The Florida “As Is” Residential Contract for Sale and Purchase is the standard form, published jointly by Florida Realtors and the Florida Bar, that lets a seller transfer a home without any obligation to make repairs. The current version, ASIS-7, took effect December 31, 2024. It shifts the cost of fixing whatever is wrong with the property onto the buyer, but it does not erase the seller’s duty to disclose known problems, and it gives the buyer a negotiated inspection period to walk away for any reason at all.
What “As Is” Covers and What It Doesn’t
The “as is” label attaches to the property’s physical condition. The seller is not required to fix anything, upgrade anything, or spend money resolving code violations, open permits, or failed inspections. The buyer accepts the home with whatever flaws exist at the time of purchase and takes responsibility for any repairs the buyer’s lender requires as a condition of financing.1Florida Realtors. AS IS Residential Contract For Sale And Purchase
What “as is” does not mean is that the seller can let the property slide between contract and closing. The seller has to maintain the home in the condition it was in on the effective date, which includes lawn care, pool upkeep, and general maintenance. If a water heater fails or a storm damages the roof after signing, that’s the seller’s problem to address. The contract calls this the AS IS Maintenance Requirement, and it runs until the keys change hands.1Florida Realtors. AS IS Residential Contract For Sale And Purchase
The contract also does not override the seller’s legal duty to disclose known defects and other statutory items covered further down. Signing an as-is contract is not a shield against fraud claims.
Core Deal Terms
The contract identifies the buyer, seller, and property with both a street address and a legal description tied to county records. Three financial terms drive the transaction.
The purchase price is stated up front, along with how the buyer intends to pay. The contract treats cash purchases and financed purchases differently, and financing triggers a separate contingency covered below.
The earnest money deposit is what the buyer puts down to show good faith. The amount is negotiated. Deposits of 1% to 3% of the purchase price are common in competitive Florida markets, though sellers can request more. The money sits in an escrow account held by a title company, real estate attorney, or broker until closing or until a dispute is resolved.
The closing date is fixed in the contract. If either side needs more time, the extension has to be agreed in writing. Missing the closing date without a written extension can put the late party in default.
The Inspection Period Is the Buyer’s Exit
In an as-is deal, the inspection period is the buyer’s real protection. The number of days is left blank for the parties to negotiate. Fifteen days is a common starting point; shorter or longer windows are routine.
During that window the buyer can hire professionals to check the structure, roof, plumbing, electrical, HVAC, pest damage, and anything else that matters, and can also look into environmental concerns, permits, and code violations. The seller has to sign whatever authorizations the buyer’s inspectors need to pull records, but the seller does not have to spend money in the process.1Florida Realtors. AS IS Residential Contract For Sale And Purchase
If the buyer doesn’t like what the inspections turn up, the buyer can terminate the contract by delivering written notice to the seller before the inspection period expires. A timely termination entitles the buyer to a full refund of the earnest money deposit. No reason is required. The buyer just has to act before the clock runs out.
Negotiating After Inspections
Walking away is not the only option. Buyers routinely use inspection findings to push for concessions. The seller has no obligation to agree, but many would rather make one than restart the marketing process. Typical asks include a price reduction, a seller credit applied at closing to offset repair costs, or an escrow holdback earmarked for specific fixes after closing. None of it is guaranteed. The inspection period is simply where the buyer has the most leverage in the entire transaction.
How Deadlines Are Counted Under ASIS-7
The ASIS-7 version changed the math on deadlines. Calendar days now run straight through, including weekends and holidays. The inspection period starts the day after the effective date and counts consecutively. If a deadline falls on a weekend or holiday, it does not automatically roll to the next business day unless the contract specifically provides otherwise. Missing by a single day can cost the buyer the right to terminate.
