When a buyer discovers termite damage after closing, the wood destroying organism (WDO) inspection report is usually the first document everyone reaches for. Understanding what the report does and does not say is essential to evaluating the claim.
What a WDO report is
In California, WDO inspections are performed by licensed operators and regulated by the Structural Pest Control Board. The report describes the structure, the areas inspected, the findings, and recommendations. It is a visual inspection of accessible areas. It is not a guarantee that no damage exists behind finished surfaces.
Section 1 and Section 2 findings
Section 1 items describe evidence of active infestation or infection, or damage caused by it. Section 2 items describe conditions likely to lead to infestation or infection where no visible evidence was found, such as excessive moisture or earth to wood contact. Some reports also list further inspection items where an area could not be fully evaluated. Real estate contracts often treat Section 1 and Section 2 items differently, so classification matters.
Inaccessible areas
Reports identify areas the inspector could not access, such as finished walls, stored goods, or portions of a crawlspace. An inaccessible area notation can protect an inspector, but only if it was accurate and adequately explained. Whether an area was truly inaccessible on the inspection date is a factual question an expert can help answer.
The questions that decide most cases
- Species: drywood and subterranean termites leave different evidence and require different inspection approaches.
- Visibility: was there frass, kick-out holes, mud tubes, swarm evidence, or damaged wood in an accessible area on the inspection date?
- Age: is the damage consistent with activity before or after the inspection?
- Concealment: were there fresh repairs, paint, or stored items covering evidence?
- Standard of care: did the inspection and report meet regulatory requirements and industry practice?
Practical tips for counsel
- Obtain every report and completion notice for the property, not just the most recent one.
- Photograph damage before repairs and preserve removed wood when possible.
- Have an entomologist inspect before the repair contractor finishes work.
This article is general information for attorneys and is not legal advice.