Key FAQs About Florida’s “As Is” Real Estate Contract

The AS IS contract is the form behind most Florida home sales, and it generates the same questions on almost every deal: what as is really means, what the seller still has to disclose, who handles damage or permits, and how a buyer gets out. This page answers those questions from the perspective of the attorneys who review these contracts and close the transactions. For the deadlines themselves, including the inspection period, deposits, financing, and title objections, see our companion guide to the As Is contract's inspection period and deadlines.

What the AS IS Contract Is, and What It Is Not

The AS IS Residential Contract for Sale and Purchase is a standardized form written jointly by Florida Realtors and The Florida Bar. It is revised periodically, so the version you sign matters. It is not the only option. The standard FR/BAR contract is the main alternative, and the parties can also use another written contract.

Disclosure: What As Is Does Not Change

As is shifts repair costs. It does not let a seller hide known problems. Under the Florida Supreme Court's 1985 decision in Johnson v. Davis, a home seller must disclose facts the seller knows about that materially affect the property's value and that the buyer cannot readily observe. That duty survives an as is clause.

Several specific disclosures apply regardless of the form:

• Flood disclosure (section 689.302). A separate written form at or before contract signing. For contracts on or after October 1, 2025, it covers flood damage the seller knows of during their ownership, flood insurance claims, and flood assistance from any source.
• Radon. A statutory notice, which the FR/BAR forms include.
• Property tax disclosure. Warns the buyer not to rely on the seller's current tax bill.
• Lead based paint. Required for homes built before 1978.
• HOA and condo disclosures. Required when the property is in an association.

Florida does not require one general seller disclosure form, but many sellers use one because it documents what the buyer was told.

Inspections and Getting Out of the Contract

During the inspection period, the buyer can inspect anything and cancel for any reason by delivering written notice before the period ends. After it ends, the buyer can cancel only under another contingency in the contract, such as financing, title, or a condominium document review right, or by negotiating a release with the seller. Buyers commonly order a general home inspection, a wood destroying organism inspection, roof and four point inspections for insurance, and a permit search. The timing rules, including how days are counted and the second deposit trap from Diaz v. Kosch, are covered in our deadlines guide.

Repairs, Credits, and Damage Before Closing

The seller does not have to make repairs the buyer requests. The buyer can ask for repairs or a price credit, and the seller can agree, counter, or decline. Any agreement must be a written amendment signed by both parties.

Two seller obligations survive the as is clause. First, the seller must keep the property in the condition it was in on the Effective Date, ordinary wear and tear excepted, so a system that fails after signing is the seller's problem. Second, the contract has a separate risk of loss provision for casualty damage, such as a storm or fire, before closing. Under that provision, the outcome depends on how the cost of restoration compares to a percentage of the purchase price, and the buyer may have the choice to proceed or cancel. Read the risk of loss paragraph in the version you sign.

Appraisal and Financing

A low appraisal is not a built-in way out of the AS IS contract. Protection against a low appraisal comes from an appraisal contingency rider, if the parties add one, or from the financing contingency if the lender will not approve the loan. Buyers who expect a tight appraisal should negotiate the rider before signing rather than hope the financing contingency covers it.

The financing contingency has its own clock. If the blank is left empty, the loan approval period is 30 days after the Effective Date, and a financed buyer who cannot get approval must cancel in writing within that window to recover the deposit. Waiting past the deadline can turn a loan denial into a lost deposit.

Open Permits, Code Violations, and Liens

Before closing, the closing agent orders a municipal lien search, which checks city and county records for code enforcement fines, open or expired permits, and unpaid utility balances. These items often do not appear in a standard title search. The AS IS form does not generally require the seller to resolve open permits or code issues unless the parties agree to it, but recorded liens must be satisfied to deliver marketable title. Buyers who want a seller to close out permits should negotiate that in writing. See municipal lien searches in Florida.

Problems Discovered After Closing

Once the sale closes, the buyer generally owns the property's condition. The exception is a known, material defect the seller did not disclose, which can support a claim against the seller under Johnson v. Davis, and title defects, which are handled through the owner's title policy rather than against the seller. That is one reason buyers should not skip the owner's policy; see what title insurance covers.

Do You Need an Attorney for an As Is Closing?

Florida closings can be handled by a title company or an attorney. The difference is legal advice. Only an attorney can explain your rights under the contract, draft amendments and addenda, and resolve disputes that come up between signing and closing. When the same firm reviews the contract, holds escrow, and closes, nothing is duplicated. See attorney vs. title company for your closing.

Frequently Asked Questions