Two Versions of the Same Contract. Very Different Obligations.
The Florida FAR/BAR contract comes in two versions: the Standard Residential Contract for Sale and Purchase and the As-Is Residential Contract for Sale and Purchase. They look nearly identical. They share the same structure, same paragraph numbering, same riders. But there is one critical difference that changes the entire dynamic of the deal: how inspections and repairs are handled.
If you are a newer agent, or if you have been defaulting to one form without thinking about it, here is what you need to understand.
The Standard Contract: Seller Has Repair Obligations
Under the Standard contract, the buyer has the right to inspect the property and, based on what the inspection reveals, request that the seller make repairs up to a negotiated dollar amount. This amount is called the repair limit and is filled in at the time the contract is written.
Here is how it works in practice:
- Buyer orders a home inspection within the inspection period.
- Inspector identifies issues (roof damage, HVAC problems, plumbing leaks, etc.).
- Buyer sends a repair request to the seller, listing the items they want fixed.
- If the cost of the requested repairs is at or below the repair limit, the seller is obligated to make the repairs.
- If the cost exceeds the repair limit, the seller can choose to make the repairs anyway, negotiate, or refuse. If the seller refuses and the parties cannot agree, the buyer can cancel the contract and get their deposit back.
The Standard contract gives buyers leverage. It also creates more potential for negotiation, conflict, and delays.
The As-Is Contract: No Repair Obligations
Under the As-Is contract, the seller has no obligation to make any repairs. The buyer can still inspect the property during the inspection period. But the inspection is for information only. The buyer's options are:
- Accept the property in its current condition and proceed to closing.
- Cancel the contract within the inspection period and receive their deposit back.
There is no repair negotiation. The inspection period is a binary decision: take it or leave it.
Side-by-Side Comparison
| Feature | Standard Contract | As-Is Contract |
|---|---|---|
| Buyer's right to inspect | Yes | Yes |
| Seller's repair obligation | Yes, up to the repair limit | None |
| Buyer can cancel after inspection | Only if repairs exceed the limit and parties can't agree | Yes, for any reason during the inspection period |
| Seller disclosure requirements | Yes, all known material defects | Yes, all known material defects (same as Standard) |
| Most commonly used for | Move-in-ready homes, buyers want protection | Investor purchases, estates, older homes |
| Negotiation complexity | Higher (repair amount and scope) | Lower (binary accept or cancel) |
"As-Is" Does Not Mean "No Disclosures"
This is one of the most misunderstood points in Florida real estate. Agents and sellers sometimes believe that selling as-is eliminates the duty to disclose known problems. It does not.
Under Florida law (specifically the case law established in Johnson v. Davis), a seller must disclose all known material defects that are not readily observable by the buyer. This includes things like:
- Previous flooding or water intrusion
- Known roof leaks or structural damage
- Mold or environmental contamination
- Code violations or permitting issues
- Chinese drywall
- Sinkholes or geological concerns
An as-is contract means the seller is not required to fix these issues. But they are still required to tell the buyer about them.
When to Use Each Contract
Use the Standard contract when:
- Your buyer wants the ability to negotiate repairs
- The property appears to have deferred maintenance
- The buyer is financing and the lender may require certain conditions (roof, HVAC, termite)
Use the As-Is contract when:
- The seller is an estate or trust sale where the family has limited knowledge of the property's condition
- The property is priced to reflect its condition, and the buyer knows what they are getting
- The buyer is an investor who will renovate regardless
- The seller wants a clean, fast deal with minimal back-and-forth
Inspection Period Strategy
Regardless of which contract you use, the inspection period is where the deal either solidifies or falls apart. A few tips from handling thousands of closings:
- Schedule inspections immediately. Do not burn five days of a ten-day inspection period waiting for a contractor callback.
- On the As-Is contract, use the inspection period to determine repair costs and factor them into whether the deal still makes financial sense at the agreed price.
- On the Standard contract, be strategic about the repair request. Asking for every minor item creates friction. Focus on health, safety, and structural issues.
Have questions about which contract form to use on a specific deal? Barnes Walker's real estate attorneys review FAR/BAR contracts daily. Call us at 941-778-7721 and we can walk you through the differences as they apply to your situation.