2026-10-27 · 4 min read · Orange County
What Do Section 1 and Section 2 Mean on a California Termite Report?
The short answer
What do Section 1 and Section 2 mean on a California termite report when you buy a home in Orange County? Section 1 items are conditions with visible evidence of active infestation or infection, or damage resulting from it, like live termites or dry rot. Section 2 items are conditions likely to lead to infestation or infection where no visible evidence was found yet, like a leaking faucet or wood touching soil. A further inspection item means the inspector could not reach an area. Who pays for each item is negotiated in your purchase contract.
What Is a Termite Report in California?
The official name is a Wood Destroying Pests and Organisms Inspection Report. It covers termites, and also fungus (dry rot), beetles and the conditions that invite them.
I'm Jeanette Nelson, a REALTOR® with Jeanette Nelson Real Estate, Keller Williams Realty, serving Orange County, Huntington Beach, Costa Mesa, Fountain Valley, and surrounding areas. The termite report is one of the documents I make sure every buyer reads carefully.
Termite companies are licensed and regulated by the California Structural Pest Control Board. Under the Structural Pest Control Act, the registered company must deliver a written report on a Board-approved form, and it must keep original inspection reports for three years.
What Does Section 1 Mean?
In a separated report, the Structural Pest Control Board's required wording describes Section 1 as items where there is visible evidence of active infestation, infection, or conditions that have resulted in or from infestation or infection.
Common Section 1 examples:
- Drywood or subterranean termites with visible evidence.
- Fungus damage, often called dry rot, in eaves, fascia or decks.
- Wood damaged by past infestation that needs repair or replacement.
These items usually draw the most attention in negotiations.
What Does Section 2 Mean?
The required wording describes Section 2 as conditions deemed likely to lead to infestation or infection, where no visible evidence was found.
Common Section 2 examples:
- A leaking shower pan or plumbing that keeps wood wet.
- Wood in contact with soil, like a fence post or siding.
- Excess moisture in a crawl space.
- Faulty grade that lets water collect against the house.
Section 2 items are not damage yet. Left alone, they can become Section 1 items later.
What About Further Inspection Items?
Sometimes the inspector cannot reach an area, like a stuffed garage, a covered patio or a locked room. The Board's wording describes these as recommendations to inspect areas that did not allow the inspector access during the original inspection and cannot be defined as Section 1 or Section 2.
Ask for further inspection items to be inspected before your contingency deadline. Once inaccessible areas are opened, the Act calls for a supplemental report showing whether pests, organisms or conducive conditions are present.
Who Pays for Section 1 and Section 2 Work?
No law says the seller must pay. It is a negotiated contract term. Buyers and sellers commonly discuss:
- Section 1 repairs completed by the seller before closing, or a credit to the buyer.
- Section 2 items left to the buyer, or handled as part of a repair request.
- Further inspection costs and who will pay for any items found later.
Your lender may also have requirements for certain repairs. Ask your lender early if the report shows significant Section 1 work.
Once work is done, ask for the completion paperwork. The Board's report form notes that buyers and owners can get copies of reports and completion notices filed with the Board on a property during the preceding two years.
How Should I Read My Termite Report?
- Read the diagram. It shows where each finding is on the home.
- Match each item to its section and the recommended treatment.
- Look at the cost of each item, if the company priced it, and whether it is a local or whole-structure treatment.
- Check for further inspection items and schedule them early.
- Compare it to your home inspection. My article on what to expect at your first home inspection explains how the two reports work together.
If something is unclear, call the inspector who wrote the report. They are usually happy to explain their findings.
Can I Look Up Past Termite Reports?
Yes. The Structural Pest Control Board offers a request form for copies of inspection or completion reports filed on a property. This can show whether the home had past treatments or repairs.
Let's Start With a Conversation
If you are buying a home in Orange County and want help reading your termite report and planning your request, I'd love to help. Call or text me at 714.366.8575 | DRE: 01397168, or contact me. Jeanette Nelson is a REALTOR® with Jeanette Nelson Real Estate, Keller Williams Realty, serving Orange County, Huntington Beach, Costa Mesa, Fountain Valley, and surrounding areas.
Frequently asked questions
Is Section 1 worse than Section 2 on a termite report?
Section 1 describes visible evidence of active infestation or infection, or damage from it. Section 2 describes conditions likely to lead to a problem with no visible evidence yet. Both are worth reading closely.
Does the seller have to pay for Section 1 repairs in California?
No law requires it. Who pays for Section 1 and Section 2 work is negotiated in the purchase contract, and your lender may have its own requirements.
What does further inspection mean on a termite report?
It means the inspector could not reach an area during the original inspection. Ask for it to be inspected before your contingency deadline.
How long do termite companies keep inspection reports?
Under the Structural Pest Control Act, registered companies keep original inspection reports, field notes and activity forms for three years.
Can I get copies of old termite reports on a home?
The Structural Pest Control Board's report form says buyers and owners can obtain copies of reports and completion notices filed with the Board on a property during the preceding two years.