A WDO report in San Diego is the wood destroying organism inspection report a licensed pest control company files with the state after checking a property for termites, wood rot, and other wood destroying pests. Most escrow companies and lenders in San Diego County ask for one before a home sale closes. The report is what turns into a Section 1 or Section 2 finding, and Section 1 clearance is what actually has to happen before some sales can fund.
What is a WDO report, exactly?
It’s a standardized form, the Structural Pest Control Board’s official inspection report, filed by a licensed inspector after a visual check of the accessible parts of a home. “WDO” stands for wood destroying organism, which covers subterranean termites, drywood termites, dampwood termites, wood boring beetles, and fungus decay from moisture. The inspector walks the attic, crawl space, garage, exterior siding, and any accessible sub-area, and notes anything they find.
The report isn’t a pass or fail. It’s a list. Every finding gets sorted into Section 1 or Section 2, and that sorting is what buyers, sellers, and lenders actually care about.
Section 1 versus Section 2: the difference that matters
A Section 1 finding means active infestation or damage that already exists, like live subterranean termite activity in a crawl space, drywood termite frass in an attic rafter, or wood rot from a leaking gutter that’s been dripping onto a sill plate for years. Section 1 items generally have to be treated or repaired, because they represent a present problem, not a future risk.
A Section 2 finding means a condition that could lead to infestation later but isn’t active damage yet. Wood-to-soil contact on a fence post, a sprinkler head spraying directly onto stucco, a crawl space vent that’s blocked by dirt buildup. Section 2 items get disclosed to the buyer, but they don’t have to be fixed before the sale closes. Whether they get fixed at all usually comes down to what the buyer and seller negotiate.
The confusion most homeowners run into is assuming every line on the report is a dealbreaker. Most reports have a mix of both, and only the Section 1 items stand between a property and clearance.
What is Section 1 clearance and why does it matter for a home sale?
Section 1 clearance means every active Section 1 item on the original inspection report has been treated or repaired, and a follow-up inspection confirms it. The inspector issues a Notice of Work Completed, sometimes called a clearance certificate, once the treated items are verified. That document is what most San Diego lenders want in hand before they’ll fund the loan, because a Section 1 clearance report is the closest thing to a guarantee that a buyer isn’t inheriting an active infestation on day one.
Without it, a sale can stall. Escrow companies routinely hold closing until clearance paperwork lands in the file, and a buyer’s lender can flag the loan for a longer underwriting review if the original report shows unresolved active damage. Sellers usually pay for the initial inspection and any required Section 1 treatment, since it’s their property being cleared for sale, though this gets negotiated in the purchase contract like everything else.
Who orders the inspection and who pays for the work?
Escrow typically orders the inspection once a home goes under contract, coordinating directly with the pest control company. The seller pays for the inspection itself in most San Diego transactions, and the seller also usually covers the cost of clearing any Section 1 items, since those represent existing damage on a property they’re selling. Section 2 items are more often split or negotiated, since they’re conditions rather than active damage.
Buyers sometimes order their own second inspection if they want an independent opinion, particularly on an older home in an area with a history of subterranean termite pressure, like the coastal canyons around Del Mar and Rancho Santa Fe or the older housing stock in central San Diego neighborhoods. A second inspection costs more out of pocket, but it can catch something the first inspector missed, especially in a crawl space with limited access.
How long does Section 1 clearance take?
A standard inspection takes 30 to 60 minutes on most single-family homes, plus a day or two to receive the written report. Clearance timing after that depends entirely on what needs treating. A minor localized treatment for a small drywood termite spot can be scheduled and completed within a few days. A subterranean termite treatment along a full foundation perimeter, or repair work on rot-damaged framing, can take one to two weeks depending on scheduling and whether repairs need a separate contractor.
Tight escrow timelines are the most common reason a sale gets delayed at this stage, not the treatment itself. Ordering the inspection as soon as a property goes under contract, rather than waiting until the middle of the escrow period, gives more room to treat and re-inspect before the closing date arrives.
What happens if the report finds a serious Section 1 problem?
A large, active subterranean termite colony or significant structural wood damage changes the conversation. At that point it’s not just a treatment line item, it’s a repair scope, and the buyer and seller usually renegotiate either the price or who pays for the fix before moving forward. This is uncommon on a well-maintained home, but San Diego’s older neighborhoods and homes built before modern moisture barriers were standard carry a higher chance of it. A pre-listing inspection, done before a home ever goes on the market, gives a seller time to handle a serious finding on their own schedule instead of under an escrow deadline.
Does every home sale require a WDO report?
Not by state law directly, but most San Diego lenders require one as a condition of financing, and most purchase contracts written through the local MLS include a termite inspection contingency by default. Cash sales technically can skip it, though most buyers still order one anyway, since it’s the only way to know what’s actually going on inside the walls and under the floor of a home they’re about to own.
Getting a WDO report or Section 1 clearance in San Diego
If you’re buying, selling, or already stuck waiting on a clearance certificate, the inspectors we match you with through termite inspection file the standard state WDO report that San Diego lenders and escrow companies ask for. We work across the county, from Del Mar to Rancho Santa Fe, and can usually get an inspection scheduled within a few days. If the report already came back with Section 1 findings, our drywood versus subterranean termite guide explains what kind of treatment each type actually needs, and our guide to preparing for termite fumigation walks through what to expect if tenting is the recommended fix. For a breakdown of typical inspection pricing, see our termite inspection cost guide. City-level walkthroughs are up for the older coastal and East County housing stock too: Coronado termite inspection, Lakeside termite inspection, Del Mar, and Imperial Beach.
Call (858) 400-6561 and we’ll get an inspection or a re-inspection for clearance scheduled with a licensed local pro.
Frequently asked questions
What does WDO stand for on a termite report?
WDO stands for wood destroying organism. It covers subterranean termites, drywood termites, dampwood termites, wood boring beetles, and fungus decay, which are the pests and conditions a licensed inspector checks for on the standardized state inspection report used across California.
What’s the difference between a Section 1 and Section 2 item?
Section 1 means active infestation or existing damage that generally has to be treated or repaired, like live termite activity or rotted framing. Section 2 means a condition that could invite infestation later, like wood touching soil or a sprinkler hitting the siding, which gets disclosed but doesn’t have to be fixed before closing.
Who pays for Section 1 clearance in a San Diego home sale?
The seller typically pays for the initial inspection and for clearing any Section 1 items, since those represent existing damage on the property being sold. Section 2 items are more often negotiated between buyer and seller as part of the purchase contract.
How long does it take to get Section 1 clearance after the inspection?
A minor localized treatment can be finished within a few days. A larger subterranean termite treatment or structural repair can take one to two weeks. Ordering the inspection as soon as a property goes into escrow leaves the most room to treat and re-inspect before closing.
Can I sell my house without a WDO report in San Diego?
There’s no state law forcing every sale to have one, but most lenders require it as a loan condition and most local purchase contracts include a termite inspection contingency. Cash buyers can waive it, though few actually do, since it’s the clearest way to know the real condition of the home before buying it.
Does a WDO report cover the whole house?
It covers every part the inspector can safely and reasonably access, including the attic, crawl space, garage, exterior siding, and any visible sub-areas. It doesn’t require opening up finished walls or ceilings, so damage hidden behind drywall with no visible signs can be missed on a standard visual inspection.