Like many other states, the “AS IS” Residential Contract For Sale and Purchase is a popular choice for Florida real estate contracts.
The Florida “AS IS” real estate contract is the one often used for properties with visible issues, and is also the contract required for for bank owned and short sale properties as well.
The differences between the “AS IS” contract and the standard contract for residential sale is very important. The most important difference is the presence or absence of the “contingencies” for appraisal and inspection. These contingencies, when present (standard contracts), provide the buyer with the right to cancel the deal and have his/her deposit refunded in the event of an unsatisfactory inspection and/or appraisal. When absent (as is contracts), the buyer skips the right to cancel the contract regardless of what the appraisal or inspection reports reveal.
At our title company, we see about 50% of our transactions using “as is” contracts, so if you are a buyer, it would be wise to understand this type of transaction and utilize a real estate agent that is also familiar with these transaction types.
It’s worth noting that when purchasing new construction, neither the standard or “as is” contract would be used. Builders utilize a different contract that eliminates all of the “resale” topics and replaces them with jargon regarding newly occupied structures.
As with any contract, it is wise to consult with an attorney to protect your interests. At our attorney based title company in Palm Beach, our in-house real estate lawyer is at your service throughout the entire real estate transaction and closing process. We invite you to contact us with all of your real estate closing and legal needs.
The Law Office of Donna Hearne-Gousse, P.A.