Do You Need a Termite Bond to Sell Your House in Michigan?

One buyer’s agent in Royal Oak asked me for a termite bond on a 1950s ranch. I had to explain that she’d borrowed the request from a relocation client out of Georgia. Michigan law doesn’t require one. The question still comes up every month, usually from sellers who moved to Michigan from the South, where pest contracts travel with the property almost like a title policy. So do you need a termite bond to close a sale here? The short answer is no, and the longer answer is more useful.

What Does Selling a House as Is Mean in Michigan?

A seller in Warren called me after her inspection turned up mud tubes along the west foundation wall. She wanted to know if she could just sell the place “as is” and skip the whole termite bond conversation. It’s a common question, and we buy houses in Warren, MI with that kind of pest damage still in place.

Selling as-is in Michigan means you’re not fixing anything. It doesn’t mean you’re keeping secrets. Michigan’s Seller Disclosure Act, Act 92 of 1993, covers homes with one to four units. It requires you to give the buyer a standardized disclosure statement before you sign a binding purchase agreement. That duty holds even in an as-is sale. Pest history sits right on the statement, on a line asking about any history of infestation, with termites and carpenter ants listed as examples.

The statute also ties your answers to personal knowledge. You disclose what you know. Checking “unknown” is fair if you’ve never seen a swarmer and never hired an exterminator.

A termite bond doesn’t replace any of that. People hear “bond” and picture a guarantee attached to the home. It’s really a service contract with a pest company, renewed every year, that usually covers inspection plus retreatment. Some include damage repair, but most don’t.

So where’s the practical value for Michigan sellers? An active termite bond documents professional treatment. That paper carries more weight at the negotiating table than any verbal promise you could make.

Who Pays for a Termite Bond When You Sell in Michigan?

Nobody has to buy one. Since Michigan doesn’t require a termite bond, the real question is what happens to one you already carry. That contract stays in your name until you transfer it or cancel it.

Most of these plans renew once a year, and many renew automatically on a card on file. Sellers who’ve carried one for a decade sometimes forget it exists. Pull the contract early and find the renewal date before you list.

Who covers the next renewal is negotiable. Some sellers pay through closing and let the buyer take it from there. Others offer a prepaid year as a small concession, which usually costs less than a repair credit would. Whatever you agree on, put it in the purchase agreement so nobody argues about it at the table.

Michigan’s market gives sellers some room on terms like this. Redfin put the statewide median sale price at $297,760 in August 2026, up 6.3 percent year over year. A buyer in a rising market rarely walks away over a pest contract renewal.

Staying in the house for a few weeks after closing adds one wrinkle. Your written occupancy agreement should say who lets the pest company in for the annual inspection while you’re still living there.

Do Michigan Lenders Ask for a Termite Bond or WDI Report?

For years I assumed lenders here never touched pest paperwork. I was mostly right, with a couple of exceptions worth knowing.

In Southern markets, handing over the seller’s termite bond can satisfy a lender’s request for a clearance letter. Michigan lenders rarely ask. No lender I’ve worked with in this state has made a bond a condition of closing.

Government-backed loans are the exception people worry about. VA treats the pest inspection as discretionary in Michigan, so a wood-destroying-insect report usually comes up only when the appraiser spots signs of damage. FHA buyers see a similar pattern, where the appraiser has to flag something first.

When a report does get ordered, timing matters. Michigan’s median days on market sat at 33 in August 2026, per that same Redfin data. A surprise inspection followed by treatment can push back a closing that was otherwise on track.

Active coverage helps in that moment. If the appraiser raises questions, recent treatment records from the pest company usually settle them quickly.

Michigan As-Is Sale vs Listing on the Market vs FSBO

Before: a seller in Southfield with a flooded basement, buckled subfloor, and no money for a contractor. After: a cash closing in eleven days, carpet and all, with the pest history disclosed in writing.

Southfield’s median sold price was $234,000 across 365 closings in the six months Resideline tracked through October 2026. Homes in good shape there went under contract in a median of about three weeks. Agent commissions and prep costs come out of that number, though. A house with visible wood damage draws low offers no matter how you sell it, which is why we buy houses in Southfield in whatever condition they’re in.

As a FSBO seller, you write your own purchase agreement and manage your own disclosure. Every buyer will also ask why there’s no termite bond on this property. Most Michigan FSBO sellers I’ve met underestimate the disclosure exposure more than the marketing work.

Selling direct to an investor trades top dollar for certainty. If that trade fits your situation, Blue Moon Acquisitions can help. We buy throughout southeast Michigan and take the pest question off the table, since an investor prices the damage instead of asking you to fix it.

Compare that with a faster local market. Farmington Hills posted a $387,000 median across 497 closings over the same six months, and the median listing there went under contract in 13 days. Strong Michigan neighborhoods still move quickly, while houses with structural issues are a different animal, and pretending otherwise wastes everybody’s time. Sellers in that spot can talk to cash home buyers in Farmington Hills before paying for repairs.

What Michigan Law Says About Termites and Seller Disclosure

Michigan’s statute ties liability to knowledge. Anything you learned about the property before signing belongs on the disclosure form, including a termite bond you let lapse or a treatment you paid for in cash.

A wood-destroying organism report is a pest inspector’s written assessment of termite activity, structural damage, and risk on a property. Selling as-is doesn’t erase your disclosure duty; it only limits your obligation to repair. If you’re wondering whether you can sell a house as is without an inspection in Michigan, we break that down separately.

Termite treatment itself is regulated. Applicators are certified through the Michigan Department of Agriculture and Rural Development, on a separate track from general home inspectors.

One correction to common advice: people tell sellers that buying a termite bond right before listing will shield them from liability. It won’t. A termite bond is a maintenance contract, and no Michigan statute treats it as legal protection. Signing one the month before you list doesn’t erase anything you already know.

If you’re unsure how to answer the infestation line, a Michigan real estate attorney can look it over before you sign. That review costs far less than defending a claim later.

How to Handle an Existing Termite Bond at Closing in Michigan

“What do I do with the bond I already have?”

I hear that one constantly from sellers who moved up from the South. Start with the contract itself. Check whether it covers repair of new damage or only retreatment, because buyers will ask.

Next, call the pest company and ask what a transfer takes. Some transfer free, some charge a fee, and some want a fresh inspection first. Get the answer in writing before closing.

Bring the paperwork to the closing table, including the contract, the last inspection report, and any treatment records. A buyer who sees a clean inspection history tends to stop worrying about the pest line on your disclosure.

After that, cancel or reassign the autopay. Sellers sometimes leave it on their card, and the new owner ends up with coverage nobody mentioned.

If you’re staying on briefly after closing, fold pest access into your occupancy agreement, along with the move-out date and a daily rate for any holdover days. Your homeowner’s policy ends at closing, so you’ll want renter’s coverage for those weeks.

Key Takeaways on Termite Bonds When Selling in Michigan

That brings everything back to the original question. Michigan doesn’t require a termite bond to sell a house. Disclosure is the real obligation. A termite bond is optional coverage against a pest that’s most common in the southern half of Michigan, around Detroit, Ann Arbor, and Grand Rapids.

A man called me on a Tuesday afternoon from Port Huron. His mother had just moved into assisted living, and her house still had her 1978 Buick in the garage along with forty years of canning jars.

That call is the normal one. Pest contracts rarely stand between a Michigan homeowner and a closed sale. Money, timing, and condition usually do.

If your house has real wood damage and you’d rather skip the contractor estimates, a direct buyer prices it and moves on. If it shows well, list it. Both roads work, and picking the wrong one for your situation is what costs money. If the damage is already there, our guide to selling a house with termites in Michigan covers the treatment paperwork buyers ask for.

Frequently Asked Questions

What Does It Mean When a House Has a Termite Bond?

A termite bond is an ongoing agreement between a homeowner and a licensed pest control company. The company inspects on a set schedule and retreats the property if activity shows up, in exchange for an annual fee. Some agreements also pay to repair new damage. Plenty cover only treatment, so read the coverage page before you assume a termite bond protects the structure itself.

How Do You Sell a House in Michigan?

You’ll fill out the state disclosure form, pick a selling path, sign a purchase agreement, and close through a title company. Michigan sellers can list with an agent, sell on their own, or go straight to a cash buyer. The right choice usually comes down to your timeline and the condition of the house. Closings typically land a few weeks after signing, faster when there’s no mortgage involved.

Should You Sell Your Michigan House as Is or Fix It Up?

Run the math on the specific repair. If a $4,000 fix adds $12,000 to your Michigan sale price, do it. Facing foundation work, a wood-destroying-insect report, and a roof all at once? The retail buyer pool shrinks fast, and an as-is sale often nets about the same at closing with far less stress.

Do You Need a License to Inspect Homes in Michigan?

No. Michigan doesn’t license home inspectors at the state level, so vetting credentials is on you. Look for membership in a national association and ask what standards of practice the inspector follows. For termite findings, a licensed pest company’s report carries more weight than a general inspector’s note.

Can a Termite Bond Transfer to the New Owner in Michigan?

Usually, though the contract decides. Transfer terms vary by company, so ask before closing rather than at the table. Even coverage that won’t transfer still has value, since its treatment records show your buyer the house was cared for.

If you’re weighing your options on a Michigan house and want to talk it through with someone who buys here, contact us. It costs nothing to see what a direct offer looks like next to a traditional listing, and there’s no obligation either way.