Termites and wood-destroying organisms

In California, the termite inspection is a separate report by a licensed pest control operator. It is one of the most negotiated documents in escrow.

Last reviewed October 13, 2026

Section 1 and Section 2

Section Means Typical handling
Section 1 Active infestation or infection, or damage caused by it Often paid by seller, but negotiable
Section 2 Conditions deemed likely to lead to infestation, such as plumbing leaks or earth-to-wood contact Often buyer’s choice
Further inspection Areas that were inaccessible or need more investigation Arrange access and re-inspect

Southern California termites

  • Drywood termites live in the wood itself, often in attics and eaves. Signs include small pellet piles and kick-out holes.
  • Subterranean termites live in soil and build mud tubes up foundations and walls.
  • Fungus damage (wood rot) from moisture is also reported.

Treatment options

  • Fumigation (tenting) for widespread drywood infestations.
  • Local treatments such as injected products, heat or orange oil for limited areas.
  • Soil treatments and bait systems for subterranean termites.
  • Wood repair of damaged members.

For buyers

Read the full report, not just the cost summary. Ask for photos of infested areas, and confirm whether inaccessible areas were excluded.

Common questions

Who performs termite inspections in California?

Companies licensed by the Structural Pest Control Board. The report is officially a "Wood Destroying Pests and Organisms Inspection Report," and it is filed with the board.

What is a termite clearance?

After Section 1 work is completed, the company can issue a completion notice or certification stating that no evidence of active infestation was found in visible and accessible areas. Some lenders and buyers require it.