Step 11 - The Termite Report.
Once escrow is opened, the Seller must order a termite report for the property, as stipulated in the RPA. The termite report is traditionally paid for by the Seller and is divided into two areas:

Section 1- Existing Issues
Section 2- Preventative Issues

Section 1 reports existing termite infestation and damage and the Seller traditionally pays for these corrections. Section 1 items must be cleared before the Buyer's lender will fund a loan on the property. Please note that Section 1 repair work could involve "tenting" the premises, sometimes a costly procedure. As such, we advise our clients to have a termite report ordered at the time of listing their property to be aware of what costs to expect.

Section 2 reports items that may lead to future termite problems, otherwise known as preventative issues. The Buyer only pays for Section 2 work if they want to, and few buyers do.

> 12. Title Insurance
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