What Fails a Termite Inspection in Escrow? (Fullerton, CA)

Escrow moves fast—until a termite report slows everything down.

If you’re buying or selling a home in Fullerton, CA, the big question becomes: what fails a termite inspection in escrow, and how do you fix it without blowing up the timeline?

This guide breaks it down in plain English, using the same categories inspectors use in California reports—so you can understand what’s happening and what to do next.

Quick Answers (Escrow Termite Report in California)

• What fails a termite inspection in escrow most often?

• Section I findings (active infestation, active infection like wood-decay fungus, or damage tied to those issues) are the most common deal-delayers.

• Do “conditions conducive” fail escrow too?

• They can. These usually show up as Section II (risk conditions likely to lead to infestation/infection), and some lenders/buyers require them corrected.

• Does “no access” fail the inspection?

• Yes—if the inspector can’t reach key areas (attic, crawlspace), the report may require Further Inspection, and escrow can’t clear what wasn’t inspected.

• Is fumigation always required?

• No. Some cases qualify for localized treatment. But if activity is widespread or hidden, fumigation may be recommended.

• How do I keep escrow on track?

• Get a pre-listing inspection, fix moisture + wood contact issues early, and keep repair documentation ready.

First, Know What the Report Is Actually Saying

In California, most escrow termite reports follow the Wood Destroying Pest & Organism (WDO) inspection format used under state rules.

You’ll typically see:

• Section I: active infestation/infection (or damage resulting from it)

• Section II: conditions likely to lead to infestation/infection (even if no active evidence is visible)

• Further Inspection: areas the inspector couldn’t access and wants opened up or made accessible

If you want to read the official terminology, see the Structural Pest Control Board’s Act & Regulations (official PDF) and how “Section I / II” is defined: Structural Pest Control Board Act & Regulations (official PDF)

What Actually Fails a Termite Inspection in Escrow

Here are the most common reasons escrow gets delayed—especially in older homes and wood-framed areas common across Fullerton.

1) Active Termite Activity (Section I)

This is the #1 answer to what fails a termite inspection in escrow.

Examples that typically land in Section I:

• Live drywood termite evidence (fresh frass/pellets, kick-out holes with new pellets appearing)

• Subterranean termite evidence (mud tubes, active sheltering)

• Live swarmers (seasonal, but still relevant)

• Wood damage paired with signs of current activity

For drywood termites, UC IPM notes inspectors look for feeding damage, shed wings, fecal pellets, and kick-out holes—and also notes that determining extent requires experience and may go beyond a simple visual check in hard-to-reach areas: UC IPM – Drywood Termites (signs + inspection limits)

What to do (fast):

• Don’t guess based on “a little sawdust.” Get it identified.

• If the report calls for treatment, align the plan with the report language and escrow deadlines.

• If repairs are needed after treatment (common), plan them immediately—don’t wait.

If you need options laid out clearly, start with termite treatment options and then confirm whether the evidence matches drywood termites or subterranean termites.

2) Wood-Decay Fungus / “Dry Rot” (Section I)

A lot of people assume a termite report is “only termites.” It’s not.

WDO reports also cover wood-destroying organisms like fungus/wood decay when visible.

If the inspector finds active wood decay or damage linked to it, that can appear in Section I and delay escrow the same way termites do.

Common triggers in Fullerton homes:

• Leaks around windows/doors

• Roofline/fascia moisture

• Patio covers or exposed trim that stay damp

• Poor ventilation in enclosed areas

What to do (fast):

• Fix the moisture source first (leak/ventilation/drainage).

• Then repair or replace damaged wood.

If the report mentions damaged structural members or trim, this is where damaged wood repair service becomes part of the escrow solution—not just pest treatment.

3) “Conditions That Have Resulted In…” (Still Section I)

This phrase matters.

California definitions include not only active infestation/infection, but also conditions that have resulted in or from infestation/infection.

So even if termites aren’t actively visible in a specific board at that moment, visible damage that’s clearly termite-related can still trigger a corrective requirement before close.

What to do (fast):

• Ask for a clear scope: what must be treated vs. what must be repaired.

• Get completion documentation ready for escrow.

