Buying a house AS-IS? What to expect on the purchase contract

AS-IS Residential Contract For Sale And Purchase.

How Florida's most commonly used contract can protect both parties.

It took you days, months, maybe a few years to find your next home. Countless hours were dedicated to researching the most perfect place for you and your family. Now it's time for your RealtorⓇ to prepare the real estate offer contract and submit it to the sellers. Are you reading the contract or having your legal counsel provide an abstract of the terms? If you answer no, then keep reading to understand what you are really agreeing to.

The most commonly used real estate contract for buyers and sellers in Florida is identified as the FAR BAR AS-IS Residential Contract For Sale And Purchase. Although there are other contracts that are available for you to utilize, most sellers are selling their properties as-is. Why would you want to accept a property as-is? A clause that protects both parties in this contract is the buyer has the right to inspect.

Accepting a residential property as-is is fine as long as you know what's going on behind the walls, exterior, and interior of the property. By default, the buyer has the right to complete an inspection within 15 days (as-is contract utilizes calendar days to include Saturday and Sunday.) The buyer has the option to decrease this option or increase the days utilized. It is always in the buyers best interest to perform an inspection however, if they simply change their mind, they can exercise their right to cancel (without an actual inspection) the purchase contract as long they are within the inspection time period.

Most buyers utilize the inspection period as an exit, in the event of they need to abort the purchase. What happens if the buyer cancels after this period, depending on the terms of cancellation, an escrow dispute may arise between the buyer and seller. The contract also depicts who pays what on the final closing disclosure. To find out what the buyer or seller pays, see paragraph 9. Items that a buyer is typically responsible for includes but not limited to; tax and recording fees on notes and mortgages, recording fees, owner's policy survey ( and land certificate), HOA fees, lien search, attorney fees, appraisal fees, and loan origination fees to include insurance policies.

Time is of the essence is the term utilized to hold both parties accountable for their responsibilities. Make sure to keep track of when you need to perform certain action, ex; deposit escrow, deliver loan commitment, complete inspection, etc. Be sure to ask your RealtorⓇ questions and make sure to understand all essential terms to avoid any legal repercussions.




Disclaimer; the information provided is the views of an experience real estate sales associate professional. Be sure to consult with an attorney before executing any legal actions or documents.