Q. What exactly is a Termite Inspection?
A.    A Termite Inspection is another name for Wood Destroying Organisms Report, or WDO.  The WDO report is more than just a report on termites.  It covers other wood destroying organisms such as carpenter ants and fungi.  Also it is designed to report, "conditions conducive" to wood destroying organisms such as earth wood contact, excessive moisture and improper grade.  The inspection is entirely visible and non-destructive and does not guarantee structural soundness or guarantee against future infestations. 

Q. Is a Termite Inspection the same as a pest inspection?
A. No.  A Termite Inspection only covers wood destroying organisms and conducive conditions.  A pest inspection may include an inspection for such pests as ants, roaches, spiders, scorpions etc.  This report is usually given on the Inspection Company’s letterhead or separate form and may require an additional inspection fee.

Q. Why do we need Termite Inspections?  We don’t have termites here.
A. Southern Nevada is home to at least eight species of termites.  Some are considered structural pests and some are not.  And, we do have enough of the former to be of concern, over the years I have seen many homes in Las Vegas infested with the really hungry variety.

Q. For years only the VA required Termite Inspections, now the FHA wants them too.  What’s the deal?
A. True, the FHA is requiring that a Termite Inspection be completed on all FHA funded homes over two years old.  Over the years the FHA has seen an increase in termite infestations nationwide.  In many FHA regions Termite Inspections have been required for years.  Only recently has the FHA found that the desert Southwest, including Las Vegas, has increased termite activity.  The spread of the Formosan termite in other areas has only increased their concern. 

Q. Why don’t conventional lenders require a Termite Inspection?
A. Some do, but not all.  You will find that lenders generally based in a heavy termite activity area may require a Termite Inspection.  In addition, buyers coming from those same areas may want the inspection completed as part of the Sales Agreement.  In any case, a Termite Inspection on any home is a good idea.

Q. If I have to have a Termite Inspection to close my deal, when is the best time to order one?
A. In most Sales Agreements there is a provision for a contingency or due-diligence period.  Since all other inspections must be completed within this time frame, this would be the best time to have the Termite Inspection done.  Unfortunately many real estate agents wait until a day or two before closing.  In that case, if there is a problem with any wood destroying organism or any conducive conditions, the loan may not fund until the inspection conditions are corrected and a clear report issued.  And since most loan docs are time sensitive, this could cause serious problems for the buyers.  The real estate agent may be viewed as responsible if the inspections are not ordered in a timely manner.

Q. How do I choose a Termite Inspector?
A. All Termite Inspectors must be licensed with the state of Nevada through the Department of Agriculture.  Like real estate licensees they must test to obtain their license.  Experience or education is not a requirement. Just this past year a CEU requirement was imposed on pest control licensees.  So, just like you would choose any professional, pick an inspection company with experienced inspectors.  Many licensed Termite Inspectors have never seen a live termite!

Q. What does a Termite Inspection cost?
A. As with any service, prices vary.  Well-insured and experienced companies may cost a little more than others.  But just as in any service, including real estate, you get what you pay for. 

Q. What if there is a problem, can I be held liable?
A. All licensed Termite Inspectors are required by Nevada Revised Statutes to carry general liability insurance.  But, the minimum insurance requirements are very low by today’s standards and not all insurance policies include E&O insurance.  So, if there is an E&O claim and the insurance is not sufficient or there is no E&O coverage in force, there could be some liability for the brokerage and agent responsible for ordering the inspection.  The best rule of thumb is to make sure that the company you hire is experienced and has adequate liability and E&O insurance should a claim of any type arise as a result of the inspection.