A termite bond is a contract between a homeowner or an association and a termite control company. The bond allows the homeowner or association to pay what is essentially a retainer fee to a pest control company. The bond outlines the frequency and type of treatment to be provided and may include re-treatment and repair guarantees at no additional charge. In most cases, an annual inspection is included as part of the bond. This inspection can be beneficial for items such as moisture levels in crawl spaces that could identify other problems such as wood-decaying fungus/mold.
It is ill-advised for any condominium, townhouse community or single family HOA in general for that matter to operate without a termite bond covering any areas that fall under the Declarations as a common element. Pool houses and exterior buildings that may be subject to termite damage should also be covered. It can cost associations thousands of dollars in repairs to structures damaged by termites. Often many areas such as crawl spaces and the flooring systems of structures are not inspected on a regular basis. Without a bond or treatment program damages can occur quickly.
Note: Always make sure that you clearly understand the terms, exclusions, and limitations of any agreement your association enters into especially in regards to termite bonds. If you do not understand the terms, have the agreement reviewed by your attorney.