4) Section II “Conditions Conducive” That Buyers/Lenders Won’t Ignore

Section II doesn’t always “fail” a deal automatically—but it often becomes a negotiation point, and many escrows end up requiring fixes anyway.

Examples that frequently appear as Section II:

• Wood-to-soil contact

• Excessive moisture conditions

• Cellulose debris in crawl areas

• Gaps that allow easy access to framing/attic wood

• Venting issues

What to do (fast):

• Fix the easy wins first (wood contact, debris removal, moisture sources).

• If the report is strict, correct Section II items to prevent re-inspection surprises.

If you want prevention context, this guide helps homeowners spot risks early: Drywood termite prevention tips

5) “Further Inspection Required” (Access Issues)

This one catches sellers off guard—and it can absolutely slow escrow.

If the inspector can’t access key areas, they may recommend Further Inspection, which means:

• The inspection isn’t complete, and

• Escrow can’t confidently clear what wasn’t visible

Common reasons:

• Attic hatch blocked or too small

• Crawlspace sealed/obstructed

• Stored items stacked wall-to-wall

• No ladder access to roofline areas

What to do (fast):

• Clear access (attic, crawlspace, garage perimeter)

• Provide safe entry points

• Be prepared that limited access may require follow-up

If you’re coordinating service timing across cities, you can confirm scheduling and coverage via Areas We Serve.

A Simple “Escrow Saver” Checklist (Fullerton Sellers)

Use this before listing, or as soon as escrow opens:

• Fix active leaks (roofline, windows, plumbing)

• Remove wood-to-soil contact (fence boards touching soil, patio cover posts, etc.)

• Clear attic/crawlspace access

• Clean visible frass and then re-check after a few days (don’t rely on one cleanup)

• Keep repair receipts and clearance documentation ready

• If the home has widespread drywood signs, ask whether localized treatment is realistic or if fumigation is recommended

If fumigation is recommended, it helps to know the regulated materials involved. California DPR maintains active ingredient information for common fumigants, including sulfuryl fluoride: California DPR – Sulfuryl Fluoride (Fumigant info)

And if you want a practical comparison (spot vs tent) written for homeowners, see: Fumigation vs local treatment: which termite option fits?

Why You Can Trust Termike (Credentials + Methodology)

Escrow decisions shouldn’t be based on vibes. They should be based on evidence.

Why homeowners rely on Termike in Fullerton & Orange County:

• State licensed with the California Structural Pest Control Board (License PR8832)

• Branch 2 (general pest) + Branch 3 (termite/WDO) licensed operators

• NPMA membership (National Pest Management Association)

• 25+ years serving Orange County / Greater LA communities

• Inspection methodology can include FLIR thermal scans, UV tracking dust, and sealed entry-point audits when appropriate

You can verify licensing through the state portal here: Structural Pest Control Board – License search

And if you want to see how people rate the service locally, you can read verified Yelp reviews.

So… What Fails a Termite Inspection in Escrow (in One Sentence)?

Section I findings fail escrow timelines most often—because they point to active infestation/infection or related damage that must be corrected before closing.

That’s why the smartest move is to catch Section I risks early, fix access problems fast, and handle treatment + repair as one connected plan.

If you want a quick, escrow-friendly path, start here: book a free inspection.

Or call (888) 683-3592.

FAQ'S

"Q: What fails a termite inspection in escrow most often?"

"A: Section I items—active termite activity, active wood-decay fungus, or damage directly tied to infestation/infection—are the most common escrow blockers."

"Q: Can Section II items delay escrow too?"

"A: Yes. Section II is “conditions conducive,” and many buyers, agents, or lenders still require correction to reduce risk before closing."

"Q: If the report says ‘Further Inspection,’ is that a problem?"

"A: It can be. If key areas weren’t accessible, escrow may require access and a follow-up inspection because the report can’t clear what wasn’t visible."

"Q: Do I automatically need fumigation to close escrow?"

"A: Not always. Some cases qualify for localized treatments, but if activity appears in multiple areas or the extent can’t be confirmed, fumigation may be recommended."

"Q: Can I speed things up as a seller?"

"A: Yes—clear attic/crawlspace access, fix moisture sources, address wood-to-soil contact, and schedule treatment/repairs early so documentation is ready for escrow."