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Yes, do the termite inspection no matter what the situation is. Even if the seller knows there are termites and is tenting, you do not know the extent of the damage and the seller might not either. An inspection will help you understand the extent of the damage. Also, even with a termite warranty there could still be termites, so you still need to have the inspection.
The seller normally pays for both, but in short sale and foreclosure situations the seller might ask the buyer to pay.
They are looking for both drywood termites and Formosan subterranean termites. Most of the time drywood termites are found. They are not as dangerous as the subterranean. Subterranean termites can cause major structural damage to a home in as little as 6 months. Drywood termites require no connection to the soil and will attack any type of wooden articles such as frames, floors, furniture, etc.
The seller will schedule the tenting and pay for it. Sometimes the tenting can't be done before closing because perhaps there are tenants in the home or for some other reason. In this case some lenders will allow an amendment to be done that holds back the money for tenting to pay for it after closing. However, it is always best to get it done before closing if possible.
Normally they will recommend tenting which the seller will pay for.
Once in a while they recommend spot treatment but that is very rare for single family properties, it is almost always tenting.
For condos, spot treatment is normal because they can't tent.
Tenting will eliminate all insects, so the seller should do a cleaning when it is safe to go back into the home to clean out all dead insects.
Tenting can damage plants that are next to the home and therefore inside the tent.
The buyer's obligation to purchase is contingent on receiving an updated inspection report stating there is no visible evidence of live termite infestations.
The termite inspection is normally done around 15 days before closing. Many lenders will not accept it if it is done sooner so it is important to wait and not do it right away. Sellers also want to be done with the inspection period and some other contingencies before they order and pay for the termite inspection.