The Florida As Is Contract: Inspection Period, Deadlines, and Your Rights

The Florida Realtors/Florida Bar AS IS Residential Contract for Sale and Purchase is the form behind a large share of Florida home sales. It is easy to sign and easy to get wrong, because almost every right in it depends on a deadline. Miss the inspection deadline by a day and a buyer who wanted out is committed. Pay an escrow deposit late and a seller may consider you in default. This page covers the inspection period and every major deadline in the contract, how time is counted, and what each side can and cannot do, from the real estate team at Kelley, Grant & Tanis.

What As Is Actually Means in a Florida Contract

There are two main FR/BAR residential contracts. The standard contract requires the seller to make certain repairs, capped by default at 1.5 percent of the purchase price for general repairs. The AS IS contract removes that obligation. The seller does not have to fix anything the inspection finds.

The trade for the buyer is the inspection period. During that window, the buyer can inspect the property and cancel the contract for any reason, in the buyer’s sole discretion, and get the deposit back. The seller still has two continuing obligations: keep the property in the condition it was in on the Effective Date (ordinary wear and tear excepted) and make it available for inspections. As is describes who pays for repairs. It does not describe what the seller is allowed to keep secret.

How the Inspection Period Works

The inspection period runs a set number of days after the Effective Date. If the parties leave the blank empty, it is 15 days. Buyers commonly negotiate shorter periods in competitive markets and longer ones for unusual properties.

• Inspections are up to the buyer. General home inspection, wood destroying organism (termite) inspection, roof, four point, insurance, permits, or anything else the buyer wants.
• Cancellation must be in writing. The buyer delivers written notice of termination to the seller before the inspection period expires. A phone call or a vague email about concerns does not cancel the contract.
• No reason is required. The buyer does not have to prove a defect. Not liking the inspection report is enough.
• Repair requests are just requests. The buyer can ask for repairs or a price credit. The seller can agree, counter, or say no. Any change must be a written amendment signed by both parties.
• Silence means acceptance. If the inspection period expires without a written termination, the buyer has accepted the property as is and moves on to the remaining contingencies.

Every Major Deadline in the AS IS Contract

These are the defaults that apply when a blank is left empty. Many contracts change them, so read the numbers actually written into yours.

For condominium sales, the condo rider adds a separate statutory right for the buyer to cancel after receiving the association documents. That right runs on its own clock, apart from the inspection period.

How Time Is Counted Under the Contract

The AS IS contract counts in calendar days, not business days, and states that time is of the essence. Three rules matter most:

1. Day one is the day after the Effective Date. If the last party signs and delivers on May 3, May 4 is day one.
2. Weekends and holidays roll forward. A deadline that would end on a Saturday, Sunday, or national legal holiday extends to 5:00 p.m., where the property is located, on the next business day.
3. The Effective Date must be clear. The Effective Date begins once the last signature or initial is made and the contract is delivered.

The FR/BAR forms are revised periodically, and the time provision is one of the sections that gets updated. Always read the time paragraph in the version you actually signed rather than relying on a summary of an older form.

The Second Deposit Trap: Diaz v. Kosch

The most important Florida case on the AS IS contract is Diaz v. Kosch, decided by the Third District Court of Appeal in 2018. The contract gave the buyers a 10 day inspection period, and a $235,000 additional deposit was due the same day the inspection period expired.

Near the end of the inspection period, the buyers raised concerns about permits. Instead of terminating, they paid the second deposit while stating that it was made with full rights reserved, then sent a termination notice more than a week after the inspection period had ended. The court held that the contract gave the buyers two choices when the inspection period expired: cancel in writing and get the deposit back, or pay the additional deposit and move forward. A conditional payment was not an option. By paying, the buyers waived their right to cancel, and the sellers were entitled to keep the deposits.

The court also noted that the buyers could have simply asked for a written extension of the inspection period. That is the lesson for buyers: if you need more time, get a signed extension before the deadline. Do not pay the additional deposit while you are still deciding.

Seller Disclosure Under an As Is Contract

An as is clause shifts repair costs. It does not let a seller hide known problems. Under Johnson v. Davis, a Florida home seller must disclose known facts that materially affect value and that the buyer cannot readily observe, and that duty survives an as is contract.

Specific disclosures also apply regardless of the form. The seller must deliver a separate written flood disclosure at or before contract signing under section 689.302, and 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. The radon notice, the property tax disclosure, the federal lead based paint disclosure for homes built before 1978, and HOA or condo disclosures apply as well.

Your Rights at a Glance: Buyer and Seller

For broader questions about the form itself, see our attorney FAQ on the Florida Realtors As Is contract.

What It Costs to Have an Attorney Involved

Contract review and closing are usually quoted per transaction. Because the closing attorney also issues title insurance at Florida’s promulgated rates and handles escrow, having the same firm review the contract and close the sale avoids paying for the same work twice. Ask for a quote from Kelley Grant & Tanis, PA at the start.

Frequently Asked Questions

Real Examples of Florida Title Fraud Cases

One Palm Beach case involved a criminal forging a deed for a vacant home, then selling it to an out-of-state buyer who was unaware of the fraud. The actual owner only discovered the issue years later when preparing to sell the home. In Miami-Dade, a family’s home was nearly lost after a forged power of attorney was used to transfer ownership without their knowledge. Title insurance played a critical role in reimbursing legal costs and preserving ownership in both cases. These examples show how real and serious the threat can be.

