A wood-destroying insect finding rarely kills a Virginia home sale. Under the standard Northern Virginia contract the seller pays for treatment and for repair of the damage identified in the report, and provides written evidence before settlement. What the finding actually costs you is time — and time is what you have least of.
This is general information, not legal advice. Your options depend on the exact contract you signed, including any addenda and contingencies. Confirm with your agent or attorney before acting.
The first thing to understand: this is a schedule problem
Treatment is fast. A subterranean termite treatment is usually a one-day job.
Repair is not. If the report identifies damaged framing — a sill plate, a rim joist, a section of subfloor — you now need a contractor, and contractor availability is outside everyone's control. That is where transactions actually slip.
So the useful question on day one is not "who pays" — the contract answers that — but "can the work be finished before settlement, and if not, what do we do instead."
What the contract obligates
Under the NVAR Residential Sales Contract, treatment for live wood-destroying insects and repair of damage identified in the report are made at the seller's expense, with written evidence provided before settlement.
Two things people miss:
Repair is included, not just treatment. Treatment might be $500 to $2,000. Replacing a damaged sill plate is a construction cost that can run several times that.
The obligation attaches to what the report identifies. Damage the inspector did not see — because a crawl space was blocked or a basement was finished — is not covered by an obligation tied to that report.
The four ways this usually resolves
| Resolution | When it fits | Who carries the risk |
|---|---|---|
| Seller completes work before settlement | enough time remains | seller |
| Repair credit to buyer at closing | timing is tight, buyer wants own contractor | buyer |
| Price reduction | damage is extensive, scope uncertain | buyer |
| Escrow holdback | work started but not finished | shared, per the holdback terms |
A credit is simpler when a contractor cannot be scheduled before settlement. It also transfers the risk of a bad estimate: if the repair turns out worse than expected, that is now yours. Buyers commonly negotiate for more than the bare estimate for exactly this reason.
Can the buyer walk away
Not automatically, and this surprises people.
The termite provision obligates the seller to treat and repair. It is not, by itself, a right to void the contract because insects were found.
Whether you can withdraw depends on the inspection contingency you signed:
- A full inspection contingency generally allows you to request remedies or to terminate.
- A void-only contingency allows cancellation in defined circumstances but does not support repair demands.
- No contingency, or an "as is" purchase leaves you with neither.
Read which one is in your contract before you assume you have an exit.
What the lender does
For loans requiring a wood-destroying insect report, the loan cannot close until the condition is resolved and clearance is documented. The lender is not negotiating with you — it is applying a program rule.
This has a practical consequence: the lender's requirement can override a private agreement between buyer and seller. If the two of you agree on a post-closing credit but the program requires completed treatment before funding, the credit arrangement does not work.
Confirm with the lender before you paper any agreement that leaves work undone at settlement.
If settlement slips past 90 days
The report is generally treated as valid for about 90 days, which matches the contract's own window. A delayed settlement can push you past it, and the lender may require re-inspection before final approval.
Ask the moment your date moves. A re-inspection ordered a week out is routine; the same re-inspection discovered two days before settlement is a crisis.
What happens next, by role
If you are selling
You carry the cost of treatment and of repairing the damage identified in the report, and you must produce written evidence before settlement.
The pressure is scheduling. Get quotes for both the treatment and the repair immediately, in parallel, not in sequence — the repair quote is the one that determines whether the timeline works.
Your action: book the treatment now and get a firm repair date in writing. If the repair cannot be completed in time, raise a credit with the buyer's side early rather than at the walkthrough.
If you are buying
You are entitled to the report and to written evidence of any work performed.
Before you accept the paperwork, verify that the firm named on the treatment record holds a current Virginia pesticide business license. Then read the obstructions section of the report — if the treated area adjoins something the inspector could not reach, the finding may be narrower than the actual problem.
Your action: if you are offered a credit instead of completed work, get your own repair estimate before agreeing to a number. The seller's estimate was written to be small.
