Avoid 1.5% Repair Surprise: Tampa Bay Attorney FAR/BAR Checklist

The FAR/BAR family gives Florida buyers and sellers two residential purchase forms: the Standard contract, where the seller must fund repairs up to negotiated limits, and the As-Is contract, where the seller owes no repair obligation and the buyer can walk away during the inspection period. Buyers who want repair leverage typically choose Standard. Sellers, especially those handling estate or investor sales, usually prefer As-Is. The right choice changes your inspection rights, your repair-cost exposure, and how much risk your earnest money carries.

TL;DR:
Repair limits on Standard contracts are typically 1.5% of the purchase price per category, which may be insufficient for major repairs like roofs or HVAC systems.
Missing the 15-day inspection notice deadline can waive your repair rights, even if significant issues are discovered during inspection.
Timelines, including deposit, loan application, and approval deadlines, are strict and treat time as of the essence, requiring precise adherence to avoid defaults.
Disclosures of material defects are mandatory regardless of the contract type, and FIRPTA withholding may be required if the seller is a foreign person.
Consulting with a Florida real estate attorney is recommended when repair limits are low, deadlines are tight, or title issues arise to prevent costly disputes.

What Is a FAR/BAR Contract and Who Uses It?

The Florida Realtors/Florida Bar contract, known as FAR/BAR, was built jointly by Florida Realtors and The Florida Bar to give the state a standardized residential purchase agreement. It is not a government form. It is a licensed template that agents, closing attorneys, and title companies across the state recognize on sight, which is exactly why it dominates residential deals from Pensacola to the Keys.

Structurally, the contract runs through numbered paragraphs covering price, financing, inspections, and closing, then leans on a separate “Standards” section to define terms like effective date, default, and risk of loss. Riders and addenda attach on top for condo docs, short sales, or seller financing.

A few practical notes worth knowing before you sign anything:

Title insurers and mortgage lenders generally accept FAR/BAR language without modification, which speeds up closing.
Parties can still use a custom or attorney-drafted contract, but doing so often slows lender review since it’s unfamiliar territory.
The Florida Realtors form library publishes the current approved versions, so always confirm you’re working from the latest revision.

As-Is vs. Standard: What’s the Real Difference?

The two forms diverge almost entirely on repair obligations and inspection rights, and that difference drives everything else in the negotiation. Here’s how the As-Is and Standard contracts actually split:

Repair obligation. Standard requires the seller to address issues up to negotiated dollar limits. As-Is imposes no repair duty on the seller at all.
Buyer’s exit right. Under As-Is, the buyer can cancel for any reason discovered during the inspection period and get the deposit back. Under Standard, cancellation rights are tied to whether repair costs exceed the agreed limits.
Disclosure duty. Neither form changes the seller’s obligation to disclose known material defects; “as-is” describes repair responsibility, not honesty about the property’s condition.
Negotiation leverage. Standard gives buyers a built-in repair fund. As-Is shifts that leverage to the price itself, since sellers often expect a lower offer in exchange for no repair promises.

Lenders sometimes push back on As-Is contracts if an appraisal flags safety or structural issues the seller has no obligation to fix, so financed buyers should ask their loan officer before assuming As-Is is the simpler path.

How Do Inspections and Repair Limits Work?

Florida’s default inspection period runs 15 days from the effective date, and it’s a hard deadline. Miss the written notice requirement, and you may waive your repair rights entirely, even if the home inspection turned up real problems.

The Standard contract splits repair money into three categories:

General Repair Limit for everyday defects.
WDO Repair Limit for wood-destroying organism damage, mainly termites.
Permit Limit for repairs requiring permitted work.

Leave any of these fields blank, and Florida practice defaults each one to 1.5% of the purchase price. On a $400,000 home, that’s $6,000 per category, which sounds generous until a roof or AC system needs real work.

When repair estimates exceed those limits, either party can invoke a third, mutually agreed inspector whose written report becomes binding on the scope and cost of repairs.

Pro Tip: *Never leave repair-limit fields blank just to move the offer along.

What Are the Deposit and Financing Deadlines?

Timing mistakes cause more FAR/BAR disputes than repair disagreements do, mostly because parties assume deadlines are flexible when the contract treats time as absolute.

Standard timing defaults include:

Initial deposit due 3 days after the effective date if the contract doesn’t specify otherwise.
Loan application due within 5 days of the effective date.
Loan approval period defaulting to 30 days.
Inspection period defaulting to 15 days.

The effective date itself, the day the last party signs and that signature is communicated back, starts every clock in the contract. Get that date wrong on the cover sheet and every subsequent deadline shifts with it.

An appraisal coming in low doesn’t automatically kill the financing contingency. The contingency only protects the buyer if the lender’s loan approval is explicitly tied to that appraised value. Because FAR/BAR treats these deadlines as time-of-the-essence, a deadline that falls on a weekend or holiday typically rolls to the next business day, but a missed deadline without an extension can trigger default remedies. That’s not a minor technicality.

Title, Disclosures, FIRPTA, and What Happens if Something Goes Wrong

Sellers must deliver title evidence within a set window, and buyers get a chance to object if a title search turns up liens or clouded ownership. Sellers typically get a cure period to clear the defect before the buyer can terminate and reclaim the deposit.

