The above information was obtained from the State of California Department of Consumer Affairs Structural Pest Control Board. http://www.pestboard.ca.gov/forms/brochures/inspctns.pdf
There is no law requiring that any recommendations listed on a report must be completed. However, many financial institutions require that both the inspection and all recommendations be completed prior to the close of escrow. The lender usually requires certification from a pest control company stating that the structure is free of infestation or infection. Some financial institutions may only be interested in determining whether recommendation for correcting active infestations and infections and the resulting damage (Section1 items) have been completed. Lenders such as FHA and VA may require conditions that are present which could lead to an infestation or infection (Section2 items) to be completed also.
A consumer may request a report from the pest control company which designates each item as either a Section1, Section2, or unknown for further inspection. Whether the buyer or seller pays for the wokr depends on the contract. The buyer should be aware of any recommendations which have not been completed before purchasing the home.
Structural pest control companies are required to complete a Notice of Work Completed and Not Completed when any work is done on a structure. Review all reports carefully for any indications that work has not been performed. The certification can be found on an inspection report, completion notice, or on the company's letterhead (see question 10 for more certification information). The certification may include disclosures in situations where all of the recommended work has not been completed. The inspection report and the completion notice should be delivered to the person who ordered the report and to the property owner, or the agent, within ten working days.