Termite and WDI Inspections: The Complete Guide for Real Estate Agents

A general home inspection gives a buyer a broad visual review of the property’s major systems and accessible components. It does not typically function as a specialized wood-destroying insect inspection. That distinction matters because termite evidence, wood damage, treatment history, and lender requirements can affect the buyer’s decision, repair strategy, contingency timeline, and ability to close.

For buyer agents, the challenge is not diagnosing insects or promising a treatment outcome. The challenge is organizing the inspection pathway, interpreting the report’s limits, communicating findings accurately, and helping the buyer coordinate the appropriate licensed professionals.

The short answer: A termite inspection, also called a wood-destroying insect or WDI inspection, is a separate, limited visual evaluation performed by a qualified pest professional. It documents visible evidence, accessible areas, conducive conditions, and recommendations, but it does not guarantee that hidden or future infestation is absent. Lender and contract requirements vary by loan program, property location, state, and underwriting policy.

A WDI inspection is a limited visual inspection of accessible areas for visible evidence of termites and other wood-destroying insects, related damage, treatment history, and conditions that may support infestation.

A WDI report is the written record of the inspection date, inspected structures, visible findings, inaccessible areas, recommendations, and relevant limitations.

A termite inspection is not a structural engineering evaluation, a complete construction inspection, a guarantee against infestation, or a contractor quote for repairs.

Why is a termite inspection separate from a general home inspection?

A general home inspection and a WDI inspection answer different questions.

A general home inspection typically asks:

• What visible conditions exist across the property?
• What major systems and components appear to be operating?
• Are there safety concerns, deferred maintenance items, or indications of further evaluation?
• Which findings may affect the buyer’s understanding of the property?

A WDI inspection asks a narrower question:

• Is there visible evidence of termites or other wood-destroying insects in the accessible areas inspected?
• Is there visible evidence of past activity, damage, or treatment?
• Are there conditions that may make infestation more likely?
• What areas could not be inspected, and what actions are recommended?

The difference is partly about scope and partly about professional qualification. A pest professional evaluates insect evidence using pest-control inspection procedures and state-specific forms. A general home inspector may identify signs that warrant further evaluation, but that observation is not automatically a formal WDI report.

In other words, a home inspection may say:

“Evidence of possible insect activity was observed at the crawlspace sill plate. Further evaluation by a qualified pest professional is recommended.”

A termite inspection may then document:

• The insect evidence observed
• The approximate location
• Whether live insects were seen
• Whether damage or exit holes were visible
• Whether treatment history was documented
• Whether the crawlspace was accessible
• Whether treatment or corrective action was recommended

Neither inspection should be treated as a substitute for the other.

What does a WDI inspection cover?

The scope depends on the state, inspection company, form, property type, and service agreement. Nationally, a WDI inspection is usually a visual evaluation of readily accessible areas.

Commonly reviewed areas include:

• Exterior foundation and visible siding
• Crawlspaces and basements, when accessible
• Attics, when accessible
• Wood framing visible from accessible areas
• Porches, decks, and attached structures
• Garages
• Interior areas showing signs of moisture or insect activity
• Soil-to-wood interfaces
• Areas around plumbing penetrations and utility entries
• Visible evidence of prior treatment
• Accessible outbuildings, if specifically included

The inspector may look for evidence such as:

• Live termites
• Termite shelter tubes
• Swarmers or discarded wings
• Frass or insect droppings
• Exit holes
• Galleries or channels in wood
• Damaged or hollow-sounding wood
• Carpenter ant activity
• Carpenter bee holes
• Powderpost beetle evidence
• Old house borer evidence
• Moisture-related conditions that may support infestation

The inspection generally does not include destructive access. The inspector usually will not remove finished walls, flooring, insulation, built-in cabinetry, stored belongings, or other building components simply to reach concealed areas.

A report should identify inaccessible areas rather than implying that every part of the property was evaluated.

