Termite Letter 101 — What You Need to Know About the NPMA-33 Inspection Form
Why would I need to get a ‘Termite Letter’?
If you are applying for financing, obtaining a “termite letter” may be a lender requirement. The moniker applies to a HUD-approved, National Pest Management Association (NPMA)-33 Wood Destroying Insect Inspection Report.
What is the NPMA-33?
The NPMA-33 documents the findings of a non-intrusive, visual inspection of the home’s structure for evidence of wood-destroying insect activity (past or present). An addendum report form—Wood Destroying Organism Attachment—documents the presence of wood decay and fungi. The inspection only occurs in readily accessible areas—such as basements and crawl spaces—visual observations can be limited by equipment, occupant belongings/furnishings, or concealment (e.g. drywall or siding), and these obstacles are usually cataloged on the report under the appropriate section (attic, basement, etc.). Recommendations for treatment of specific pests, such as subterranean termites, are included, as can preventively removing boards and other organic materials from areas prone to infestation. A recommendation for further evaluation and treatment by a licensed exterminator is frequently given when the level or type of activity is obscured or latent, such as previous damage or evidence of mud tunnels that have been recently removed. In these cases, the report can be a temporary impediment to closing, as most lenders will require action—including treatment and repairs--to ensure the home’s structure is not compromised by an infestation. Sometimes, a follow-on inspection reveals the NPMA-33 observations are not associated with termites or other wood-destroying insects, rather the remains of ants or other insects or that the observed damage is due to wood decay caused by past water leaks, etc. In these cases, a short explanation from the extermination company usually satisfies the lender’s requirements and a reinspection is often not necessary.
Floor joist with WDO damage found in a recent inspection.
Who covers the cost of the report?
In most cases, the buyer pays for this report, but there are exceptions, such as some VA-lenders that insist that the veteran not be charged/billed. The inspection can be conducted separately or incidental to a home inspection—if the inspector has obtained the proper training and licensure. The form changed in early 2020, and it is this revised NPMA-33, with the signatures of the inspector, buyers, and sellers, that is the only one accepted by most lenders.