A CL100 is a term often used in the context of real estate transactions, specifically in South Carolina. It refers to a Wood Infestation Report, also known as a "termite letter" or "termite inspection report." The CL100 form is a standardized document that provides information about the presence or absence of wood-destroying insects, such as termites, beetles, and carpenter ants, in a property.
Side note: the "CL" stands for "Clemson Letter," not "Clear Letter," contrary to popular opinion, because it's governed by the Clemson Department of Pesticide Regulation.
The CL100 report is typically required by mortgage lenders as part of the loan approval process. It is conducted by a licensed pest control professional (verify licensees here) who inspects the property for signs of wood-destroying organisms or damage. The inspection typically covers both the interior and exterior of the property, including crawl spaces and attics.
The CL100 report provides important information to buyers, sellers, and lenders regarding the condition of the property in relation to wood-destroying insects. If the inspection reveals evidence of infestation or damage, the report will indicate the extent of the problem and may recommend appropriate treatment or repairs.
In real estate transactions, the CL100 report is often considered a contingency, meaning that the buyer may have the option to terminate the contract or negotiate repairs or treatment based on the findings of the inspection. The specific requirements and regulations regarding CL100 reports are governed in South Carolina under the South Carolina Code, Section 27-1085 (licensing and other details are further up in 27-1070 et sequitur). There are conditions and circumstances that can render the CL100 invalid and leave a buyer out in the rain - pun intended.
This is a great example of why a lawyer agent is so valuable, since we are licensed not only in the real estate agent side of things, but also in the practice of law, so we know the legal details around these forms to make sure our clients are protected. Most agents have very little idea of what exactly this form is, when it's legitimate or not, and how to fight back when it isn't. I've seen agents attempt to use vague language from an invalid CL100 to attempt to get sellers to simply reduce the price of the home by tens of thousands for no reason even with NO damage reported on it at all; I've seen them attempt to use them to get entirely new parts of the home built or remodeled. They can't do that. The seller is not obligated to repair anything not listed as damage on a valid CL-100.
An agent who insists on this can end up being liable for a transaction that fails due to her inaccurate advice to clients, resulting in fiduciary duty breaches and civil damages. Make sure the person advising you is licensed to practice law. We are the only ones who can advise on rights and obligations under any contract, because it is very nuanced, very dangerous, and can result in disastrously horrible damages. If your agent is doing this, you are likely entitled to terminate their representation and/or forfeit any of their commissions, depending on the circumstances. The CL100 is one of the most misunderstood and abused forms and processes in the South Carolina real estate transaction.
Attorney Melissa Lynn, Lighthouse Legal - https://lighthouselegal.net