Section 1 is defined as Active infestation, and basically means if there are any termites there.
Section 2 means conditions that are likely to lead to infestation. Examples of this could be wood debris in the crawlspace, or an outdoor deck that is touch the ground.
Termite Inspections are paid for by the seller and they choose which termite company to do the inspection.
There are two kinds of Termite Companies: Buyers Termite Companies and Sellers Termite Companies. The Seller tend to choose termite companies that “won’t kill the deal”. What that means for you as a buyer, is that their termite company may not do a thorough investigation or miss infestation in their report. In most cases this won’t matter, if the house needs a fumigation, it doesn’t matter how much drywood termite there is, the fumigation will treat the entire house. Sellers termite companies tend to be really lax when it comes to inspecting the property. Being a termite inspector is not glamorous work- you have to poke around with a knife, a screw driver, or probing rod, looking for wood rot and evidence of termite damage, and crawl underneath the house on your belly in a confined dusty spaces with spider webs, sometimes its muddy, searching for termites. You have to go up in the attic which can be really hot if it is not ventilated and its summer, and be very careful to not miss a joist and step through the ceiling! Many times the termite inspection is not supervised, so there is no way of knowing if the inspection was thorough or not. Having been an agent for many years and seeing and working with many inspectors you learn which companies have good reputations and which ones are shady. If the report looks to good to be true it never hurts to hire your own inspector and get a double report. You can then take that report if it differs from the one the seller provided and show it to their termite company. If termites are there, they are there and you can’t argue with that. They will usually revise their report for these “new findings” if it was inadequate. Be especially careful of Remodels or Flips. These properties were usually neglected for many years and then rapidly improved by the investor and put back on the market. I have found that many investors either do not budget for termite, or include termite in their remodeling plan, and as a result these properties may look wonderful but have major termite problems. A fumigation is needed, but you will probably have to fight to get it, or do it yourself.
As a general rule, the longer the property has gone since its last market sale the more likely there will be serious termite damage and active infestation. This is because most property owners only fumigate/treat termite when they sell. If the property hasn’t sold in over 10 years be on the look out for termite and if the termite report comes back too clean be suspicious.
Buyer Tip: Write in anything that has Wood to be included in your WPA, this means wood decks, garages, wood staircases, guest houses etc. to get full coverage.