Sarasota Real Estate Blog

Did you know there are two different Florida Realtors/Florida Bar contracts commonly used when making an offer on a home?

They are the “AS IS” Residential Contract for Sale and Purchase and the Residential Contract for Sale and Purchase, often simply called the standard or regular FR/Bar contract. While much of the language is similar, there is an important difference in how inspections and repairs are handled.

The AS IS Contract

The AS IS contract is by far the one many buyers and sellers see most often in resale transactions. But its name can be misleading.

When sellers hear “AS IS,” they understandably assume it means: This is the house, in its current condition, and I’m not fixing anything.

Technically, the contract does not obligate the seller to make repairs. However, the buyer typically negotiates an inspection period—sometimes casually referred to as the due diligence period—during which the buyer can conduct inspections and decide whether the property is acceptable.

Under the AS IS contract, the buyer has a broad right to cancel during that inspection period. Because of that, an inspection can still lead to negotiations.

For example, an inspection might uncover an electrical problem, plumbing leak or roof issue. The buyer may ask the seller to make a repair, provide a credit or adjust the purchase price. The seller is generally not contractually obligated to agree, but the buyer may have the right to cancel during the inspection period if an agreement cannot be reached.

That is why “AS IS” doesn’t necessarily mean there will be no repair requests. It means the contract itself does not automatically require the seller to make those repairs.

The Standard FR/Bar Contract

The standard Residential Contract approaches inspections differently. Rather than leaving repairs entirely to negotiation after the inspection, the parties establish the seller’s potential repair obligations when the offer is written.

The contract provides three separate limits:

● General Repair Limit — for certain items that are not in the condition required by the contract.

● WDO Repair Limit — for treatment and repairs related to wood-destroying organisms, such as termites.

● Permit Limit — for costs associated with open or expired permits and improvements for which required permits were not obtained.

Each category can be negotiated as a specific dollar amount or as a percentage of the purchase price. If the spaces are left blank, the current contract provides a default of 1.5% of the purchase price for each category.

So, for example, a buyer and seller could agree in advance that the seller will be responsible for qualifying general repairs up to a certain limit. The contract then provides a process for determining what happens if required repairs exceed that amount.

This contract is sometimes seen with newer homes and new construction, where there is less expectation of significant repair issues and the parties may prefer a more defined framework for addressing defects.

Why the Difference Matters

Neither contract is inherently “better.” They simply allocate inspection and repair rights differently.

For sellers, the word AS IS can create a false sense that repairs are completely off the table. For buyers, it is important to understand that asking for a repair under an AS IS contract doesn’t mean the seller has to agree.

With either contract, the details matter. Understanding those differences before an offer is signed can prevent a lot of confusion once the inspection report arrives.