Termite Reports & Section 1 Clearance

Termite reports may vary in format from one company to another, but they all share some common features. A diagram near the top of the report represents the inspected area, with markings that include letters and numbers. Lower in the report, you’ll find findings and recommendations explaining what each of those markings represent. The report will also include additional information, notes, and disclaimers.

There isn’t a standardized letter and number system across the industry, so each company organizes its findings differently. In our system, the numbers represent the following:

Subterranean Termite
Drywood Termite
Dryrot
Other – Findings that don’t fall into the first three categories.
Further Inspection – Areas not available for inspection.

Refer to the diagram and findings below for an example. Please note that all findings, recommendations, and prices are provided for demonstration purposes only. Each report is customized to address the unique needs of the specific property inspected.

Here’s an example of a termite inspection diagram, findings, and recommendations:

Section 1
Finding 1A	Evidence of subterranean termites is is noted at the subarea framing.
Recommendation	Treat the soil at and around the infested area and trench and treat along the outside wall where indicated with Termidor (active ingredient: fipronil) to eliminate the subterranean termite infestation and provide a protective barrier. Remove any visible evidence of termite activity.
Price	$941.00
The T&T shown in the diagram stands for 'trench and treat'.
Finding 2A	Evidence of a drywood termite infestation was noted at the attic framing and fascia.
Recommendation	Tarp and fumigate the entire structure with Vikane to eradicate drywood termites. This service includes a two-year guarantee. The fumigation process requires work crews to walk on the roof, which may result in some damage, especially to brittle roofing materials. WoodWise Termite assumes no responsibility for damage resulting from walking on the roof or to any roofing surfaces, radio and television antennas, plants clinging to or near the structure, awnings, gutters, patio covers, solar heating panels, plumbing fixtures, or any other items on or connected to the roof or the sides of the structure. The removal of antennas and/or plants near the structure is the responsibility of the property owner. WoodWise Termite does not provide on-site security and assumes no responsibility for the care and custody of the property in the event of vandalism or break-ins. We recommend that all valuables, such as jewelry, coins, collections, cash, art objects, and other items of value, be removed prior to fumigation.
Secondary Recommendation	We recommend performing heat treatment in the attic, which involves sealing the area and using specialized equipment to raise the internal temperature of the wood to between 120°F and 140°F, maintaining that temperature for a minimum of 35 minutes. This will be followed by localized treatment using Termidor (active ingredient: fipronil) to treat the adjacent wood members of infested areas outside the attic. If additional damage or infestations are uncovered during repairs in areas that were not accessible at the time of inspection, the owner or the owner’s agent will be contacted for further instructions. Local treatment is not a comprehensive solution. Infestations of drywood termites that extend beyond the treated area will not be eradicated. This service includes a one-year guarantee covering the entire structure.
Price	The cost of local treatment is $1,740.00 and is included in the total. The cost for fumigation is $2,200.00.
Notice the 2 recommendations provided for the above item. You would choose one or the other. The secondary recommendation is included in the total, likely at the request of the client who requested the inspection.
Finding 2B	Drywood termite damage is noted at the fascia.
Recommendation	Remove the damaged portions of wood and replace them with new material as needed.
Price	$481.00
Finding 3A	Dry rot was noted at the starter board.
Recommendation	Remove the roof covering to access and expose the damaged areas, as necessary. Replace all structurally compromised wood members with new material. Apply Bora-Care (active ingredient: sodium octaborate) to the adjacent areas to control wood decay fungi as needed. Reinstall the roof covering over the exposed areas. The guarantee applies only to the roof covering in the repaired sections.
Price	$421.00
Finding 3B	Dry rot has been identified at the roof sheathing beneath the solar panels.
Recommendation	We recommend consulting with a licensed roofing contractor or other qualified tradesperson to evaluate and repair the affected roof sheathing. Due to the presence of solar panels, specialized expertise may be required to safely remove and reinstall the panels during the repair process. This ensures that the integrity of both the roof and solar panel system is maintained.
Price	Other Trades
It’s important to note that this item does not include a price, which means the total at the bottom of the report would not reflect the full cost of obtaining a section 1 clearance.
Section 2
Finding 4A	A leak has been identified at the roof near the solar tube.
Recommendation	We recommend consulting with a licensed roofing contractor or other qualified professional to evaluate and repair the leak. Due to the presence of the solar tube, specialized expertise may be required to ensure proper sealing and water-proofing while maintaining the integrity of the installation.
Price	Other Trades
Section 3
Finding 5A	A complete inspection of the interior was not possible due to excessive storage in the garage.
Recommendation	The owner should remove stored items obstructing the walls to allow for a thorough inspection of the garage interior. Once the area is accessible, a supplemental report will be issued to document any additional findings and recommendations.
Price	Bid on request

Understanding Termite Report Sections

Separated Reports Are Divided Into 3 Sections

Section 1: Active Infestation or Infection and the resulting damage

Definition: Includes findings of active infestations (termites or other wood-destroying organisms), infections (such as wood decay fungi), and the resulting damage.

