What is the difference between a Termite Clearance Letter & A Bond? : Let's Talk Real Estate
HomeSearchListingsActive Adult Communities 55+Cobb New ConstructionPaulding New ConstructionBuyingSelling
Buyer RebateMariettaPowder SpringsBlogContact Us

Search the MLS | Jenna Dixon | Mobile Real Estate App
DRA Homes|Jenna Dixon|Powder Springs|Marietta|Real Estate
Call Jenna Dixon| | DRA Homes | Marietta Real Estate | Powder Springs Real Estate

Maximum One Realty Greater Atlanta 
DBA DRA Homes 
5041 Dallas Highway, Ste 700, Powder Springs, GA 30127
Office Phone (770)919-8825 ext 318
Agent Phone (770)374-4230  Agent Fax (770)783-1514

All information provided is deemed reliable but is not guaranteed and should be independently verified. Subject to error, changes, omissions and withdrawals without notice.

NEW HOME COMMUNITIES - All floorplan, media and attachment marks for new home communities are either trademarks or registered trademarks of their respective owners. All floorplans are the copyright of the respective builder and are subject to error, changes, omissions and withdrawals without notice. All rights reserved.
Let's Talk Cobb & Paulding County Real Estate
DRA Homes is your source for information on subdivisions and neighborhoods in Powder Springs, Marietta, Smyrna, Mableton, Kennesaw, Acworth, Dallas & Hiram.  Covering local events, highlighting community businesses, real estate market trends, featured listings and more!

What is the difference between a Termite Clearance Letter & A Bond?

by Jenna Dixon, Associate Broker. DRA Homes on 02/23/16

What is the difference between a Termite Clearance Letter and a Termite Bond?Do I need a termite clearance letter?

When it comes to real estate in Georgia there are two types of homes:

1.  Houses that HAVE TERMITES.

2. Houses that WILL HAVE TERMITES.

It used to be a requirement by mortgage lenders that every property had to be inspected for termites and issued a Termite Clearance Letter prior to closing.

The lender "requirement" has changed or fallen by the wayside but the TRADITION OF THE INSPECTION CONTINUES.

Nearly every real estate contract written in Georgia stipulates a request that the SELLER PROVIDE, AT NO COST TO THE BUYER, A TERMITE CLEARANCE LETTER PRIOR TO CLOSING.

Many times that request will go on to request a TRANSFERRABLE TERMITE BOND for one year at no cost to the buyer.

Understanding the distinction between a clearance letter and a bond is very important.

TERMITE CLEARANCE LETTER indicates that the property has been inspected by a certified, licensed professional pest control company and they found NO ACTIVE INFESTATION OF TERMITES.  That may not mean that there were never termites or that there will never be termites only that on the day of the inspection, they found no evidence of active, live termites.

TRANSFERRABLE TERMITE BOND indicates that the property has previously been treated for termites and is under warranty with the pest control company.  

Bonds are common in new constructions, builders pre-emptively treat new builds to prevent termites.  The bond will be transferred to the new owner at closing and will be good for 1 year.  Subsequent years are the responsibility of the new owner to renew.

Bonds are also common in existing home sales but it is an important distinction to understand the difference between asking for a clearance letter and a transferrable bond.

Keep in mind that, in the rare instance, an existing home has never been treated for termites or a previous bond has lapsed, negotiating the terms of an agreement can be very important to the transaction.

Having adequate representation in your real estate transaction is imperative to protecting your interests...even when it comes to termites!

Comments (0)

Leave a comment