If you're buying or selling a home in California, someone is going to ask for "the termite report." Its official name is the WDO report, short for wood destroying organisms, and it's one of the standard documents in a real estate transaction. Here is what it is, what it covers, and how to read it without panicking.
What a WDO Report Is
A WDO report is the written result of a visual inspection of a property for wood destroying pests and organisms. In California the form is the Wood Destroying Pests and Organisms Inspection Report, and it must be completed by a licensed structural pest control company with a termite (Branch 3) license. The company files a copy with the California Structural Pest Control Board after the inspection.
Despite the nickname, the report isn't only about termites. It covers:
- Drywood termites, usually shown by frass (pellets), kick-out holes, or damaged wood in eaves, fascia, and attic framing
- Subterranean termites, usually shown by mud tubes on foundations and in crawl spaces
- Fungus and dry rot, which are wood decay caused by moisture
- Conditions that invite pests, such as wood touching soil, cellulose debris, leaks, and poor drainage
What the Inspector Looks At
The inspector goes through the accessible areas of the structure: the exterior, the attic, the crawl space or substructure, the garage, and the interior. The inspection is visual and non-destructive. That means we don't cut into walls, and anything that can't be reached, such as areas blocked by stored items, finished walls, or a sealed crawl space, can't be fully inspected. Those areas are noted in the report.
How to Read the Report: Section 1, Section 2, and Further Inspection
The findings are sorted into three groups, and knowing the difference matters in a negotiation.
Section 1
Section 1 lists items with evidence of an active infestation or infection, or of damage caused by one. Examples are live drywood termites, termite damage to fascia, or dry rot in a window sill. These are the items most buyers and lenders want taken care of.
Section 2
Section 2 lists conditions that are likely to lead to an infestation or infection but where there is no active evidence today. Examples are earth-to-wood contact, cellulose debris under the house, or a minor leak. These are preventive items, so they are often handled separately from Section 1.
Further Inspection
Further Inspection means the inspector saw something, or could not see something, that deserves a closer look. For example, a section of the crawl space may be inaccessible, or an area of wood may need to be opened up. Further inspection items are open questions, not confirmed problems.
Who Pays?
It depends on the contract. In many California sales the seller orders the inspection, and the buyer and seller negotiate who pays for Section 1 work and whether Section 2 items are addressed. Lenders, particularly on FHA and VA loans, may also require Section 1 items to be corrected before closing. Your real estate agent and the purchase agreement are the places to confirm this for your deal.
What a WDO Report Is Not
A WDO report is not a home inspection, a structural engineering report, or a warranty. It describes what was visible on the day of the inspection. A clean report today doesn't promise there won't be termites next year, which is why many homeowners add an annual inspection or a preventive treatment such as drywood termite treatment after a finding.
What Happens After You Get Section 1 Findings
Each finding comes with a recommended fix. For drywood termites that can range from a local treatment on an isolated area to a whole-structure fumigation, and for subterranean termites it is typically a soil or localized treatment. Damaged wood is replaced through wood repairs. Once the work is done, the company provides a notice of work completed. Ask what the options are and why a particular fix is recommended. A good inspector can explain the choice.
Tips for Buyers and Sellers
- Order the inspection early so there's time to negotiate and complete any work.
- Clear access to the attic, the crawl space, and the areas under sinks so the inspector can see everything.
- Read the report and ask questions. If the fix seems out of proportion to the finding, get a second opinion.
- Keep the report and any completion notice. They're useful records for the next sale.
Need a WDO report for a purchase or a sale? Request a free quote or call us and we'll go over what the inspection covers and what to expect.