The Florida As-Is Contract: inspection period, deposits and how to cancel

What “AS IS” really means

The AS IS Residential Contract for Sale and Purchase is the joint form of Florida Realtors and The Florida Bar, and it is the document behind most resale transactions in Miami-Dade. The name confuses people in both directions.

It does not mean you are buying blind. It means the seller has no contractual obligation to repair anything before closing. In exchange, you receive something the older “repair-limit” contract never gave you: a defined inspection period during which you may cancel for any reason, in your sole discretion, and receive your deposit back. Florida Realtors describes this as a very strong right of cancellation, and it is the single most valuable clause in the document.

AS IS also does not erase the seller’s legal duty to disclose. Under the Florida Supreme Court’s decision in Johnson v. Davis (1985), a seller of a home who knows of facts that materially affect its value, that are not readily observable and are not known to the buyer, must disclose them. Florida courts have declined to read an “as is” exception into that duty. So the form governs repairs; it does not license silence.

The deposit and who holds it

Your offer is backed by an earnest-money deposit paid to an escrow agent named in the contract. In Miami-Dade that is most often the title company or closing attorney, though a brokerage can serve as escrow agent as well. The form’s default has the initial deposit due within 3 days after the Effective Date, and many contracts add a second deposit that comes due later, often at the end of the inspection period.

If a broker holds the money, Florida law governs it closely. Section 475.25(1)(d) requires the broker to account for and deliver escrowed funds, and Rule 61J2-14.011 says the broker has no right to or lien on a deposit except by written agreement of the depositor. When the buyer and seller make conflicting demands on the deposit, the broker cannot simply pick a side. The statute gives four settlement procedures: an escrow disbursement order from the Florida Real Estate Commission, arbitration if all parties consent, an interpleader or similar court action, or mediation with written consent.

The inspection period

The inspection period is the number of days, counted from the Effective Date, during which you may investigate the property and walk away. The form’s printed default is 15 days. That number is negotiable, and in a competitive Miami market buyers often offer 10 days or fewer to make an offer more attractive. Sellers sometimes ask for 7.

Three rules govern how the days are counted:

• Time periods use calendar days, not business days, based on where the property is located.
• A deadline that falls on a Saturday, Sunday or national legal holiday extends to the next day that is none of those.
• The Effective Date is the day the last party signs; counting starts the day after.

The period ends at 5:00 p.m. local time on the final day. To cancel, you deliver written notice before that moment. A phone call to the listing agent is not a cancellation. Once the period closes, your broad right to walk disappears, and only the narrower contingencies that remain (financing, title, casualty) can return your deposit.

What to do inside the window is a separate topic, but in Miami-Dade it typically means a general inspection, a wind-mitigation and four-point report for insurance, an insurance quote, a review of the condo or HOA documents, an open-permit search, and a flood-zone check. A ten-day window is enough only if those are ordered on day one.

The financing contingency and Loan Approval Period

If you are borrowing, Paragraph 8(b) makes the contract contingent on Loan Approval. The mechanics, per Florida Realtors’ own explanation of the form:

• You must apply for the loan within 5 days after the Effective Date.
• The Loan Approval Period defaults to 30 days after the Effective Date. Sellers in a strong market often ask for 21 or fewer.
• Loan Approval means the lender has approved the financing described in the contract and has received an appraisal or alternative valuation satisfactory to the lender, if the lender requires one.
• By the end of the period you must deliver written notice that you either have Loan Approval or are terminating. Notice may go by mail, fax, personal delivery or email.
• If you send nothing, the contract treats you as a cash buyer. The financing protection is gone and the deposit is at risk.

Appraisal gaps

This is where Miami buyers get hurt. Under the current form, the appraisal is folded into the definition of Loan Approval. If the appraisal comes in low and the lender will not lend on the contract terms, you can terminate within the Loan Approval Period and recover the deposit. After that window closes, or if you waived financing, a low appraisal is yours to solve: bring more cash, renegotiate, or default.

Florida Realtors offers a separate Appraisal Contingency addendum that lets you terminate if the appraisal falls below a stated figure, independent of the loan. FHA and VA loans carry their own riders that override the standard language. Ask which, if any, is in your offer.

Title and survey

Title is examined before closing on its own clock. The party paying for the owner’s policy delivers a title commitment by the Title Evidence Deadline, and you then have 5 days after receipt to examine it and notify the seller in writing of any defect. The seller gets a cure period, 30 days in the standard language, to clear the objection. You may also order a survey at your expense before the survey deadline; encroachments or setback violations that a survey reveals are treated as title defects.

The walk-through

The contract lets you walk the property either the day before closing or on closing day before the closing time. The purpose is narrow but important: confirm the property is in the same condition as when you signed, normal wear excepted; confirm any repairs the seller agreed to are done; and confirm the personal property that conveys, appliances and fixtures listed in the contract, is actually there. Do it on closing day if you can, so the window between inspection and possession is as short as possible.

Condo and HOA cancellation rights

Separate from the contract, Florida statutes add rescission rights for association properties:

• Condominiums (§718.503): on a resale, the seller must deliver the declaration, articles, bylaws, rules, the most recent financial statement and budget, the milestone-inspection summary and structural integrity reserve study where applicable, and the FAQ document. You may void the contract by written notice within 7 days, excluding Saturdays, Sundays and legal holidays, after signing and receiving those documents. The right cannot be waived and ends at closing.
• Homeowners’ associations (§720.401): you must receive a disclosure summary before signing. If it was not provided, you may void the contract within 3 days after receiving it or before closing, whichever comes first.

A timeline you can put on the wall

Defaults are the printed values in the form as explained by Florida Realtors and the sources below; your contract controls. Any number can be changed by agreement before signing.

“Time is of the essence”

Both Florida Realtors/Florida Bar forms state that time is of the essence. In plain terms, every date is a hard deadline that a court may enforce exactly as written. A day late is not close enough. A weekend extension helps only when the deadline itself lands on the weekend. The practical answer is a written calendar built the day the contract becomes effective, with every deadline and the 5:00 p.m. cutoff on it.

Common ways buyers lose the deposit

• Letting the inspection period lapse without written cancellation, then trying to cancel over an inspection finding.
• Sending no written notice at the end of the Loan Approval Period, which converts the deal to cash.
• Treating a “due diligence” deposit as if it were refundable earnest money.
• Missing the loan-application deadline and giving the seller grounds to terminate.
• Assuming the walk-through or a low appraisal after the Loan Approval Period is a way out.
• Failing to close on the closing date after every contingency has been satisfied.

How ClearPath uses the form

We structure offers so the inspection and financing periods are short enough to compete and long enough to protect you. We order inspections on day one, calendar every deadline in writing, and send every notice by a method the contract recognizes. Read the buyer’s hub for the full process, or ask us to walk you through a sample contract before you ever make an offer.