Another termite inspection question

17 years ago

We got a bill today for a termite inspection on the house we are buying. We never ordered one, the bank didn't ask for one either. Our loans was fully approved with NO conditions.

We initially thought the lender might ask for one; however, we also thought they not since there was one done in November (clear) and there is a standing contract with a pest control company.

Our agent is now asking us to pay up for this inspection. I guess she called someone up and had them do it. Is this normal procedure??

Sort by:Oldest

Comments (10)

kec01
17 years ago
In my area it's not common practice. Unless the agent has a very good reason for having made the call, I'd very nicely let her know that she can deal with the cost of the service as I won't cover it. Awfully presumptuous of her to spend your money, isn't it?
cpowers21
17 years ago
Are you sure it's an inspection bill? It may be a transfer bill (transferring a bond to a new owner) or it could also be the renewal charge for the bond. If it's neither of these and the agent requested it the inspection without cause, I would say she/he should be responsible for the amount. Here in Georgia, termite inspections have now become the buyer's job to do the inspection. Before, the owners had to furnish a termite letter.
Related Discussions
Termite question
Q
Comments (5)
Termites can find a way to get to your wood structure from the inside of your house as well as the outside, even people with full basements have found the tunnels going up the inside walls to the wood structure. Termites do need a moist environment to live in, and that is why they build those mud tunnels, but they only eat dry wood. Even though I have had wood chips, shredded leaves, etc. as mulch near the house foundation for years I have not seen any sign of termites in that mulch, in the soil under that mulch, or any mud tunnels going up the foundation blocks. I have found termites in scrap wood the previous owners threw under a porch where things were pretty dry.
...See More
Termites/Financing Question
Q
Comments (4)
"The seller already said he's not lowering his selling price, nor will he pay to repair the damage(the house was listed in poor condition)." What was in the purchase contract? The 'standard contract' n many areas REQUIRES sellers to make ALL repairs for termite damage. Without a clean termite report (or treatment and repair) the lender cannot sell the mortgage into the secondary market. No one wants to be stuck with a termite damaged property and having to pay for repairs, either you or the bank. I would actually tell this seller to make the property viable by fumigating and repairing all the damage, or walk away. Sill replacement may go smoothly, or could result in heavy wall damage from cracking when the house is jacked to insert new sills. The ends of the joists may be damaged (they rest on the sills) or even the bottom plates of walls and the bottom of studs. The only way to find out exactly how much damage is present is to tear open walls and check.
...See More
Home Inspections & Renting Back Questions
Q
Comments (10)
Don't forget to change your homeowners insurance policy over to a renters policy after your closing. The new owner will need her OWN insurance (you can't have insurance on a house you don't own), and the house will be covered. Your status will be "tenant at sufferance" or something--you're there bcs the owner is allowing it. Sort of as if you are her house-sitting cousin, or something. So you may not be able to get "renter's insurance" (though you should if you can, to protect your own belongings--it's not expensive--$30 a month or something). Lots of people do rent back or overstay w/ no problem. We did--not a month, but a few days. It really helped the sellers and was not inconvenient for us at all. In your case, it sounds like a win/win--she'd like you to stay, covering the expenses, and YOU would like to stay. Just decide what would be fair, in terms of potential damage, and stuff, and make arrangements. I agree w/ the idea of getting a lawyer to make sure the wording is clear, etc., if you can. Our sellers put some money in an escrow account to be tapped if there was damage at the move-out. I think we asked for $200 to help mitigate the cost of redoing the floor when we saw scratches after they moved. (It was the stupidest thing I've ever done--unknowingly, of course. The new refinish job was crummy, and the floor have been a nightmare ever since. We should have left them and put a rug over the scratches.) And of course, some money changes hands, either in payments, or in an adjustment to the sale price, so that you will be covering all or most of her homeowner expenses during that month. Our sellers covered our expenses are OUR rates (higher mortgage payments, maybe even higher percentage) instead of theirs--that's an issue to discuss. Will you cover a month's worth of her insurance? mortage, utilities? I do like the idea of a joint walk-through w/ video camera, to document the condition of the home. One thing that made us very comfortable w/ the rent-back situation is that (it was FSBO) both parties had been very easy to work with. Polite, considerate, trying very hard to be fair. So when they asked to extend, we have every motivation to do so, and every evidence that they were reasonable, sane people. of course they could have been fooling us, etc., but we had as much evidence as anyone can have.
...See More
Home inspection question
Q
Comments (47)
First, someone can't claim to be an inspector and upon his word you are free of the contract. The courts have commonly upheld and stated many times that in all real estate transactions both the buyer and the seller "must act honestly, reasonably, and in good faith." They have also said that home inspections by unqualified inspectors violate the above standard of care, and are not sufficient. Now, they did not specifically say who is and is not qualified but they don't need to as they only need to apply the standard of reasonableness to it. That a reasonable person would accept the inspector as qualified. Now onto the other thing, traditionally courts have upheld that a full approval, or general inspection, clause is not sufficient in and of itself to terminate a contract. The buyer still must act honestly, reasonably, and in good faith. You can't just cancel the contract for minor repairs. Then in 2002 the courts kind of reversed that a bit in Marshall v. Bernard, which contained the language, "receipt of a report satisfactory to him, in his sole and absolute discretion." The courts basically said the language so plainly gave the discretion to the buyer that they upheld it. However, since Marshall v. Bernard two things have happened, (1) sole and absolute discretion has been stricken from most contracts because of the subjectivity. (2) The courts have now defined this as the minimum standard. In other words to really cancel the contract while not acting in good faith you must have those words or very similar words in your contract. Here is a general inspection clause I pulled off realtytimes This contract is contingent upon the buyer having the right to engage a professional inspector to determine the structure and condition of the house. The inspection shall be conducted and the contingency concluded within five working days from the date of acceptance of this contract. The inspection report must be satisfactory to purchaser, or all deposit monies will be immediately refunded and all contract obligations considered null and void. Notice it doesn't contain any words like "sole and absolute" that are necessary to cancel the contract at will. The buyer in this case will still be subject to a reasonableness test, and must be acting in good faith. Because of these things and other problems with general inspection clauses they are being replaced with a repair limit clause. The repair limit has no subjectivity to it, once your repairs hit a specified amount then the buyer can decline. Since almost any home repair will easily exceed $500 to $1,000 they actually afford the buyer more protection. Not to mention the added bonus of forcing repairs. The problem with a general inspection clause is what happens if your $600 of inspections return $700 of repairs and the seller says no? You are so vested in the house are you going to walk away? Edit: The reason that buyers can cancel the contract at will is simply because the sellers let them. And usually they should, I don't think it is very decent to make someone buy a house they don't want, however, I don't think the sellers are always undamaged in the exchange. But many of the things that people take as their right are realistically just a testament to the goodwill and decency of others.
...See More
User
17 years ago
In our area (NC) its very common to have an termite inspection done. The inspections are pretty cheap (
cordovamom
17 years ago
In our area where termites are a common problem, it is the SELLER'S responsibility to provide a termite inspection letter/report.
logic
17 years ago
According to the National Pest Management Association, a wood destroying inspect inspection report is only valid for 90 days...making the one performed in November moot.

