Texas Termite Disclosure Requirements for Home Sales

The Seller's Disclosure Notice

Texas Property Code Section 5.008 requires the seller of most residential property with one dwelling unit to give the purchaser a written notice about the property's condition. The notice must be delivered on or before the effective date of a contract binding the purchaser to buy. If the seller does not deliver it by then, the purchaser may terminate the contract for any reason within seven days after receiving it.

The current Texas Real Estate Commission Seller's Disclosure Notice form asks the seller to answer yes, no, or unknown to four wood related items, worded exactly as printed on the form: "Active Termites (includes wood destroying insects)," "Termite or Wood Rot Damage Needing Repair," "Previous Termite Damage," and "Previous Termite Treatment." The seller answers based on their own knowledge as of the date they sign, not based on a professional inspection they are required to obtain first.

Section 5.008 also exempts certain transfers from the disclosure requirement, including transfers under a court order or foreclosure sale, transfers by a bankruptcy trustee, transfers between co-owners, transfers to a spouse or to a person in the seller's direct line of ancestry or descent, transfers between spouses under a divorce decree, transfers to or from a governmental entity, sales of a new residence never previously occupied, and sales where the value of any dwelling is does not exceed 5 percent of the value of the property.

The Texas Official Wood Destroying Insect Report

Separate from the disclosure notice, most Texas real estate transactions also involve the Texas Official Wood Destroying Insect Report, a form the Texas Department of Agriculture requires under its own rule. The form states its purpose in plain terms: it covers "the visible presence or absence of wood destroying insects and conditions conducive to infestations of wood destroying insects."

The inspection covers only the multi-family structure, primary dwelling, or place of business named on the report. Sheds, detached garages, lean-tos, fences, and guest houses are not included unless the inspector notes them separately in the report. The form is also limited to what was visible and accessible at the time of the inspection, and it states directly that it does not cover damage that was not visible then but turns up later during repair or renovation work.

The form carries its own disclaimer in capital letters: "THIS IS NOT A STRUCTURAL DAMAGE REPORT OR A WARRANTY AS TO THE ABSENCE OF WOOD DESTROYING INSECTS." Under the state's structural pest control regulations, only the party who paid for the inspection is required to receive a copy, though the form provides boxes to route it to a title company, mortgagee, seller, agent, or buyer as well.

Who Is Allowed to Inspect and Sign

Texas regulates this work under the Structural Pest Control Act, Chapter 1951 of the Occupations Code, administered by the Texas Department of Agriculture's Structural Pest Control Service. The official instructions for the wood destroying insect report state the rule directly: "A WDI report can only be completed by a certified applicator or technician licensed in the termite control category."

The form itself requires the inspector's printed name, license type, and the name, address, and business license number of the pest control company performing the inspection. Anyone else present, such as an apprentice being trained, must be listed separately in the report and cannot sign it as the inspector of record.

Active Infestation, Previous Infestation, and Conducive Conditions

The report distinguishes between findings that carry different weight. An active infestation means the inspector observed live insects, or, for drywood termites and some other wood destroying insects, fresh evidence such as frass, in or on the structure at the time of inspection. A previous infestation means there is visible evidence of past activity with no current activity identified. Previous treatment means there is visible evidence a pest control company worked on the structure before, which by itself does not confirm that treatment succeeded.

The form's own scope of inspection section sets the standard for recommending corrective treatment, quoted exactly: "Corrective treatment may only be recommended if (1) there is visible evidence of an active infestation in or on the structure, (2) there is visible evidence of a previous infestation with no evidence of a prior treatment." Conditions the report calls conducive, such as wood touching the ground, excessive moisture, debris under the structure, or a wood pile against the structure, are reported separately and can lead to a preventive treatment recommendation rather than a corrective one.

What the Report Does Not Cover

The scope of inspection printed on the form spells out real limits. It does not extend to areas concealed by wall coverings, furniture, equipment, or stored items, or to any part of a structure that would require removing or defacing a surface to inspect. Damage that was repaired or concealed before the inspection, for instance with putty, spackling, or tape, may not be visible at all, even to a careful inspector.

The form also warns that prior treatment is not a guarantee: it states the inspecting company "cannot guarantee or determine that work performed by a previous pest control company... has rendered the pest(s) inactive." And because inspectors are not engineers or builders, the form is explicit that evaluating the extent of structural damage is a job for a qualified expert, not the pest inspector.

Practical Steps for Buyers and Sellers

Most disputes over termite issues after closing trace back to a missed step earlier in the transaction. A short, deliberate sequence on both sides avoids most of them.

1. Sellers should complete the Seller's Disclosure Notice honestly and mark an item unknown rather than guess, since Property Code 5.008 treats an honest unknown answer as compliance.
2. Buyers should confirm in writing which structures the wood destroying insect inspection actually covers, since sheds, detached garages, and fences are excluded unless the inspector names them in the report.
3. Either party can ask for the inspector's name and license number and confirm with the Texas Department of Agriculture's Structural Pest Control Service that the license is current and in the termite control category.
4. If the report shows previous treatment, ask the company that performed it for the treatment diagram and warranty details, since the inspecting company has no duty to provide that information to anyone other than the party who contracted for the inspection.
5. If the disclosure notice arrives after the contract is already binding, note the date it was received, since the purchaser has seven days from that date to terminate the contract for any reason.