Disclosure duties run independently of which form you use. Under the Johnson v. Davis doctrine, Florida sellers must disclose known material defects even in an As-Is sale — “as-is” limits repair obligations, not honesty.

If the seller is a foreign person, FIRPTA withholding rules can require the buyer to withhold up to 15% of the sale price for the IRS unless an exemption applies. Skipping this step exposes the buyer, not just the seller, to liability.

A few remedy mechanics matter most when a deal falls apart:

Casualty damage before closing above a 1.5% threshold gives the buyer the right to terminate or proceed with a credit.
The seller’s sole remedy for a buyer default is either keeping the deposit as liquidated damages or seeking specific performance, never both.
Deposit disputes must go through mediation before either party can file suit.

Choosing Between As-Is and Standard: A Practical Checklist

Start with these five questions before you decide which form fits your deal:

How certain is the financing? Cash buyers have more flexibility with As-Is since there’s no lender pushing for repairs.
What’s the property’s actual condition? Older homes or estate sales often steer toward As-Is because sellers can’t or won’t fund repairs.
Who’s on the other side? Estate representatives, trustees, and investors commonly insist on As-Is because they have no interest in repair work.
Is the price adjusted for repair risk? If you’re accepting As-Is terms, the offer price should reflect that you’re absorbing repair costs.
Does your lender have preferences? Some loan programs require repairs before funding, which favors Standard.

Before signing, confirm these specific blanks: the repair limit percentages, inspection period length, deposit schedule and amounts, the effective date, loan application and approval dates, and the closing date’s flexibility.

Pro Tip: If a listing agent can’t clearly explain why a property is being offered As-Is, ask directly whether the seller is aware of any defects. Their answer, or hesitation, tells you a lot.

When repair limits are unusually low, deadlines are compressed, or you’re buying from an estate or trust, pause and get a Florida real estate attorney to review the contract before you sign.

What Does the Process Look Like From Offer to Closing?

The FAR/BAR process moves in a predictable sequence, even though each deal has its own wrinkles.

It starts with an offer built on either the Standard or As-Is form, with the buyer filling in price, deposit amount, and financing terms before submitting it to the seller’s agent. Once both sides sign and that signature is communicated back, the effective date locks in and every deadline in the contract starts counting from that day.

Within the deposit deadline, usually 3 days unless the contract says otherwise, the buyer wires or delivers the earnest money to the escrow agent, typically a title company or real estate attorney. The inspection period then runs, usually 15 days, during which the buyer orders a home inspection, and if applicable, a WDO inspection for termite damage.

If repairs are needed under a Standard contract, the buyer sends written notice of required repairs before the inspection period ends. Under As-Is, the buyer either accepts the property, negotiates a price reduction, or cancels and gets the deposit back.

Financing runs in parallel: the buyer applies for a loan within the application deadline, and the lender works toward the loan approval deadline, ordering an appraisal along the way. Title work happens simultaneously, with the title company searching for liens or ownership issues and preparing the commitment.

As closing approaches, the buyer does a final walkthrough to confirm the property’s condition hasn’t changed, then both parties sign closing documents, funds transfer, and the deed records with the county. That recording is what actually transfers ownership.

What Amendments and Addenda Commonly Attach to FAR/BAR?

Very few FAR/BAR deals close on the base form alone. Riders and addenda handle the details the standard paragraphs don’t cover.

The most common ones include the condominium/homeowners’ association rider, which discloses HOA fees, rules, and required approval processes for buyers purchasing in a community with a governing association. A seller financing addendum spells out promissory note terms when the seller acts as the lender. A short sale addendum applies when the sale price is less than what’s owed on the mortgage, requiring lender approval before the deal can close.

Buyers and sellers also frequently attach a repair/inspection addendum to document specific negotiated fixes rather than leaving them as a vague notice. A backup contract addendum lets a seller accept a second offer contingent on the first deal falling through. And when property lines, surveys, or easements raise questions, a survey addendum specifies who pays for a new survey and what happens if boundary issues surface.

Amendments differ from addenda in that they modify existing contract terms, like extending a closing date or adjusting the purchase price after a low appraisal, rather than adding new subject matter. Every amendment needs the same signatures as the original contract to be enforceable. Skipping that step is a common and entirely avoidable mistake.

What Mistakes Do Buyers and Sellers Make Most Often?

The single most common pitfall is leaving contract blanks empty and assuming that’s a neutral choice. It isn’t. Blank fields default to specific terms, and those defaults aren’t always favorable to whichever party didn’t think to fill them in.

Buyers frequently misunderstand the inspection period’s finality. Missing the written notice deadline, even by a day, can waive repair rights entirely, regardless of what the inspection actually found. Sellers, meanwhile, often assume an As-Is sale removes all disclosure risk. It doesn’t. Known material defects still need disclosure regardless of which form is used.

Another frequent error involves the effective date. Parties sometimes assume the date is whenever the offer was made rather than when the last signature was actually communicated back, which throws off every subsequent deadline calculation.

