Termite inspection when buying or selling a Michigan home

What we found, and what we did not

Two things people say about Michigan home sales are not supported by anything we can cite. One is that Michigan requires a termite inspection on every sale. The other is that a state form exists for it. We found no Michigan statute, MDARD page or state form that requires a wood-destroying insect report on a sale, and none that licenses inspectors separately from pesticide licensing. This guide says nothing about VA loans, because the Department of Veterans Affairs handbook has moved and we cannot confirm its current wording. What can be confirmed is narrower and still useful.

If you are buying, the lender, your agent or your own caution may call for an inspection. If you are selling, the Michigan seller disclosure asks you what you know. Either way, a wood-destroying insect (WDI) report is a document you can request from a company, and what it names is the reason to read it.

What a WDI report is

A WDI report is the written result of an inspection for wood-destroying insects, mainly termites and carpenter ants, with notes on what was seen, where, and whether treatment is recommended. HUD’s Handbook 4000.1 refers to “Form NPMA-33, Wood Destroying Insect Inspection Report, or the state mandated infestation report, as applicable”. That line comes from a PDF whose footers carry 2019 dates, so the live online handbook may differ, and the form name is the closest thing to a standard title for the document. Michigan mandates no alternative, so a company may use that form or its own.

The EPA notes that termites rarely appear until a swarm or damage is found, which is why an inspector looks for evidence and conditions, not only live insects. A report is a snapshot: it records what was visible and accessible on the day. Good ones say what was not accessible.

What the FHA says

Under HUD’s handbook, an appraiser observes the foundation and perimeter for evidence of wood destroying pests, though not at the level of a pest control specialist. If there is evidence or notice of infestation, including a prior treatment, the appraisal is made subject to inspection by a qualified pest control specialist, and any required treatment must be obtained. For an existing property, the lender must confirm the property is free of wood destroying insects and organisms. The handbook also says soil poisoning is unacceptable unless it is assured not to endanger the water supply. So an FHA loan makes an inspection conditional on evidence, not automatic. Ask your lender what it requires for your loan, since we only know what the handbook says and the lender’s overlay may be stricter.

What the Michigan seller disclosure asks

The Michigan Seller Disclosure Statement under MCL 565.957 asks the seller for the “history of infestation, if any (termites, carpenter ants, etc.)”, and says it is a disclosure of what the seller knows, not a warranty. It is not an inspection. A seller who writes “none known” has said what they know, and a buyer who wants more has to ask for an inspection. A seller who knows of a past treatment should say so. HUD’s handbook treats a prior treatment as notice of infestation for an FHA appraisal, so it is better to put it on the form than to have it come out at the appraisal.

Who performs the inspection

Termite and carpenter ant treatment is MDARD category 7B work, with a business license and a certified applicator. A claim of a separate inspector license needs a number you can check, and you should ask whether the person doing the inspection works for a licensed pest control company. The EPA says firms offering termite services must be licensed by the state and tells you to ask to see the license. Our license guide lists the numbers to ask for. If the inspector also sells treatment, say so and ask how the report would read if a different company did the work. MCL 324.8313(12) bars an applicator from calling a treatment necessary for a pest that is not present or likely, so a report that recommends treatment should say which pest was seen or why one is likely.

Reading the report line by line

Start with the identification. A report that says “evidence of wood-destroying insects” without naming the insect leaves you unable to compare it with anything. Look at the location: a finding in a basement sill, a wall or an attic is a different problem from a finding in a stored pile of lumber. Look at the conditions it lists, such as wood in contact with soil, high moisture or a grade that slopes toward the building, because the EPA’s prevention advice is about exactly those conditions. Then read the recommendation and ask what it rests on. Under the statute above, “treat” should follow a pest that is present or likely.

For buyers

Ask for the report before the end of your inspection window and read the wording, not just the recommendation. Check that it lists the areas not inspected, names the insect or damage, gives the location and says what the company proposes and why. If it recommends treatment, get a second opinion from a company that will not be doing the work. Ask the seller for treatment records and warranty papers if there are any, and ask whether the contract is transferable and what it covers. Do not assume a past treatment means a clean house; it means something happened.

For sellers

Answer the disclosure honestly and keep the paperwork for any treatment. If a buyer’s lender asks for a report, order one early, because a finding with time to treat is easier than one at the closing table. If a report finds evidence, ask the company to say in writing what was done and what its own warranty covers, and keep copies. A company’s warranty terms are its own, so ask for them in writing.

What to do after a finding

Photograph the evidence. Ask what the company proposes and why, and whether a second visit is included. The termite page and the pest inspection page cover what treatment and inspection involve. The carpenter ant and termite guide helps if the finding is a winged insect you want to identify yourself before you call.