Why access conditions matter

A WDI report is only as informative as the areas that could be observed. Common obstructions include:

• Stored items in a crawlspace
• Dense vegetation around the foundation
• Low crawlspace clearance
• Standing water
• Insulation covering framing
• Finished walls and ceilings
• Floor coverings
• Furniture and appliances
• Locked rooms or detached structures
• Fixed wall or ceiling coverings
• Poorly configured attic access
• Unsafe conditions

An inaccessible area does not prove that a problem exists. It means the report cannot provide the same level of observation for that area.

Agents should therefore read the access section before summarizing the result to a buyer. “No visible evidence in accessible areas” is materially different from “the entire property is free of termites.”

What types of insects are included?

The phrase “termite inspection” is often used as shorthand, but a WDI inspection can address more than termites.

Depending on state requirements and the inspection form, the report may address:

Subterranean termites

Subterranean termites typically live in soil or connected colonies and may enter a structure through foundation cracks, utility penetrations, joints, or other concealed pathways. Inspectors may look for shelter tubes, damaged wood, or other visible evidence.

Drywood termites

Drywood termites can infest dry structural or finish wood without the same soil connection associated with subterranean termites. Their evidence may include small exit holes and frass. The inspection and treatment approach can differ substantially from subterranean termite work.

Formosan termites

Formosan termites are an aggressive subterranean termite type found in certain regions. Their presence, treatment requirements, and lender implications depend on local conditions and professional evaluation.

Carpenter ants

Carpenter ants do not consume wood in the same manner as termites. They excavate galleries in wood, often where moisture or decay is present. Their presence may point to both insect activity and a moisture-management concern.

Carpenter bees

Carpenter bees may create round openings in exposed wood. Their activity is generally different from termite infestation, but it may still be documented in a WDI report.

Wood-boring beetles

Powderpost beetles, old house borers, and related insects can leave exit holes, frass, or damage patterns. The significance depends on the species, activity status, affected wood, and local professional assessment.

The report should identify the evidence and location as accurately as possible. It should not be used to infer a complete treatment plan without a licensed pest professional’s recommendations.

What does a termite inspection report actually document?

A termite inspection report is a condition report with a defined scope. It is not simply a yes-or-no “termite letter.”

The report commonly includes:

1. Property identification

   • Address
   • Date of inspection
   • Structures inspected
   • Client or intended recipient
   • Inspection company information

2. Inspector credentials

   • Name
   • License, registration, or certification information
   • Business license information, where required

3. Visible findings

   • Live insects
   • Dead insects or insect parts
   • Frass
   • Shelter tubes
   • Exit holes
   • Staining or other evidence
   • Visible damage
   • Location of each observation

4. Treatment history

   • Visible treatment indicators
   • Existing warranties or service agreements, if provided
   • Prior treatment information reported by the seller or available in the documentation

5. Recommendations

   • No action recommended
   • Treatment recommended
   • Corrective action recommended
   • Further evaluation recommended
   • Conducive conditions requiring attention

6. Obstructions and inaccessible areas

   • Crawlspace limitations
   • Attic limitations
   • Stored items
   • Exterior access limitations
   • Areas not included in the inspection

7. Attachments

   • Diagrams
   • Photographs
   • Treatment proposals
   • Warranty documents
   • Addenda
   • Repair or treatment documentation, when supplied

The exact form is state-specific. Some jurisdictions require official forms for real estate transactions. The federal NPMA-33 Wood Destroying Insect Inspection Report, for example, includes findings, recommendations, inaccessible areas, limitations, and consumer information. It is approved for certain FHA and VA transactions, but the specific lender and transaction requirements still control.

What are Section I and Section II findings?

“Section I” and “Section II” are widely used terms in parts of the real estate and pest-control industry, especially in markets influenced by California-style termite reporting. They are not a single, nationally uniform classification system.

The practical distinction is usually:

Finding category	General meaning	Typical transaction question
Section I	Active infestation, visible evidence of infestation, or existing damage associated with wood-destroying organisms	Is treatment, repair, clearance, or further evaluation required?
Section II	Conditions conducive to future infestation or damage	Does the lender require correction, or is this a negotiable maintenance item?

