What is a Section 1 finding versus a Section 2 finding?
Section 1 is defined as visible, active evidence of infestation (termites, carpenter ants/bees, wood-boring beetles, etc.) or infection (fungus/rot). Section 2 is defined as conditions present that are likely to lead to infestation or infection (moisture conditions, faulty grade level, earth-to-wood contact, etc.). These two categories of findings are most relevant during escrow. Most lenders require that Section 1 findings be remedied before the sale is complete.
