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
STANDARD INSPECTION REPAIR PROVISIONS
- 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