Welcome to Waypoint Real Talk! On this episode, Crystal Brady and Waypoint discussed the As Is Real Estate Contract and what you need to know!

Thank you as always to Crystal Brady for joining us! We have the video below as well as a written portion of it for you.

As Is Real Estate Contact Explained Full Podcast

As Is Real Estate Contact Explained Blog

What Buyers Need To Know

Disclaimer: I am not an attorney nor am I providing legal advice. I am just reviewing some of the terms in the contract and explaining some of the common contingencies.

The AS IS sales contract is the most commonly used real estate contract in the Greater Tampa Bay market. It’s important buyer’s are familiar with the timelines, contingencies and know their rights when entering into a real estate transaction. 

First, we will do a general overview of the contract and some of the main points along with timelines. Then we will discuss the AS IS component in more detail as it pertains to inspections and repairs specifically. 

General Overview of AS-IS Real Estate Contract

Timelines: The first important point to note about this contract is all time periods are in calendar days- not business days. 

Why timelines are important: As a buyer if you do not adhere to the timelines in the contract then you are in breach of contract. Then, you could be putting your deposit at risk or exposing yourself to a potential lawsuit. Contracts are legally binding. 

Effective date:  This is the term we use to describe the date that the contract begins (when the clock starts ticking). It is defined as “the date when the last one of the buyer and seller has signed or initialed and delivered this offer or final counter-offer”.

Important Deadlines/Contingencies:

Escrow/deposit: This is your initial deposit that is required when your offer is accepted. Typically on the contract in most cases this is due within 3 days of accepted offer. 

Loan application: Under the financing section of the contract buyers are required to make their loan application within 5 days of the effective date. Your lender must prepare and present the loan application to you so you will need them to complete this step.

As a buyer, it’s important to make sure your lender has an executed copy of your contract immediately so they can begin preparing the loan application. Buyers should follow up to make sure their lender completes this critical step in a timely fashion. 

Loan approval: Loan approval is typically required within 30 days after the effective date. After that, the financing contingency is expired and buyer’s deposit could be at risk.

There are other potential situations after loan approval that may warrant a buyer’s deposit being refunded or retained – your realtor can provide guidance. Generally speaking though, buyers should be focused on obtaining loan approval as soon as possible, even before the expiration of financing contingency. This way, they can protect themselves and ensure the transaction will close.

The following is one of the contingencies in the contract that can protect buyers under certain conditions if loan approval is denied during the loan approval period. 

Inspection period: The contract defaults to a 15 day inspection period but most agents pr...