Understanding Florida Real Estate Contracts - The "As-Is" Contract

Real estate laws and practices differ from state to state. Florida Luxury Realty, Inc. being based in Florida has a solid understanding of our state created real estate contracts. In Florida your real estate professional creates a purchase and sales contract by filling out a legal and binding contract that is created by the Florida Bar Association in conjunction with the Florida Realtors organization who oversees all local real estate boards in the state.  The Florida real estate contracts are written to provide consistency among our real estate transactions while addressing all of the legally required disclosures and transaction laws pertaining to the transfer of property in the state of Florida.  Your real estate professional creates a contract package as the initial offer and once accepted by the seller of the property and signed by all parties, you have entered into a legal and binding contract for sale. 

Understanding the widely used "As-Is" contract is important for our customers and clients. The "As-Is" contract is most popular and is written to protect both seller and buyer.  Florida real estate agents use this contract on most residential sales in any price range. The term "As-Is" does not mean the property is damaged or a fixer-upper although we do use this contract for those types of investor purchases. The contract is written as-is meaning the seller is not required to negotiate with the buyer on new paint, new flooring and other cosmetic changes. The home does need to meet guidelines for financing and the buyer does have the right to a home inspection and to request the seller to make non cosmetic repairs to the property. 

Key Items to Know about the As-Is Contract

• Any material defect affecting the value of the property Must be disclosed by the seller.
• Buyers have the right to professional inspections of the home But, the buyer may cancel the contract and receive their escrow deposit back "at the buyers discretion" which means the buyer does not have to have a licensed home inspector perform the inspection. If knowledgeable enough the buyer can perform their own inspection or rely on the opinion of a friend or family member. 
• Time is of the essence. All dates and time frames in the contract are counted as calendar days.  If a deadline (other than offer and acceptance or closing date) fall on a weekend or holiday the deadline will automatically forward to 5:00pm the following business day.
• Cancellation of the contract by the buyer must be in writing to the seller. Buyer may email their agent their intention to cancel and sign a release and cancellation form to be given to the seller.
• When Canceling the contract outside of the inspection period deadline the seller has legal claim to the buyers escrow deposit and will be given such payment. 
• All disclosures should be read and signed before signing any real estate contract

We urge all parties to a real estate contract to read the contract fully before signing. Your real estate agent can answer questions you have about the contract and you are entitled to have your attorney review the contract before you sign.  The specific items addressed in this article are not to be considered as a full interpretation of the contract and you are advised that the Florida real estate contract is lengthy and contains more articles than are mentioned here.  You can contact any of our Florida Luxury Realty, Inc Agents Here to discuss real estate contracts or other real estate inquiries.