The exact definitions vary by state and form. Some official forms do not use the words “Section I” and “Section II” at all. For example, an NPMA-33 report organizes findings around visible evidence, damage, recommendations, and inaccessible areas rather than relying on the California section terminology.

Section I-type findings

Section I-type findings commonly include:

• Live termites
• Active shelter tubes
• Visible evidence of current activity
• Wood-boring insect activity
• Visible insect-related damage
• Previously infested areas without reliable treatment documentation
• Damage that may affect important wood members

These findings generally require a more immediate professional response. However, the WDI inspector may not be qualified to determine the full structural significance of the damage. A structural professional or qualified building contractor may be needed for that question.

Section II-type findings

Section II-type findings commonly include:

• Wood-to-soil contact
• Excessive moisture
• Poor drainage
• Inadequate crawlspace ventilation
• Debris near or beneath the structure
• Wood piles against the building
• Vegetation touching the structure
• Planter boxes against exterior walls
• Plumbing leaks or moisture sources
• Insufficient clearance between soil and wood
• Wood rot or other deteriorated conditions

A conducive condition does not necessarily mean that termites are present. It means the property has a condition that may increase risk or support future activity.

That distinction is important in buyer communication. “The report identifies a conducive condition” is more accurate than “the property has termites.”

Why agents should avoid treating Section II as minor by default

Section II items are not automatically insignificant. A moisture condition beneath a home may be a relatively simple maintenance issue, or it may be connected to drainage, plumbing, rot, or a larger building-envelope problem.

The correct next step depends on:

• The location
• The severity
• The duration
• Whether active insect evidence is present
• Whether structural wood is affected
• Whether the lender has requirements
• Whether the seller has treatment records
• Whether another professional evaluation is warranted

The classification is a roadmap, not a final negotiation decision.

What does “no visible evidence” mean?

“No visible evidence” is one of the most misunderstood statements in a termite inspection report.

It generally means the inspector did not observe visible evidence of wood-destroying insects in the accessible areas inspected on the inspection date. It does not mean:

• The property is guaranteed to be termite-free
• Hidden infestation has been ruled out
• Future activity is impossible
• All wood members were exposed
• Concealed damage does not exist
• Prior treatment was effective indefinitely
• Every detached structure was inspected
• Moisture or construction conditions are irrelevant

The North Carolina Department of Agriculture’s WDIR guidance explains that a WDI report documents visible presence or absence at the time of inspection. It also emphasizes that the report is not a warranty and is not a structural damage report.

A useful buyer-facing explanation is:

“The report did not identify visible evidence in the areas the inspector could access on that date. It is not a guarantee that hidden or future activity is impossible.”

That language is accurate without creating unnecessary alarm.

Which loan programs commonly involve WDI inspections?

There is no single national rule requiring a termite inspection for every residential transaction. Requirements may come from:

• The loan program
• The lender
• The appraiser
• The property location
• State or local practice
• The purchase contract
• The buyer’s risk tolerance
• Insurance or underwriting requirements
• Existing evidence in the general inspection report

VA loans

VA transactions commonly involve WDI requirements in designated areas or when the lender requires the inspection. The current VA lender and appraisal requirements should control, particularly because state and local practices differ.

Agents should not promise that a report will satisfy a VA condition based solely on the loan type. The lender may specify:

• The required form
• The acceptable inspection date
• The inspection company’s credentials
• Whether treatment or repair is required
• Whether a clearance or completion document is needed
• Whether conducive conditions must be corrected

Active infestation and material damage are more likely to create a funding condition than a minor maintenance observation. The lender or underwriter makes that determination.

FHA loans

FHA requirements are also conditional rather than universal in every transaction. A WDI report may be required when:

• The appraiser observes evidence of infestation or damage
• The property is in an area where local practice requires it
• The lender’s underwriting process calls for it
• The condition of the property raises a collateral concern

If the appraiser or lender identifies a concern, the buyer agent should coordinate with the loan officer rather than assume that the general inspection report is sufficient.

