Florida Real Estate Purchase Contract Explained 2026

Everything buyers and sellers need to know about the FR/BAR contract — AS-IS vs standard, earnest money, key deadlines, contingencies, and the mistakes that sink deals.

What Is the Florida FR/BAR Contract?

When you buy or sell a home in Florida, the transaction is governed by a standardized purchase agreement jointly produced by Florida Realtors and The Florida Bar — commonly called the FR/BAR contract. This form is the most widely used residential purchase agreement in the state and is designed to protect both parties by spelling out every material term of the transaction in plain language.

Florida Realtors and The Florida Bar update the contract periodically to reflect changes in law and market practice. Using the current approved form (rather than a homemade agreement) reduces legal risk and is required by most lenders and title companies. Understanding every section before you sign is one of the most valuable things you can do as a buyer or seller.

AS-IS Contract vs. Standard FR/BAR Contract

Florida is unusual among major real estate markets in that the AS-IS contract is the dominant form used for most residential transactions — including new listings that are in perfectly good condition. Understanding the distinction is critical because it shapes who carries the repair burden after inspection.

Under the AS-IS contract, the seller still must disclose known material defects — "AS-IS" does not mean the seller can hide problems. What it means is that the seller will not pay to fix them. If the buyer discovers a failing roof or a cracked slab during the inspection period, the buyer's remedy is to cancel and recover the deposit — not to demand repairs.

Key Contract Clauses Explained

1. Purchase Price and Initial Deposit

The purchase price is the headline number — the amount the buyer agrees to pay. Alongside it, the contract specifies the initial deposit (earnest money), how many days the buyer has to deliver it after contract execution (typically 3 business days), and where it will be held. A second, larger deposit is sometimes required at a specified milestone, such as the end of the inspection period.

The purchase price section also defines how the buyer is financing the purchase: cash, conventional loan, FHA, VA, or other. This links directly to the financing contingency.

2. Financing Contingency (Loan Approval Period)

If the buyer is financing the purchase, the contract includes a financing contingency that protects the buyer if they cannot obtain a mortgage. The default loan approval period under the FR/BAR contract is 30 days from the effective date.

During this window, the buyer must apply for and obtain a written loan commitment from a lender. If the lender denies the loan and the buyer provides timely written notice, the buyer is entitled to a full refund of all deposits. If the buyer fails to notify the seller within the approval period, the contingency is waived — and a subsequent loan denial can cost the buyer their earnest money.

• The contingency applies to the specific loan terms stated in the contract (loan amount, maximum interest rate, loan type).
• Buyers using a conventional loan should verify that the stated maximum interest rate is realistic — locking in a rate that is too low can inadvertently trigger a denial.
• In competitive multiple-offer situations, some buyers waive the financing contingency. This is high-risk and generally inadvisable unless the buyer has strong cash reserves as a backup.

3. Inspection Period

The inspection period is the buyer's window to investigate the property thoroughly. Under the AS-IS contract, the default is 15 days from the effective date. Under the standard contract, the default is 10 days. These defaults can be modified by negotiation.

Under the AS-IS contract, the buyer may cancel for any reason or no reason during this window by delivering written notice to the seller before the period expires. The deposit is returned in full. After the period expires, the buyer no longer has the right to cancel based on inspection findings.

Typical inspections buyers should complete during this window:

• General home inspection (roof, structure, electrical, plumbing, HVAC)
• Wind mitigation inspection (impacts insurance cost significantly in Florida)
• 4-point inspection (required by many insurers for homes over 25 years old)
• Termite/WDO inspection (wood-destroying organism report)
• Pool inspection if applicable
• Survey review and flood zone determination
• Septic inspection if on a private system

4. Closing Date

The closing date is the target date by which all conditions must be met and the deed transferred. In Florida, closing dates on FR/BAR contracts are treated as firm under the "time is of the essence" doctrine (see below). A typical closing timeline for a financed purchase is 30–45 days from contract execution; cash deals can close in as few as 10–14 days.

If a party cannot close on the agreed date, they must obtain a written extension from the other party. Unilateral failure to close on time can constitute a default and trigger remedies including loss of the deposit or specific performance.

5. Possession

The contract specifies when the buyer takes possession of the property — typically at closing and funding. In some cases, sellers may negotiate a post-occupancy agreement (seller remains in the home for a period after closing) or buyers may request early occupancy. Both arrangements should be documented in writing as a separate addendum, with a daily rental rate and liability terms clearly defined.

Earnest Money Deposit in Florida

The earnest money deposit (EMD) is a good-faith payment the buyer delivers after contract execution to demonstrate serious intent. In Florida, the typical earnest money deposit is 1% to 3% of the purchase price, though higher amounts are sometimes used to strengthen offers in competitive markets.

Where Is It Held?

Florida law requires that earnest money be held in an escrow account by a licensed escrow agent — typically the buyer's real estate broker, the title company, or a real estate attorney. The escrow agent is a neutral third party; neither buyer nor seller can access the funds unilaterally while the contract is active.

