By Kyle Frazier, JD, CRS, CLHMS - Broker Associate, Compass (DRE #01405738) - November 12, 2026
Quick Answer: California law does not require a pest report to sell a home, and most conventional and jumbo lenders do not ask for one. In Marin County it is now customary for the seller to order one before listing anyway, because buyers and their agents expect to see it in the disclosure packet. A Section 1 clearance means the pest company has certified that the property is free of evidence of active infestation or infection in the visible and accessible areas. Expect to pay roughly $650 to $1,250 for the inspection in Marin, and order it three to four weeks before the home goes on the market.
If you are selling a home in Marin, there is one document in your disclosure packet that buyers and their agents often turn to first. I know I do. It is the pest report. What that report says - and what it doesn't say - can decide whether buyers bid with confidence or start calculating how much to discount their offer.
I live here in Marin and I have sold Marin real estate for over twenty years. This is the guide I walk my own sellers through.
Watch on YouTube: Selling a Home in Marin? Get the Pest Report Before You List
What is a pest report?
The name is a little misleading. People mostly think of it as a termite report, but it is somewhat broader than that. The technical name is a Wood Destroying Pests and Organisms report. It covers:
- Drywood termites (these live inside the wood itself).
- Subterranean termites (these live in the ground and travel into the wood via tubes, usually in the crawl space).
- Wood-boring beetles.
- Fungus, which most of us call dry rot.
Here in Marin, dry rot is often the bigger line item. Think fascia boards, window trim, decks and deck framing, and the bottom of exterior doors and garage doors.
Section 1, Section 2 and Further Inspection
When the report is ordered for a sale, the findings are separated into sections.
Category | What it means | Examples |
|---|---|---|
Section 1 | Evidence of an active infestation or infection, or the damage caused by one. | Live termites. Dry rot in a deck joist. |
Section 2 | A condition that is likely to lead to a problem, where there is no evidence of a problem just yet. | Soil up to the siding. A plumbing leak. Poor ventilation under the house. |
Further Inspection | Areas the inspector could not get into. | A finished wall. A locked storage room. A deck that is too low to crawl under. |
There is also everything that is simply not covered by these reports. A pest report is about wood destroying pests and organisms. It is not about rodents, the roof or the plumbing, although those could be mentioned. Indeed, many pest reports will mention evidence of rodents if there are droppings under the house or in the attic. It is just not the main purpose of the inspection. Those issues are what the home inspection and the other reports are for.
What is a Section 1 clearance?
A Section 1 clearance means the Section 1 items were corrected and the pest company has certified that fact. The wording comes from state law. The company certifies that the property is free of evidence of active infestation or infection in the visible and accessible areas.
Note the words visible and accessible. That is why the Further Inspection items matter. If the inspector could not see or access an area, the clearance does not cover it, and careful buyers and their agents will notice.
Side note: Section 2 items are not required for the clearance. Leave them alone unless they are inexpensive or they are an obvious eyesore.
Is a pest report required to sell a home in Marin County?
No. California law does not require a pest inspection to sell a home, and conventional and jumbo lenders generally do not ask for one. However, VA loans do require it, and with an FHA loan the lender or the appraiser can call for it. Perhaps due to the high price point in Marin, we just don't see a lot of VA or FHA buyers. So, for most Marin sales, nobody is forcing the seller to do anything.
And honestly, it is a good idea to have one done every once in a while anyway as a matter of house maintenance. I just had one done at my own home. One of the most respected inspectors in the county found some limited dry rot around the exterior trim (including a couple of spots I was not aware of). I had them fix it. My home is now all buttoned up and dry rot free, which gives me great comfort even though I don't have any plans to sell.
Why Marin sellers get a pest report before listing
As recently as ten years ago, many Marin sellers went on the market without any reports, let alone a pest report. That required buyers to go out and get their own inspections during their contingency periods.
That has changed entirely. It is now customary in Marin County for sellers to obtain a pest report before going on the market, along with a home inspection and, if required, a sewer lateral inspection, a city resale inspection and a fire inspection. All of it goes into a disclosure packet that buyers review before offers are written, so that buyers can write an offer with few or no contingencies if they so desire.
Here is an example of why this matters. Say the report shows dry rot on a fascia board, some fungus damage on the back deck and subterranean termites near the garage, and the bid to correct all of it is $8,000 to $15,000. A buyer who is paying a premium for a home that feels done does not read that as a $15,000 price tag. They read it as a big question mark: what else have the sellers not taken care of? Buyers price that doubt at a lot more than the cost of the repairs. The offer comes in lower, or they ask for a credit, or worse yet, they buy the house down the street from a seller who took care of everything in advance.
When the Section 1 work is completed before the home goes on the market, the seller controls the cost and the timeline. And when buyers and their agents open the packet and see the report, the completion notice and the certification together, they know this seller cares about the home.
