The Florida as-is contract explained for Miami buyers and sellers (2026)

Last updated: July 2026

The Florida as-is contract is the Florida Realtors/Florida Bar "AS IS" Residential Contract for Sale and Purchase, and it is the form behind most Miami residential deals. Despite the name, as-is does not mean the buyer is stuck with whatever the inspection finds, and it does not mean the seller can stay silent about known problems. It means two specific things. First, the seller is not obligated to make repairs. Second, the buyer receives an inspection period, 15 days by default if the blank is not filled in, during which the buyer can cancel for any reason in the buyer's sole discretion and receive the deposit back [1]. Sellers keep certainty on the repair side but still carry a disclosure duty under Johnson v. Davis, the 1985 Florida Supreme Court decision requiring disclosure of known, material defects that a buyer cannot readily observe [3]. That duty survives an as-is sale. This guide walks through the mechanics that decide who keeps the deposit: inspection, escrow, financing, appraisal, and the renegotiation in the middle.

What as-is actually means, and what it does not

The as-is form and the standard FR/Bar form differ mainly in the repair paragraphs. The standard contract obligates the seller to make certain repairs up to negotiated caps. The as-is version deletes that obligation and replaces it with the buyer's walk-away right during the inspection period. The seller sells in existing condition with no duty to repair, the buyer's protection is the exit rather than a repair obligation, and nothing prevents the parties from renegotiating after inspections. Most Miami as-is deals see some post-inspection adjustment.

What as-is does not mean:

It does not waive the seller's duty to disclose known hidden defects. Florida courts have applied the Johnson v. Davis disclosure rule to as-is sales [3][4].
It does not eliminate the financing or appraisal contingency if the buyer is using a loan. Those run on their own clocks.
It does not let a buyer cancel after the inspection period expires simply because a defect turns up later. Once the window closes, the walk-away right is gone.

In underwriting terms, the seller trades a repair obligation for deal certainty, and the buyer trades that certainty back for a free option to exit during a defined window.

The inspection period and the buyer's cancellation right

Paragraph 12 of the as-is contract gives the buyer a stated number of days after the effective date to inspect. If the blank is left empty, the period defaults to 15 days [1]. The effective date is the date the last party signs or initials and delivers the final offer or counteroffer, so the clock often starts later than you think. Count calendar days, not business days, and confirm the end date in writing.

During this window the buyer can terminate by delivering written notice to the seller before the period expires. No reason is required, since the standard is the buyer's sole discretion. Miss the deadline by a day and the deposit is at risk if the buyer later refuses to close.

For buyers, the discipline is to book inspections immediately after the effective date. In Miami that usually means a general inspection plus wind mitigation and four-point reports for insurance, and for condos a review of association documents, budgets, and structural reports. Insurance quoting belongs inside the window too, because an unquotable roof is a real exit reason.

For sellers, the inspection period length is part of the price. A slightly lower offer with a 7 day window can be worth more than a higher offer that sits under a free option for the full default period.

Deposit and escrow mechanics

The deposit is the buyer's performance bond. The contract states the initial deposit amount, who holds it, and when it is due, with an additional deposit optional on a later date. The escrow agent, usually a title company or attorney in Miami, holds the funds as a neutral party. Neither side can pull the deposit unilaterally. Release requires mutual agreement, a court order, or another resolution path described in the contract.

The deposit changes hands based on the contingency calendar:

Buyer cancels in writing inside the inspection period: deposit returned to the buyer.
Buyer properly terminates under the financing contingency after a diligent loan effort: deposit returned to the buyer.
Buyer misses a deadline or refuses to close without a contractual exit: the seller may claim the deposit as agreed liquidated damages.
Seller defaults: the buyer may recover the deposit and may also pursue damages or specific performance.

Two practical notes. Wire the deposit on time, because a late deposit is a default even if everything else is on track. And if a dispute arises, expect the escrow agent to freeze the funds until it resolves, which is another reason clean written notices matter.

Financing and appraisal contingencies

If the buyer is financing, paragraph 8(b) makes the contract contingent on loan approval within a stated period, 30 days after the effective date if the blank is left empty [2]. The buyer must apply promptly, act in good faith and with diligence to obtain approval, and keep the seller informed. Under the current form, loan approval includes the lender being satisfied on the appraisal, so for a financed buyer the appraisal risk generally lives inside the financing contingency rather than as a separate clause [2].

