June 2017 Archives


It's been a long time since I reviewed a transaction that included a Section 1 pest control clearance as either part of a disclosure packet or as a negotiated contractual allocation of pest control repairs. The demise of the Section 1 clearance is a result of, among other things, as-is transactions that eliminate contractual allocation of pest control repairs between the buyer and seller and market conditions that have produced non-contingent offers. Non-contingent offers and a market that has favored sellers have effectively limited the options a buyer has regarding pest control issues, including following up on inaccessible areas or making a request for repairs that asks for something more than fumigation of the property. These conditions have also caused some sellers to feel they do not need to provide a Section 1 clearance as part of a disclosure packet, either because it is not necessary for the marketing of their property or because they do not want to spend the money or discover additional issues with their property that would then need to be disclosed or repaired.

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