The Florida Realtors As Is Contract is the most widely used contract for residential real estate transactions in Florida. Approved by the Florida Bar, this form outlines the terms of a property sale while ensuring a fair balance between buyers and sellers. However, despite its popularity, it raises several common questions from buyers, sellers, and real estate professionals. Below, we break down key aspects of the contract to help you navigate its terms effectively.
Florida Realtors As Is Contract FAQs
1. What is the Florida Realtors As Is Contract?
This standardized contract governs residential real estate transactions in Florida, outlining the terms between the buyer and seller while selling the property in its current condition. Over the years, this form has undergone multiple revisions to ensure clarity and fairness for all parties involved.
2. Is the As Is Contract Mandatory?
No. While it is the most commonly used contract due to its industry-wide acceptance, buyers and sellers are free to use alternative contracts or draft their own. Some regional real estate associations provide different contract versions, but the As Is Contract is preferred for its comprehensive protections and standardization.
3. What Does “As Is” Mean?
When a property is sold “As Is,” the seller is not obligated to make repairs or improvements before closing. The buyer accepts the home in its current condition unless additional terms are negotiated in the contract. However, sellers must still disclose any known material defects that could impact the property’s value.
4. Can Buyers Still Conduct Inspections?
Yes. The contract includes an inspection period, allowing buyers to thoroughly examine the property. The length of this period is negotiable and should be agreed upon before signing. Buyers may use this time to assess the home’s condition and determine if they wish to proceed with the purchase, renegotiate terms, or cancel the contract.
5. Are Sellers Required to Disclose Defects?
Yes. Florida law mandates that sellers disclose known material defects that could affect the property’s value. These include issues such as roof leaks, electrical malfunctions, plumbing failures, and structural problems. While sellers are not required to fill out a formal disclosure form, providing written documentation helps avoid potential disputes.
6. Can Buyers Cancel the Contract If They Find Issues?
Yes. Buyers have the right to cancel the contract during the inspection period for any reason, as long as they notify the seller in writing before the deadline. This gives buyers the flexibility to walk away if they uncover problems they are unwilling or unable to address. Many buyers also use this period to negotiate repairs, price reductions, or seller credits.
7. Are Sellers Required to Make Repairs?
No, unless they agree to do so in writing. While buyers may request repairs or credits based on inspection findings, sellers are not obligated to comply. If the seller declines to negotiate, the buyer can either proceed with the purchase or cancel the contract before the inspection period ends.
8. Does the As Is Contract Release Sellers from All Liability?
No. Sellers must still disclose known defects and maintain the property in its current condition until closing. If significant damage occurs—such as a broken water heater or storm damage—sellers are responsible for addressing these issues before the sale is finalized.
9. What If a Buyer Discovers Problems After Closing?
Once the sale is complete, buyers generally assume responsibility for any defects unless they can prove the seller failed to disclose a known issue or misrepresented the property’s condition. In such cases, buyers may have legal options, including seeking compensation for undisclosed defects.
10. Can Buyers Cancel After the Inspection Period Ends?
After the inspection period, buyers can only cancel under specific contract contingencies. These may include financing contingencies (if the loan is denied), appraisal contingencies (if the home is valued below the agreed-upon price), or title issues that the seller cannot resolve. Buyers should carefully review these clauses before signing.
11. What Types of Inspections Do Buyers Typically Order?
Buyers often conduct inspections for:
- Structural integrity (foundation, roof, walls)
- Plumbing and electrical systems
- Pest and termite infestations
- Mold and water damage
- HVAC and appliances
The type and extent of inspections depend on the property’s age, location, and condition.
12. Can Sellers Refuse to Complete a Seller’s Disclosure Form?
While sellers are not legally required to complete a written disclosure form, they must still disclose known defects. Failing to do so can lead to legal consequences, particularly if a defect is later discovered that impacts the property’s value.
13. What Happens If the Property Appraises Below the Purchase Price?
If the contract includes an appraisal contingency, buyers may be able to renegotiate the price or cancel the contract. In some cases, an appraisal contingency may trigger an automatic price adjustment. Sellers should review this clause carefully to understand their obligations.
14. Are Code Violations or Open Permits the Seller’s Responsibility?
A lien search is required before closing and may reveal code violations, municipal fines, or open/expired permits. The As Is Contract does not require sellers to resolve these issues unless a lien has been officially recorded. However, some contracts include additional terms obligating the seller to address such problems before closing.
15. Do I Need an Attorney for a Real Estate Closing in Florida?
In Florida, real estate closings can be handled by either title companies or law firms. However, only an attorney can provide legal guidance, draft contract addendums, and resolve legal disputes. Having an attorney involved ensures that all legal aspects of the transaction are handled properly, reducing risks for both buyers and sellers.
Need Legal Guidance?
Understanding the Florida Realtors As Is Contract is essential for both buyers and sellers. If you need assistance reviewing a contract, negotiating terms, or ensuring a smooth closing process, call our firm at 1-877-871-8300 for expert legal support.