Inspection Period on Florida "as is" Contract
We really have two types of contracts that are commonly used in Florida real estate transactions. The first is the Contract for Residential Sale and Purchase, known as CRSP. The second is the "As Is" Residential Contract for Sale and Purchase, commonly called the "as is" contract. The prevalence of REO (foreclosure) sales, and investor sales has increased the use of "as is" contracts. In my experience the most common reason that sellers are asking for "as is" contracts is because they do not want to do any repairs to the property prior to sale. I'd like to briefly touch on the inspection period in the "as is" contract today.
A number of buyers incorrectly assume that on an "as is" sale they're giving up their right to an inspection. The truth is you are covered by an inspection clause in an "as is" contract that's quite detailed. Below is the inspection clause:
I've typed a 10 day inspection period into this contract as that would be customary. If we follow along with the example above it would give the buyer 10 days to have a property inspector come to the property and complete an inspection, should the buyer choose to do so. You can also clearly see that should the buyer determine that the property does not meet their buying criteria, they can cancel the contract during the inspection period. The buyers initial deposit would be returned if they cancel under the inspection clause, during the inspection period.
A few more important notes. Existing code violations are passed onto the buyer with an "as is" contract. However, the seller does need to notify buyer about violations that exist, under section 10 J of the contract. The current owner has to maintain the property over the course of the contract. Finally, the seller has to cooperate with the buyer. This includes, but is not limited to, allowing the buyer to enter the property in order to perform inspections.
Real estate contracts can be a bit overwhelming. If you're considering buying or selling a home and are confused about the contract process, feel free to contact me.
I'm not an attorney, none of this post should be considered any type of legal advice.
I work as a Realtor in Southeast Fort Lauderdale. If you’re interested in buying or selling a home, condominium, or townhouse (townhome) in: Rio Vista, Victoria Park, Downtown Fort Lauderdale, Fort Lauderdale Beach, Sailboat Bend, Tarpon River, Croissant Park, Collee Hammock, Wilton Manors, Poinsettia Heights, Coral Ridge, or Las Olas Isles, please feel free to contact me at (786)443-7203 or through my email firstname.lastname@example.org. I am a Realtor that works on Saturdays to accommodate those with busy schedules.
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Written By Casey Prindle