Navigating California WDO Termite Reports in Escrow: Section 1 vs. Section 2 Explained

Why Real Estate Transactions Rely on WDO Clearances

During California home sales, lenders (especially VA and FHA loans) routinely condition loan funding on a clean Wood-Destroying Organism (WDO) report. Understanding how findings are categorized is vital for closing transactions on time.

Section 1 vs. Section 2: What Must Be Cleared?

California inspection reports divide findings into two legally distinct categories:

• Section 1 (Mandatory Repair): Covers active infestations of termites, wood-boring beetles, or active fungal rot damaging wood. Under standard purchase agreements, Section 1 items must be eradicated and repaired to earn a clearance certificate.
• Section 2 (Advisory Notice): Identifies conditions conducive to future infestations, such as soil-to-wood deck contact, faulty grade levels, or plumbing leaks. Lenders rarely require Section 2 sign-offs, though smart buyers address them.

How Knockout Expedites Real Estate Deals

We provide 24-hour turnaround inspection reports across Temecula, Fallbrook, Oceanside, and Murrieta. Because we complete Section 1 wood repairs in-house, realtors avoid escrow delays caused by juggling multiple contractors.