When putting in an offer to purchase residential real estate in this area, the standard practice is for a buyer to submit it in contract form so that all the terms are very clearly spelled out.
* As a note, for Sarasota and Manatee County, it is typical for the BUYER to select and pay for the title work (other counties may differ).
There are 2 main contracts used in this area; the FARBAR standard Contract and the FARBAR AS-IS with Right to Inspect.
The main differences are:
The standard contract has a built in maintenance requirement for any repair items found by a licensed inspector. It a very defined list outlined in the contract of functional maintenance items and excludes cosmetic issues.
There is also a defined limit to what the seller is contractually obligated to pay for these repairs – the default limit amount is set at 1.5% of purchase price (but often times that limit is reduced during negotiations.)
There are also limits set for WDO (wood destroying organisms) and for permit issues.
The As-Is with Right to Inspect contract does not have any contractual obligation of the seller to repair any maintenance, WDO, or permit issues. The emphasis on this contract really is on the “right to inspect and cancel”. With that clause, the buyer, at his/her sole discretion, has the right to cancel this contract within the timeframe of the inspection contingency (standard timeframe is defaulted in the contract to 15 calendar days). Since the buyer has that option, it does provide an opportunity for the buyer to request that the seller address any issues that are uncovered do to the underlying option that the buyer has to cancel.
We have a very solid understanding of the contracts and can assist buyer/sellers in a strategy that reduces potential stress and financial risk.