What do Section 1 and Section 2 mean on a termite report?

Section 1 in one sentence

Section 1 covers active infestation, active infection, or damage that has already occurred. Active infestation means live termites or beetles. Active infection means fungus that is still growing in wet wood. Damage means wood that has lost strength or material to either one, whether or not the pests are still present.

A Section 1 item does not have to be dramatic. Soft trim at the bottom of a garage door jamb is Section 1. So is a drywood termite pellet pile in an attic. The label describes the category, not the size of the problem.

Section 2 in one sentence

Section 2 covers conditions deemed likely to lead to infestation or infection. The wood is still sound, but something about the situation invites trouble. The most common ones we see in North County are earth-to-wood contact at fence posts and deck posts, cellulose debris in a crawlspace, excessive moisture under a house, plumbing leaks, missing or failed caulk at trim joints, and unpainted or weathered wood.

Think of Section 2 as the inspector telling you where the next Section 1 item will come from. Fixing these is almost always cheaper and smaller work than the repair they would otherwise turn into.

Further Inspection, the third label

Some findings are labeled Further Inspection instead. This means the inspector saw a sign of a problem, or could not get into an area, and recommends opening it up before deciding. A stained ceiling under a balcony, a boxed-in post base, or a locked storage closet under a stair will often land here.

Do not skip these. In our experience the areas nobody could see are where the serious rot lives, because nobody has been looking at them.

How the labels play out in a home sale

Most purchase contracts in California that mention a termite report focus on Section 1. A buyer's lender may require a Section 1 clearance before funding, which means all Section 1 items are completed and a licensed pest company has reinspected and documented that. Section 2 items are usually left to the buyer, though they are a fair point of negotiation.

If you are selling, do the Section 1 work early so there is time for the reinspection. If you are buying, read Section 2 carefully, because that is the maintenance list you are inheriting.

• Section 1 clearance: Section 1 items done and reinspected
• Section 2: typically negotiated, not required
• Further Inspection: resolve before close if it involves structure

Who fixes what

Treatment items, meaning fumigation, local chemical treatment, or soil treatment for subterranean termites, are done by the licensed pest company. Wood repairs can be done by the pest company's crew or by a carpenter of your choosing. Condition corrections in Section 2, like regrading soil away from a post or adding a downspout extension, are often simple enough to handle yourself.

When Levi takes on the wood items, he works from the report's numbered findings so each one can be matched to a photo of the finished repair. That makes the pest company's reinspection straightforward and keeps the paperwork clean for escrow.

Related questions

Sources and further reading