Florida Bar/Florida Association of Realtors Form Contracts “As-Is” v. Inspection (Standard) Form Contracts

Florida Bar/Florida Association of Realtors Form Contracts “As-Is” v. Inspection (Standard) Form Contracts.

What is the difference?

What should you use?

AS-IS CONTRACT INSPECTION PROVISION

Download (PDF, 242KB)

AS IS Residential Contract For Sale And Purchase

 

STANDARD INSPECTION REPAIR PROVISIONS 

Download (PDF, 420KB)

Residential Contract For Sale And Purchase

Commonalities

  • Both forms give Buyer rights to inspect
  • The different forms provide potentially equal (but different) benefits to Buyers and Sellers.
  • Florida Law Still Requires that Seller disclose any known defects that materially effect the value of the Property.

Characteristics of As-Is

  • Power is with Buyer– Buyer has unconditional right to cancel contract after inspections and WALK AWAY, during inspection period.
  • Buyer has NO RIGHT to force  Seller to make any repairs
  • Buyer can always posture and “threaten” to cancel contract and walk away if certain repairs are not made by Seller (but Seller can decline)

Characteristics of Standard Inspection Form

  • Power to cancel contract is with Seller-as Seller can elect to pay for repairs.
  • Contract sets a Repair Limit – if repairs form inspector are determined to be within this limit, Seller must pay for those repairs.
  • Even if repairs are in excess of Repair Limit- Buyer has the right to elect to make such repairs.
  • Buyer cannot unilaterally cancel contract based on inspection, unless Seller chooses not to make repairs

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