Understanding Florida’s As Is Residential Contract for Sale & Purchase of Real Estate
Buying a house is ____________. There’s a good chance that every person reading this will fill in that blank with their own unique adjective. The same could be said for selling a house. As a seller, a great deal of work goes into putting your real estate on the market, including choosing a realtor, setting up open houses, and possibly some repairs. As a buyer, you have to consider neighborhood, size, amenities, up front costs and post-sale costs.
In the state of Florida, you have the option to sell or purchase residential real estate as is, limiting the liability of the seller for the condition of the property. This practice can help sellers move real estate quickly or save on repair costs, and buyers score a great price on a new home, or a project home that they can then “flip” for a profit. In either scenario, an as-is real estate sale will undoubtedly have a major financial impact on the overall transaction and it is important to understand exactly what this type of agreement means.
When you’re involved in an as-is real estate transaction, you will need to fill out a form FR ASIS-1, an As Is Residential Contract for Sale and Purchase. This contract contains some key terminology that differentiates this type of real estate sale from a standard sale, specifically under section 12: Property Inspections and the Right to Cancel.
Let’s take a look at some key terminology in this section*:
“Buyer shall have ______ (if blank, 15) days from Effective Date (“Inspection Period”) within which to have such inspections of the Property performed as Buyer shall desire during the Inspection Period.”
As a buyer, you have the right to have the home inspected (at your own cost) within 15 days, or an otherwise agreed upon timeframe. Keep in mind that buyers are responsible for all costs associated with inspection, including any further damage inspection may cause to the property.
“If Buyer determines, in Buyer’s sole discretion, that the Property is not acceptable to Buyer, Buyer may terminate this Contract by delivering written notice of such election to Seller prior to expiration of Inspection Period.”
A buyer may cancel the purchase of real estate if they don’t feel the investment is worth it after an inspection. However, the cancellation notice must be delivered to the seller in writing before the agreed upon inspection timeframe ends.
“Unless Buyer exercises the right to terminate granted herein, Buyer accepts the physical condition of the Property and any violation of governmental, building, environmental, and safety codes, restrictions, or requirements, but subject to Seller’s continuing AS IS Maintenance Requirement, and Buyer shall be responsible for any and all repairs and improvements required by Buyer’s lender.”
If the buyer chooses to purchase the property, they accept any problems the real estate may have, known or unknown, and may be required by law or their lender to make certain repairs and improvements. Sellers must agree to maintain the property in an acceptable manner until the transaction is complete.
It’s crucial for buyers and sellers to know their options when it comes to as is real estate, as they will want to be protected against investing into a “money pit” or getting having problems made even worse by a careless or intrusive inspector, respectively.
If you do plan on buying or selling Florida real estate under these conditions, You can fill out your FR ASIS-1 with PDFfiller. We offer features such as eFax, eSignature, SendToSign, and collaboration option to make buying or selling with an “As Is” Residential Contract for Sale and Purchase as smooth as possible.
*The information provided here is for informational purposes only, and in no way implies any legal or business advice. PDFfiller and the author accept no responsibility or liability pertaining to the use of this information.