Real estate & lending
Escrow Termite Inspections & Real Estate WDO Clearance Reports
In California real estate transactions, a clean Wood-Destroying Organism (WDO) report is essential for loan approval and buyer confidence. Discover what an escrow inspection covers, the legal difference between Section 1 and Section 2 items, how Knockout accelerates escrow timelines, and what your official certification contains.
An escrow inspection is the same WDO (termite) inspection we always do, except it covers the whole property and comes with a complete report.
What an Escrow WDO Inspection Entails
An escrow inspection is a legally binding structural evaluation governed by the California Structural Pest Control Board (SPCB). The inspector examines all accessible areas of the property for evidence of active wood-destroying pests, wood rot fungus, and structural vulnerabilities that could jeopardize the structure:
Section 1 findings (active infestation & damage)
Conditions where active infestation or structural decay is present. Lenders (including VA, FHA, and conventional underwriters) routinely require complete Section 1 eradication and repair before funding the mortgage. Examples: live drywood termites, subterranean mud tubes, and active fungus rot on eaves.
Section 2 findings (conducive conditions)
Conditions deemed likely to lead to infestation or infection in the future, but where no active pests or damage currently exist. Examples: soil-to-wood deck post contact, sprinkler heads spraying stucco, or plumbing leaks under sinks. Lenders rarely mandate Section 2 sign-offs.
The Escrow Inspection & Clearance Process
- 01
Priority escrow order & scheduling
Realtors, escrow officers, or homeowners order the inspection. We dispatch a licensed inspector within 24 to 48 hours to meet tight contingency deadlines.
- 02
Comprehensive structural check
Our inspector examines substructures (crawlspaces), attics, eaves, window frames, garage framing, patio pergolas, and exterior slabs following California Structural Pest Control Board standards.
- 03
Official state report within 24 hours
The official California Standard WDO Report is electronically delivered to escrow, listing agents, and buyers within 24 hours of inspection completion, complete with itemized repair estimates.
- 04
In-house repairs & clearance certification
If Section 1 repairs are required, our in-house carpentry and treatment crews complete the remediation. We then issue the official Notice of Work Completed and Clearance Certificate.
Why Realtors & Buyers Choose Knockout
In-house Section 1 carpentry
When an escrow report flags damaged eaves or dry-rotted patio posts, other exterminators make you scramble to find an independent carpenter to fix it before they will re-inspect. Knockout does all wood replacement in-house, so repairs are certified without waiting on another contractor.
Direct escrow billing available
We work directly with Southern California title and escrow companies, allowing inspection fees and repair costs to be billed and paid directly through closing proceeds (subject to escrow approval).
Dedicated realtor line
Our office provides dedicated communication for agents and transaction coordinators with same-day report modifications, buyer walkthrough explanations, and transferable annual termite warranties.
What Your Escrow Report Package Includes
State-mandated SPCB WDO form
The official, legally recognized inspection document filed with the State of California.
Structural findings diagram
A diagram showing where each finding is (e.g., "1A: Drywood termites at west eave fascia", "2B: Earth-to-wood soil contact at rear deck").
Itemized work estimate
Estimates for each Section 1 and Section 2 recommendation, listed separately for buyer and seller negotiation.
Certification of clearance
Issued upon completion of treatments and repairs to satisfy lender closing conditions.
Estimates cover what we can see. If more damage turns up once the wood is opened, state rules require us to issue a supplemental report with the added cost.
Need an Escrow WDO Inspection?
Priority scheduling for realtors, buyers, and lenders across Temecula, Fallbrook, Oceanside, and surrounding communities.