If you are the agent on either side
The contract answers the payment question. Your exposure is the timeline and the lender rule.
Your action: confirm the lender's position on completed-versus-credited work before drafting an addendum that assumes a credit is acceptable.
If you are buying "as is"
The condition provisions are gone. The seller owes you neither report, nor treatment, nor repair.
Your action: you still have a contingency period, if you negotiated one. Use it to inspect and to price the work yourself, because after settlement it is entirely your cost.
What voids the seller's obligation
Three situations recur:
- An "as is" clause, which removes the condition provisions.
- A negotiated addendum substituting a credit or a different allocation.
- Areas the inspector could not access, which fall outside the finding and therefore outside the obligation attached to it.
Damage found after settlement
Once you close, this clause has been performed and no longer helps you.
Virginia is a caveat emptor state: a seller must not lie or actively conceal, but has no general duty to volunteer defects. A post-closing claim therefore turns on whether someone made a false statement or hid something — not on the termite paragraph. That is an attorney's question, not a pest control company's.
Before you call: what costs what
An inspection and a treatment are two separate services with separate prices, and conflating them is the most common way people end up surprised by a bill.
| Typical Virginia range | What it produces | |
|---|---|---|
| Wood-destroying insect inspection and report | $65–$200 | the NPMA-33 form |
| General pest inspection | often free where the company expects to quote treatment | a verbal or written assessment |
| Termite treatment | $500–$2,000; more where damage is extensive | a treatment record |
| Structural repair | quoted by a contractor, frequently the largest of the three | an invoice, not a pest control document |
What is usually free: a quote for treatment, once a company has seen the problem.
What is usually not: the inspection report used in a real estate transaction, and any visit that produces a document rather than a price.
Ask which applies before you book. A company quoting one figure covering both inspection and treatment is not quoting what a sales contract or a lender requires.
Common misunderstandings
"Termites mean the deal is dead." They mean a schedule problem and a negotiation. Most transactions close.
"The seller has to fix everything termite-related." The obligation attaches to what the report identifies.
"We can just agree to handle it after closing." Only if the lender agrees. Program rules can override your arrangement.
"A credit is the safe choice for the buyer." A credit transfers the risk of an underestimated repair to you.
"Treatment and repair are one job." They are different trades with different prices and different schedules.
What to ask the inspector or treatment company
- Is the damage active, old, or both — and how can you tell?
- What is the treatment method, and how long until it is complete?
- Does your quote include a written treatment record suitable for settlement?
- Is re-inspection after treatment included or billed separately?
- Do you perform structural repair, or is that a separate contractor?
- What conducive conditions did you note, and which of them matter most?
- Under what name is your Virginia license held?
The question about active versus old damage is the one that changes the negotiation. Old damage from a colony treated years ago is a repair question; active infestation is both.
What to have ready before you call
Property address, year built, foundation type, settlement date, a copy of the report with the finding, and whether the loan program requires clearance before funding.
Frequently asked questions
How long does treatment take? Typically a single day for subterranean termites. Repair depends entirely on scope and contractor availability.
How much does it cost? Treatment commonly $500 to $2,000; extensive infestation or structural damage $2,000 to $5,000 and up. Repair is separate and quoted by a contractor.
Can the buyer choose the company? When the seller is paying under the contract, the seller ordinarily selects. When a credit is given instead, the buyer chooses.
Does a treatment record satisfy the contract? The contract requires written evidence of treatment and repair before settlement. Ask your agent what your lender and settlement company will accept.
Will this show up later when I sell? There is no public termite registry. What follows the house is the physical condition and whatever you disclose when you become the seller.
Verify before you pay anyone
VDACS publishes an updated list of licensed pesticide businesses weekly, with a public lookup for confirming an active Pesticide Business License. Wood-destroying pest control is category 7b under 2VAC5-685-70.
Ask which name the license is held under — the trade name and the licensed entity often differ.
VPMA maintains a directory of inspectors holding its voluntary WDI certification.