Common characteristics of Florida fraud cases include:

• Vacant or rental properties targeted

• Forged documents filed with county recorders

• Elderly or out-of-state owners impersonated

• Delayed discovery of fraud until refinance or sale
  Case studies help clarify the importance of preemptive protection through title insurance.

Steps Title Companies Take to Detect Red Flags Early

Before issuing a policy, title companies examine the chain of title for inconsistencies. They verify names, compare signatures, and check for sudden ownership changes or document alterations. Properties that changed hands multiple times in a short period often get flagged. Companies also cross-check lien releases and ensure that all prior debts are properly resolved. These efforts reduce the chance of fraud slipping through.

Some standard fraud prevention steps include:

• Identity verification for both buyer and seller

• Document authenticity reviews

• Cross-referencing with known fraud watchlists

• Reviewing recent transaction history for anomalies
  Still, no system is foolproof, which makes insurance a crucial backstop.

What Happens If You Don’t Have Title Insurance in a Fraud Case?

Without title insurance, you may be personally responsible for defending your claim to the property. Legal fees, court costs, and the potential loss of your investment all fall on you. If the court sides with the fraudulent party or a previously unknown claimant, your ownership can be revoked. You may also face difficulty securing a refund or recovering damages if the seller was part of the scam. The lack of coverage creates significant financial exposure.

You could experience:

• Loss of legal ownership

• High out-of-pocket legal expenses

• Difficulty selling or refinancing

• Prolonged litigation to clear title
  Title insurance helps shift those burdens away from the buyer.

Title Insurance Requirements for Buyers, Sellers, and Lenders in Florida

In most Florida transactions, mortgage lenders require borrowers to purchase a lender’s policy. This protects the bank’s interest in the property up to the loan amount, but it doesn’t protect you personally. Buyers can also purchase an owner’s policy, which covers risks not addressed during the title search. Sellers may agree to pay for this as part of contract negotiations, depending on market conditions and regional norms. Some counties have customs around who pays which portion.

Here’s how title insurance generally breaks down:

• Lenders require coverage to issue a mortgage

• Buyers purchase optional owner’s policies for protection

• Sellers may contribute depending on contract terms

• Florida doesn’t require title insurance by law, but it’s widely adopted
  Understanding the roles of each party can help you make an informed choice.

How Our Attorneys Help Prevent and Respond to Title Fraud

We help you review title commitments, spot red flags, and request additional documentation before closing. Our attorneys work directly with title companies to verify identities and validate each step of the transaction. If an issue arises after purchase, we represent you during legal proceedings to protect your rights. That includes quiet title actions, rescinding fraudulent deeds, and pursuing damages when necessary. We also prepare and record corrective deeds as part of resolution efforts.

Our role in protecting your investment includes:

• Transaction review and legal oversight

• Litigation support when fraud occurs

• Advice on risk-reducing measures pre-closing

• Coordination with insurers and title agencies
  Whether you’re buying your first home or managing a portfolio, we help reduce exposure at every stage.

FAQs: How Title Insurance Protects You From Florida’s Property Fraud Cases

What is property title fraud and how common is it in Florida?

Property title fraud happens when someone illegally transfers ownership of real estate using forged documents or stolen identities. Florida sees higher-than-average cases due to accessible public records and large numbers of absentee or elderly owners. These crimes can go undetected until the rightful owner tries to refinance, sell, or reclaim the property.

How does title insurance protect me from forged deeds?

Title insurance covers financial losses if a forged deed results in someone else claiming ownership of your property. It can pay for legal defense, court costs, and compensation if your rights are challenged. This protection applies even if the forgery isn’t discovered until years after the purchase.

Is title insurance required to buy a home in Florida?

No, Florida law does not require buyers to purchase title insurance. However, mortgage lenders almost always require a lender’s policy to protect their loan. Buyers are strongly encouraged to get an owner’s policy to protect their own equity and legal rights.

Can title insurance prevent property fraud?

Title insurance cannot stop fraud from occurring, but it helps reduce the risk and absorb the financial consequences. Title agents and underwriters review documents and ownership history before closing to catch red flags. If fraud still happens, the policy ensures you’re not left facing legal and financial fallout alone.

What happens if someone claims ownership of my Florida home after I buy it?

If you have title insurance, your insurer will likely cover the cost of defending your ownership and resolving the dispute. This may include litigation, quiet title actions, or reimbursement for losses. Without coverage, you would be responsible for resolving the issue at your own expense.

Who typically pays for title insurance in Florida?

It depends on the county and terms of the real estate contract. In some areas like Miami-Dade and Broward, the buyer usually pays, while in others like Palm Beach County, sellers often cover the cost. The final decision is negotiable between parties during the transaction.

What does a title search miss that title insurance covers?

A title search reviews public records but cannot detect forged documents, identity theft, or undisclosed heirs. Title insurance covers these hidden risks and protects you if issues emerge after closing. It also pays legal costs associated with defending your title.

Does title insurance protect against fraud committed before I bought the home?

Yes, title insurance protects you from past fraud that impacts your legal ownership, even if it occurred before your purchase. This includes forged signatures, fraudulent transfers, or liens recorded without authorization. Your policy remains valid for as long as you own the home.

Can I still get title insurance after buying a Florida property?

You can usually only get owner’s title insurance at the time of purchase. Once the transaction closes, it’s too late to add a policy. However, if you’re refinancing, a new lender’s policy is often required, and it may be a chance to review title protection options.