La Jolla · Buyer and seller guides

Termite reports when you buy or sell in California: what the report says, in plain words

Short answer: A termite report is a written inspection by a state-licensed pest company. It looks for termites, wood rot and other things that damage wood. California law says the company has to deliver it within 10 business days, and it has to list two kinds of findings separately. The first is damage or pests the inspector can see now. The second is conditions that could lead to problems later. Who pays to fix what is up to the buyer and seller in the purchase contract.

I'm Weston Clark, a real estate agent with Compass in San Diego. Near the coast, wood takes a beating from salty air, moisture and fog, so a termite report comes up in a lot of my sales. Buyers and sellers usually ask me the same things. What does this list mean? Do we have to fix all of it? What's a clearance? The rules are in a state law, so here's what it says, quoted, and what it means in everyday words. I'm not a lawyer or a pest inspector, and this isn't legal advice.

What a termite report is

People call it a termite report, but the law calls it an inspection for "wood destroying pests or organisms." That means termites, plus other things that eat or rot wood, like fungus. Business and Professions Code section 8516 sets the rules, and it says it "appl[ies] only to wood destroying pests or organisms."

The same section says a company can't give an opinion about pests "until an inspection has been made by a licensed Branch 3 field representative or operator." In plain words: only an inspector with the right state license, called Branch 3, can write this report. Branch 3 is the license for wood-destroying pests. The state's Structural Pest Control Board licenses these companies.

When you get the report

The law says the written report goes "to the person requesting the inspection and the property owner, or to the property owner's designated agent, within 10 business days from the start of the inspection." It also says "The report shall be delivered before work is commenced on any property."

Put simply: you get the report within two weeks or so of the inspection, and no repair work can start until you have it. In a sale, that timing matters, because the report usually needs to arrive before the buyer's inspection deadline in the contract.

What's in the report

Section 8516 lists what every report must include. A few items matter most to buyers and sellers:

A diagram of the house. The law asks for "a foundation diagram or sketch" showing "the approximate location of any infested or infected areas." It also asks the report to name the damaged parts clearly, "including, but not limited to, siding, studs, rafters, floor joists, fascia, subfloor, sheathing, and trim boards." So you can see where each problem is.
Conditions that invite pests. The report has to note things "usually deemed likely to lead to infestation or infection, such as earth-wood contacts, excessive cellulose debris, faulty grade levels, excessive moisture conditions, evidence of roof leaks, and insufficient ventilation." In everyday words: wood touching dirt, piles of wood or paper debris, soil sloping the wrong way, dampness, roof leaks and poor airflow.
Areas that weren't inspected. The report has to describe "any areas that are inaccessible or not inspected," with a suggestion to look later if it's practical. Read this part closely. It tells you what the inspector couldn't see.
Repair suggestions. The report lists "Recommendations for corrective measures," meaning what the company thinks should be fixed or treated.
Any guarantee. Section 8516(f) says the report and contract must "state specifically when any guarantee for the work is made," and if so, its terms and how long it lasts.

The two kinds of findings

This is the part that confuses people most. Section 8516(c) says the report can identify each repair suggestion as one of two kinds:

"The infestation or infection that is evident." That's damage or pests the inspector can actually see right now, like live termites or rotted wood.
"The conditions that are present that are deemed likely to lead to infestation or infection." Those are things that could cause trouble later, like a wet crawl space.

Many reports and contracts call these Section 1 and Section 2 items. The law adds an important limit in section 8516(e): conditions likely to lead to problems can't be "characterized as actual 'defects' or as actual 'active' infestations or infections." In other words, the second list is a heads-up, not proof of damage. That's why buyers and sellers often handle the two lists differently when they talk about repairs.

The law also says that when a separate report is asked for, the company has to split the findings this way. At the time you order, the company has to "inform the person or entity ordering the report, that a separate report is available."

The roof line

Every report has to say, in bold, one of two things. Either "The exterior surface of the roof was not inspected. If you want the water tightness of the roof determined, you should contact a roofing contractor who is licensed by the Contractors State License Board." Or that the roof was inspected for pests.

