The appraiser now has the discretion to request or not request further inspections based upon his/her inspection of the property. It is our understanding that this inspection is similar to a "Broker Inspection" in its scope, and not a thorough investigation of the structural integrity of the building, especially in regards to the substructure or attic spaces. An appraiser's inspection is generally limited to a visual inspection of the substructure or attic space from the access opening only. Significant structural damage could exist that will not be visible from the access openings.

KEY RECOMMENDATION: To sell a property in California without full disclosure could be risky. We still recommend that if the seller or agent chooses not to include the terms of the Termite Inspection in the Purchase Agreement, that the seller still provide a Termite Report to the buyer separately, possibly included in the Transfer Disclosure Statement.

Most agents we know are still including the Termite Report and allocation of costs in the Purchase Agreement and Wood destroying Pest Addendum.

These PDF files are provided as a courtesy. Key Termite and Pest Control makes no guarantee as to the accuracy or interpretation of the HUD requirements.