Termite Cert

[Brad Pack]

Was something different implied?

Note that these are instructions to lenders, not appraisers. The appraiser's job is to report what they see. If the appraiser sees a possible indication of infestation, they must make their report subject to an inspection.

"The appraiser is instructed report any evidence of infestation in the “improvements section” of the appraisal report under “foundation” by simply marking the evidence of infestation box. The box is checked only if there is evidence of infestation which may include the appraiser noting a
prior treatment"...

 

[Marcia Langley]

No, it was posted without remark. I made an additional comment.

Thanks for posting it.

 

[Roseann Dufala]

3 types of homes in SC

In SC there are only 3 types of homes:

1. The kind that HAS termites

2. The kind that HAD termites

3. The kind that WILL HAVE termites

It is law that there be a clear CL100 termite inspection prior to closing whether the loan is a purchase or a refinance. If there are termites, termite treatment HAS to occur prior to closing.

As the appraiser, If I don't see obvious evidence of termites, then my appraisal only says that I am not a licensed termite specialist. If I see termites, then I make the appraisal contingent on a copy of a clean CL100 inspection. I usually get the clean CL100 letter faxed to me the day before closing, and I release the contingency.

 

[Charles Witt]

Roseann: Same types of homes in Delaware. If you don't have them yet just wait!

 

[Don Clark]

My statement on FHA Appraisals

I simply state that..."The appraiser saw no evidence of active termite infestation. However, it should be noted that subject property is located in a geographical area where termite and other wood boring insect infestation is prevalent".

If I see what may be evidence..."The appraiser has noted the appearance of what may be termite, wood boring insect infestation, or moisture damage to-----------------------------. However, the appraiser is not technically qualified to determine whether or not infestation actually exist and recommends inspection by a qualified pest control company".

 

[Brad Pack]

Don,

You imply that your "statement" is for FHA appraisals only. Why would it be any different for a conventional appraisal? Infestation either appears to exist or not...FHA or conventional, it does not matter - the reporting requirements are the same. Yes, no? Curious...

 

[CANative]

The revised form has only been used for about 7 months now. FHA appraisers are probably still a bit gun shy over the bug issues because of HUD's former obsession over it.

 

[Don Clark]

My statement

Brad,

FHA use to require that the termite inspection block be checked if the property was located in an area of known termite infestation, regardless of whether there was evidence of termites or not. VA and Conventional had no such requirements. VA and Conventional only wanted the block checked if there was evidence of infestation. Now I check it only if there is evidence of possible infestation. Some lenders have not made the transistion to the new FHA requirements either. Some still ask me for the VC sheet and I have to refer them to the FHA web site or fax them a copy of the revised protocol. I find that there is evidence of possible termite infestation in my market about 10% of the time.

 

[Wayne Tomlinson]

When I was taking an entomology course at the University of ILL some decades ago, the professor reported on visiting the site of one of his former students who was building in a wooded area. The grade stakes had been set for some weeks, and when he brushed against one it fell over. It seems that the termites had nearly eaten it through.

I guess Champain County is a termite infested county whether the book says so or not.

I always check for an inspection.

Wayne Tomlinson

 

[Mike Boyd]

Termites and other wood destroying pests and organisms are rarely visible to the untrained eye. How many of you crawl completely under a house to look for termites? FHA requires a crawl space inspection.....or they used to, please correct me if I am wrong. There are also subterranian termites. Dry rot is a wood destroying organism. Show me a 40 year old house without dry rot behind shower surrounds and I would be very surprised.

I do not believe I have seen a standard residential purchase contract that did not call for a pest report.....unless it was being sold "as is" to an investor or contractor. Therefore it is "Customary," in my market area. I would think that would be true to any state with a coastal influence or with humidity issues. As a reminder, do not just call for a pest report, require a certificate from a licensed pest control contractor showing the subject to be free of visable infestation from wood destroying pests and organisms. Note: what is "visable" to a pest control contractor is not the same as what is visable to a lay person or appraiser. I guess with FHA you just check the box. However, I add the aforementioned statement.