Home Buying in Orlando>Question Details

Poobear, Home Buyer in Orlando, FL

What is an As Is Residental Contract for Sale and Purchase?

Asked by Poobear, Orlando, FL Tue Mar 15, 2011

Once you sign contract can you cancel before closing?

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Answers

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Why someone from out of state would bother to answer a Florida specific question will always be a mystery. The contract referred to is a fill in the blanks form prepared by the Florida Realtors and the Florida BAR.

Here's a link to a copy of the contract that someone has posted on their website:

http://www.jeffrealty.com/pdfs/Contract%20for%20Sale.pdf

Once BOTH sides have signed, then NO you can not cancel the contract except for specified contingencies, like getting your mortgage approved or accepting the inspection.
1 vote Thank Flag Link Tue Mar 15, 2011
Hi PooBear,

There are two As Is standard contracts in Florida, one approved by only the FL Assn of Realtors (FAR) and another approved by both the FL Bar Assn (BAR) and the FAR.

The FAR/BAR As Is contract normally allow you to cancel for any reason up until the inspection period ends--unless these provisions are overridden with extra terms or an addendum. If your contract is on a Short Sale, your Short Sale addendum will dictate when your inspection period begins. Hopefully it does not "begin" until you get a copy of the short sale approval letter in your hands and it has your name listed as buyer. Then you should have at least 7 days to do inspections and be able to cancel for any reason. If you have not already writter your offer, insist that your agent use this forms so you will not have any "hurdles" to jump over to cancel your contract.

Now, if you're not buying a short sale, you may want to go with a regular contract because it will force the seller to make repairs discovered in your inspection--up to a certain limit.

Good luck and consult with your Realtor and she can help you with understanding the contracts. If you do not have your own Realtor looking out only for your best interests and you are already under contract, you may need to hire an attorney.

Hope this helps.
Alma
0 votes Thank Flag Link Wed Mar 16, 2011
I agree with Mark regarding agents answering this question who are out of state as I have worked in other states and the contracts are all different along with the meaning of the contract and how they are performed. In the Orlando area an "As Is" contract means that you accept the property in the condition you viewed it. You have a right to inspect and a right to cancel for any reason. If there are issues that come up from the inspection, you can ask the seller to make the repairs and usually I find that if the repair is a major repair the seller will take care of it. In many cases the reason why sellers will want an "As Is" contract doesn't necessarily mean that the seller has issues with the house. In many cases it is because the offer price is lower than what the seller was hoping for and decided not to invest any more money into the house to get it closed.
0 votes Thank Flag Link Tue Mar 15, 2011
It means the home owners are not going to make any repairs and you are buying the home just as you see it. You can still have an inspection for yourself, but you cannot ask the seller to do any repairs.

For more buying and selling tips, please visit http://www.RochesterHomeLocator.com

Salafia Sold Team
585-279-8210
http://www.RochesterHomeLocator.com
http://www.FindRochester.com
0 votes Thank Flag Link Tue Mar 15, 2011
Basically you are buying what you see. Sometimes it means that there are expensive fixes that the owner/Bank will not fix. Always get an inspection and utilize your own senses. Make sure you deduct what you think the house is worth from all of the repairs you see in front of you. Your realtor can help you with that, especially on the cost to fix most items. Hope that helps. Have an amazing day!

Rebecca Walters
c 407-491-5578
Orlandopropertyshop@gmail.com
0 votes Thank Flag Link Tue Mar 15, 2011
Hello PooBear. An As Is contract basically means that you have to purchase the property "as is". The seller is not offering or giving the option to the buyer to have the seller make any repairs to the property. Basically, what you see is what you get. With that said, the as is contract does allow for a buyer to choose a timeframe to allow for the buyer to perform an inspection, usually 7 days, from the day that you have an executed contract. If after you've performed an inspection and you don't like the results or feel that there may be too much work involved with the property, you are able to cancel with no penalty if you are still within the 7 day period. Once your inspection period has passed, you are no longer allowed to cancel the contract without penalty unless the seller has somehow defaulted.

Let me know if I can help you with any of your other real estate needs. I am a Realtor in the Orlando area and specialize in short sales, foreclosures, and first time buyers. I'd love to help. LindaSellsOrlando@hotmail.com or on my direct cell at 336-404-8871.
0 votes Thank Flag Link Tue Mar 15, 2011
Hi Poobear,
The "As-IS" means the seller is selling their property as-is. This is the norm for todays
market being that there are so Many Short sales and
Bank owned properties.
You as the Buyer can always ask for something to be repaired, but it will not mean the
3rd party lender or the Bank (if property is a REO) will pay for the repairs.
You can be sure the Seller who is doing a Short sale, will not be capable of repairs usually
due to financial hardship.
Another alternative would be to use the FHA203K program. This is a great alternative for
Home buyers to get the home that may not be in perfect condition but has everything else that
meets their criteria. (location, room count, etc)

Hope this helps, great question and good luck.

Wendy Golding
Asset One Realty, Inc
Broker/Owner
407-470-3894
goldingrealtor@aol.com
Web Reference: http://www.scottnwendy.com
0 votes Thank Flag Link Tue Mar 15, 2011
Hello Poobear,
An "As Is" purchase means that the sellers will not make any repairs or give credit at closing for any repair work that is needed. The house and property sell in the current condition that it is in. It would be in your best interests to have a home inspection performed before you sign a contract so that you are informed of it's condition as not all problems or potential ones are obvious.
Hope this helps.
Good luck!

Laura Feghali
Prudential Connecticut Realty
0 votes Thank Flag Link Tue Mar 15, 2011
You are making a written offer for the property to be purchased As-Is.
You are entitled to a certain amount of days (usually 7-10 days) after all parties have signed the contract to have the property inspected. In the event you are not satisfied with the inspection report and you cannot come to any terms with the seller as to any repairs, you may cancel the contract.
This is your inspection contingency to the contract.
There may also be other contingencies which would allow you to cancel the contract...such as an appraisal contingency, mortgage contingency, insurance contingency, etc.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Tue Mar 15, 2011
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