Section 1 vs Section 2 on a California termite report, explained

California wood-destroying organism reports divide findings into two categories, and almost every repair negotiation involving termites turns on which bucket an item lands in. The distinction is not intuitive from the names.

Section 1: active infestation or infection

Section 1 items are evidence of active wood-destroying organisms or the damage they have already caused — live termites, active fungus, dry rot, damaged structural members. These are present-tense problems. Lenders frequently require Section 1 clearance before funding, which is why sellers usually end up addressing them.

Section 2: conditions likely to lead to infestation

Section 2 items are the conditions that invite the problem but have not yet produced it: earth-to-wood contact, faulty grade, excessive moisture, cellulose debris in the subarea, plumbing leaks feeding a crawlspace. Nothing is currently eating the house. Something probably will.

Section 2 items are typically negotiable rather than required, which means they are the ones buyers most often let go — and the ones that reliably become Section 1 items two or three years later at considerably greater expense.

Who can issue the report

Only a Field Representative or Operator holding an active Branch 3 licence, working for a company registered with the California Structural Pest Control Board. The findings must be issued on the state's official WDO report, form 43M-41, and filed with the Board under Business & Professions Code section 8516. The NPMA-33 form used in other states is optional in California and cannot stand alone here.

A home inspector — including us — cannot legally issue a WDO report. What a good home inspector can do is recognise the signs, tell you plainly that a licensed WDO inspection is warranted, and coordinate one on the same visit so you are not booking two appointments against a single contingency deadline.

Reading the report properly

Look at where the Section 1 items are, not just how many there are. Localised damage to a fence post is a different proposition from active infestation in a bearing wall or subfloor framing. And read the Section 2 list carefully — correcting drainage and removing earth-to-wood contact is inexpensive now and expensive later.