Document literacy:
Interpreting product guarantees and warranties
A termite guarantee
In most purchase and sale agreements,
there is a contingency that the house must be free of termites.
Termites are small insects that can destroy anything made
of wood. Various kinds of termites are found in most of
the United States, particularly in the South. Most contracts
require a seller to pay for a termite inspection of the
house. It provides written certification stating that the
property is free of termites and that any past damage from
termites has been repaired.
If you live in an area where termite damage
is common, you may want to purchase a termite guarantee.
With a limited guarantee, you pay a yearly fee to a company
that handles termite and pest control. As long as you continue
to pay the yearly fee, they will continue to treat your
home whenever necessary. The guarantee is said to be “limited”
because there are usually certain conditions that are not
covered.
