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.
While the “AS IS” contract contains the same clauses as the standard contract, there is one major difference. The “AS IS” contract gives the buyer a specified period of time to perform an inspection. During that time, potential buyers can determine if the property is acceptable to them. If the property is not acceptable, they can ask the seller to lower the purchase price, request certain repairs to be completed prior to closing at the seller’s expense, or to issue a credit at closing to cover the repair costs. If the seller refuses, buyers then has the option to withdraw from the deal without losing their deposit.
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 and contracts.
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.