The Financing Contingency Trap
If the buyer is taking out a mortgage, the financing contingency controls what happens when the loan does not come through. The buyer has to apply for the specified loan within a set number of days after the effective date. If the blank is left unfilled, that default is five days.2Florida Realtors. Analyzing the Financing Contingency
The contract also sets a loan approval period, negotiated between the parties, by which the buyer must either secure full loan approval (including an acceptable appraisal) or take action. If loan approval has not arrived by the deadline, the buyer has two choices: terminate the contract and get the deposit back, or deliver written notice confirming the buyer is satisfied with the progress and will proceed toward closing.2Florida Realtors. Analyzing the Financing Contingency
This is where buyers make expensive mistakes. If the buyer fails to deliver either notice before the loan approval period expires, the contract automatically converts into a cash deal with no financing contingency. The buyer loses the right to walk away over loan issues, and the deposit is at risk if the buyer cannot close. The seller also gets a brief cancellation window after that deadline passes. Ignoring the loan approval date is one of the most common and most avoidable errors in Florida residential transactions.2Florida Realtors. Analyzing the Financing Contingency
Disclosures the Seller Still Owes
Selling “as is” does not excuse the seller from telling the truth about the property. Florida imposes several disclosure requirements through both case law and statute, and violating them can expose the seller to fraud claims after closing.
Known Material Defects
The Florida Supreme Court held in Johnson v. Davis that a seller who knows about problems that materially affect the property’s value and are not readily observable to the buyer must disclose those problems. The duty applies to every type of residential property.3Justia Law. Johnson v. Davis Past water intrusion, foundation cracks, recurring mold, and similar hidden conditions fall within it. A seller who stays silent about a known defect cannot hide behind the as-is clause.
Flood History
Since October 2024, Florida sellers must complete a written flood disclosure before the buyer signs the contract. The form asks whether flooding has damaged the property during the seller’s ownership, whether the seller has filed a flood-related insurance claim (including through the National Flood Insurance Program), and whether the seller has received flood-damage assistance from FEMA or another source. The form also reminds buyers that standard homeowners’ insurance does not cover flood damage.4The Florida Legislature. Florida Statutes 689.302
Radon Gas
Every contract for the sale of a building in Florida must include a radon gas disclosure. The required language warns buyers that radon is a naturally occurring radioactive gas, that levels exceeding federal and state guidelines have been found in Florida buildings, and that more information is available through the county health department.5The Florida Legislature. Florida Statutes 404.056
Lead-Based Paint
Federal law requires sellers of homes built before 1978 to disclose any known lead-based paint or lead hazards, provide a copy of the EPA’s “Protect Your Family from Lead in Your Home” pamphlet, and give the buyer a 10-day window to conduct a lead inspection. The buyer can waive that inspection in writing, and the parties can shorten or extend the period, but the disclosure and pamphlet requirements cannot be skipped.6US EPA. Real Estate Disclosures about Potential Lead Hazards
HOA Membership
If the property sits in an HOA community, the seller must deliver a disclosure summary before the buyer signs. It covers mandatory membership, current assessment amounts, restrictive covenants, and the buyer’s potential liability for special assessments. If the buyer does not receive the summary before signing, the buyer can cancel within three days of receiving it, or anytime before closing, whichever comes first.7Florida Senate. Florida Code 720.401 – Prospective Purchasers Subject to Association Membership Requirement, Disclosure Required, Covenants, Assessments, Contract Cancellation
Property Tax Reassessment
Florida law also requires a property tax disclosure warning the buyer not to rely on the seller’s current tax bill as a guide. A change in ownership can trigger a reassessment that significantly increases the annual tax obligation, especially if the seller had a long-standing homestead exemption that kept the assessed value artificially low.
Open Permits and Unpermitted Work
Open building permits and unpermitted improvements are a frequent problem in Florida as-is sales. Under this contract the seller is not required to pull permits, pay for inspections, or bring unpermitted work into compliance. The seller only has to provide documentation of any unpermitted work and cooperate with the buyer’s efforts to get permits, without spending any money.1Florida Realtors. AS IS Residential Contract For Sale And Purchase
That is a real departure from the standard (non-as-is) Florida residential contract, which sets a dollar cap the seller must spend to resolve open permits and bring unpermitted work up to code. Under the as-is version, the entire cost falls on the buyer. That makes the inspection period the time to catch permit problems. Buyers should check with the local building department for open permits and compare the property appraiser’s records against what is actually on the ground. An enclosed porch, converted garage, or added bathroom that never received a permit can create insurance problems, financing obstacles, and future code enforcement headaches that far exceed the cost of the underlying work.
If Someone Breaches
The contract spells out what happens when either side fails to perform.
