What is a transferable bond for termites?

Question

I am hunting for a house. The seller's disclosure statement says the house is under a transferable termites bond for re-treatment and repair. The transfer cost is $95, and annual cost to maintain is $264. What is this? Does it mean the house is infected by termites? Do I have to be worried about this?

Answer 1

It means that the seller is under contract with a company that comes regularly and treats. If there is an infestation or any damage caused by an infestation the termite company is liable.