How does the Florida FR/BAR AS IS contract work?

The choice of contract determines repair obligations.In Florida residential transactions, parties commonly select between the Standard Florida Realtors / Florida Bar Residential Contract and the FR/BAR “AS IS” Residential Contract for Sale and Purchase.

In the standard contract, Section 9 and Section 12 establish specific seller repair limits—frequently set at 1.5% of the purchase price for general repairs, 1.5% for wood-destroying organism (WDO/termite) damage, and 1.5% for open or expired permits and code compliance. The seller is contractually obligated to remedy qualifying warrantable defects up to these agreed dollar limits.

In contrast, Section 12 of the FR/BAR AS IS contract provides that the property is sold in “AS IS” condition as of the Effective Date. The seller has no obligation to expend funds, repair warrantable items, or treat cosmetic or structural defects, other than maintaining the property in the condition existing as of the contract date and addressing open permits where stipulated under Standard 18.V unless modified.

Section 12 specifies the procedure for providing written termination notice prior to the expiration of the inspection period. If the number of days is left blank in Section 12, the contractual Inspection Period defaults to 15 calendar days from the Effective Date.

During this agreed window, the buyer may conduct professional inspections covering structural integrity, roofing, mechanical and electrical systems, plumbing, environmental conditions, and municipal permit histories.

If the buyer determines in their sole discretion that the property is unacceptable, Section 12 provides that the buyer may terminate the contract by delivering written notice of termination to the seller or seller's agent before 5:00 PM local time on the final calendar day of the Inspection Period. When timely written notice is delivered in accordance with contract terms, the earnest money deposit is returned to the buyer pursuant to the deposit escrow provisions.

An “AS IS” clause does not eliminate the seller's affirmative duty to disclose latent defects. Under the landmark Florida Supreme Court ruling in Johnson v. Davis, 480 So. 2d 625 (Fla. 1985), where the seller of a home knows of facts materially affecting the value of the property which are not readily observable and are not known to the buyer, the seller is under a duty to disclose them.

This mandatory disclosure duty applies to all residential sales in Florida, whether executed on a standard contract, an AS IS contract, or a custom agreement. Sellers routinely document known material conditions using the Florida Realtors standard Seller's Property Disclosure - Residential (SPDR) form or association-specific disclosure riders.

Contractual timelines in Florida are governed by calendar days. Under Standard F of the FR/BAR contract, time periods are calculated in calendar days rather than business days.

Standard F provides that any deadline ending on a Saturday, Sunday, or national legal holiday automatically extends to 5:00 PM local time of the next business day. However, this extension rule does not apply to the Time for Acceptance or the Effective Date. All time calculations refer to the local time of the property location.

Executing an AS IS contract initiates key statutory and escrow milestones. Buyers and sellers must track Florida earnest money escrow timelines under Chapter 475 and the Commission rules issued under it, understand the bilateral mechanics of contract cancellation during inspection, and account for itemized expenses via the Florida seller closing costs breakdown.