Knowing Your Contracts

KNOWING YOUR CONTRACTS: REGULAR VS AS-IS.

Both the FAR/BAR “Regular” Residential Contract for Sale and Purchase and the FAR/BAR “As Is” Residential Contract for Sale and Purchase are approved jointly by the Florida Association of Realtors and the Florida Bar, but they differ in how repairs, inspections, and seller obligations are handled.

Here’s a clear breakdown:

1. Inspection and Repairs

   Regular FAR/BAR Contract:

   The seller is obligated to make certain repairs and replacements up to a capped dollar amount (negotiated in the contract).

   There are three main categories:

   1. General Repairs (e.g., appliances, windows, plumbing)

   2. WDO Repairs (wood-destroying organisms like termites)

   3. Costs to remedy permits issues

   If issues are found during inspection, the seller must fix them before closing-up to the agreed limits.

   AS IS Contract:

   The seller has no obligation to make any repairs, regardless of inspection results.

   1. The buyer can inspect the property within a certain period (default is 15 days) and then cancel if they’re not satisfied for any reason.

   2. The seller can refuse to repair anything.

2. Seller’s Responsibility Regular Contract:

   Seller must deliver the property in a condition that meets certain functional standards (working systems, no leaks, etc.).

   AS IS Contract:

   Seller only needs to maintain the property in the same condition as on the contract date (normal wear and tear accepted). There’s no duty to improve or repair.