The pest predicament; who pays the bill?

Question: Dear Kari: My husband and I have had our home for sale for five months. We finally got an offer which was upsetting because it was so low in price. We tried countering back and forth, but the buyers would not budge one inch. After pondering it for quite a while, we decided to take the low offer with the understanding we would not fix anything or shell out one more penny. We made it through the contractor's inspection without the buyers requesting any repairs. We were extremely pleased, nevertheless, with the structural pest control inspection, we were not as lucky. The buyer's agent is telling us we have to pay $2,200 of that report or the buyer cannot get their loan. It seems so silly to us that a bank that is willing to lend the buyer more than $500,000 would stop the loan over such a small amount. Is this true? Answer: I am going on the assumption you and your husband are working with a traditional sale. Typically, buyers that are purchasing a traditional home do expect to have a structural pest control inspection (also referred to as a termite inspection) and have the necessary work paid for by the sellers. Please note this may not apply to other types of sales. To be clear, there is no law requiring either a structural pest control inspection or any of the work to be completed. However, if a lender is involved and made aware of a pest control inspection report, they will request a copy of the inspection along with certified proof that any necessary work has been completed. The lender will give instructions to the title company pertaining to the conditions before they send the funds to the title company to be placed in the escrow account. The reason the lender requires that is because they are concerned of lending their money on a home that now has small issues that could potentially turn into large problems. It is good to understand this may not apply to a purchase contract. This usually only applies in the event this pest control inspection request is written into the purchase contact. The pest control inspectors are looking for items such as wood-destroying pests, termites, carpenter ants, dry rot, fungus, beetles, evidence of pest activity, damaged wood, dead insects, termite tubes, standing water, earth-to-wood contact, plumbing leaks and any other type of cellulous debris. In working with the pest control inspection, the perfect scenario would be for no required work. In the event necessary work is apparent, it will fall into two categories: Section 1 items or Section 2 items. Section 1 items are current necessary issues that need to be resolved immediately. Section 2 items are sometimes not deemed necessary to be completed to obtain a pest control clearance. However, if Section 2 items are left unattended for a long period, they may turn into Section 1 items. Typically, buyers only ask for the Section 1 items to be completed. It is good to know if on the report you see anything labeled an inaccessible area, you pay careful attention as further inspection may be deemed necessary. Be wise and ask your agent and inspector's advice on this matter. The bottom line is if your purchase contract to buy a home has a request of a pest control inspection (and you are obtaining a loan on the home), most lenders will require all Section 1 items be completed and a copy of the pest control clearance in their possession before giving out their loan funds. Please seek further guidance from your professional real estate agent.