October 2025
If you’re buying a home in Florida for the first time, you’ll almost certainly come across the Florida Realtors®/Florida Bar “AS IS” Residential Contract for Sale and Purchase—the state’s most widely used real estate contract. Despite the name, “AS IS” doesn’t mean buyers give up their rights or take on unreasonable risk. In fact, this form keeps things simple, transparent, and flexible for both sides.
What “AS IS” Really Means
The “AS IS” contract means the seller is not agreeing to make repairs or improvements before closing. The home is sold in its present condition as of the Effective Date of the contract.
However, buyers still have protection: they get the right to inspect the property and, if unsatisfied for any reason, can cancel during the inspection period and get their deposit refunded.
This setup gives buyers control—they can back out if the inspection reveals too many issues, or they can move forward knowing exactly what they’re getting.
Key Features of the AS IS Contract
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Inspection Period: Buyers have a set number of days (15 by default) to conduct all inspections they want—from home and roof to pool, septic, or insurance inspections. During this time, they can cancel for any reason and get their deposit back.
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Maintenance Requirement: Sellers must maintain the property in the same condition it was when the contract was signed, accounting for normal wear and tear.
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Title, Taxes, and Closing Details: The contract spells out who pays for what—title insurance, closing fees, taxes, and so on. These vary by county, but everything is clearly defined.
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Simple Default and Dispute Terms: If either side fails to perform, the remedies are outlined. The buyer risks their deposit; the seller risks a potential claim for damages or specific performance.
Renegotiations During the Inspection Period
Although the “AS IS” form technically means the seller isn’t required to make repairs, the inspection period is also the buyer’s leverage point.
The goal during this window isn’t to turn the purchase into a repair-based negotiation, but rather to confirm the agreed price and terms make sense given the property’s true condition. You’re negotiating a deal based on the property “AS IS.”
An inspection is virtually guaranteed to uncover some concerns—every home has them. That doesn’t mean the seller is expected to address every item or issue discovered. Minor maintenance items, cosmetic wear, or typical age-related findings are all part of buying a resale home.
Where renegotiations make sense is when surprises arise—issues beyond what either party reasonably expected. For example, if a roof shows active leaks, a major system needs replacement, or a structural or safety issue is uncovered, those are moments where the buyer can reasonably seek to renegotiate the price, request a credit, or ask for a specific repair.
If no agreement is reached, the buyer retains the right to cancel before the inspection period expires and recover their deposit in full.
Used correctly, this flexibility keeps the AS IS process fair and practical—it’s not about nitpicking; it’s about ensuring the deal still makes sense given the home’s actual condition.
Cash Buyers vs. Mortgage Buyers
The AS IS form handles both cash and financed purchases—each with slightly different contingencies.
FOR CASH BUYERS
If Paragraph 8(a) is checked, it’s a cash transaction with no financing contingency.
That means:
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The buyer must close regardless of their ability to secure a loan.
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The only true contingency is the inspection period—after that, the buyer’s deposit is at risk if they don’t close.
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Closing can usually happen faster because there’s no lender involved.
In short: cash buyers have fewer moving parts but must be certain about the purchase before the inspection period ends.
FOR MORTGAGE BUYERS
If Paragraph 8(b) is checked, the contract becomes contingent on loan approval within a defined Loan Approval Period (30 days by default).
Here’s what’s included:
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The buyer must apply for financing within 5 days of signing.
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The contract remains contingent until the buyer receives Loan Approval and a satisfactory appraisal (if required by the lender).
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If the buyer cannot obtain loan approval after a diligent effort, they may cancel and receive their deposit back.
This structure protects buyers who depend on financing while keeping sellers informed throughout the process.
Why the “AS IS” Contract Is Often the Best Choice
Compared with older or modified versions of the Florida purchase contracts that required sellers to make repairs, the “AS IS” contract offers several advantages:
1. CLARITY AND SIMPLICITY
It removes the endless back-and-forth about who fixes what. The buyer inspects, decides, and either accepts or cancels.
2. FLEXIBILITY FOR BUYERS
Buyers maintain full control during the inspection period—no need to prove the home is defective; they can cancel simply because they’re uncomfortable.
3. PREDICTABILITY FOR SELLERS
Sellers know they’re not entering a repair negotiation and can price or credit the home accordingly.
4. SPEED AND EFFICIENCY
Because both sides know their rights and responsibilities from the start, transactions often move more smoothly and close faster.
Common Addenda Used with the AS IS Contract
While the base contract covers most situations, many transactions require addenda to clarify terms or handle specific property types or loan programs. Here are the most common:
1. EXTENSION ADDENDUM
Used to extend deadlines such as the inspection period, loan approval period, or closing date. This addendum must be agreed to and signed by both parties and specifies the new expiration or closing date. It’s often used when inspections take longer, lenders need extra time, or closing logistics change.
2. HOA DISCLOSURE AND CONDOMINIUM RIDER
Florida law requires sellers to disclose important details about homeowners’ associations and condominiums.
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The HOA disclosure informs buyers of mandatory membership, assessments, and use restrictions.
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The Condominium Rider provides additional information about condo fees, rules, budgets, and the buyer’s right to review association documents before being bound to the purchase.
3. APPRAISAL CONTINGENCY ADDENDUM
Adds a separate clause allowing the buyer to cancel or renegotiate if the property’s appraised value comes in below the purchase price.
While the main AS IS contract only references appraisal as part of loan approval, this rider makes the protection explicit—especially useful for cash or conventional buyers who want an appraisal safeguard.
4. FHA/VA FINANCING ADDENDUM
Required when using FHA or VA loans, this rider ensures compliance with federal lending rules. It guarantees the buyer can withdraw if the property doesn’t appraise at or above the contracted price or fails to meet FHA/VA property standards. It also outlines who pays for any required repairs or inspections.
A Straightforward Path to Closing
Whether you’re paying cash or using financing, the Florida AS IS contract provides a clear, structured framework to protect both parties and streamline the sale. It allows buyers time to investigate the property thoroughly, while ensuring sellers can proceed with confidence that there won’t be endless repair requests.
For first-time buyers in Florida—especially those relocating from out of state—understanding how this contract works helps you approach your purchase with clarity and confidence. And with a trusted Realtor guiding you through each section, the process can truly be as simple and straightforward as the form intends.
