Inspection Found Major Repairs Under an AS IS Contract: Your Options

Published October 9, 2026 · Recalde & Friedman, PLLC

What "AS IS" actually means

In the Florida Realtors/Florida Bar AS IS Residential Contract, the seller agrees to keep the property in its Effective Date condition, except for ordinary wear and tear and casualty loss (Paragraph 11, Property Maintenance). The seller isn't obligated to make repairs the buyer's inspector finds. In exchange, the buyer gets an inspection period with a broad right to cancel.

The inspection period

Under Paragraph 12(a), Property Inspections and Right to Cancel, the buyer has a set number of days after the Effective Date to inspect. If the blank is left empty, it's 15 days. If the buyer decides, in the buyer's sole discretion, that the property isn't acceptable, the buyer may terminate by written notice delivered before the period ends and get the deposit back.

The buyer doesn't need to prove a defect or justify the decision. But the deadline is strict. If the buyer doesn't terminate in time, the buyer accepts the physical condition of the property, including code violations, subject only to the seller's continuing maintenance duty. The buyer also becomes responsible for repairs the lender requires. After the period, the buyer must pay inspectors promptly and repair any damage the inspections caused.

A common hypothetical

A buyer's inspector reports a roof near the end of its life, an electrical panel the insurer won't accept, and signs of a past leak. Together the estimates are significant. The inspection period ends in four days. The buyer has three realistic paths:

1. Terminate with written notice before the period ends.
2. Negotiate a price reduction, a closing credit, or seller repairs, and sign a written amendment before the period ends. Under Standard P, Integration; Modification, a change binds only the parties who sign it.
3. Proceed and accept the condition.

The trap is in option 2. If negotiations drag past the deadline without a signed amendment or an extension, the buyer may have lost the right to cancel. The usual protection is a short written extension of the inspection period while the parties negotiate.

What the seller must disclose

An AS IS contract doesn't let a seller hide known problems. In Johnson v. Davis, the Florida Supreme Court held that where the seller of a home knows of facts materially affecting the property's value that aren't readily observable and aren't known to the buyer, the seller has a duty to disclose them. The contract's own seller disclosure in Paragraph 10(j) tracks that rule: the seller states that it knows of no such facts that haven't been disclosed. Paragraph 10(b) adds a permits disclosure. Under that paragraph, the seller states it doesn't know of unpermitted improvements or open permits except as disclosed in writing. Florida sellers of residential property must also give a statutory flood disclosure at or before the time the buyer signs the contract (§ 689.302, Fla. Stat.).

After closing, Standard X, Buyer Waiver of Claims, waives buyer claims against the seller and licensees about the property's physical condition, to the extent the law permits. It expressly doesn't relieve the seller's disclosure obligation under Paragraph 10(j).

Open permits and code issues

If the inspection turns up open or needed permits, Paragraph 12(c) requires the seller to provide plans and information it has and to cooperate with the buyer's efforts to get estimates. The seller doesn't have to spend money under that paragraph. Our open permits guide explains how § 553.79, Fla. Stat. lets a later owner close out a prior owner's permit.

Condos: the building matters too

For a condominium unit, the inspection covers the unit, but the larger financial risk is often in the building. Buildings three stories or more must have milestone inspections (§ 553.899, Fla. Stat.), and associations must complete structural integrity reserve studies for those buildings (§ 718.112, Fla. Stat.(2)(g)). Resale buyers receive those documents with a review period (§ 718.503, Fla. Stat.(2)). Read them together with the inspection report. Note that under the Condominium Rider, the seller's maintenance and repair obligations under the contract are limited to the seller's own unit and generally don't extend to the common elements.

If the seller agrees to repair

• Describe the work, the standard (licensed contractor, permit if required), and the deadline in the amendment.
• Ask for paid invoices; Standard I(ii) already requires paid receipts for work done under the contract.
• Use the walk-through under Paragraph 12(b) to confirm the work.
• If work can't be finished before closing, consider a written escrow holdback. See our holdback guide.

Verify any contractor's license through the DBPR license search before work starts.

Frequently asked questions