USDA loans

USDA transactions may involve pest inspections where local requirements, lender policy, property conditions, or appraisal observations call for them. The treatment of findings can vary by lender and property.

Active infestation, visible damage, and significant moisture or structural concerns are more likely to require documentation before closing. The buyer’s loan team should confirm the exact requirement early.

Conventional loans

Conventional financing is generally more flexible. A termite inspection may be required by:

• The contract
• The appraiser
• The lender
• The buyer’s insurer
• Local market practice

Section II-type conditions are often more negotiable in conventional transactions, but that does not mean the lender will ignore them. If a condition affects structural integrity, habitability, collateral value, or required repairs, underwriting may still require action.

The practical rule for agents

The practical rule is simple:

Do not infer lender requirements from the loan label alone. Confirm the required report, timing, form, and repair standard with the buyer’s lender.

The agent can coordinate the process. The lender determines underwriting requirements.

When should a buyer agent recommend or discuss a termite inspection?

A WDI evaluation may be warranted when:

• The contract specifically requires one
• The lender requests one
• The appraiser notes possible infestation or wood damage
• The general inspection identifies insect evidence
• The property is older or has a documented treatment history
• The home has a crawlspace with moisture or limited visibility
• Wood is in direct contact with soil
• There are active leaks or drainage concerns
• The property has extensive decks, porches, additions, or outbuildings
• The home is located in a region where termite activity is common
• The seller provides a prior WDI report that is outdated or incomplete
• The buyer wants specialized information before the inspection contingency expires

A general inspection recommendation for “further evaluation” should not be dismissed as a formal WDI result. It is a signal to determine whether the specialized inspection is appropriate.

Agents should also pay attention to timing. A specialty inspection ordered late in the contingency period may create avoidable pressure if it reveals a finding that requires treatment, repair, lender review, or a second professional evaluation.

How should agents read a termite inspection report?

A structured review is more reliable than scanning for the word “clear.”

Step 1: Confirm the property and inspection date

Verify:

• Correct address
• Correct structure
• Inspection date
• Intended transaction
• Whether the report is still acceptable to the lender
• Whether detached structures were included

Some forms contain time limitations for mortgage or settlement use. The lender should confirm whether the report remains acceptable.

Step 2: Identify the organisms or evidence

Look for the specific type of observation:

• Live insects
• Past evidence
• Shelter tubes
• Exit holes
• Frass
• Wood damage
• Treatment indicators
• Moisture-related conditions

“Evidence of WDI” is less useful than the detailed description and location.

Step 3: Locate the finding

A finding at an isolated piece of exterior trim is different from a finding at:

• A sill plate
• A floor joist
• A beam
• A support post
• A rim joist
• A crawlspace access area
• A roof framing member
• A widespread area across multiple elevations

The report may not determine structural significance, but location affects the next professional question.

Step 4: Review inaccessible areas

An inaccessible crawlspace, attic, or wall cavity limits the report. The buyer should know whether the finding is based on broad access or a restricted view.

Step 5: Separate treatment from repair

Treatment addresses the insects. Repair addresses damaged or deteriorated materials. These are related but different scopes.

A pest company may recommend treatment without being responsible for replacing structural wood. A contractor or structural professional may need to evaluate repair scope. One vendor should not automatically be assumed to perform every part of the work.

Step 6: Check lender and contract requirements

The same finding may produce different transaction requirements depending on:

• Loan program
• Lender overlay
• Appraiser comments
• Contract language
• State requirements
• Seller obligations

The buyer agent should not independently declare that a transaction is “cleared” or that a repair is mandatory without confirmation from the relevant professionals.

What are the broad treatment and repair categories?

A termite report may recommend action, but the final treatment plan should come from a licensed pest professional.

Common treatment categories include:

Localized or spot treatment

A localized treatment may be considered when evidence is limited to a defined area. Suitability depends on the organism, construction, extent of activity, prior treatment, and professional recommendation.

