An “as is” contract for sale and purchase is a common legal agreement used in the real estate industry. In Florida, the Florida Association of Realtors has created a standard form for such a contract. This type of contract can be beneficial for buyers and sellers alike, but it is important to understand the nuances of such an agreement before signing on the dotted line.
An “as is” contract for sale and purchase means that the property is being sold as it is, with no warranty or guarantee of any kind. This type of agreement is usually preferred by sellers who want to avoid any future liability regarding the property`s condition. However, this doesn`t mean that the seller can hide behind the agreement to conceal any known defects or issues.
The Florida Association of Realtors has created a standard “as is” contract that outlines the responsibilities of the buyer and seller. The contract includes several key provisions that protect both parties.
One of the key provisions of the contract is the inspection period. The buyer is given a certain number of days to inspect the property and identify any issues or defects. If the buyer discovers any problems during the inspection period, they can request repairs or negotiate a price reduction with the seller. If the seller refuses, the buyer can cancel the contract and receive their deposit back.
Another important provision of the contract is the disclosure requirements. The seller is required to disclose any known defects or issues with the property in writing. Failure to disclose known defects can result in legal action against the seller.
It is important to note that an “as is” contract does not mean that the buyer cannot negotiate repairs or a price reduction. The contract simply states that the property is being sold as it is, with no warranty or guarantee of any kind. The buyer can still negotiate with the seller if they discover any issues during the inspection period.
In summary, an “as is” contract for sale and purchase can be a beneficial agreement for both parties. However, it is essential to understand the provisions of the contract and the responsibilities of each party before signing. The Florida Association of Realtors` standard form is a great starting point for buyers and sellers looking to enter into this type of agreement.