Dictionary of Real Estate Terms: termite clause
termite clause
a provision in a sales contract that allows the buyer to have the property inspected for termite infestation. In general, if termites are discovered, the buyer may require the seller to treat the property or the buyer may cancel the contract. Most clauses now use the term wood-destroying insects to protect against other types of insects that harm structures, such as the powder post beetle and old house borer.
Example: Under the termite clause in the sales contract, the buyer may get the home inspected before the closing. The seller will pay to exterminate any termites found. The buyer pays for the inspection.