Soil or perimeter treatment

Subterranean termite control may involve treatment around soil, foundation areas, or entry pathways. The scope can vary significantly by construction type and site conditions.

Bait systems

Bait systems are designed to monitor or control termite colonies through bait stations. They may involve ongoing service agreements and periodic monitoring.

Full-structure treatment

A broader treatment may be recommended when activity is widespread, concealed, or associated with a specific termite type. The treatment method depends on the property and local regulations.

Moisture and conducive-condition correction

Some problems are better addressed through building or site corrections, such as:

• Repairing a leak
• Improving drainage
• Correcting grading
• Removing wood debris
• Increasing clearance
• Improving ventilation
• Moving firewood away from the structure
• Removing direct wood-to-soil contact

Wood repair or replacement

Treatment does not necessarily restore damaged wood. A qualified contractor or structural professional may need to evaluate:

• Whether the member is structural
• Whether the wood can be repaired
• Whether replacement is required
• Whether concealed damage exists
• Whether temporary support or engineering is necessary

Agents should not direct a buyer or seller to perform technical repairs based only on a WDI report.

What does termite treatment cost?

Cost depends on the insect, treatment method, property size, access, geography, construction, infestation extent, warranty, and whether repair is included.

As broad planning context:

Service category	Common planning range
Basic termite or WDI inspection	Approximately $75–$200
More complex inspection with multiple structures or difficult access	Approximately $150–$400 or more
Localized treatment	Approximately $300–$1,500
Broader subterranean termite treatment	Approximately $1,000–$4,000 or more
Ongoing bait or monitoring program	Often several hundred dollars initially, plus recurring service fees
Limited wood repair	Approximately $500–$3,000, depending on access and materials
Larger or structural wood replacement	Several thousand dollars or more

These figures are not contractor quotes, regional guarantees, or treatment recommendations. A termite inspection fee, pest-control proposal, structural evaluation, and repair quote may all be separate costs.

A buyer agent can use ranges to explain why a finding deserves organized follow-up. The agent should not represent a planning range as the amount a buyer will ultimately pay.

How should a termite finding feed into negotiation?

A WDI finding should enter the negotiation workflow as a structured issue, not as an isolated alarming phrase.

A useful organization method includes five fields:

1. Observed condition

   • What did the report document?

2. Location

   • Where was the evidence found?

3. Professional question

   • Is treatment needed?
   • Is repair needed?
   • Is structural evaluation needed?
   • Is the condition active, historic, or uncertain?

4. Transaction requirement

   • Does the lender require treatment, repair, clearance, or documentation?

5. Requested resolution

   • Treatment
   • Repair
   • Credit
   • Price adjustment
   • Further evaluation
   • Documentation
   • No action, if appropriately supported

This structure helps distinguish a documented condition from an assumption about cost or risk.

Agents who need a broader framework can use Inspection Severity Classification for Real Estate Agents to separate urgent safety or structural concerns from maintenance items and items requiring professional clarification.

The WDI finding should also be considered alongside other report findings. For example:

• Termite evidence plus crawlspace moisture may represent one connected issue.
• Wood damage plus a foundation concern may warrant coordinated evaluation.
• A small exterior conducive condition may be separate from active interior evidence.
• Prior treatment plus no current visible evidence may require documentation review rather than an automatic new treatment request.

This is why issue organization matters. The negotiation should reflect the relationship between the findings without overstating what the report proves.

What should a buyer-agent workflow look like?

A practical workflow can be organized into seven stages.

1. Identify the trigger

Determine why the WDI inspection is being ordered:

• Contract requirement
• Lender requirement
• General inspection recommendation
• Appraiser comment
• Buyer request
• Local transaction practice

The trigger helps determine timing and documentation needs.

2. Confirm the right professional and form

The buyer agent should help the client identify an appropriately licensed or qualified professional for the jurisdiction. The agent should not select a provider based on an unsupported guarantee of quality or outcome.