Example:
In this example report, all items except for 4A and 5A fall into Section 1. Item 3B stands out as a Section 1 finding that requires work by another trade professional, not provided by this company.

Important Note: The price listed at the bottom of the report reflects only the services provided by this company. It would not include the cost of hiring outside tradespeople to complete work like repairs for 3B. Therefore, it wouldn’t reflect the total cost of obtaining a section 1 clearance.

Section 2: Conditions Conducive to Wood-Destroying Organisms

Definition: Findings of conditions that may lead to infestations or infections over time. These are not active problems but are noted because they increase the likelihood of future issues.

Example:
Item 4A, a roof leak near the solar tube, falls into Section 2. Left unaddressed, this leak would eventually lead to dryrot and structural damage.

Clarification: It is possible to obtain a Section 1 clearance without addressing Section 2 items. However, some lenders, including certain VA loan programs, may require Section 2 conditions to be resolved before approving the loan.

Section 3: Further Inspection

Definition: Areas that were not accessible at the time of the inspection and require further evaluation to determine if infestations, infections, or damage are present.

Example:
Item 5A, which notes inaccessible areas due to storage in the garage, is a Section 3 item.

Important Clarification About Further Inspections

Section 3 vs. Further Inspection:
A Section 3 item is always a further inspection, meaning it identifies an area that could not be evaluated during the inspection.
However, not all further inspections fall under Section 3. For example:

Termite Damage Leading to an Inaccessible Area: This would be a Section 1 further inspection, as there is already visible evidence of active infestation or damage leading into the inaccessible area.

When Should You Pursue a Further Inspection?

Depends on the Area:
If the area is significant to the Section 1 clearance—such as a subarea beneath a raised foundation large enough for a person to inspect—a further inspection is essential. On the other hand, consider an example involving a condo inspection. The inspection is typically limited to the areas the homeowner is responsible for, and excludes areas covered by the HOA. In such cases, the report may recommend inspecting other portions of the building. While this information can be valuable to the HOA or other owners in the same building, it is seldom practical or requested when inspecting a unit in a larger building.

Total Price at the Bottom of the Report May Not Reflect Full Cost of Section 1 Clearance

Prices in termite reports often play a role in negotiations during property sales. Each property is unique, and various factors can affect the final cost of obtaining a Section 1 clearance. It’s important to note that the total at the bottom of a termite report may not fully reflect this cost. Some factors that could influence the price but might not be included in the total are:

Items Requiring Other Tradespeople: The report may include recommendations that call for specialized tradespeople (e.g., roofing contractors or plumbers) but does not include pricing for their services.
Further Inspections: Additional inspections may uncover findings that were not visible during the initial inspection, leading to new recommendations and costs.
Hidden Damage: Repairs may reveal additional issues, such as termite, dryrot, or damage in inaccessible areas, that were not detectable during the original inspection.
Tile Roof Insurance: In the case of tiled roofs, fumigation requires workers to walk on the roof with heavy tarps, which will likely cause roof tiles to break. Tile insurance is a separate service that covers the replacement of broken tiles after fumigation and may not be included in the report.

What is a Section 1 Clearance?

A Section 1 clearance is a statement issued by a licensed pest control operator or company confirming that all visible and accessible areas are free of wood-destroying organisms and related damage. If you’re requesting a termite report for that purpose, it’s important to specify that you need a Section 1 clearance. This statement is typically found on one of three types of documents:

Original Report: If no Section 1 findings are identified, the statement will appear on the original report.
Work Completion Report: If Section 1 findings are identified and corrected by the termite company, the statement will be included in the work completion report.
Reinspection Report: If some repairs are completed by others, the termite company must reinspect the work. Once they confirm all Section 1 findings have been addressed, they will issue a reinspection report containing the clearance.

Termite Inspections and Real Estate Transactions

Termite inspections are a critical part of real estate transactions, commonly requested by buyers and often provided by sellers. They are frequently required by underwriters of FHA and VA loans. VA loans may require both Section 1 and Section 2 clearance to meet underwriting requirements.

In some cases, VA loans may also require an NPMA-33 form, a separate document completed by qualified inspectors. This form provides the information in a standardized format used by some lending institutions to ensure compliance with their requirements. It may be required in conjunction with a standard termite report.