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

Florida's AS IS Residential Contract is the standard purchase agreement used in most Florida real estate transactions — and it works differently from the contracts used in most other states. Buyers and sellers relocating from California, New York, Texas, or other major markets often arrive with assumptions that don't apply here.

Here's how the Florida AS IS contract actually works.

The basic structure

The Florida AS IS Residential Contract for Sale and Purchase (the standard form published by the Florida Realtors and Florida Bar) differs from contracts in other states in one fundamental way: the seller is not pre-committing to repairs.

In many other states, a standard purchase contract requires the seller to negotiate repairs or credits based on the inspection — the inspection findings open a mandatory repair/credit conversation. In Florida's AS IS contract, the seller's default position is: I am selling this home in its current condition, and I have not agreed to fix anything.

The counterbalance is the inspection period — the buyer's free-look window during which they can cancel for any reason.

The inspection period: the core of the contract

The inspection period is the most important element of the Florida AS IS contract. It is typically 10–15 days from contract execution, though it's negotiable — anything from 3 days to 30 days is possible.

What buyers can do during the inspection period

• Hire any inspector: General home inspector, WDO (termite/wood-destroying organism) inspector, 4-point inspector, structural engineer, pool inspector, sewer scope, radon inspector, environmental assessor — any inspector the buyer chooses
• Cancel for any reason: During the inspection period, buyers can cancel the contract for any reason — or no stated reason — and receive their full earnest money deposit back
• Request concessions: Buyers can submit requests for price reductions, seller credits, or specific repairs based on inspection findings, and negotiate during the period

What happens when the inspection period expires

Once the inspection period expires, the buyer's unconditional cancellation right is gone. Remaining protections:

• Financing contingency: Buyer can cancel if they cannot obtain financing on agreed terms (includes appraisal issues that affect loan approval)
• Title contingency: Buyer can cancel if title search reveals uncurable defects
• HOA document review: If the property has an HOA, buyers have a 3-day right to review documents after receipt (Florida Statute 720.401)

Important: After inspection period expiration, the buyer cannot cancel because of inspection findings — they are committed to the property in its AS IS condition. This is why the inspection period deadline is tracked carefully by experienced agents.

Seller disclosure requirements: AS IS doesn't mean hiding

A common misconception: "I'm selling AS IS, so I don't have to disclose anything."

This is wrong and legally dangerous for sellers.

Florida law — derived from the Supreme Court case Johnson v. Davis (1985) and now codified in statute — imposes a disclosure obligation on sellers that AS IS contracts do not modify:

Sellers must disclose all known facts that materially affect the value of the property that are not readily observable by the buyer.

This duty applies regardless of AS IS status. The categories typically covered:

• Roof condition and known leaks
• Foundation or structural issues
• History of flooding or water intrusion
• HVAC, electrical, or plumbing deficiencies the seller knows about
• Sinkhole history or activity
• Environmental conditions (underground oil tanks, prior HAZMAT)
• Pending HOA or CDD special assessments
• Neighbor disputes affecting the property
• Any condition that has materially affected the seller's enjoyment of the property

"I disclosed it in the AS IS contract" is not a defense — sellers who affirmatively conceal known defects face fraud liability that survives closing.

The correct approach: use the seller's property disclosure form and disclose everything you know. Proactive disclosure protects sellers legally and often speeds the transaction by preventing late-deal surprises.

Post-inspection negotiation in practice

Despite the AS IS structure, post-inspection concession requests are common and often successful. Here's why it works:

Buyer's position: "I found these material issues. I'm requesting a credit of $X to address them. If you decline, I will cancel." Seller's calculation: Is it better to grant the concession or lose the deal and re-list?

When the calculation runs in the buyer's favor:

• The issues are legitimate and documented by a credentialed inspector
• The credit request is proportionate to the actual repair cost (not inflated)
• The market is such that re-listing would take time and likely produce the same or lower price
• The seller is motivated (relocation, divorce, estate, financial pressure)

When the calculation runs against the buyer:

• The issues are minor or subjective
• The request is disproportionate to actual repair costs
• The market is strong with other buyer interest
• The seller has no urgency

Effective credit requests include:

• Specific inspection pages (not the full report)
• Contractor estimates or replacement cost benchmarks for the specific items
• A request framed as a credit at closing rather than a repair (sellers prefer credits — no contractor scheduling, no quality disputes)

Ineffective credit requests include:

• Sending the full inspection report and asking for "everything on the report"
• Requesting minor maintenance items alongside major systems issues
• Making demands ("fix everything or we cancel") instead of requests
• Providing no documentation or cost support

How AS IS differs by state: what relocating buyers need to know

From California: California's standard contract (CAR RPA) includes negotiated repair contingencies — the seller may have ongoing repair obligations through to closing. Florida's AS IS structure is more buyer-beware and inspection-period-dependent.

From Texas: Texas's TREC contract also has seller repair obligations built in (up to a negotiated limit). Florida's structure places more responsibility on the buyer to act within the inspection period.

From New York: New York residential contracts often include attorney review periods and specific negotiated repair addenda — the Florida approach is simpler but requires buyers to use the inspection period as the primary protection window.

From Georgia: Georgia uses a similar inspection/termination-right structure — Florida buyers and sellers from Georgia may find the mechanics familiar.

The universal takeaway for buyers from other states: the inspection period is your protection in Florida, not the seller's repair obligation. Use it fully, hire all relevant inspectors, and make decisions before it expires.

The earnest money deposit: what happens if you cancel

If the buyer cancels during the inspection period, the earnest money deposit is returned to the buyer in full — that's the free-look right the inspection period provides.

If the buyer cancels after the inspection period for a reason not covered by a remaining contingency (financing, title, HOA), the seller typically retains the earnest money as liquidated damages.

Escrow disputes: If a buyer and seller disagree about who is entitled to the earnest money, the escrow holder (title company or attorney) cannot disburse without both parties' written agreement or a court order. The title company will send a "notice of dispute" and the parties have 10 days to resolve or proceed to interpleader action. In practice, most disputes settle before litigation — the cost and time of fighting over a $5,000–$10,000 deposit rarely justifies litigation.

Key timelines to track

In a typical Florida AS IS transaction, these are the critical dates:

Milestone	Typical Timeline
Contract execution	Day 0
Earnest money deposited	Day 3
Inspection period begins	Day 0 (from execution)
Inspection period ends	Day 10–15
Financing/appraisal contingency	Day 20–30
HOA document delivery	Within 5 days of contract
HOA review period	3 days after receipt
Final walkthrough	24 hours before closing
Closing	Day 30–45 typically

Missing the inspection period deadline is one of the most expensive mistakes buyers make — it transforms a cancellation right into a contract breach.

---

Ryan Solberg represents buyers and sellers across Central Florida. If you're working through a Florida AS IS contract and want an experienced agent who knows how to use — or navigate around — every provision, contact Ryan before you sign.