This is why S-Tier Sellers get the pest clearance. Their goal is to have the home sold inside the first fourteen days, on the right side of the 14-Day Line. They give buyers nothing to discount - and nothing to doubt.
Who does the inspection, and who does the work?
California issues three different structural pest control licenses.
License | What it covers |
|---|---|
Branch 1 | Fumigation, which means tenting a house. |
Branch 2 | General pests, like ants and rodents. |
Branch 3 | Wood destroying pests and organisms. The pest report for a home sale is a Branch 3 inspection. |
It is crucial that the inspection be done by a local, well-respected company. Buyer agents know their names. When they recognize the company on the cover page, and it is one they would hire for their own buyers, they have confidence that the report is complete, and they tell their buyers the same thing.
Termite treatment is usually done by the Branch 3 company that did the inspection. If the house needs to be tented, that is Branch 1 work, and the Branch 3 company will often bring in a fumigation company to do it.
The wood repairs are different. They can be done by the pest company or by your own licensed contractor, and your own contractor is often less expensive. But the pest company then has to come back and reinspect before it can certify the work. That reinspection has to happen within four months of the original inspection, and the fee cannot be more than the original inspection fee. If your contractor missed anything, you will not get a complete certification.
That is why, unless there is a big decking issue or something that requires a general contractor, I recommend having the company that did the inspection do the work. It gives comfort to buyers and, perhaps just as importantly, to the agents who trust that company to begin with.
Once you have a report, it gets disclosed
All of it. A seller cannot order a second report and leave the first one out of the packet. You also have a right to a second opinion, because findings and bids can vary from company to company. Just know that both reports go to the buyer.
What does a pest inspection cost in Marin County?
In Marin, expect to pay roughly $650 for a smaller home and up to $1,250 for a larger one. Most companies require payment before they release the report. It is far better to know what the report says before a buyer does.
How long is a pest clearance good for?
You will hear that a clearance is good for ninety days. That is not a statute. It is a rule of thumb that comes from lenders, pest companies and agents. What the law says is that after four months a reinspection is no longer available and a new inspection is required.
So, order the inspection three to four weeks before the home goes on the market. In most cases that leaves time for the repairs and keeps the paperwork current through escrow.
When should a seller hold off on the repairs?
Of course, this is not right for every seller.
- If the likely buyer is a builder, or someone planning a down-to-the-studs remodel, dry rot repair is money you will not get back.
- If the Section 1 number is large (a deck that needs to be rebuilt or a house that needs to be tented), it becomes a pricing decision. That decision is made home by home, with the guidance of an experienced and reputable agent.
In both cases I would still order the inspection.
The Marin seller's pest report checklist
- The inspection is ordered three to four weeks before the home goes on the market.
- The inspection is done by a local, well-respected Branch 3 company.
- The Section 1 items are completed.
- Any Further Inspection items are reviewed, and opened up where it makes sense.
- The report, the completion notice and the certification are in the disclosure packet on day one.
Frequently asked questions
Is a termite report the same thing as a pest report?
Yes. Termite report, pest report and Wood Destroying Pests and Organisms report are three names for the same document. It covers termites, wood-boring beetles and fungus (dry rot).
Who pays for the pest report in Marin County?
It is customary in Marin for the seller to order and pay for the pest report before listing, so that it can go into the disclosure packet.
Does a Section 1 clearance mean the house has no termites or dry rot?
It means the pest company found no evidence of active infestation or infection in the visible and accessible areas. Areas the inspector could not see or get into are not covered. Those are listed in the report as Further Inspection items.
Do Section 2 items have to be fixed to get a clearance?
No. Section 2 items are conditions that could lead to a problem later. They are not required for a Section 1 clearance.
Can my own contractor do the repairs?
Your own licensed contractor can do the wood repairs. The pest company then has to reinspect, within four months of the original inspection, before it can certify the work. Termite treatment is usually done by the pest company.
Does a buyer's lender require a pest clearance?
Conventional and jumbo lenders generally do not. VA loans do require a pest inspection in California, and with an FHA loan the lender or the appraiser can call for one.
How much does a pest inspection cost in Marin County?
Roughly $650 for a smaller home and up to $1,250 for a larger one. Most companies require payment before they release the report.
How long is a pest report good for?
Ninety days is the common rule of thumb from lenders and pest companies. Under state law, a reinspection is available for four months after the original inspection. After that, a new inspection is required.
Thinking about selling in Marin?
If you want help deciding what to fix and what to leave alone before you list, reach out. We are here to help. For the bigger picture on preparing a home, see The Seller's Matrix: Stop Overspending on the Wrong Renovations in Marin.
Sources
- California Business and Professions Code section 8516 (inspection reports, Section 1 and Section 2, reinspections) and section 8519 (certification).
- California Structural Pest Control Board.
- Inspection costs and Marin County customs are from my own practice.
This article is general information, not legal, lending or pest control advice. Requirements vary by lender and by property.