Home > Blog > Probate > Why Is the Buyer Cancelling the Transaction After the Inspection? The Home is Being Sold “AS IS”

Why Is the Buyer Cancelling the Transaction After the Inspection? The Home is Being Sold “AS IS”

There is a confusion among sellers when they sign an “AS IS” contract.  First of all, in Florida 98% of the transactions are “AS IS” … with the right to inspect.  An AS IS contract implies that the seller is selling his home AS IS and he doesn’t have to do any repairs.  Also, the buyer has the right to inspect the house and if the inspection is not satisfactory, he can cancel the transaction and receive his security deposit back.

Another alternative is that the buyer and the seller negotiate some repairs to be done to the house in order to bring the transaction to the closing table.  If the seller agrees to perform the repairs that the buyer is requesting, the transaction can continue and it is contingent to the repairs being completed.

In Florida, even though the contract is “AS IS” the buyer is not obligated to continue with the transaction if he is not happy with the inspection, unless other terms were negotiated like no inspection allowed or no refund of security deposit if inspection is not satisfactory.  Terms like those would be negotiated in a very hot market, but the way the Real Estate market is right now, buyers can perform their inspection once their contract is accepted and they can cancel the transaction during the inspection period.

You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *