Attention Brokers and potential buyers in Arkansas
Customarily, HUD inspects all of its homes for termites and other wood destroying organisms and treats those that show any signs of active infestation. Beginning with the January 25th listing of Arkansas properties, HUD will deviate from this process and treat all Arkansas homes for termites in accordance with the Arkansas State Plant Board’s interpretation of the Arkansas Pest Control Law A.C.A. 17-37-101. In those cases where the treatment is deemed necessary to cure active infestation, HUD will bear the entire cost of the treatment. In cases where there are no signs of active infestation and the treatment is necessitated solely by State guidelines, the purchaser of the HUD property will be required to pay for their share of the treatment year cost prorated to the date of closing. As this is not a customary closing cost, funds designated as seller paid closing costs on line 5 on the HUD sales contract may not be used to satisfy this expense. Purchasers must pay their pro-rated share of this treatment expense at the closing of the sale.
Questions regarding this new procedure should be directed to Cityside Management at 985-419-0311.
