When Buyers and Sellers enter into a Florida Bar “As Is” Residential Contract, one of the most important, and sometimes misunderstood, provisions is the Inspection Period. Understanding how it works can mean the difference between a smooth closing and a costly mistake.
What “As Is” Actually Means?
First, a critical clarification: “As Is” does not mean Buyer is flying blind. It means Seller has no Contractual obligation to make repairs. The property is being offered in its current condition, but Buyer still has a meaningful opportunity to evaluate exactly what that condition is.
The Right to Cancel (With a Catch)
The Contract gives Buyer a specified number of days after the Effective Date, known as the Inspection Period, to conduct whatever inspections they choose at their own expense. During the Inspection Period, Buyer holds significant power: they can cancel the Contract for any reason at all, or no reason, simply by delivering written notice to Seller before the Inspection Period expires. If that written notice is timely, Buyer receives their deposit back in full, and both parties walk away with no further obligations under the Contract. However, two things remain Buyer’s responsibility regardless of cancellation: the cost of any inspections already completed and liability for any damage caused during those inspections.
Can Buyer Request Repairs?
Yes, but with realistic expectations. During the Inspection Period, Buyer may submit inspection repair requests to Seller, but Seller is under no contractual obligation to agree. That said, if Seller refuses all requested repairs, they risk losing the deal, which often leads to a negotiated compromise (i.e. agreeing to certain repairs or providing a credit to Buyer at closing).
What Happens If Buyer Doesn’t Cancel?
Once the Inspection Period expires and if Buyer did not provide a cancellation notice, Buyer is accepting the property as is. Seller continues to be responsible to comply with the Contract’s “AS IS Maintenance Requirement” meaning Seller must maintain the property in the same condition it was in as of the Effective Date (think lawn care, pool maintenance, and general upkeep), with exceptions only for ordinary wear and tear and Casualty Loss. For example, if the A/C breaks or the refrigerator stops cooling after the Effective Date, Seller is responsible for repairing those issues prior to Closing. If Seller cannot make the necessary repairs prior to Closing (i.e. these issues are discovered at the final walkthrough), a sum equal to 125% of the cost to make the repairs will be held in escrow and any unused portion shall be returned to Seller after repairs are completed.
One important nuance for financed transactions: if Buyer’s lender requires certain repairs or improvements to finance the transaction, Buyer bears that cost. Seller’s “As Is” posture does not change simply because a lender has its own requirements.
As always, if you have any questions about Florida’s inspection period in the “As Is” or Standard contracts, please contact your local real estate attorney.
