Ask ten Savannah buyers what they need before closing and most will say the same thing: a termite letter. Ask what happens to that protection twelve months after they move in, and the room goes quiet.
That gap matters more here than almost anywhere else in Georgia. Coastal Chatham County, including Savannah and Tybee Island, is one of the few places in the state where the Formosan subterranean termite has established itself, alongside pockets of Bryan, Glynn, and Camden counties. Most of Georgia is still dealing with the native eastern subterranean termite, a slower and less aggressive pest. A termite bond written around that assumption can leave a real gap if it excludes the species most likely to show up on a house near the marsh. The letter you get at closing tells you what an inspector saw on one day. The bond is the only document that tells you what happens after that.
The Letter Only Proves a Moment in Time
The Official Georgia Wood Infestation Inspection Report, known as Form 100, is what most lenders mean when they ask for a termite letter. A licensed inspector walks the accessible areas of the house, notes any active infestation or prior damage, and flags anything they couldn't reach. The report is only valid for 30 days from the date it's signed, so ordering it too early in a transaction just means paying for a second one closer to closing.
Georgia doesn't require this report for every home sale. Conventional buyers and cash buyers often skip it or treat it as optional due diligence. VA and most FHA loans are a different story. Georgia sits on the list of states where the VA requires a wood-destroying insect inspection statewide, not just when an appraiser spots a problem. If a Savannah buyer is using VA financing, the report isn't a nice-to-have. It's a condition of funding.
What the report does not do is protect the buyer going forward. It's a snapshot, not a warranty. That distinction is where the second document comes in.
The Bond Is a Different Contract, Doing a Different Job
A termite bond is an ongoing service agreement with a licensed pest control company, separate from the one-time inspection report. Depending on the terms, it can include annual inspections, retreatment if activity returns, and in some cases repair coverage for new damage. Georgia's Department of Agriculture regulates the companies that issue these bonds under the state's Structural Pest Control Act, which is part of why bond language tends to follow familiar patterns across providers even though coverage details vary house to house.
Here's where the two documents get confused most often: a clear Form 100 says nothing about whether a bond exists, what it covers, or whether it survives the sale. A buyer can close with a spotless report and still inherit a bond that only covers retreatment, not repair, or one that excludes the exact species most likely to reach a Savannah crawl space from the surrounding soil.
| Wood Infestation Report (Form 100) | Termite Bond | |
|---|---|---|
| What it is | A one-time inspection snapshot | An ongoing service contract |
| Valid for | 30 days from signing | Typically 1 to 2 years, renewable |
| Required by | VA and most FHA loans in Georgia | Never legally required |
| Protects against | Nothing after the inspection date | Future activity, per contract terms |
| Transfers automatically | Not applicable | No |
Why Coastal Chatham County Changes the Math
A house in most of Georgia carries a bond written for the native eastern subterranean termite, a species pest control companies have decades of pricing and treatment data on. A house in Savannah or on Tybee Island sits in territory where the Formosan subterranean termite is established, a species known for larger colonies and faster structural damage. Bond renewal pricing in the coastal zone reflects that risk, often running $400 to $600 a year compared to lower rates inland, and overall Georgia treatment costs in 2026 range from roughly $900 to $3,800 depending on severity and method.
The practical question for a Savannah buyer isn't whether a bond exists. It's whether that bond specifically names Formosan coverage or quietly excludes it. A bond that reads fine on the surface can still leave a coastal buyer exposed to the one species most likely to matter in this particular zip code.
What Happens to the Bond When the House Changes Hands
A bond does not follow the deed automatically. Most contracts allow transfer to a new owner, commonly for a $50 to $200 fee, but the process requires action. The buyer or their agent needs to contact the pest control company before closing, confirm the bond is active and not lapsed, and get written confirmation that the transfer has been recorded. Skip that step and a buyer can end up with a bond that technically still exists but was never reassigned to them, which is not a position anyone wants to discover after a claim.
A clear termite letter and an active bond are not the same protection. One tells you what an inspector saw last week. The other tells you what happens if something shows up next year.
Sellers play a role here too. A bond that's allowed to lapse before listing loses value at the negotiating table, and Georgia's seller disclosure statement asks whether known termite problems or damage exist, which buyers should read closely alongside any bond paperwork provided.
The VA Timing Detail Military Buyers Should Know
Georgia's statewide VA inspection requirement means most relocating service members buying in Savannah will need a Form 100 before their loan can close. Historically, VA rules routed this cost to the seller. That changed with VA Circular 26-22-11, which now allows a veteran borrower to pay for the inspection directly if that's what gets the deal negotiated. Sellers still commonly cover it, but it's a point worth settling in the contract rather than assuming.
If the report turns up active infestation, treatment has to happen and a follow-up clearance issued before VA will fund the loan. Given the 30-day validity window on the report itself, timing this close to the actual closing date, not weeks ahead of it, keeps the paperwork from expiring before it's needed.
Before You Sign: What to Ask
- Is there an active termite bond on the property, and is it currently transferable?
- Does the bond specifically cover Formosan subterranean termites, or does it exclude them?
- When was the last inspection under the bond, and are the records available?
- Who is responsible for the transfer fee, and has the pest control company been contacted?
- If VA or FHA financing is involved, who is covering the Form 100 and when will it be ordered relative to the closing date?
A Few Common Questions
Does Georgia require a termite inspection to sell a home? No, not for most sales. Conventional and cash transactions typically include one as buyer-side due diligence, but the state doesn't mandate it. VA loans and most FHA loans are the exception, since Georgia is a state where the inspection is required statewide for those loan types.
Can I just use the seller's existing termite bond instead of buying a new one? Sometimes, but only if the contract allows transfer and the transfer is actually completed with the pest control company before or at closing. An untransferred bond doesn't protect the new owner even if it's technically still active on paper.
What if termites turn up after the inspection but before closing? If new activity is found within 90 days of the original inspection, most Georgia pest control companies will treat it at no extra charge as a professional courtesy, though that alone doesn't create an ongoing bond. Separately, if the Form 100 itself expires because closing slipped past 30 days, a new report has to be issued for the new contract period.
Coastal Georgia real estate comes with a few details that don't show up in a generic Georgia buying guide, and the termite bond is one of the clearer examples. Knowing which document does which job, and knowing that Savannah's Formosan zone changes what "good coverage" actually means, is the kind of detail that saves a buyer or seller a surprise well after the closing table.
If you're buying or selling in Savannah and want a second set of eyes on a contract, a bond, or the timeline for getting a Form 100 lined up before closing, Kimberly Pelletier is glad to walk through it with you. Let's Connect.
