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Is a clear pest report required? Can the buyer pay for it? What things are required of the seller to pay for?

by cathy975 from Roseville, California. Oct 27th 2016 Reply


Barry Harris (bhhomeloan@gmail.com)
#1004 ranked lender in California - 6 contributions

It depends on the type of loan the buyer is getting. When seeking a Conventional or FHA loan, a Pest Report is not required but highly suggested. A pest clearance is not required if it's not listed on the contract unless the appraiser observes some issues with the home and mandates that repairs need to be completed before the close of escrow. In regard to what the seller is required to pay for, keep in mind that everything in the contract is negotiable as to who is paying for what, and it must be in writing.

Oct 27th 2016
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Jeff Phillips (JeffPhillips)
#669 ranked lender in California - 31 contributions

Only VA loans require a pest report done and cleared. If you are not doing a VA Loan, then a pest report should not be required for your loan. There are a couple of caveats, please give me a call and I can advise.Jeff PhillipsHP Investments, IncPhone - 415-867-6488Fax - 415-962-0474jeff@hpinvestmentsinc.comCalBRE#: 01879516NMLS#: 242083 Visit me on Yelp!Jeffrey D Phillips Realtor & Mortgage Broker

Oct 27th 2016
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Brian Paris (bparis)
#591 ranked lender in California - 31 contributions

For most loans its only required if its on the contract. However VA requires a clear pest report regardless. There are some fees that are not allowable to the VA buyer.

Oct 27th 2016
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 7,500 contributions

Much more info needed.. When it comes to financing a home purchase, the seller is not required to pay for anything, unless you are using VA financing.. then the VA will not allow you to pay for certain items, including a termite report.. but this does not mean that the seller is required.. those disallowed fees can be paid for by the real estate agents, the seller, or even the lender, VA just says YOU cannot pay for them.. As far as pest/termite reports being required.. if your sales contract states that your purchase is subject to a clean and clear report, then the lender will make it a requirement since YOU made it a requirement.. if you don't ask for it, the the lender does not need it.. This is the way it works here in AZ.. other states might have different laws/rules.. and there are certain states that require a pest/termite report on every file, whether or not you ask for it.. Check with your realtor,,, they should be familiar with local laws/rules.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Oct 27th 2016
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Larry Gray (lgray_312_247)
#3 ranked lender in California - 990 contributions

You received some good answers but I do want to note that the seller is responsible for picking up often at least half of the transfer taxes depending on the county, and in a limited number of counties in California the seller picks up the owner's title insurance and the escrow fee. If it is not mandatory for the seller to pick up the title transfer taxes such as in high cost San Francisco, it is common for buyer's to request they do so, even if it has to be built into the cost. The transfer taxes there are very high. Again, as many have answered you are responsible for the pest report. Now, you may decide against requesting it with the lender to create a smoother transaction but you should still get one for yourself along with the building inspection so you have information to negotiate with the seller for lowering the cost or contributing more $$ towards your closing costs.

Oct 31st 2016
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