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The Florida FAR/BAR contract is a licensed, standardized, contract used for real estate transactions in Florida. This contract was created by the joint committee of the Florida Realtors (formerly known as Florida Association of Realtors) and The Florida Bar. It can be used by anyone from real estate brokers and attorneys to buyers and sellers of the subject property. One of the main reasons the FAR/BAR was created is to ensure that anyone involved in a real estate transaction has access to a legitimate and legally binding document.
There are two different types of FAR/BAR contracts: the “as is” contract and the standard contract. These two contracts are very similar in many ways. Both the standard and “as is” contract include provisions regarding the sales price, closing date, and financial and inspection contingencies. They also include provisions regarding title information such as evidence of title and a number of addenda such as a “lead paint disclosure”. Despite the many similarities between these two contracts, there are two major differences, which is how inspections and repairs are handled.
The “As Is” Contract
The “as is” version of the FAR/BAR contract is exactly what it sounds like, the buyer gets the house in its current condition and the seller is not obligated to make any repairs. With an “as is” contract, the buyer has a set number of days, usually 15, to do an inspection of the property. If the buyer finds any issues with the property not previously indicated by the seller, the sales price of the property can be negotiated. However, if the seller refuses to negotiate, the buyer can choose to cancel the contract without any consequences.
The Standard Contract
With a standard FAR/BAR contract, the buyer has 15 days to do an inspection of the property and inform the seller of any problems much like the “as is” contract. However, the seller then has ten days after the buyer’s receipt of inspection to complete their own inspection and obtain an estimate for potential repairs. In the event that the parties do not agree on the cost of repairs, a third inspection will commence in which the buyer and seller are both responsible for sharing the cost.
While these are the most significant similarities and differences between the standard contract and the “as is” contract, there are many smaller similarities and differences between the two. Although the Florida FAR/BAR contract was primarily created for general use, there are many nuances that buyers and sellers need to be aware of. As with any other contract, it is important to have a reliable real estate attorney that you can trust to help draft or review your Florida FAR/BAR contract. At Waugh Grant, PLLC, we have experienced attorneys who can help you feel confident in the purchase or sale of your home. Please contact firstname.lastname@example.org to schedule a consultation.