Question 1

How does the home inspection contingency work in Florida?

Accepted Answer

In Florida, the home inspection contingency is governed by the purchase contract terms (typically the FAR/BAR As-Is or Standard contract). The FAR/BAR "As-Is" contract: provides an inspection period (default 15 days), gives the buyer the right to inspect at the buyer's expense, allows the buyer to cancel during the inspection period for any reason (the buyer receives the deposit back), and requires the buyer to provide written notice of cancellation before the inspection period expires. The FAR/BAR "Standard" contract: requires the seller to pay for repairs up to a specified amount (the "repair limit"), allows the buyer to cancel if repairs exceed the repair limit and the seller refuses to pay the excess, and provides specific procedures for repair requests and responses.

Question 2

What is the difference between the FAR/BAR As-Is and Standard contracts?

Accepted Answer

Key differences: the As-Is contract allows the buyer to cancel for any reason during the inspection period (broad exit right) but does not obligate the seller to make any repairs; the Standard contract obligates the seller to make repairs up to the repair limit but gives the buyer a narrower cancellation right (only if repairs exceed the limit and the seller refuses). Most Florida residential transactions use the As-Is contract because: it gives the buyer maximum flexibility during the inspection period, sellers prefer not to be obligated to make repairs, and the buyer can still negotiate repairs voluntarily (even though the seller is not obligated).

Question 3

What happens if the buyer waives the home inspection contingency?

Accepted Answer

If the buyer waives the inspection contingency (or the inspection period expires without the buyer raising objections): the buyer loses the right to cancel based on the property's physical condition, the buyer's earnest money deposit becomes at risk (the buyer may forfeit the deposit if they cancel for inspection-related reasons), the buyer accepts the property in its current condition, and the seller's disclosure obligations remain (the seller must still disclose known material defects under Johnson v. Davis). Waiving the inspection contingency is risky and generally not recommended unless the buyer is very familiar with the property's condition.

Home Inspection Contingency: in Florida

Home Inspection Contingency in Florida

FAR/BAR As-Is Contract

FAR/BAR Standard Contract

Waiving Contingency

Related Terms

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