[TeeJayMaJay]

Hi to anyone out there in BENTONVILLE, AR.
As I am trying to prep my mother-in-law's home for sale (she passed away in AUG) someone told me that a "termite policy must be up to date.....that it is required in Arkansas." Anyone know the facts on that?
Thanks!

[Fasder]

Depends ... on the lender or purchaser

VA and FHA have requirements for inspection and in case of termites, require a policy (or company that provides certification of clearance).

But over the past few years, inspections that note NO VISIBLE Termites, have cleared loans.

Your best bet is to get three inspections from local company's to get this out of the way. You can ask your Real Estate agent for recommendations or the title company.

Lastly, the Arkansas State Plant board govern's the Termite and Pest control companies in Arkansas. Each company MUST carry license for State and Federal for wood destroying insects IF they offer service as a Termite company (such as providing a contract). If you have anything that sounds out of line or you want to ask third party question ... they would be your source for compliance information. Rules for Termite companies throughout the US are based on each States guidelines ... along with Fed rules for use of chemicals. So company that services Bentonville would have to follow same rules as for Mountain Home or Pine Bluff.

[nmnita]

required or not, get an inspection: no buyer in their right mind will buy a home without knowing it has been checked for termites and no realtor would want to sell a place that was not termite free.

Nita

[RogMar]

Originally Posted by nmnita

required or not, get an inspection: no buyer in their right mind will buy a home without knowing it has been checked for termites and no realtor would want to sell a place that was not termite free.

Nita

Zacktly, Nita.

IMHO, someone showing me a termite contract for a house I'm considering buying, is much like an owner of a prospective car I want to buy showing me oil change receipts for the time they've owned the vehicle.

I know that costs vary wildly. I've had a contract locally since my house was built and it's $98 a year.

A benefit of that also, is that when you need other services, the cost will be reasonable.

I was invaded by wasps for a couple of seasons. I mean really invaded, not just 15 or 20 of them things buzzing around.

Calling my bug-slayer, I got my entire house and large shop sprayed for $48 each time.

Having the contract generates goodwill and credibility when one is selling.

[joebaldknobber]

This policy is a racket. No lender requires a termite policy. The Arkansas Real Estate Commission needs to take this clause out of the contract. The termite industry must be greasing some palms to make this termite clause appear to be required.

[RTTNFAM]

We sold a home about 4 years ago in Montgomery County and the lender who financed the home for the buyer required a termite inspection, but not a termite policy.

[nmnita]

Originally Posted by joebaldknobber

This policy is a racket. No lender requires a termite policy. The Arkansas Real Estate Commission needs to take this clause out of the contract. The termite industry must be greasing some palms to make this termite clause appear to be required.

have you ever had termites?

Nita

[TeeJayMaJay]

My m-i-law's home does (did) have a policy and we are checking to see if she kept it updated. So much to do since she just passed away - trying to get all our t's crossed, ya know?! Just asking you all since I don't live out there. I appreciate your answers,...wondered if it was REQUIRED BY LAW.....I agree, I would want an inspection, for sure.
thanks guys!

[USAwanderer]

I don't think it is required by LAW, however many lender's will be 'happy' if you have one in place.

Funny thing - You cannot get a termite company to be PROACTIVE and come and spray for bugs. They are only allowed BY LAW to spray, if an infestation is present.

Like joebaldknobber says - it's a racket, but then again, isn't anything that the government has their hands in??

[Fasder]

Hmmm, everyone has their own opinion just like bellybuttons. But most Termite companies are owned by honest, hard working, business people that put sweat and tears into their business. As a member of a 5th generation Termite company, I would be hard pressed to not say I would be offended with someone telling me to my face that my company was a racket or the industry in general. However, that is part of the business of working with the public.

I tend to think of Termite companies policies as akin to insurance. You do not appreciate a policy till it is needed. And when someone finds a major infestation with damage, the Termite Company, stands for the damages covered by their agreements. With homes running 10-100’s of thousands of dollars in value … a Termite company is carrying a sizable risk. Given that standard insurance does not cover wood destroying insects, without a Termite policy, one would be on their own.

A couple of points

Funny thing - You cannot get a termite company to be PROACTIVE and come and spray for bugs. They are only allowed BY LAW to spray, if an infestation is present.

Not true ... this is a blanket generalization. Termite companies will do preventative treatments if the situation requires. They are also allowed discretion in retreatments of their policies under the State and Federal laws. In the old days, everyone sprayed whither you needed it or not. People tended to think they were paying for re-treatments each year instead of policies. When the EPA stepped in back in 70's, this was one of the first things that were addressed, to curtain the amount of chemicals being put into the environment. Most Termite companies will work with you and try to understand the concerns or issues at hand. Blanket spraying of chemicals is not good for anyone; and it has a counter effect in increase rate of insect tolerance if abused.

it’s a racket, but then again, isn't anything that the government has their hands in??

If you call Gov or EPA control of chemical usage a racket, then you have issues with just about any business working in the US. Proper of use of chemicals is a mandate for proper protection of the environment and community. State and Fed agencies monitor/manage/support a varied of business in this field; with the Arkansas State Plant Board covering items like Pesticides, Feed and Fertilizer, Seeds, Bureau of Standards ... name a few.

This policy is a racket. No lender requires a termite policy. The Arkansas Real Estate Commission needs to take this clause out of the contract. The termite industry must be greasing some palms to make this termite clause appear to be required.

Sorry, but this does not represent the entire mortgage community on requirements for the State. Each lender has their own requirements. FED - FHA/VA/FMHA requires inspections and policy if Termites are found. Other lenders follow this in general with some limitations on types of treatment. In the past few years, changes in the industry have increased options on types of treatment including inspections, baiting, and chemical treatments.

Also, The Arkansas Real Estate Commission does not enforce Termite companies ... the Arkansas State Plant board does that work. Real Estate Commission covers Real Estate agents and brokers. Mortgage companies in Arkansas are covered by the Arkansas Securities Department including regulation.

However, if you do not trust any of these groups, go to the Arkansas Attorney General for investigation of your issues. Or using the Better Business Bureau.

Lastly, I do want to note that there are companies in any industry that do incorrect things. And I have never been involved or worked for one of the regional or national based companies. But I have to say that most of the Termite (And Pest Control) companies work to provide service, support, and product that helps the community.


Links for reference
http://www.state.ar.us/arec/arecweb.html
http://www.plantboard.org/
http://www.securities.arkansas.gov/
http://www.ag.arkansas.gov/