the accessible areas on the day of the visit. It is a strong starting point, but it cannot show what is inside every wall.

There is no law that says the seller must pay for termite work. It is a term of the contract, and it is negotiated like any other term. That said, the usual pattern in a Westside sale looks like this.

1. Section 1 work is the item most often negotiated. Buyers generally expect active infestation and existing damage to be addressed, either by the seller paying for the work or by a credit. Some loan types and some lenders also want Section 1 items completed before they will fund, which can take the question out of everyone's hands.
2. Section 2 work is usually left to the buyer. These are maintenance items and they are priced into the house as-is. A seller can offer to handle one or two of them, but it is rarely expected.
3. Further inspection items get answered, not ignored. If the report says an area could not be inspected, the fair move is to open it up for a second visit before the contingency period ends. A question left open tends to come back as a larger request later.

A seller who knows the difference between these three lists can hold a steady position. Agreeing to Section 1 and declining Section 2 is a normal, reasonable answer in most sales. For more on how these conversations go, see negotiating repair requests after a home inspection.

Once the Section 1 number is agreed, there are a few ways to settle it.

• The seller has the work done before closing. The pest company treats and repairs, then issues a completion notice, often called a clearance. Escrow and the lender see the paper, and the buyer takes the house with the work finished.
• A credit to the buyer. The seller gives the buyer a credit through escrow and the buyer handles the work after moving in. The lender has to approve the credit, and some lenders will not accept it for Section 1 items.
• A holdback. Funds are held in escrow and released when the agreed work is done. Useful when the work is agreed but the schedule will not fit before the closing date. Here is how an escrow holdback works.

The treatment itself affects the plan. Drywood termites spread through a house are often handled by tenting the whole structure, which means you, your household, and any pets move out for a few days, and food and medicine are removed or sealed in special bags. More limited drywood activity can sometimes be treated locally. Subterranean termites are usually treated at the soil. If the home is still occupied, the treatment method matters as much as the price, so ask about it before you agree to a date.

Termite companies do not all find the same things or price them the same way. One report may recommend replacing a board that another says can be repaired. One may call for tenting where another proposes local treatment. When the Section 1 total is large enough to change the conversation, a second inspection by another licensed company is a reasonable step.

A second report is not a way to make findings disappear. Whatever the first report says is now something you know. It is a way to make sure the scope and the price are fair before anyone signs off on them.

This is the part sellers most often miss. Once you have a termite report on your house, you know what it says. California requires sellers to disclose known material facts, and a report showing active termites or damage is exactly that kind of fact.

If this buyer cancels, the next buyer is entitled to the same report, along with any second opinions, bids, and completion notices. A seller who hands over the report and the clearance showing the work was done is in a far stronger position than one who hopes the next inspector sees less. The guide to California seller disclosures covers where that information goes.

Some Mar Vista sellers order a termite inspection before the house goes on the market. It is a choice with trade-offs. You learn the findings while you still control the schedule, you can get a second opinion without escrow deadlines running, and buyers see the report in the disclosure package instead of discovering it in week two. You also take on a disclosure the moment you learn the result. For how this fits with the general inspection, see how an inspection before listing fits in.

The principle is the same one that runs through the whole sale. A condition known on day one is something a buyer prices in. The same condition found in the middle of escrow becomes a renegotiation.

At First Key Pacific, this is the kind of detail I handle on every listing. Scheduling the inspector, getting a second opinion when the number is large, lining up the work around your move, and keeping escrow on schedule. If you are thinking about selling in Mar Vista, or you are already in escrow with a termite report in your inbox, get in touch. No pressure, just real answers.