As Is Real Estate Contract in Florida
What is an As Is real estate contract in Florida? It simply means the property is being sold as is, and the seller is not obligated to make repairs. If the buyer is not satisfied with the home inspection, the buyer has the right to cancel.
There is a specified time for inspections, due diligence and the right to cancel for any reason whatsoever. As long as the cancellation agreement is signed and submitted within the specified time frame, all escrow or earnest money deposits will be fully refunded. If after a home inspection, the buyer chooses to cancel the contract, they can do that. If the buyer decides that they don’t like the color of the sky, they can cancel the contract and get their full deposit back within the specified time in the contract. As mentioned, ANY reason whatsoever; it doesn’t matter.
There’s a few misconceptions that we’ve heard out there. To clarify:
- An As Is contract does not mean that every personal item in the house is being transferred to the buyer.
- An As Is contract does not mean that the buyer has no rights to an inspection period.
- An As Is contract does not mean that the buyer cannot change their mind and get a full refund if done within the specified time frame.
An As Is contract simply means the seller is not required to make repairs. Many home buyers are initially frightened by the fact that Florida Real Estate contracts say As Is at the very top. There is no reason to worry; there are safeguards in place for buyers.
Another safeguard in place is if the buyer is getting a mortgage loan. The contract states a specified time for a loan commitment. If the lender ultimately declines the loan within the specified time period in writing and a release and cancellation of the agreement is signed, the buyer has a right to a full refund of the escrow or earnest money deposit.
For Home Sellers
Sellers can minimize the risk of buyers cancelling the As Is real estate contract by doing any known repairs upfront. This is where a pre-listing inspection can come in handy.
For more information on buying or selling a home, contact us. We are here to help. Jen and Mark Bowman, Keller Williams on the Water at 941-840-0117.