Inspections & Repairs: Duties, Obligations, and Definitions

To Our Realtor® Friends:

This article is part of our continuing effort to provide Realtors® with clear, practical tools to help you succeed. We often receive calls about how to interpret inspection and repair clauses in real estate contracts — particularly what qualifies as a “cosmetic condition,” what “working condition” means, and when the seller must repair. This article explains buyers’ and sellers’ duties and rights under the Florida Realtors®/Florida Bar Residential Contract, helping you navigate inspection and repair obligations with confidence.

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A. Personal vs. Real Property

Paragraph 1 of the Contract distinguishes between real property — the land, structures, and built-in fixtures — and personal property — items that can be removed without damage, like appliances and furniture. Personal property listed in the Contract becomes part of the overall “Property” being sold, meaning it must be maintained and left with the real property at closing. Personal property transfers by bill of sale, as required under Paragraph 18, Standard H.

B. Seller’s Duty to Disclose

Under Florida law (and Paragraph 10(j) of the Contract), sellers must disclose any known facts that materially affect the value of the real property and are not readily observable. This is known as the Johnson disclosure. It applies to all residential contracts — including “As Is” contracts — and requires sellers to reveal issues like hidden defects or code violations. Realtors® also share this duty to disclose material facts known to them.

Note for “As Is” Contracts: The same disclosure obligations apply even in “As Is” transactions. The seller must still disclose known defects and any notices of code or safety violations.

C. Seller’s Duty to Maintain

Paragraph 11 requires sellers to maintain the Property — both real and personal — in the same condition as it was on the Contract’s effective date. This is known as the Maintenance Requirement. It applies equally to “As Is” contracts.

D. Seller’s Duty to Repair

1. Buyer’s Right to Inspect

The seller’s repair obligation begins when the buyer exercises their inspection rights under Paragraph 12. Buyers have an “Inspection Period” beginning on the Contract’s effective date to conduct general, wood-destroying organism (WDO), and permit inspections by licensed professionals. If the buyer fails to deliver written notice of defects before the Inspection Period ends, the seller has no duty to repair.

Note for “As Is” Contracts: Sellers under “As Is” contracts are not obligated to make repairs. Buyers may cancel “in their sole discretion” during the inspection period but waive post-closing claims if they choose to proceed.

2. Repair Limits

Repair obligations are capped by the Repair Limits in Paragraph 9(a)(i)-(iii), which set maximum amounts for general, WDO, and permit repairs. If left blank, the limit defaults to 1.5% of the purchase price for each category. For example, on a $150,000 home, each category could require up to $2,250 in repairs.

3. Working Condition vs. Cosmetic Conditions

Under Paragraph 12(b)(ii), the seller must ensure certain items are in Working Condition — meaning they operate as designed. These include:

• Roof, walls, doors, windows, foundation (free of leaks and structural damage)
• Pool and pool equipment
• Major appliances
• Heating, cooling, plumbing, mechanical, and electrical systems
• Seawalls and docks

Sellers are not required to repair Cosmetic Conditions — aesthetic imperfections that do not affect function — such as pitted marcite, minor cracks, nail holes, discoloration, or worn surfaces.

In general: if an item still works, even if it looks old or worn, it likely isn’t subject to repair. However, a leaking roof, for example, clearly is not in Working Condition and must be repaired.

4. Repair Estimates

Once notified, sellers have five days to obtain licensed repair estimates. If estimates exceed the Repair Limit, the seller can pay the excess or the buyer can choose repairs up to the limit and accept the rest “as is.” If neither party responds in five days, either may cancel the contract.

5. Repair Standards

Repairs must be completed “in a good and workmanlike manner” by licensed professionals, using materials of comparable or better quality. Sellers cannot make repairs themselves unless licensed or agreed to by the buyer.

E. Walk-Through Inspection

The final walk-through confirms that personal property remains, the Maintenance Requirement is met, and all repairs are complete. Buyers should report problems immediately — and always before closing.

F. Escrow at Closing

If repairs are incomplete, Paragraph 9 allows funds to be escrowed at closing — typically 125% of the estimated cost — ensuring work is completed after closing. An escrow agreement should set clear deadlines for completion and payment of any additional costs beyond the escrowed amount.

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Final Thoughts

Understanding inspection, repair, and maintenance obligations helps keep transactions on track and prevents disputes. Realtors® can play a critical role by managing expectations, ensuring timely inspections and disclosures, and guiding clients through repair negotiations.

If you have questions about inspections, repairs, or contract interpretation, contact us at GBarnes@BarnesWalker.com or AWalker@BarnesWalker.com. We’re always happy to assist our Realtor® partners.

With warm regards,
Garret T. Barnes   •   Adron H. Walker

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Important Note

The information in this article is provided for educational purposes to assist Realtors®, buyers, and sellers in understanding inspection and repair obligations under Florida real estate contracts. It is not intended as legal advice for any specific transaction. Always consult a qualified attorney for advice regarding your unique circumstances.