Main Sail Pest Control gets asked about this report more often during escrow than at any other point, usually because a buyer just received a document full of diagram numbers and code letters and cannot tell whether they are looking at a minor plumbing leak or a structural problem. In California the document is properly called a Wood Destroying Pests and Organisms Inspection Report, and the entire negotiation hinges on which section each finding lands in. Section 1 and Section 2 are not severity ratings. They describe whether damage is present now or whether conditions could cause it later.
What is a WDO report, and who is allowed to write one?
A Wood Destroying Pests and Organisms Inspection Report is a standardized report on termites, wood-boring beetles, dry rot fungus, and related damage, filed by a licensed inspector. In California it must be prepared by a company holding a Branch 3 structural pest control license, and the report is filed with the Structural Pest Control Board, which maintains a public activity report database searchable by property address.
That database matters to buyers. If a seller says the house was treated three years ago, the filing is verifiable, and so is any prior report on the same address.
The report includes a diagram of the structure with numbered findings that correspond to the written findings list. Reading it means matching each numbered item on the diagram to its finding and its section designation.
What does Section 1 mean on a termite report?
Section 1 covers active infestation or infection, and visible damage caused by it. These are present-tense problems that exist right now.
Typical Section 1 findings include live subterranean termites in a mudsill, drywood termite pellets and galleries in fascia or a garage door frame, fungus damage in a shower subfloor, and beetle infestation in structural lumber. Section 1 items also include damage from past activity when the damaged wood itself needs repair.
Lenders and escrow treat this category differently. Many conventional loans do not require Section 1 clearance, but FHA and VA financing commonly do, meaning the corrections must be completed and a clearance issued before funding. A Notice of Work Completed and Not Completed, sometimes called a clearance letter or a Form 43, is the document that closes the loop.
What does Section 2 mean, and can I ignore it?
Section 2 covers conditions likely to lead to infestation or infection. Nothing is damaged yet, and no organism is present, but the setup exists.
Common Section 2 findings on Lake Elsinore properties:
- Earth-to-wood contact at a fence post, planter, or patio post base
- Cellulose debris in the subarea, which means scrap lumber and form boards left under the house
- Inadequate subarea ventilation or a blocked foundation vent
- Faulty grade, where soil sits above the top of the foundation
- Excessive moisture from a slow angle stop leak or a shower pan that has begun to seep
- Wood shakes, trellises, or planter boxes attached directly to the structure
Ignoring Section 2 is a judgment call, not a violation. These items are usually inexpensive relative to Section 1 repairs, and they are the reason a house gets a Section 1 finding three years later. A blocked vent under a house in a low-lying area near the lake channel is a genuinely different risk than the same finding on a dry hillside lot.
Which findings show up most on Lake Elsinore and southwest Riverside County homes?
Two termite types dominate, and they call for different corrections. Western drywood termites live entirely inside above-ground wood and produce hard, six-sided fecal pellets, so findings cluster in eaves, fascia, attic framing, window frames, and garage door jambs. Subterranean termites nest in soil and require moisture contact, so their findings appear in mudsills, sole plates, and any wood touching or near grade, along with the mud tubes they build.
Fungus damage, commonly called dry rot, shows up in the same handful of places over and over: the base of shower walls, under kitchen sink cabinets, at exterior door thresholds, and along fascia where a rain gutter has failed. On newer tract construction the recurring Section 2 items tend to be faulty grade from landscaping installed above the foundation line and irrigation spray hitting stucco and wood trim.
How Main Sail Pest Control suggests handling findings during escrow
Read the report before you negotiate, not after. Pull the diagram, list every numbered finding, and sort them into three buckets: Section 1 repairs, Section 2 corrections, and further inspection recommendations.
The third bucket is where buyers get surprised. A line reading “further inspection recommended” for an inaccessible area means the inspector could not see it. Inaccessible subareas, attics with insulation covering the framing, and finished garages behind drywall are frequently excluded, and the report will list those exclusions. Nothing found in an inaccessible area is a reason to trust it, and requesting access before closing is cheaper than discovering it afterward.
Practical steps that keep escrow moving:
- Ask for the report as a PDF with the diagram, not a summary from the agent
- Look up the property address in the Structural Pest Control Board activity report database for prior filings
- Get a written scope and cost for Section 1 corrections rather than a lump-sum credit figure
- Decide who performs the work, since the company writing the report is often the one clearing it
- Confirm whether your loan program requires a clearance before funding
- Keep the Section 2 list as your first-year maintenance plan after you move in
Terminology aside, this report is a to-do list with money attached to each line. Section 1 tells you what needs repair before or shortly after closing, Section 2 tells you what will become Section 1 if left alone, and the exclusions tell you what nobody actually looked at. If you are in escrow on a Lake Elsinore property and want a WDO report explained line by line, or a second inspection on findings that do not add up, Main Sail Pest Control works with buyers, sellers, and agents throughout southwest Riverside County.

