Legal Question in Real Estate Law in California
Termite Report
I am in contract to buy a house. The seller is required to present me with a termite report and to pay for all work pointed out in section 1 of the report. All services are at the seller's choice. The seller's agent presented me with a report from a company I had not heard of, whom supposedly had recently fumigated the house. They stated that the home was free of termites. I was not comfortable with this report so I asked the seller's agent to get another report from a different termite company. The second report found evidence of termites and fungus damage to some of the wood. Their estimate to tent the property and repair the wood was $2,795. I told the seller's agent I wanted them to pay for this work as the contract provides. The agent said they would not pay for this work and I could cancel the contract if I refuse to accept the findings of the first report. My question is can they back out of the sale if I do not accept the findings of the first report? We want the house but we have two very differing report regarding the termite situation. What are our options?
1 Answer from Attorneys
Re: Termite Report
The answer is not clear-cut to me, partly because I haven't read the exact wording of your purchase contract regarding inspections. Further, there is no assurance that even upon reading the words used that an attorney could predict with confidence what would happen.
Nevertheless, my feeling is that this seller has presented you with two reports at his expense and he is in a pretty weak position to demand that you accept the conclusions of the first company.
As you may suspect, there is a belief in the real-estate community that appraisers, termite inspectors, etc. tend to favor the positions and interests of the parties who select, hire and pay them. Assuming the second inspection is valid and the first is not, the first inspection appears to have been at the very least incompetent and careless.
My feeling -- and this is no more than a hunch -- is that you would prevail in court. Your chances would be substantially diminished if your contract says "owner will pay for Section 1 work recommended in the report of ABC Termite Co. dated 00/00/00" specifying precisely which report was to control.
Do you have a buyer's agent? That is the person who should be assisting you with these matters. Also keep in mind that the seller and the seller's agent have duties to you as well -- to disclose and, as to the agent, to investigate as well as disclose.
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