Profile picture for Optimus012

Do buyers usually pay for termite extermination after buying a house?

I'm in escrow on a flip property. An appendum I signed says they will not pay for any repairs or pest repairs. The house has 2K termite repairs. Is it normal for buyers to pay to kill termites after they buy the house or do sellers sometimes pay this cost? I do see tents over houses that were just sold often.
  • September 07 2012 - US
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Answers (14)

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Profile picture for blue screen exile
Flynn is in Virginia.  I believe Tap is still in Orange County, California?

Laws regarding pest inspections in California are quite a bit different than the rest of the nation.

"As is" may not exclude pest repair.  This really should be checked more carefully for the specific case.   The addendum may or may not affect the pest repairs, depending on what was in the original contract.

And most lenders will not allow the purchase loan to fund if the State mandated repairs and corrections have not been completed.  Every termite inspection and completion report is mandated to be filed with the State.
  • September 08 2012
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Since your ageement reads the seller will not pay for termite repairs, then they have no obligation to pay. However, typically in CA, seller pays for section 1 of the pest report, or anything that is currently an issue. If you purchase a short sale or REO, it's best to not check the spot where you want a pest report, then it's not required to be done, you can still do an inspection, but it won't be required to make repairs. However, if this box has been checked and you acquire a loan, the lender will require the work be completed and since you signed papers stating the seller won't make any repairs, the burden is on you. Next time, simpy don't check this box or give the seller a pest request form, and it won't be mandatory. By the way, pest inspections are a lender issue, not state requirement in CA. The payment can be tied to the close of escrow, but you will still pay it since this is part of the agreement.
  • September 09 2012
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Tap in the future you may desire to pay say $95 to have a termite person do an informational inspection before signing anything that leaves you so open. Usually an agent would suggest this.  Best of luck.
  • September 08 2012
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Profile picture for Cindy Quinton
I believe if the contract says as-is, the seller is NOT obligated to pay for repairs. And I agree that the seller paying for the report has ZERO to do with it. So it will come down to leverage. Will your lender require the repairs prior to closing? Can you convince the seller that you will WALK if they don't pay? Things like that make a seller pay for repairs when they are not contractually obligated.

If they are lender required, and the seller won't pay, the lender may let you escrow money for the repairs after closing.
  • September 08 2012
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Profile picture for Optimus012
Assuming I have to pay for it, is there anyway to tie it to the close of escrow so that it's paid at closing? I'm getting the seller to pay some closing costs so it's possible it would help if I pay for the termite repair at closing.
  • September 08 2012
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Profile picture for Optimus012
Interesting. My agent said he's 90% sure they would pay for the termite repair since they paid for the report. What you said would be contradictory to that. I do think my agent just wants his commission and doesn't always look out for my best interests, which is why I ask questions on zillow to get a more unbiased opinion.
  • September 08 2012
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Thanks for posting your question on Zillow.com!

If one signs an addendum, that is what one has to go by.  Does not matter what the standard it.  If it says, "as-is" then it means exactly that..."as-is" with the termites.  Now, you can still ask but that does not mean you will receive.

The seller paying for the pest inspection is different than them saying they would pay for the repairs.  That does not trump the "as-is".

Understand what is going on with your transaction better so you are on the right end of the stick here.  Maybe better communication with your Realtor or a better Realtor?

Best of luck!
  • September 08 2012
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Profile picture for Optimus012
I reread it and my appendum actually said nothing about repairs in general. It just said the property is sold in "as is" condition with anything in the property included in the sale. It doesn't say they wouldn't cover the pest repairs specifically. The seller flipped and remodeled the property. It's a standard sale.
  • September 08 2012
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Profile picture for blue screen exile
If you signed an addendum stating they will not pay for any pest repairs, then it sounds like you already agreed to do that work yourself.  The addendums typically supersede the offer.

In California, it is typical for the seller to take care of the pest repairs, except in the case of distressed sales.

People that are buying to "flip" often buy distressed sales properties.

You really need to review your paperwork.
  • September 08 2012
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Profile picture for Optimus012
Ok. I researched more and it said this is section 1 repairs of 2K that need to be done. In my contract, my agent put the seller will pay for a pest inspection. He told me, since they didn't dispute this, that generally means they will pay to fix the repairs that go with it. I'm going FHA so I'm assuming the lender will ask for it to be fixed before they give me a loan.

I hope I don't have to pay for it myself before I even get the house!

  • September 08 2012
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Profile picture for Cindy Quinton
If the 2K is an estimate to repair the damage from the termites, that means there will be an additional cost to actually rid yourself of the pests. You need to investigate what that cost is. 

If you are planning to flip the property then I think you have to weigh the repairs. Think specifically about the repairs, are they in areas that you are already renovating? Are they areas that are being ripped out, renovated anyway? If so they may not even be a real issue for you as a flipper.

If someone else bought this property, renovated it, and are selling it to you as the new owner/occupant, then they should have addressed these issues. A home with a termite infestation and damage, is NOT move in ready. And it should not have commanded a premium price. You need to really sit and discuss your next move with your buyer's agent.
  • September 08 2012
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Profile picture for Ofe Polack
I suggest that you discuss this situation with your buyer agent.  The lender may required that the extermination be done prior to closing.  If you within the Home Inspection period you may want to negotiate that with the sellers, or walk out if you feel it is too much to do for a flip.
  • September 08 2012
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Profile picture for ErinnaTsai
Most of short sale & foreclosure transactions, sellers are not prefer
to provide roof, termite or home inspection reports...etc.  You can
put "Offer subject to inspection reports" when you are placing an
offer.

In general, most of sellers for regular case will prepare inspection
reports upfront for time saving and make their property more attractive
for buyers to send offer.  It will make buyers feel more comfortable
and understand more details for what kind of property they plan to buy.  

At East Bay area such as Fremont, Union city, Newark, Hayward
...etc, buyers to do inspections by themselves.  Sometimes, sellers
may prepare it for buyers too.  

      
  • September 08 2012
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In my area, it is common for investors to waive termite on the purchase, then correct the problem once they own the property prior to resale.

Best of luck on your flip.
  • September 08 2012
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