The Florida AS IS Contract Explained: What Buyers and Sellers Need to Know

If you're buying or selling a home in Central Florida, you'll encounter the Florida AS IS Residential Contract for Sale and Purchase. Understanding what it actually means — and what it doesn't — is essential for both parties.

What the AS IS contract is

The Florida AS IS Residential Contract for Sale and Purchase (published by the Florida Bar and Florida Association of Realtors) is the standard purchase contract used in the vast majority of Central Florida residential transactions.

It is not:

• A distressed-property-only form
• A sign that something is wrong with the property
• A contract that eliminates buyer protections

It is:

• The standard form your agent will use for almost every transaction
• A contract that preserves full buyer inspection rights
• A framework that shifts repair obligations from seller to buyer (seller is not pre-committed to repairs)

Understanding this distinction is the first step to navigating Florida real estate correctly.

What "AS IS" actually means

The term "AS IS" in the Florida contract means the seller is conveying the property in its current condition — they are not pre-committing to make repairs as a condition of the sale.

What sellers must still do:

• Complete the Seller's Property Disclosure form honestly — disclosing all known material defects
• Allow buyer inspections during the inspection period
• Respond to buyer repair requests (though they can decline)

What sellers are not required to do:

• Agree to make any repairs as a condition of closing
• Fix items identified in the buyer's inspection

The practical reality: Sellers who refuse all repair requests will often lose the deal — buyers who discover significant issues have the right to cancel within the inspection period. The "AS IS" designation gives sellers negotiating leverage, not an absolute refusal right, because buyers retain the ability to walk away.

The inspection period: the buyer's primary protection

The Inspection Period is the most important element of the AS IS contract for buyers to understand. Here's how it works:

Duration: Typically 10–15 days from contract execution (negotiable). The number of days should reflect the type of property and the complexity of inspections needed.

What buyers can do during the inspection period:

• General home inspection
• WDO (termite) inspection
• 4-point inspection
• Wind mitigation inspection
• Sewer scope inspection
• Pool inspection
• Radon testing
• Any other inspection they choose

The termination right: At any point during the inspection period, for any reason or no reason at all, buyers can deliver written notice of termination and receive their deposit back in full. This is sometimes called the "free look" — buyers essentially have an option to purchase the home while they investigate.

After the inspection period: Once the inspection period expires, buyers cannot cancel without a contract-specific contingency (financing failure, appraisal shortfall). Backing out without a valid contingency forfeits the earnest money deposit.

The post-inspection negotiation

Most AS IS transactions involve a post-inspection negotiation. The sequence:

1. Buyer completes inspections
2. Buyer's agent prepares a repair request or credit request identifying significant issues
3. Seller's agent presents to seller
4. Seller can: accept fully, accept partially (negotiate), decline
5. If no agreement is reached within the inspection period, buyer exercises termination right and receives deposit back

Common inspection outcomes:

• No further action: Buyers accept the inspection results and proceed to closing
• Credit request: Buyers request a price reduction or seller credit toward closing costs in exchange for accepting the property as-is
• Repair request: Buyers request specific repairs (rare in AS IS contract but possible)
• Termination: Buyers find issues significant enough to cancel, receive deposit back, continue searching

What's reasonable to request: Material defects (roof issues, structural concerns, HVAC failure, major plumbing problems) are worth requesting credits for. Minor cosmetic items, normal wear-and-tear, and items visible during showing are generally not appropriate to request in post-inspection negotiation.

The Seller's Property Disclosure: what sellers must reveal

The Florida AS IS contract requires sellers to complete the Seller's Property Disclosure — a comprehensive form covering:

• Roof condition and history (leaks, repairs, age)
• Water intrusion (past or present leaks)
• Structural issues
• Electrical and plumbing systems
• HVAC condition
• Presence of lead paint (pre-1978 homes)
• Presence of mold
• HOA information and fees
• Flooding history or flood zone status
• Any known material defects not covered in the form

Critical: The disclosure is legal — signing a false disclosure creates fraud liability. The AS IS contract does not eliminate or reduce the disclosure obligation.

What sellers often get wrong: Disclosing what you know applies to known facts, not what you suspect but haven't confirmed. You must disclose water stains that you know are from a prior leak. You don't have to disclose what you genuinely don't know. But if you know about a defect and don't disclose it, the AS IS protection doesn't shield you from fraud claims.

The financing contingency and appraisal contingency

The AS IS contract includes the standard contingencies:

Financing contingency: If buyers have a loan approval contingency and their financing fails for reasons outside their control, they can cancel and receive their deposit back.

Appraisal contingency: If the property appraises below the contract price and the parties can't agree on a price adjustment, buyers with an appraisal contingency can cancel.

These contingencies remain in the AS IS contract — AS IS refers to the seller's repair commitment, not the removal of contingencies. Buyers waiving these contingencies should do so only with full understanding of the risk.

Practical advice for buyers

1. Never skip the inspection — the inspection period is your primary protection; use it
2. Hire a licensed Florida home inspector — they know what's significant in Florida's climate (roof age, HVAC, moisture, termites)
3. Budget for specialist inspections — WDO ($75–$150) and 4-point ($75–$150) are worth it beyond the general inspection
4. Negotiate the inspection period length — 10–15 days is standard; complex properties may warrant 15+
5. Know your deadline — missing the inspection period termination deadline is one of the most costly mistakes a buyer can make

Practical advice for sellers

1. Complete the disclosure honestly — a false disclosure creates liability even with the AS IS designation
2. Know that inspection requests are normal — most buyers will request something post-inspection; this is standard practice
3. Get competitive bids before responding — if buyers request a $8,000 roof repair, get two contractor bids before deciding whether to credit, negotiate, or decline
4. Price the condition — if your home has known significant issues, price to reflect them rather than relying on AS IS to avoid the conversation

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Ryan Solberg has guided buyers and sellers through hundreds of Florida AS IS contract transactions. For advice on inspection strategy, post-inspection negotiation, or understanding your rights within the contract — contact Ryan before you sign.