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Escrow Clearance Reports: What, Why, When?

At Surf City Pest Control, we provide our Orange County pest control customers with a variety of services, including structural pest control inspections for escrow clearance. Many people don’t understand this provision, so we have published this article to provide a bit of knowledge for our readers.

 

What is an Escrow Clearance Report?

In the state of California many mortgage lenders require a state-licensed pest control specialist to inspect for signs of structural damage by pests. The report must include any wood-damaging insect, including termites, boring beetles, or fungus. It should also include any possible conditions that could lead to damage in future, such as moisture, earth-to-wood contact and poor grading levels. The inspector must diagram the areas of the home checked.

 

Why is an inspection necessary for an Escrow Clearance Report?

Although not state required, lenders ask for an inspection in order to protect their investment. Some buyers also include a termite contingency in their purchase contract that allows them to withdraw from the transaction if there is extreme damage found.

 

When should I get an inspection?

Companies are not responsible for conditions that develop after the inspection date so it is always advisable that home-buyers get an inspection as close as possible to the closing date of escrow. Sellers can also have their property inspected to save time and cover their bases.

Tags are posted in the attic, basement, or garage each time a building is inspected. The tag contains the inspection company’s name and the date of inspection. Similar tags are left after any treatment to indicate the date and the type of treatment chemicals used. These reports are kept by the pest control company for three years.

 

Surf City Pest Control always has the safety of customers as their utmost priority. If you have questions concerning your residence or a building your intend to purchase, click here or call us today at (714) 665-1947 to speak with one of our Huntington Beach pest control experts.

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