Article 5 of 10 in the Florida Real Estate Contracts Series
Florida buyers and sellers often focus on price while overlooking a decision that can materially change the transaction: whether to use the Florida Realtors/Florida Bar “AS IS” Residential Contract for Sale and Purchase or the standard Residential Contract for Sale and Purchase, sometimes called the “repair contract.”
Both forms can produce a binding sale. They allocate inspection, repair, negotiation, cancellation, and deposit risk differently. Neither form is automatically “better.” The better choice depends on the property, bargaining leverage, repair expectations, financing, deadlines, and the parties’ willingness to assume uncertainty.
The Short Answer
| Issue | AS IS contract | Standard repair contract |
|---|---|---|
| Seller’s repair obligation | Generally no obligation to make buyer-requested repairs | Defined repair duties, procedures, and negotiated limits |
| Buyer’s inspection right | Broad due-diligence opportunity during the inspection period | Inspections focus on contractual repair categories and procedures |
| Buyer’s cancellation right | Typically broad during the inspection period if timely exercised | Depends on form requirements, repair estimates, limits, and deadlines |
| Negotiation after inspection | Buyer may request repairs or a credit, but seller generally need not agree | Contract supplies a repair framework up to stated limits |
| Main drafting risk | Assuming “AS IS” means no disclosure or no access for inspection | Entering unsuitable repair limits or missing procedural deadlines |
General comparison only. The signed contract and riders control each transaction.
How the Florida AS IS Contract Works
Under the commonly used AS IS form, the buyer accepts the property in its existing condition at closing, subject to the seller’s contractual maintenance obligation and other express terms. The seller is generally not required to repair inspection findings merely because the buyer requests it.
The form’s inspection provision is valuable to buyers. Review the current form and transaction-specific language; never rely on a summary or an older version.
What happens after the inspection?
- Proceed: The buyer accepts the property and continues toward closing.
- Request a concession: The buyer asks for a repair, replacement, price reduction, or closing-cost credit.
- Terminate: The buyer delivers timely written notice under the inspection provision.
A repair request does not automatically extend the inspection period. If negotiations continue beyond the deadline without a written extension, the buyer may lose a contractual exit right. See Article 2: Florida Real Estate Contract Deadlines Explained.
How the Standard Repair Contract Works
The standard Florida Realtors/Florida Bar Residential Contract uses a more structured repair process. The parties insert monetary limits for specified categories, and the form establishes inspection, notice, estimate, repair, and cancellation procedures.
Depending on the current form, these categories may address general repair items, wood-destroying organisms, and permits. If estimated costs exceed a contractual limit, the form provides options that may include allocating the excess, limiting the work, accepting the condition, or terminating. The exact options and deadlines must be read together.
Critical drafting point: A repair limit is a risk-allocation term—not a prediction of what repairs will cost.
The current standard form can be reviewed through Florida Realtors’ published Residential Contract materials. Because forms are revised, confirm that you are using the current version.
Risk-Allocation Map
| Transaction goal | Form feature to evaluate | Question for counsel |
|---|---|---|
| Seller wants price certainty | AS IS structure may limit mandatory repairs | Could the buyer still cancel during inspection? |
| Buyer wants a defined repair commitment | Standard form provides repair categories and limits | Are the limits adequate for this property? |
| Older or distressed property | Inspection scope, insurance, permits, and credits | Can essential due diligence be completed on time? |
| Financed purchase | Property condition may affect loan or insurance approval | Do financing and inspection deadlines work together? |
| Competitive offer | Short inspection period may strengthen offer but increase risk | Is the timeline realistically performable? |
“AS IS” Does Not Mean “No Disclosure”
A seller should not treat an AS IS clause as permission to conceal known defects. In Johnson v. Davis, 480 So. 2d 625 (Fla. 1985), the Florida Supreme Court held that when a residential seller knows of a fact materially affecting property value that is not readily observable and is not known to the buyer, the seller must disclose it.
Florida brokerage law separately requires disclosure of known facts materially affecting the value of residential real property that are not readily observable to the buyer. See Florida Statutes § 475.278.
Florida also has subject-specific statutory disclosures. For example, Florida Statutes § 689.302 requires a residential seller to provide the statutory flood disclosure at or before contract execution. An AS IS clause does not eliminate that requirement.
Inspection, Repair, and Deposit Deadlines
The inspection period should account for more than a general home inspection. Depending on the property, a buyer may need roof, plumbing, electrical, HVAC, mold, sewer, pool, seawall, permit, insurance, or specialty evaluations. Reports must be reviewed early enough to make a decision and send any required notice.
If a broker holds the deposit, Florida’s escrow rules govern how entrusted funds are handled. See Florida Administrative Code Chapter 61J2-14. A contractual right to a deposit refund does not always mean the broker can release disputed funds instantly; the contract, written instructions, and applicable escrow process matter.
Five Questions Before Selecting the Form
- What does the buyer need to investigate? List inspections, records, insurance, permits, and association documents.
- Does the buyer want discretion to walk away? Confirm the required notice method and deadline.
- Will the seller commit to repairs? If so, define scope, cost limits, contractors, permits, completion, and reinspection.
- Could the property’s condition affect financing or insurance? Coordinate the inspection, loan, appraisal, and closing timelines.
- Do added terms conflict with the form? Review every rider and addendum as one integrated agreement.
For related drafting issues, read Article 1 on pre-signing contract review, Article 3 on party names and property details, and Article 4 on blanks, riders, and addenda.
Get the Form—and the Risk Allocation—Right
The form selection should reflect the actual bargain. A Florida real estate attorney can review the proposed contract, tailor inspection and repair language, identify disclosure issues, coordinate deadlines, and document negotiated credits or repairs before the parties’ leverage changes.
Buying or selling Florida property? Call Attorney Shah today at 754-888-2726 to discuss flat-fee contract review or buyer and seller representation.
This article provides general educational information, not legal advice. Contract forms and laws change, and outcomes depend on the signed documents and facts. Reading this article does not create an attorney-client relationship