To transfer a termite bond, confirm the existing contract allows assignment to a new owner, notify the pest control company within the window stated in the agreement (usually 15 to 30 days after closing), submit the company’s transfer form along with the closing documents, and pay the administrative transfer fee. Here is how that process works in practice, what it costs, and where it tends to go wrong.
Confirm the Bond Can Be Transferred
Not every termite bond follows the house. The original agreement should contain a transferability clause stating whether the bond can be assigned to a new owner and under what conditions. Several states require pest control companies to include this language, but if your contract is silent on the point, call the company and get a written answer before closing.
Contracts that do allow transfer almost always attach conditions. The most common is that the bond must be in good standing: annual renewal fees current, scheduled inspections completed, nothing skipped. Some companies also require that no structural modifications have been made without their approval, because additions, new decks, or foundation changes can break the treatment barrier the bond was written against.
If the bond is not transferable, the buyer’s choices narrow to buying a new bond from the same company (sometimes discounted for a known property) or starting fresh with another provider. Either path begins with a full inspection and initial treatment, which typically runs $500 to $2,500 depending on the method and the size of the home.
Know Which Type of Bond You Have
Before anyone signs a transfer form, both sides should understand what the bond actually covers. The two main types offer very different protection, and the difference changes what the transfer is worth.
- Retreatment-only bond. The pest control company will re-treat the property if termites return, but will not pay for any structural damage the termites caused. The homeowner absorbs repair costs.
- Repair bond. Covers both retreatment and structural repair when termites cause new damage. Coverage limits often range from $25,000 to $250,000, with some policies going higher. These cost more to maintain but shift the financial risk to the pest control company.
A repair bond with years of history on the property has real dollar value and is worth maintaining through the sale. A retreatment-only bond still spares the buyer the cost of a brand-new treatment, but it leaves a gap that many buyers do not notice until damage appears.
Gather the Paperwork First
Having everything in hand before you contact the company prevents the kind of delay that pushes you past the notification deadline. Pull together:
- The original bond or agreement number, which links the property to the company’s treatment and inspection records.
- The date of the most recent inspection, which confirms the bond is active and not lapsed.
- Names as they appear on the deed. The seller’s name on the bond and the buyer’s name on the new deed should match the transfer form.
- The closing date, which becomes the effective date for the transfer and starts the clock on the notification deadline.
- Updated contact information for the buyer: mailing address, phone, email.
The pest control company supplies its own transfer form, through its office or an online portal. The form captures the property address, closing date, and new owner’s details. Fill it out carefully; errors in names or addresses can stall processing long enough to create a coverage gap.
Submit the Transfer and Pay the Fee
Contact the pest control company as soon as possible after closing. Most contracts require notification within 15 to 30 days of the closing date, and companies enforce these deadlines. Miss the window and the bond can be voided outright, which turns reinstatement into a full new inspection and treatment rather than a paperwork fix.
Submit the completed transfer form with a copy of the closing documents. Companies accept them through online portals, email, or certified mail. Closing agents and title companies often handle the submission as part of the settlement package, which is the most reliable approach because they are already tracking deadlines. If you are handling it yourself, keep proof of delivery.
An administrative transfer fee applies at this stage. Fees vary by company but generally fall in the range of a few hundred dollars. Who pays is negotiable, and that question should be settled in the purchase agreement rather than left to the day of closing.
Processing typically takes one to two weeks. The new owner then receives a confirmation letter and an updated bond certificate showing their name, the coverage type, the remaining warranty period, and the treatment method used. The company usually schedules a first inspection under the new ownership to verify that bait stations or chemical barriers are intact.
Who Pays for the Transfer
There is no universal rule. The transfer fee, any outstanding renewal balance, and the cost of a pre-transfer inspection are all negotiable items in the purchase agreement. In parts of the South and Southeast, where termite pressure is heaviest, sellers more commonly cover the transfer to keep the home attractive. In other regions, buyers absorb it as part of closing costs.
The better approach is to negotiate the point explicitly rather than let either side assume. A repair bond with a long history is worth the transfer cost to the buyer. A basic retreatment-only bond with little remaining term is a reasonable item to ask the seller to credit at closing.
What Happens if the Bond Lapsed
This is where most people get burned. If the transfer does not happen within the required window, or the seller let the bond lapse before closing by skipping renewal payments or inspections, coverage simply ends. Most providers do not offer a grace period.
Reinstatement is not a matter of catching up on a missed payment. The pest control company will require a full new inspection and, in most cases, a complete retreatment of the property before writing a new bond. The new owner pays for an initial treatment rather than just the annual renewal, which usually runs $150 to $400 per year. Any coverage history built up under the old bond, including repair benefits, is gone.
Confirm the bond’s status early in the home-buying process, not at closing. Ask the seller for the most recent inspection report and proof that renewal fees are current. If the bond has already lapsed, build the cost of a new treatment and bond into the purchase negotiations.
Why Continuous Coverage Matters
Standard homeowners insurance policies exclude termite damage. Insurers treat infestations as a maintenance issue, not a sudden accidental event, which puts the damage outside the scope of coverage. A homeowner without a bond who discovers an infestation pays for treatment and structural repair out of pocket.
Termite damage repairs average around $3,000 nationally, and severe cases involving structural beams, floor joists, or load-bearing walls run much higher. A retreatment-only bond at least covers eliminating the colony. A repair bond covers the structural work too, up to the policy limit. Keeping coverage continuous through the sale is the administrative detail that saves thousands of dollars later.
One last boundary worth noting: a termite bond is not the same as a wood-destroying organism inspection report. A WDO report is a one-time snapshot documenting what the inspector found at a specific moment and carries no ongoing protection. A termite bond is a service agreement with periodic inspections and retreatment (and sometimes repair) during the coverage period. A clean WDO report at closing does not replace a bond, and an active bond does not replace a WDO report when a lender or state law requires one.