Financed buyers sometimes assume a low appraisal automatically kills the deal. It only does that if the loan approval contingency is explicitly tied to the appraised value; otherwise, the buyer may still be obligated to close or renegotiate directly with the seller.

Finally, both sides sometimes skip the mediation requirement when a deposit dispute arises, heading straight to litigation. That’s not just inefficient. It can work against the party who bypassed a contractual prerequisite.

How Do You Correctly Fill Out Each Section?

Start at the top with the parties and property description, making sure legal names match title records exactly. Any mismatch here can delay closing later.

The purchase price and deposit section needs actual dollar figures, not percentages left for someone else to calculate, and the deposit due date should reflect what the parties actually agreed to, not just the 3-day default. The financing section requires you to specify loan type, whether the contingency is appraisal-contingent, and realistic application and approval deadlines based on your lender’s timeline.

For the inspection section, fill in the actual inspection period length if you’re negotiating something other than 15 days, and specify the general, WDO, and permit repair limits as dollar amounts rather than leaving them blank. The closing date field should account for realistic title and loan processing time, not an arbitrary date picked to look aggressive.

The title section rarely needs modification from the standard language, but confirm who’s paying for the title policy, since that’s negotiable in Florida despite common assumptions. Finally, review every rider or addendum attached to confirm it doesn’t contradict the base contract’s terms; conflicts between an addendum and the main body create ambiguity that benefits no one in a dispute.

How Does FAR/BAR Compare to Other Florida Real Estate Contracts?

FAR/BAR isn’t the only contract circulating in Florida real estate, but it’s the one lenders, title companies, and closing attorneys recognize instantly, which matters more than most buyers realize.

A For Sale By Owner seller might draft a custom purchase agreement or pull a generic template offline. These can be legally valid, but they frequently miss Florida-specific requirements like the FIRPTA provisions, statutory disclosure language, or the mediation-before-litigation clause built into FAR/BAR. If you’re considering a FSBO contract, understand that skipping the standardized form shifts real risk onto both parties.

Commercial purchase agreements, by contrast, are structurally different documents built for income-producing property, and they handle due diligence, financing, and closing conditions in ways that don’t map cleanly onto residential deals.

Builder contracts for new construction also diverge sharply from FAR/BAR. They typically favor the builder heavily on delay provisions, deposit forfeiture, and change orders, and they rarely include the buyer protections baked into the Standard FAR/BAR form.

For most residential resale transactions between individual buyers and sellers, FAR/BAR remains the practical default precisely because everyone in the transaction chain, from the appraiser to the underwriter, already knows how to read it.

When Should You Get a Contract Reviewed by a Florida Attorney?

Some situations call for legal review before you sign anything: blank repair limits on a high-value property, a seller disputing the scope of required repairs, title defects that need curing, a foreign seller triggering FIRPTA withholding, or a deposit dispute headed toward mediation. Oldham Law PLLC handles contract review, negotiation, escrow disputes, and title-cure work for Pinellas County and Tampa Bay clients, often for a flat fee rather than open-ended hourly billing. A short consultation before signing usually costs far less than untangling a bad clause after closing.

— Oldham Law PLLC

Get Your FAR/BAR Contract Reviewed Before You Sign

A contract template only protects you if the blanks are filled in correctly and the terms actually match your deal, and that’s exactly where DIY closings run into trouble. Oldham Law PLLC reviews FAR/BAR contracts line by line for buyers and sellers across Pinellas Park, St. Petersburg, and the greater Tampa Bay area, catching the default repair limits, missed deadlines, and disclosure gaps that generic online guides won’t flag for your specific transaction.

Whether you’re deciding between As-Is and Standard, negotiating repair credits, or dealing with a title issue that surfaced late, a Florida real estate contract review from a local attorney costs a fraction of what a bad clause can cost you at closing. Schedule a consultation before you sign, not after a dispute forces your hand.

This article is general information, not a substitute for advice from a qualified lawyer. Consult a qualified legal professional about your own circumstances before acting on anything here.

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FAQ

Can I write my own purchase and sale agreement in Florida?

Yes, Florida law doesn’t require using the FAR/BAR form, but a custom agreement often misses statutory disclosure requirements, FIRPTA provisions, and the mediation clause that protect both parties. Most title companies and lenders move faster with a recognized FAR/BAR form.

What is an As-Is FAR/BAR contract?

It’s one of the two standard Florida Realtors/Florida Bar residential forms, and it means the seller has no obligation to make repairs, while the buyer can cancel for any reason discovered during the inspection period and get the deposit back. The seller still must disclose known material defects regardless of the As-Is designation.

What are the new rules for realtors in Florida?

Florida Realtors periodically updates its FAR/BAR form language, so always confirm you’re working from the current published version rather than an older template saved on a computer. Contract-specific procedural questions are best directed to a real estate attorney who can flag revisions that affect your deal.

What is the 7-year property law in Florida?

This isn’t a defined statute within FAR/BAR contract law; if you encountered this phrase in another context, such as adverse possession or a specific tax exemption timeline, it’s unrelated to residential purchase contract mechanics and worth confirming directly with an attorney for your specific situation.

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