Wood-Destroying Insect Inspections: What are a seller's repair and treatment obligations for WDI inspections?
The NVAR Legal Hotline frequently receives questions regarding wood-destroying insect (“WDI”) inspection report treatment requirements pursuant to our forms. Currently, Paragraph 16 of the Residential Sales Contract, form K1321, states:
“Any treatment for live wood-destroying insects and/or repairs for any damage identified in WDI Report will be made at Seller’s expense and Seller will provide written evidence of such treatment and/or repair prior to date of Settlement which will satisfy the requirements of this Paragraph.”
What happens if the WDI report finds dead insects? What if the inspector recommends preventative treatment? What kinds of repairs need to be done? Here’s what Realtors® need to know:
OPTION 1: Treatment:
The contract only requires treatment for live, existing WDI. If only dead WDI are discovered, then preventative treatment to reduce the risk of future WDI is not required unless the parties agree otherwise. Preventative treatment can include a recommendation for ongoing pest services or monitoring.
Realtors® should ensure their clients carefully read the WDI inspection reports before making decisions to treat.
OPTION 2: Repairs:
The contract requires the seller to conduct repairs for any damage identified in the WDI inspection report. This standard applies regardless of whether the WDI were found dead or alive. Identified damages for the seller to repair may be broad and can include services such as filling in WDI tubing or repairing punctured or rotting wood.
However, repair does not include cleaning! If the WDI report identifies dead WDI or other WDI remains, the seller is typically not responsible for having them removed or cleaned.
Remember that the parties can always choose to forego the WDI inspection requirements by selecting “None” at the beginning of Paragraph 16 of the Residential Sales Contract or by selecting the WDI checkbox in the “As Is” Property Condition clause in the K1344 – Contingencies & Clauses Addendum.
If you have any additional questions, please contact the NVAR Legal Hotline.