If you’re buying or selling a Mobile or Baldwin County home, you’ll need a termite letter — and most closings get delayed by misunderstanding what it covers. Here’s the buyer-and-seller breakdown.

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Quick answer: A “termite letter” in a Mobile closing is the Official Alabama Wood Infestation Inspection Report, issued by an ADAI-licensed inspector after a WDO inspection. Lenders that ask for one commonly want it dated within 30 days of closing — confirm the window with yours. Treatment of live activity is usually on the seller; repair of old damage is negotiated. Order it early — findings need time to be treated and cleared before the closing table.

Timeline graphic showing where the Alabama WDIR termite letter fits in a Mobile AL real estate closing

What “termite letter” means in Alabama

A termite letter in Alabama is shorthand for the Official Alabama Wood Infestation Inspection Report — the written instrument named in Ala. Admin. Code r. 80-10-9-.18. Alabama uses its own state form rather than the NPMA-33 that many other states use (FHA and VA accept the NPMA-33 as the general federal standard form). It documents:

Whether visible evidence of active wood-destroying organi (WDO) was found
Whether visible evidence of prior WDO damage was found
Whether the structure shows signs requiring treatment
The inspector’s ADAI WDC license number and inspection date

It is NOT a guarantee that no termites exist — only that none were visible during inspection.

Who requires a termite letter

VA loans: Required where the property is in a Termite Infestation Probability zone rated very heavy or moderate to heavy (VA Circular 26-22-11, Change 1) — which covers Mobile and Baldwin County. It is not a nationwide VA requirement. FHA loans: No blanket national requirement — it is triggered by evidence of infestation, a state or local mandate, an area HUD treats as customary under its Termite Treatment Exception Area list, or the lender’s own discretion. In a very-heavy termite zone like Mobile and Baldwin County, lenders and appraisers commonly do call for one. Conventional loans: Not mandated — required only if the lender asks for one or the buyer makes it a contract contingency. Cash purchases: Not required but strongly recommended.

Who pays for the termite letter

In most Mobile-area sales the seller pays for the letter and the buyer (or buyer’s lender) requires it before closing. This is custom not law — purchase contracts can specify otherwise. Negotiable.

That holds for government-backed loans too. Since VA Circular 26-22-11 (effective June 2022), a veteran buyer is allowed to pay for the termite inspection and any required repairs, and VA encourages veterans to negotiate those costs with the seller. FHA has no rule requiring the seller to pay. On VA, FHA, and conventional deals alike, the purchase agreement decides.

If the inspection finds active infestation and treatment is required, the contract typically specifies who pays for treatment (often the seller). The bond contract is then transferred or replaced at closing.

Cost in Mobile and Baldwin County

A stand-alone WDO inspection typically runs in the low hundreds with the exterminators in our network — your exact quote comes from the inspector you’re matched with. Often included with an existing termite bond renewal. Full pricing in Pest Control Cost Guide for Mobile, AL.

Validity window

The report’s acceptable age is set by the lender — 30 days is a common window for VA and FHA closings, and some conventional lenders accept up to 90. Confirm the window with your lender rather than assuming it. Schedule the inspection 15–30 days before scheduled closing.

If closing is delayed beyond 30 days, the inspection has to be re-done.

What the inspector looks for

A complete inspection covers seven areas (per the Mobile AL Termite Inspection guide):

Exterior perimeter walk
Foundation wall and crawl space
Garage and attached porches
Interior baseboards and trim
Attic
Documentation on the official Alabama report form
Treatment recommendation if active infestation found

Common findings that delay closings

Active Formosan termite evidence — Mobile’s signature termite issue. Treatment + bond transfer is typically required pre-closing.
Drywood termite frass in attic — requires assessment; may require spot or whole-structure tenting.
Mud tubes on crawl-space piers — active subterranean termite. Treatment required.
Conducive conditions — wood-to-soil contact, moisture issues. May require remediation per buyer/lender.
Existing bond not transferable — if seller’s bond isn’t transferable, buyer needs new bond at closing.

Buyer responsibilities

Confirm the inspector is ADAI WDC-certified (license number on the report)
Get a copy of the signed report before closing
Confirm whether any existing termite bond is transferable
If treatment is required, confirm a licensed operator performed it (not seller “DIY”)
Schedule annual bond inspection for the next year

Seller responsibilities

Schedule the inspection 15–30 days before closing
Address any conducive conditions if requested by buyer
Disclose any prior termite treatment or damage
Provide existing bond documentation if transferable

Real estate agent responsibilities

Track the report in the closing file
Confirm validity window covers closing date
Coordinate any treatment between seller and licensed operator

What if the buyer is bringing their own termite letter?

Some buyer-side lenders prefer their own inspector. That’s fine — same official Alabama report form, same ADAI WDC requirement. Seller-side termite-letter cost doesn’t transfer to buyer-side inspection.

Termite bond at closing

If active infestation is found, treatment is performed and a termite bond is established. Here’s what the exterminators in our network typically charge — get an exact quote from the pro you’re connected with:

Retreatment-only bond: low-to-mid hundreds per year, covers reapplication if termites return
Repair-and-retreatment bond: mid-to-high hundreds per year or more, covers structural repair plus retreatment

For Mobile / Baldwin Formosan exposure, the repair-and-retreatment tier is the more defensible choice. See Why Termite Bonds Are Worth It in Mobile County and Termite Bond Mobile, AL.

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