The AS IS Residential Contract for Sale and Purchase is the Florida Realtors/Florida Bar form most Florida homes are sold on. Under it, the seller isn't required to make repairs, and in exchange the buyer gets an inspection period to look the home over and cancel for any reason, with the deposit returned. The other common form, the standard Residential Contract, instead has the seller cover repairs up to limits set in the contract.
What each side gets
The buyer gets the inspection period. The contract sets its length, often 15 days from the Effective Date. During it you can bring in a home inspector, a roofer, a four-point inspector and anyone else you need. If the home is unacceptable to you, in your sole discretion, you send a written cancellation before the period ends and your deposit comes back. You pay for your inspections and repair any damage they cause.
The seller gets certainty. Once the inspection period ends without a cancellation, you've accepted the home's physical condition. The seller's duty from then on is to keep the home, including the lawn and pool, in the same condition it was in on the Effective Date, apart from ordinary wear and tear.
"As is" doesn't let a seller hide what they know. The form includes the seller's statement that they know of no facts materially affecting the home's value that aren't readily observable and haven't been disclosed to the buyer.
A worked example
A contract on a $300,000 home becomes effective on the 4th of the month, with an $8,000 deposit, FHA financing and a 15-day inspection period that ends on the 19th (4 + 15). On the 9th, the inspector reports the air conditioning is failing, and a contractor quotes $7,200 to replace it.
The seller won't do the work but agrees to a $7,200 credit toward the buyer's closing costs. FHA allows seller credits up to 6% of the price, or $18,000 here.
| Line | Without the credit | With the credit |
|---|---|---|
| Down payment, 3.5% | $10,500 | $10,500 |
| Closing costs and prepaids | $12,800 | $12,800 |
| Seller credit | $0 | −$7,200 |
| Deposit already paid | −$8,000 | −$8,000 |
| Cash due at closing | $15,300 | $8,100 |
The credit cuts the buyer's cash at closing by $7,200 and leaves $7,200 in savings to put toward the new air conditioner after closing. The deal is signed as an amendment before the 19th. Had the seller refused everything, the buyer could still cancel by the 19th and get the full $8,000 back.
How to work an AS IS contract
Schedule every inspection in the first few days, because 15 days goes fast once you wait on contractor quotes. Ask the seller for permits and any recent four-point or wind mitigation reports. Put every request in writing, and get any agreed credit or price change signed before the period ends. The inspection period and the financing contingency run on separate clocks, so track both.
The cash to close calculator shows what a seller credit does to the money you bring. Before your inspection period ends, call AAA Capital Funding at 888-601-8344 and we'll show how much credit your loan can take on the home you're buying.