25 Years Family-Owned5.0 Google Rated Across 10,000+ SoCal Homes
Knockout Pest Control & Termite
Escrow & Real Estate

Navigating California WDO Termite Reports in Escrow: Section 1 vs. Section 2 Explained

Knockout Escrow Desk
September 15, 2026
7 min read

Why Real Estate Transactions Rely on WDO Clearances

During California home sales, lenders (especially VA and FHA loans) routinely condition loan funding on a clean Wood-Destroying Organism (WDO) report. Understanding how findings are categorized is vital for closing transactions on time.

Section 1 vs. Section 2: What Must Be Cleared?

California inspection reports divide findings into two legally distinct categories:

  • Section 1 (Mandatory Repair): Covers active infestations of termites, wood-boring beetles, or active fungal rot damaging wood. Under standard purchase agreements, Section 1 items must be eradicated and repaired to earn a clearance certificate.
  • Section 2 (Advisory Notice): Identifies conditions conducive to future infestations, such as soil-to-wood deck contact, faulty grade levels, or plumbing leaks. Lenders rarely require Section 2 sign-offs, though smart buyers address them.

How Knockout Expedites Real Estate Deals

We provide 24-hour turnaround inspection reports across Temecula, Fallbrook, Oceanside, and Murrieta. Because we complete Section 1 wood repairs in-house, realtors avoid escrow delays caused by juggling multiple contractors.

Knockout Guarantee

Suspect Active Termites, Rodents, or Dry Rot in Your Home?

Our licensed technicians provide comprehensive on-site inspections and in-house wood replacement across Temecula, Fallbrook, Oceanside, and all surrounding cities.