The mechanics that matter:

If the buyer cannot obtain approval despite diligent effort and terminates within the terms of the contingency, the deposit comes back.
If the buyer lets the loan approval period lapse without terminating or obtaining approval, the contract's waiver mechanics can shift appraisal and loan risk onto the buyer. This is where deposits get lost, and where the specific contract version is worth an attorney's hour.
Cash offers delete this contingency entirely, which is why they command a discount in Miami. A cash buyer's only structural exit is the inspection period, and there is no appraisal contingency unless one is added by rider.

Appraisal gaps are a live issue in some Miami segments, and a financed buyer who wants to compete can agree in writing to cover a defined shortfall in cash. Sellers should read a financed offer's loan approval period, loan type, and down payment as underwriting inputs, not boilerplate. The forms were updated again for 2026, so confirm everyone is working from the current version [5].

Repair credits versus price cuts

As-is does not end negotiation, it relocates it. After inspections, the buyer typically presents findings and asks for one of three things: a price reduction, a seller credit toward closing costs, or, less commonly in an as-is deal, actual repairs before closing. The seller can agree, counter, or refuse, and the buyer then decides whether to close or cancel inside the window.

How the options compare:

A price cut lowers the recorded basis, but its cash impact on a financed buyer at closing is small because most of the reduction flows through the mortgage.
A credit toward closing costs puts money in the buyer's pocket at closing, often more useful to a buyer who will fund the repair anyway. Lender caps on credits apply, so confirm the ceiling with the loan officer.
Seller-performed repairs are usually the weakest outcome for buyers. The seller has no incentive to over-deliver, and quality is hard to verify at the walk-through.

For sellers, the defense against renegotiation is information. A pre-listing inspection surfaces issues before a buyer can price them at panic multiples, and it feeds an accurate disclosure. If you are weighing a sale, start with the numbers on your own property through a professional listing valuation, then decide what to fix and what to price in. Our seller guide covers how condition and pricing interact in this market.

Seller disclosure duties survive an as-is sale

Johnson v. Davis is the case every Florida seller should know. In 1985 the Florida Supreme Court held that where a 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 has a duty to disclose them [3]. The decision replaced caveat emptor for residential sales, and Florida appellate courts have applied the same duty to properties sold as-is [4][6].

The test has three parts: the seller knows the fact, the fact materially affects value, and the buyer cannot readily observe it. Roof leaks that only show in heavy rain, prior unpermitted work, chronic drainage problems, and known assessment or structural issues in a condo building are the classic Miami examples. Partial disclosure is not a safe harbor, since courts have held that disclosing some problems while omitting others can itself support a claim.

The practical rule for sellers is to disclose what you know in writing, keep a copy, and let the price carry the condition. An as-is contract protects you from repair obligations, not from a nondisclosure lawsuit after closing, and litigation costs routinely exceed the repair. Buyers should treat the disclosure as a floor, not a substitute for inspections. In neighborhoods with older housing stock, from Coconut Grove to Miami Beach, independent inspection is where the real information is.

Frequently asked questions

Can a buyer really cancel for any reason during the inspection period?

Yes. Paragraph 12 of the as-is contract places termination in the buyer's sole discretion during the inspection period, with the deposit returned, provided written notice is delivered before the period expires [1]. The reason does not need to relate to the inspection at all.

Does as-is mean the seller can hide known problems?

No. Under Johnson v. Davis, a seller must disclose known defects that materially affect value and are not readily observable, and Florida courts apply that duty to as-is sales [3][4]. As-is removes the repair obligation, not the disclosure duty.

What happens to the deposit if financing falls through?

If the buyer made a diligent, good faith effort and properly terminates within the financing contingency terms, the deposit is generally returned. If the buyer lets deadlines pass without acting, the deposit can be at risk. The sequencing matters, so track the loan approval period from day one [2].

Should I offer as-is or standard in Miami?

Most Miami offers are written on the as-is form because it is cleaner for both sides. Buyers keep a broad exit during inspections, and sellers avoid open-ended repair obligations. The right structure depends on the property, the competition, and your financing. If you want a second set of eyes on offer structure before you write one, book a buyer consultation.

Gabriel

Sources

Gabriel A. Moyers, PA. eXp Realty. Florida License #3407280. Equal Housing Opportunity. This article is general information as of July 2026 and is not legal, tax, or financial advice. Verify current figures against authoritative sources before acting.