However,when your Realtor chose to have the inspection performed without consulting you, she/he also chose to bear the cost.
susana_2006
17 years ago
When I sold the home in Calif last year, it was seller's obligation to inspect & treat and repair damage. As the seller, I did have to sign an agreement to pay this money (I guess in case, the deal fell through, the realtor & repair company would have recouse & get their money.

I'm under contract now for a home & I watch the contract language very closely. I would require your agent to show you where she received the authority to order anything that you would be expected to pay. That would be a signed and dated statement and it usually isn't part of the purchase agreement. My agent now is very diligent, even though I'm in another state, he gives me names and telephone numbers of specialists, but he does not order any services that he would expect me to pay for.
Good luck
susan
novahomesick
17 years ago
What does the contract say? Usually, inspections and payment responsibilities are found in the contract. The regional sales contract (DC metro) in my area contains a clause that a termite inspection be conducted no sooner than 30 days before closing. It has little checkboxes to assign payment to the seller or the buyer.
gardensgirl
Original Author
17 years ago
Thanks everyone. I'm in the DC Metro area (Maryland specifically) too. In my area, the buyer pays for the termite as the lender they are using usually makes it a condition on getting the loan. I am fine with that, what I question is WHY my realtor ordered an inspection when it was NOT a condition of the lender, nor did she even ask us about it. She just sent some guy out there who apparently does alot of work for her brokerage. I had told her previously it wasn't a condition of the loan and that there was a pest contract on the house so that if did become a condition, we might be able to use that contract and we should check at that time. Bam.........next thing you know we get a bill.

Whatever, it's not like it's expensive but it's just the principle of the matter!! I HATE REAL ESTATE! :)
brickeyee
17 years ago
"as the lender they are using usually makes it a condition on getting the loan..."

A termite inspection and report have been a HUD requirement for many years.
Since they are the final guarantor of many loans in the secondary market, they get to set the rules.
In some areas the seller pays for the inspection, in others the buyer.
There are advantages to eing the buyer and paying. The inspection company know has a legal tie to the buyer and it is much easier to sue them then the seller who wil then have to sue the inspection company.
Companies (even franchises) are often an easier target than a person who may have moved out of state.
sparksals
17 years ago
Oy VEY GG! Didn't your realtor do the same thing with your dh's home? She's a piece of work. I hope you get through all these deals unscathed!

Another termite inspection question

Comments (10)

kec01

cpowers21

Related Discussions

User

cordovamom

logic

susana_2006

novahomesick

gardensgirl
Original Author

brickeyee

sparksals

COMPANY

BUSINESS SERVICES

GET HELP

CONNECT WITH US

Another termite inspection question

Comments (10)

Related Discussions

gardensgirlOriginal Author

COMPANY

BUSINESS SERVICES

GET HELP

CONNECT WITH US

gardensgirl
Original Author