closing

wood-destroying insect report

A wood-destroying insect report, often called a termite inspection, is a written report by a licensed pest inspector stating whether there is evidence of termites, carpenter ants, powder post beetles, or other wood-destroying organisms, plus any resulting damage. Many lenders, especially for VA and some FHA loans, and many purchase contracts require one. Who pays and whether it is required varies by contract and state.

Exam tip
Exams may ask who orders or pays for the report; the answer is usually set by the contract or loan program, not a single national rule.
Example
A buyer's lender requires a wood-destroying insect report, which finds old termite damage in a sill plate; the seller agrees to repair it before closing.

Related terms & state variants

Sources

Source verification pending. Confirm current requirements with your state regulator.

Last verified: 2026-10-23