{"id":369088,"date":"2019-10-30T13:32:07","date_gmt":"2019-10-30T18:32:07","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/realestate\/buying-a-home\/termite-bonds-and-termite-letters.html"},"modified":"2023-07-27T14:45:26","modified_gmt":"2023-07-27T19:45:26","slug":"termite-bonds-and-termite-letters","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/realestate\/buying-a-home\/termite-bonds-and-termite-letters.html","title":{"rendered":"Termite Bonds and Termite Letters"},"content":{"rendered":"\n
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Termite Bonds and Termite Letters<\/h1>\n
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\n By Melissa McCall, J.D.<\/a> | Legally reviewed by Katrina Wilson, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Termites are tiny yet powerful and destructive creatures. They cause billions of dollars in damages to homes each year. Termite bonds and termite letters are two tools homeowners and homebuyers have to guard against termite infestation and damage.<\/p>\r\n

Termites are microscopic wood-destroying insects. They are members of an intricate caste system in colonies. Termites thrive in warm climates and are prevalent in southern states such as Georgia.<\/p>\r\n

Despite their size, termites can cause significant damage to homes. Their small bites of wood can cause an entire building to collapse over time. A termite bond or termite letter can help homeowners avoid costly catastrophic damage.<\/p>\r\n

Protection Against Termites<\/h2>\r\n

A termite bond or letter is more than another element of a real estate transaction. Think of it, like homeowners insurance, as peace of mind as you buy or sell a home. Homeowners insurance protects you financially if there is damage to your home. Termite bonds and letters protect you if these wood-destroying organisms appear in your home.<\/p>\r\n

What Is a Termite Letter?<\/h3>\r\n

Many use the terms termite bond and termite letter interchangeably, but they differ. A termite letter or wood infestation inspection reports on the status of termites in, under, and around the house.<\/p>\r\n

First, a licensed home inspector visually inspects the house. They will look for any signs of termites or termite infestation. The termite letter will state if the home has termites or a termite infestation. It also provides recommendations for treatment or termite control.<\/p>\r\n

If there are no signs of termites, the inspector will prepare a letter sharing their findings. If there are signs of termites after treatment, the inspector’s letter will note the date and type of treatment involved.<\/p>\r\n

Some home lenders, including the Federal Housing Authority (FHA), require a termite letter. Even if not required, termite letters can help sell a home. It helps demonstrate that your home has no termite problem.<\/p>\r\n

Termite letters are one way to mitigate termite issues. Termite bonds are another way.<\/p>\r\n

What Is a Termite Bond?<\/h3>\r\n

A termite bond is a homeowner and pest control service provider contract. Think of it as a warranty against termite problems.<\/p>\r\n

The terms of the contract will vary depending on factors such as location. Most termite contracts include an annual inspection to check for signs of termites or infestation. The company can recommend an appropriate treatment plan if there are signs of either.<\/p>\r\n

Some termite bonds include treatment. Homeowners can also buy a repair bond to cover any damages from an infestation.<\/p>\r\n

Termite companies look for the following when creating a bond:<\/p>\r\n