Confirm:

• Required license or credential
• Required form
• Structures included
• Inspection date
• Report delivery time
• Access requirements
• Whether treatment proposals are separate

3. Prepare the property for access

Access preparation may include:

• Unlocking crawlspaces and attics
• Moving stored items where appropriate
• Providing seller treatment records
• Identifying detached structures
• Ensuring utilities or entry areas are accessible
• Addressing safety restrictions

The inspector determines what can be safely evaluated.

4. Read the report by category

Separate:

• Active or previous evidence
• Damage
• Conducive conditions
• Inaccessible areas
• Recommendations
• Treatment history
• Lender documentation needs

5. Route each question to the correct professional

A pest professional may address insect evidence and treatment. A contractor may address repair scope. A structural professional may address the significance of damage to structural members. The lender addresses underwriting. The agent coordinates communication without replacing those roles.

6. Build a focused response

A repair request or credit discussion should identify the documented condition and proposed resolution. Avoid vague language such as “seller to fix all termite issues.”

A clearer request might distinguish:

• Licensed pest treatment for documented activity
• Repair or evaluation of specifically identified damaged wood
• Documentation of completed work
• Reinspection or clearance if required by the lender
• Correction of a specified moisture condition

For a broader request framework, see How to Create an Inspection Repair Request That Gets Results.

7. Verify completion without acting as the verifier

The agent should help track whether the agreed documentation has been received. Depending on the transaction, documentation may include:

• Paid invoice
• Treatment diagram
• Warranty or service agreement
• Completion statement
• Updated WDI report
• Contractor invoice
• Photographs
• Professional evaluation

The buyer, lender, and appropriate professionals determine whether the documentation is sufficient.

How can agents explain a termite finding without overstating it?

A useful explanation has three parts:

1. State what the report says.
2. State what the report does not establish.
3. Identify the next professional question.

For example:

“The WDI report identifies visible evidence of prior wood-destroying insect activity in the crawlspace. It does not determine the complete extent of damage or whether the affected wood is structurally significant. The next step is to confirm the treatment recommendation and determine whether a qualified building professional should evaluate the damaged member.”

For a conducive condition:

“The report identifies wood-to-soil contact near the rear deck. That does not confirm active termites. It is a condition that may increase risk and should be discussed with the pest professional and, if needed, the appropriate repair professional.”

For no visible evidence:

“The inspector did not observe visible evidence in the accessible areas inspected on that date. The report is not a warranty against concealed or future activity.”

Agents should avoid phrases such as:

• “The house is infested,” unless the report specifically documents that conclusion
• “There is no termite problem,” based only on no visible evidence
• “The seller must replace the framing,” unless a qualified professional and transaction authority establish that requirement
• “The treatment will solve everything,” because outcomes and warranties vary
• “The lender will definitely require this,” without confirmation

How is this different from a general inspection pest finding?

PropWise’s existing article, Pest and Wood Damage Found During a Home Inspection, addresses what an insect or wood-damage observation means when it appears inside a general home inspection report.

This guide addresses a different intent:

• When to order a specialty WDI evaluation
• What the WDI report documents
• How to interpret its scope and limitations
• How loan programs may treat the report
• How to separate active evidence from conducive conditions
• How to move from a WDI finding to treatment, evaluation, documentation, and negotiation

The distinction is operational. One article helps the agent interpret a general inspection finding. This article helps the agent manage the specialty inspection itself.

How does a WDI finding fit into the broader inspection workflow?

A termite report rarely exists in isolation. It may arrive alongside a general inspection, sewer scope, well-water test, septic evaluation, chimney inspection, or environmental testing.

Each specialty report has its own scope and limitations. The agent’s responsibility is not to combine them into a technical diagnosis. The responsibility is to organize the reports so the buyer can understand:

• What was observed
• What was not evaluated
• Which items require professional follow-up
• Which items may affect financing
• Which items are negotiable
• Which items are routine maintenance
• What must happen before the contingency deadline

For additional organization guidance, see How to Organize a Home Inspection Report for Negotiation.

