Every California termite report sorts its findings into two buckets, and the bucket shapes what comes up at closing. Here's what Section 1 and Section 2 mean, and which items sellers are usually asked to deal with.
As a seller in California, do I have to pay for Section 2 termite repairs?
Not necessarily. Section 2 items are conditions that could lead to termites or fungus, not active problems, and correcting them is usually treated as optional and negotiable in a California sale. Section 1 items, which show active infestation, infection, or resulting damage, are the ones lenders and buyers typically focus on, and who pays for either section is set by your purchase contract, so confirm the specifics with your real estate agent.
- ▸Section 1 means visible evidence of active infestation or infection, or damage resulting from it
- ▸Section 2 means conditions likely to lead to a problem where no active infestation was found
- ▸Lenders and buyers typically focus on Section 1; Section 2 is usually the negotiable bucket
- ▸The report sorts findings; your purchase contract decides who pays for them
If you're selling a home in California, the termite report is one of the documents that shapes the last weeks of escrow. In home sales across Orange County, from Tustin to Anaheim, agents and buyers tend to read it the same way: they go straight to how the findings are sorted. The Structural Pest Control Board requires a separated report, and knowing what each section means tells you which items are likely to come up in negotiation and which usually won't.
What is Section 1 on a California termite report?
Under the Structural Pest Control Board's regulations, Section 1 contains items where there is visible evidence of active infestation or infection, or conditions that have resulted in or from infestation or infection. In plain terms: something is actively there, or it has already done damage.
- Live drywood termites or fresh pellets in attic framing, eaves, or window and door frames
- Active subterranean termite mud tubes on a foundation or slab
- Fungus (dry rot) damage in a fascia board, deck, or sill plate
- Wood damaged by any of the above that needs repair or replacement
Section 1 items come with a recommendation to correct them, usually some combination of treatment and repair. Trident's termite control covers the treatment side: localized treatment for contained drywood pockets, arranged fumigation when activity is widespread, or subterranean bait and soil work, quoted per property after inspection.
What is Section 2?
Section 2 items are conditions deemed likely to lead to infestation or infection, but where no visible evidence of it was found. Nothing is active yet. The report is flagging a risk.
- Earth-to-wood contact, such as soil or mulch piled against siding or a fence post
- Excessive moisture around the foundation or under the house
- A slow plumbing leak under a sink or at a toilet base
- Poor ventilation in a crawl space
These conditions are worth fixing, because they are where future Section 1 items come from. But they are not evidence of a current problem, and that difference is why a sale treats them differently.
Why do lenders and buyers focus on Section 1?
A lender is protecting the value of the home it is financing, so when a loan carries termite conditions, they usually point at Section 1: active infestation and existing damage. Many transactions call for a Section 1 clearance, meaning documentation that those items have been corrected, before close of escrow. Requirements vary by lender and loan type, so ask your agent what applies to your buyer's loan.
When Trident's own treatment clears the Section 1 findings, Trident can coordinate Section 1 clearance documentation and send it to the escrow officer. Our escrow termite reports page explains how that works.
Is Section 2 negotiable?
Usually, yes. Because Section 2 items describe risk rather than active damage, correcting them is commonly treated as optional in a sale, something buyer and seller can agree to address, credit, or leave as is. That doesn't make them free to ignore. A buyer may still ask, and an unaddressed moisture problem can become a Section 1 item on the next report.
Section 1 and Section 2 are categories on the Structural Pest Control Board's standard inspection report. They describe what was found; they don't decide who pays. That is set by your purchase contract and negotiated between the parties. Your real estate agent is the right first call, and a real estate attorney for legal questions.
For how that negotiation tends to play out, see our companion post on who pays for termite repairs in a California home sale.
What about "further inspection" and inaccessible areas?
Some items are neither Section 1 nor Section 2. SPCB regulations define further inspection items as recommendations to inspect areas the inspector could not access during the original inspection. The report must also state which areas were not inspected and why. Common examples include furnished interiors, inaccessible attics, the inside of hollow walls, floors beneath coverings, and spots where stored belongings or locks block access.
For a seller, an open further-inspection item is an unknown, and unknowns invite questions. Clearing stored items away from garage walls and making attic and crawl space openings reachable before the appointment helps the inspector cover more of the house.
How should sellers use this before listing?
The categories are most useful when you have a report in hand before a buyer's inspector writes one. We cover that timing in getting a termite clearance before you list. The short version: a pre-listing report lets you scope Section 1 work, decide how to handle Section 2, and resolve further-inspection items while you still control the schedule.
Our sister company, Trident Inspection Group, covers the other side of the table: what a buyer's inspector tends to find, why sellers who inspect first negotiate from strength, and how a WDO inspection can be added to a home inspection on the same visit.
Who performs Trident's termite reports?
Trident Pest Control performs WDO inspections in-house, never sub-contracted, under California SPCB License #PR8662 (Branch 2 & 3). Reports use the Section 1 / Section 2 format escrow expects, with same-week turnaround for most properties. Our route covers nine Orange County cities: Orange, Orange Park Acres, Villa Park, Anaheim Hills, Yorba Linda, Brea, Placentia, Fullerton, and Irvine.