Simply put: a termite inspector isn't a roofer. If the report says the roof wasn't checked and you care about leaks, have a licensed roofer look.

Second opinions

Every report has to include this notice in bold: "Reports on this structure prepared by various registered companies should list the same findings (i.e. termite infestations, termite damage, fungus damage, etc.). However, recommendations to correct these findings may vary from company to company. You have a right to seek a second opinion from another company."

In plain words: two companies should spot the same problems, but they may suggest different fixes at different prices. You're allowed to get another report.

Reinspections and the clearance

If the company gave a repair bid, you can ask it to come back and check the work. The law says a reinspection costs "not more than the price of the registered company's original inspection price" and must be done "within 10 business days after a reinspection has been ordered." It also says "After four months from an original inspection, all inspections shall be original inspections and not reinspections." So after four months, you're starting over with a new report.

When the work is done, the company can write a certification, which most people call a clearance. Section 8519 gives the wording: "This is to certify that the property described herein is now free of evidence of active infestation or infection in the visible and accessible areas." Notice the last words. A clearance covers what the inspector could see and reach, not the inside of every wall.

If you're buying

Read the whole report, not just the cost page. Look at the diagram and the list of areas that weren't inspected.
Know which list each item is on. Damage you can see now is usually the bigger talking point than conditions that might cause trouble later.
Get a second opinion if a number looks high. The law tells you that you can.
Keep the general home inspection too. A termite report looks at wood and pests. My home inspection guide covers the rest of the house, and my contingencies guide explains the time you have to look into things like this.

If you're selling

Think about ordering a report before you list. Then you know what's there and can decide whether to fix it, price for it or sell as-is. Ask for the two kinds of findings to be listed separately.
Who pays is a negotiation. The purchase contract says who pays for the report and for any work. I can walk you through the choices.
Share what you know. If you've had past termite work, keep the paperwork. My disclosures guide covers what sellers share in writing, and my seller prep guide covers getting ready to list.

Getting this sorted early makes escrow, the stretch between an accepted offer and closing, go more smoothly. My guide to smoke alarms and water heater straps covers the other safety items that come up when you sell.

Common questions

Does California require a termite inspection when you sell a home?

The state law I quote on this page sets the rules for the termite report itself, like who can write it and what it has to say. It doesn't make the sale depend on one. Whether a report gets ordered, and who pays for any work, is something the buyer and seller agree on in the purchase contract. Some loans can ask for one too, so check with your lender.

How long does the termite company have to give me the report?

Ten business days. The law says the written report goes to the person who asked for the inspection and to the owner "within 10 business days from the start of the inspection."

What's the difference between the two kinds of problems on a termite report?

The report keeps them apart. The first is damage or pests the inspector can actually see, like termites or wood rot. The second is conditions that could lead to problems later, like wood touching soil, too much moisture or poor airflow under the house. The law says those second items can't be called active infestations or defects.

What is a termite clearance?

It's the certification the company writes once the work is done. The law gives the wording: the property "is now free of evidence of active infestation or infection in the visible and accessible areas." It only covers areas the inspector could see and reach.

Can I get a second opinion on a termite report?

Yes. Every report has to say so in bold: "You have a right to seek a second opinion from another company." Different companies should find the same problems, but their repair suggestions and prices can differ.

Does the termite inspector check the roof?

Not always. The report has to say in bold whether the outside of the roof was inspected. If it wasn't, the report tells you to call a licensed roofing contractor if you want to know whether the roof keeps water out.

Sources: California Business and Professions Code, Structural Pest Control Act, sections 8516 and 8519 (California Legislative Information). Checked November 4, 2026. This page is general information, not legal advice. A licensed pest control company can tell you what applies to your home, and a real estate attorney can answer legal questions.

Questions about a home you're buying or selling?

Have a termite report in hand and not sure what it means? Send me a note and we can go through it together before it turns into a surprise in escrow. Or call or text (858) 997-8998.

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