The wider series also addresses related specialty evaluations, including:

• Sewer scope inspections
• Well water and septic inspections
• Radon, mold, and asbestos testing
• Chimney and fireplace inspections
• Lead paint inspections

Existing PropWise resources on well water issues, environmental hazards, and chimney and fireplace issues provide additional context for separating specialty findings from the general inspection workflow.

What should agents remember about vendor pathways?

A WDI report may identify the category of professional needed, but it does not guarantee a particular vendor, treatment method, or outcome.

The likely pathways may include:

• Licensed pest professional
• Structural pest-control company
• General contractor
• Carpenter
• Structural engineer
• Moisture-control specialist
• Drainage professional
• Foundation or building-envelope professional
• Lender or underwriter
• Reinspection provider

The appropriate pathway depends on the documented condition. A pest company may be best positioned to explain treatment. A contractor may be best positioned to estimate wood replacement. An engineer may be appropriate for questions about structural significance.

PropWise’s guide to Vendor Matching After a Home Inspection explains why a report category should lead to the right professional pathway rather than a generic request for “a contractor.”

Frequently asked questions

1. Is a termite inspection included in a general home inspection?

Typically, no. A general home inspection may identify visible signs that warrant further evaluation, but a formal termite or WDI inspection is usually a separate service performed under applicable pest-control requirements. The contract, lender, state, and local practice determine whether the specialty inspection is required.

2. What is the difference between a termite inspection and a WDI inspection?

A termite inspection focuses on termites, while a WDI inspection may include termites and other wood-destroying insects such as carpenter ants, carpenter bees, and wood-boring beetles. In real estate transactions, the terms are often used interchangeably, but the actual scope depends on the form and jurisdiction.

3. Does “no visible evidence” mean the home is free of termites?

No. It means the inspector did not observe visible evidence in the accessible areas inspected on the inspection date. Concealed areas, inaccessible components, future activity, and hidden damage may not be identified. The report is not a warranty or guarantee.

4. Are Section I and Section II terms used in every state?

No. Section I and Section II are common industry terms in certain markets, but they are not a universal national reporting system. Some states use different official forms and terminology. Agents should read the definitions in the actual report rather than assuming that the terms have the same meaning everywhere.

5. Who pays for termite treatment and wood repairs?

The buyer and seller may negotiate responsibility, but the answer depends on the contract, lender requirements, report findings, local practice, and transaction terms. Treatment and structural repair are separate scopes and may involve different professionals. Agents should not determine technical responsibility or promise that a particular cost will be accepted by the lender.

Final checklist for buyer agents

Before treating a termite or WDI report as resolved, confirm:

• The correct property and structures were inspected.
• The report is within the lender’s acceptable timeframe.
• The inspector’s credentials meet applicable requirements.
• The report identifies all visible evidence and locations.
• Inaccessible areas are clearly listed.
• Active, previous, and conducive findings are separated.
• Treatment recommendations are distinguished from repair recommendations.
• Structural questions have been routed to an appropriate professional.
• Loan-program requirements have been confirmed with the lender.
• Any requested repairs or credits identify specific conditions.
• Treatment documentation, warranties, and diagrams have been requested where appropriate.
• Completion or reinspection requirements are clear.
• The buyer understands that the report is not a guarantee against hidden or future activity.

A more structured way to manage specialty inspection findings

Termite and WDI reports can create disproportionate transaction friction because they combine technical language, limited access, treatment questions, repair questions, lender requirements, and short contingency timelines.

The solution is not to make the agent a pest professional, contractor, engineer, or underwriter. The solution is to create a clear structure around the information:

Report → Classification → Professional pathway → Cost context → Conversation → Documentation

PropWise helps real estate agents organize post-inspection findings into clear discussion points, add regional repair-cost context, identify appropriate vendor categories, and prepare for more focused client and negotiation conversations. It does not replace licensed inspection, pest-control, engineering, contracting, legal, lending, or brokerage expertise.

Explore the PropWise inspection-response workflow and bring greater structure to the period between the inspection report and the next transaction decision.