What Happens If the Deal Falls Through?

The outcome depends on why the deal fell through and when in the transaction it happened:

• Buyer cancels during inspection period (AS-IS contract): Deposit returned in full, no questions asked.
• Financing contingency triggered (buyer denied, timely notice given): Deposit returned in full.
• Buyer defaults (no valid contingency): Seller may be entitled to retain the deposit as liquidated damages and may have additional remedies.
• Seller defaults: Buyer is entitled to a full refund of the deposit plus may pursue additional remedies including specific performance (forcing the sale).
• Disputed escrow: The escrow agent must follow Florida's escrow disbursement procedures; unresolved disputes may require mediation or court action.

Title Review Period

After the seller provides a title commitment (ordered through a title company), the buyer has a limited window to review it and object to any title defects. The FR/BAR contract gives the buyer 5 days after receipt of the title commitment to raise title objections in writing.

Common title defects include unpaid liens, easements that affect use, boundary disputes, and gaps in the chain of title. The seller then has 30 days to cure the defects. If they cannot be cured, the buyer may cancel and recover the deposit. Buyers should always obtain an owner's title insurance policy at closing to protect against defects that were not discovered during the title search.

HOA and Condo Association Approval

If the property is governed by a homeowners association (HOA) or a condominium association that requires buyer approval, the contract includes a contingency for this. The buyer typically has a specific number of days to submit the required application and documentation.

Florida's Condominium Act (Chapter 718, F.S.) and Homeowners Association Act (Chapter 720, F.S.) give associations the right of first refusal or approval rights in some cases. If the association rejects the buyer, the buyer can cancel and recover the deposit. Buyers should also review HOA governing documents, financials, and meeting minutes during the inspection period — these are required to be delivered by the seller under Florida law.

"Time Is of the Essence" — Florida Deadlines Are Strict

Florida FR/BAR contracts include an explicit "time is of the essence" provision. This means every deadline in the contract — the inspection period, the loan approval period, the closing date, the title objection period — is legally binding. Missing a deadline, even by one day, can result in the loss of a contingency or constitute a breach of contract.

If you need more time — for example, if your lender is running behind — request a written extension from the other party before the deadline passes. Extensions require mutual agreement and should always be documented in a signed addendum.

Counter-Offers, Addenda, and Multiple Offer Situations

Florida does not use a separate counter-offer form in most cases — instead, the seller marks the original offer as "rejected" or "countered" and the parties exchange modified contract versions or addenda until both parties sign the same document. The contract is not binding until both buyer and seller have signed and the effective date (the date of last signature) is established.

In multiple-offer situations, the seller's agent typically notifies all buyers that other offers exist and invites "highest and best" submissions. Buyers in this scenario may be tempted to remove contingencies to compete — proceed with caution. Key negotiation levers beyond price include:

• Larger earnest money deposit (signals commitment)
• Shorter inspection period (still keep it — just shorten it)
• Pre-approval letter from a reputable local lender
• Flexible closing date matching seller's preference
• Appraisal gap coverage addendum

Contract Execution vs. Closing

There are two distinct milestones buyers and sellers often confuse:

• Contract execution (effective date): The date the last party signs the purchase agreement. This is when all contractual deadlines begin running. The buyer is not yet committed to buying — contingencies still provide exit ramps — but the seller has taken the home off the market.
• Closing (settlement): The date the title transfers, funds are disbursed, and the buyer receives the keys. This is the finish line. All contingencies must be resolved before this date, and both parties must be ready to perform on the agreed closing date.

Between execution and closing, the buyer is typically completing inspections, finalizing financing, reviewing title, and securing homeowner's insurance. The seller is expected to maintain the property in the same condition as at execution and cooperate with the buyer's due diligence activities.

Common Buyer Mistakes to Avoid

1. Waiving the inspection period. Never do this in Florida's climate. Hurricane exposure, aging roofs, Chinese drywall, and sinkhole risk are real. Even a short inspection period is far better than none.
2. Skipping the financing contingency in a competitive market. Unless you have the cash to close without a mortgage if the loan falls through, waiving financing protection puts your entire deposit at risk.
3. Missing the earnest money deadline. The contract requires deposit delivery within a specified window (often 3 business days). If you miss it, the seller can declare you in default and cancel the contract.
4. Not reading the HOA documents. Florida HOA documents must be delivered to the buyer during the contract period. Buyers have a right to cancel based on HOA review. Ignoring this step can mean discovering after closing that the association prohibits rentals, has a large special assessment pending, or is underfunded.
5. Assuming AS-IS means no negotiation. After inspections, buyers on AS-IS contracts commonly request price reductions or seller credits toward closing costs. Sellers don't have to agree — but many do, especially if significant defects are found. The AS-IS label doesn't mean you cannot negotiate; it means the mechanism is different.
6. Letting deadlines slip. In a long transaction, it is easy to lose track of dates. Use a written timeline and set calendar reminders the day you go under contract.

Frequently Asked Questions