Buyer Default
If the buyer walks away without a contractual right to do so, the seller can keep the entire earnest money deposit as liquidated damages. The deposit is treated as the pre-agreed measure of the seller’s loss, so the seller does not have to prove actual damages. As an alternative, the seller can skip liquidated damages and pursue an equitable action to force the sale.8Florida Realtors. The Florida As Is Residential Contract for Sale and Purchase
Seller Default
If the seller refuses to close without a valid reason, the buyer has stronger options. The buyer can get the deposit back and sue for monetary damages, or the buyer can seek specific performance, which asks a court to order the seller to complete the sale on the contract’s original terms. Specific performance is powerful because once the buyer files, the property is effectively tied up and the seller generally cannot sell it to anyone else until the case resolves.8Florida Realtors. The Florida As Is Residential Contract for Sale and Purchase
Mediation Comes First
Before either side can file suit, the contract requires mediation, a structured negotiation with a neutral third party. A party that refuses to mediate, or files without attempting mediation first, can forfeit the right to recover attorney fees even after winning. The requirement is easy to overlook when tempers run hot, and following it saves both sides significant legal costs when it works.
Disputes Over the Escrow Deposit
When a deal falls apart and both sides claim the deposit, the escrow holder cannot pick a winner. If a real estate broker holds the money, Florida law requires the broker to notify the Florida Real Estate Commission within 15 business days of receiving conflicting demands.9The Florida Legislature. Florida Statutes 475.25
From there the broker has to use one of four resolution methods: an escrow disbursement order from FREC (available only when the disputed amount is $50,000 or less); mediation, with both parties’ written consent, wrapped up within 90 days; arbitration, also with written consent from both parties; or interpleader, where the broker deposits the funds with the local clerk of court and lets a judge decide. Interpleader is the fallback when the parties cannot agree on anything else.
When a title company or attorney holds the deposit instead of a broker, the FREC notification rules do not apply, but the escrow holder still cannot release funds to one party over the other’s objection without a court order or written agreement.10Florida Realtors. Florida Escrow Laws and Rules
Closing Costs Worth Knowing About
Florida imposes several taxes and fees at closing. The contract lets the parties negotiate who pays what, but custom shapes most deals.
The seller typically pays the documentary stamp tax on the deed. In every Florida county except Miami-Dade, the rate is $0.70 per $100 of the sale price. Miami-Dade charges $0.60 per $100, plus a $0.45 per $100 surtax on transfers of anything other than a single-family home.11Florida Dept. of Revenue. Documentary Stamp Tax On a $400,000 sale that tax runs $2,800 in most counties.
When the buyer finances the purchase, the state charges a nonrecurring intangible tax of 2 mills (0.2%) on the mortgage amount. On a $320,000 loan that is $640, paid by the buyer at closing.12Florida Dept. of Revenue. Nonrecurring Intangible Tax
Title insurance is another significant line item. Florida is one of the few states where title insurance premiums are set by the government rather than the market. The promulgated rate for an owner’s policy is $5.75 per thousand of coverage for the first $100,000 and $5.00 per thousand above that, up to $1 million. A $400,000 policy costs $2,075. When the buyer also needs a lender’s policy issued at the same time, the lender’s premium is a flat $25 for coverage up to the owner’s policy amount.13Florida Department of Financial Services. Title Insurance Overview Who pays the owner’s policy varies by county custom, and the contract can override that custom, so this is always negotiable.
If the seller is a foreign person or entity, the buyer is generally required to withhold 15% of the sale price under the Foreign Investment in Real Property Tax Act and remit it to the IRS.14Internal Revenue Service. FIRPTA Withholding Reduced withholding or exemptions may be available depending on the sale price and the buyer’s intended use, but the default puts the collection responsibility on the buyer.
Before signing, the buyer receives a closing disclosure at least three business days before closing that lays out every cost on both sides of the transaction.15Consumer Financial Protection Bureau. Review Documents Before Closing A final walk-through shortly before closing is the last chance to confirm the property is in the same condition as the effective date, that agreed-upon items remain, and that the seller has not removed fixtures. From effective date to closing, a typical Florida as-is transaction runs 30 to 45 days, with cash deals sometimes shorter and financed purchases sometimes longer.