A Section 1 and Section 2 termite report shows up in many California home sales, and for a post-and-beam house it's a document worth reading line by line. Mid-century modern homes put a lot of wood outdoors: exposed beam ends, rafter tails, wide fascia boards, wood siding and decks. The pest report is where decay and insects in that wood get written down, sorted and priced.
The terms on the report come from California's Structural Pest Control Act and the Structural Pest Control Board's regulations. Once you know what "Section 1," "Section 2" and "further inspection" mean, you can read the report the way a buyer, seller and lender will, and negotiate around it with clear eyes.
What the report is and who writes it
The formal name is a wood destroying pests and organisms inspection report. Under the Structural Pest Control Act, no company may give an opinion about the presence or absence of wood-destroying pests or organisms until a licensed Branch 3 field representative or operator has inspected the property. The written report has to be delivered to the person who ordered it and to the property owner, or the owner's designated agent, within 10 business days of the start of the inspection, and the company files the address with the Board.
The report must include, among other things:
A general description of the building and a foundation diagram showing where infested or infected areas, and conditions that invite attack, are located.
Information about the substructure, foundation, porches, patios and steps, air vents, attic spaces, and roof framing including eaves, rafters, fascias, exposed timbers and exposed sheathing.
A bold statement saying whether the roof's exterior surface was inspected. If it wasn't, the report tells you to contact a roofing contractor licensed by the Contractors State License Board to judge water-tightness.
Areas that were inaccessible or not inspected, with a recommendation for further inspection when practicable.
Recommendations for corrective measures.
A boldface notice that reports from different companies should list the same findings, that recommendations may vary, and that you have the right to a second opinion.
Section 1, Section 2 and further inspection
The Board's regulations define the categories used on a separated report:
Section 1 items have visible evidence of active infestation or infection, or are conditions that have resulted from one. Active drywood termites, or wood damaged by fungus (often called dry rot), would be listed here.
Section 2 items are conditions deemed likely to lead to infestation or infection, where no visible evidence of it was found.
Further inspection items are areas the inspector couldn't fully reach. They're neither Section 1 nor Section 2 until someone opens them up and inspects.
When you order a report, the company must tell you that a separated report is available. The law also says Section 2 conditions may not be described as actual defects, as active infestations or infections, or as needing correction before the company can issue a certification. That's why the split matters in a negotiation: Section 1 describes damage or activity that exists; Section 2 describes risk.
The Act lists conditions usually deemed likely to lead to infestation or infection: earth-wood contacts, excessive cellulose debris, faulty grade levels, excessive moisture conditions, evidence of roof leaks and insufficient ventilation. The regulations define a faulty grade level as a foundation top that is even with or below the adjacent earth.
Where post-and-beam homes show up on the report
Palo Alto's Eichler design guidelines describe homes identifiable by post-and-beam construction and broad eaves, with exposed roof rafters under extended eaves and wide fascia boards. They also note slab foundations without crawl spaces, flat roofs that can be prone to leaks, and siding of vertical tongue-and-groove redwood or scored plywood. Put those together and you can predict where an inspector will spend time:
Beam ends and rafter tails past the roof line, where weather hits end grain.
Fascia boards along low-slope roof edges, especially below drains and scuppers.
Roof sheathing and ceiling boards at old leak spots, visible from inside on an exposed ceiling.
Siding at grade and beside planters, where soil or mulch has crept up against wood.
Atrium edges, posts and glass-wall framing, where water collects or sprinklers spray.
Decks, stairs and landings. The regulations require reporting any wooden deck, stairs or landing in exterior exposure that's attached to or touching the structure.
With no crawl space, there's no subarea to inspect, so the exterior wood and roof framing carry more weight in the report. The Board's termite brochure lists signs to look for yourself: piles of pellet-shaped droppings, mud tubes on walls or beams, and darkened or blistered wood, which may sound hollow. It also warns that damage can progress unseen because the outer surface of the wood is usually left intact. For a primer on how the frame works, see our page on post-and-beam construction.
Bids, treatment, certification and reinspection
If the person who ordered the report asks, the company must give an estimate that separately allocates the cost of each recommendation, for the work it regularly performs. A few other rules worth knowing:
Treatment choices. The Board's brochure says fumigation and heating of the entire house are the only choices that ensure eradication of drywood termites throughout the structure. Local or spot treatments target a specific area and leave open the possibility of other undetected infestations.
Reinspection. If a bid was given, the company must reinspect on request for no more than its original inspection price, within 10 business days of the order. After four months from the original inspection, any new inspection is an original inspection, not a reinspection.
Completion paperwork. Completed work is documented on the Board's standard notice of work completed and not completed.
Certification. When all recommendations to remove an infestation or infection and repair its damage are done, the company can certify that the property is "now free of evidence of active infestation or infection in the visible and accessible areas." Note the limits built into that sentence.
Choosing not to fix. If the owner decides not to correct a reported condition, the company isn't liable for damages caused by that choice.
Using the report in a purchase or sale
Who pays for Section 1 work, Section 2 work or further inspection is a matter for the purchase contract, and it's negotiable. Some practical moves:
Sellers: ordering a report before listing lets you decide which Section 1 items to complete and gives buyers the information up front. Our seller resources cover the rest of pre-listing prep.
Buyers: read the further-inspection items as carefully as Section 1. An unopened wall or covered deck can change the picture.
Both: check past reports. The Board lets you search whether a property was inspected within the last two years and request copies of inspection or completion reports. You can also verify a company's license on the Structural Pest Control Board's website.
Our page on mid-century materials and construction explains which original materials hold up and which tend to need repair.
Frequently asked questions
Does a Section 2 item mean the house has termites?
No. Section 2 items are conditions deemed likely to lead to infestation or infection where no visible evidence was found, such as earth-wood contact or excessive moisture. The law bars describing them as actual defects or active infestations.
Who pays for Section 1 repairs in California?
It depends on the purchase contract; there's no single answer built into the pest report. Buyers and sellers negotiate who pays for Section 1 work, Section 2 work and further inspection. Ask a real estate attorney if you need advice on contract terms.
Can I see termite reports from a previous sale?
Often, yes. The Board's inspection search shows whether a property was inspected within the last two years, and you can send the Board a written request for copies of the inspection or completion reports.
Does the pest inspector check the roof?
The inspector reports roof framing such as eaves, rafters and fascias, and evidence of roof leaks. The report must state in bold whether the roof's exterior surface was inspected; if it wasn't, have a licensed roofing contractor check water-tightness.
Related reading
Post and Beam Repair: Inspecting and Refinishing Exposed Beams
Repair Requests After a Home Inspection: A Guide for Older Homes
Mid-Century Home Inspection Checklist: What to Check, System by System
Reading a pest report on a post-and-beam home? Call or text the Boyenga Team at (408) 373-1660 or (650) 383-8606, or contact the Boyenga Team and we'll walk through it with you. For treatment or repair decisions, rely on a licensed structural pest control company and, where needed, a licensed contractor.
