The Florida FAR/BAR contract is the standard residential purchase and sale form used for nearly every home sale in the state, jointly drafted by the Florida Association of Realtors and The Florida Bar. It comes in two versions. The standard Residential Contract for Sale and Purchase obligates the seller to make certain repairs up to capped amounts. The “AS IS” version imposes no seller repair duty but gives the buyer a window to walk away for any reason. Every deposit, contingency, and remedy in either form runs from a single date called the effective date, and missing a deadline tied to that date can cost you the deposit or the deal.
The Effective Date Starts Every Clock
The effective date is the date the last party signs or initials and delivers the offer or the final counter-offer. If you sign Monday, the seller counters Wednesday, and you accept Thursday, Thursday is the effective date. Every time period in the contract runs from there, so calendar it immediately.
When a deadline falls on a Saturday, Sunday, or federal legal holiday, performance extends to the next day that is not a weekend or holiday. That rule applies to nearly every deadline in the contract, with narrow exceptions for the time-for-acceptance provision and the effective date itself. A single miscounted day can trigger a default, so both sides should map out inspection, financing, title, and closing deadlines the moment the contract is fully executed.
Standard Contract vs. AS IS: The Biggest Choice
The two forms diverge most sharply on inspections and repairs, and choosing the wrong one is where buyers and sellers most often get burned.
AS IS Inspection Rights
The AS IS version gives the buyer a default inspection period of 15 days after the effective date, or whatever the parties write into the blank. During that window the buyer can hire licensed professionals to evaluate the property and can cancel the contract for any reason by delivering written notice to the seller. Cancel in time and the full deposit comes back. Let the period expire and the buyer is locked in and accepts the property in its current condition.
Standard Contract Repair Obligations
The standard version replaces that broad cancellation right with capped seller repair duties. The defaults are 1.5% of the purchase price for general repairs and a separate 1.5% for wood-destroying organism treatment. Items must fail a “working condition” standard before the seller has to fix them, and the buyer must deliver a written inspection report within the contractual timeframe. Missing that notice deadline can waive the seller’s repair obligation entirely, which is one of the most common and costly mistakes in Florida residential transactions.
Open Permits and Unpermitted Work
The forms also split on permits. Under the standard contract, the seller must close out open or expired permits and obtain permits for unpermitted improvements, up to a negotiated “Permit Limit.” The seller must also disclose unpermitted work and provide any related plans in their possession. Under the AS IS contract, the seller has no obligation to close or obtain any permits. If issues surface, the seller’s only duty is to cooperate in good faith with the buyer’s efforts to get repair estimates. Open permits can block insurance and complicate a future resale, so this distinction is worth attention before signing.
Deposits, Financing, and the Appraisal Gap
The initial escrow deposit is due within three days of the effective date. Parties often schedule a second deposit tied to the end of the inspection period. Both deposits sit in a non-interest-bearing escrow account held by the title company or closing attorney until closing or dispute resolution. The balance is due at closing by wire or cashier’s check.
For financed purchases, the financing contingency requires the buyer to apply for a loan within five days of the effective date if the blank is left unfilled, and to obtain loan approval by a negotiated deadline. A buyer who cannot secure financing despite good-faith effort must notify the seller before that deadline to protect the deposit. Cash buyers skip the contingency but usually have to provide proof of funds within a few days.
A common misconception: the financing contingency does not automatically protect a buyer whose appraisal comes in low. It ties the appraisal to the lender’s satisfaction, so the buyer can cancel only if the lender determines the appraised value is too low to approve the loan. For a freestanding right to cancel based on value alone, the buyer needs Addendum F (Appraisal Contingency), which sets an appraisal deadline and allows cancellation if the value falls below the amount stated in the addendum. FHA and VA buyers get extra protection through the FHA/VA rider, which prevents forced closing and deposit forfeiture if the appraised value falls short of the specified amount. That rider overrides conflicting language in the main contract.
Closing Costs and Who Pays What
Florida imposes a documentary stamp tax of $0.70 per $100 of consideration on the deed, paid by the seller. Miami-Dade County is an exception at $0.60 per $100 for single-family residences. On a $400,000 sale outside Miami-Dade, the seller’s deed stamps alone come to $2,800.
The buyer pays documentary stamp tax on the promissory note at $0.35 per $100 of the loan amount, plus a nonrecurring intangible tax of 2 mills (0.2%) on the mortgage. On a $320,000 loan, that is $1,120 in doc stamps and $640 in intangible tax before any other closing charges.
The contract offers three options for allocating owner’s title insurance and closing services, and local custom usually drives the choice. Under Option (i) the seller picks the closing agent and pays for the owner’s policy, title search, and closing services. Under Option (ii) the buyer picks and pays. Option (iii), common in Miami-Dade and Broward, has the buyer pick the closing agent and pay the owner’s premium while the seller pays for the title search and municipal lien search, capped at $200 unless specified otherwise. Whichever option is chosen, the buyer always pays for the lender’s title policy, loan-related recording fees, appraisal, survey, and inspections. The seller always pays deed recording costs needed to cure title, HOA estoppel fees, and any FIRPTA withholding charges.
Title Examination
The seller must provide a title insurance commitment or abstract of title, typically within five to fifteen days depending on what the parties negotiate. The buyer then has a set examination period, commonly ten days, to review and notify the seller of any defects. If defects surface, the seller gets a cure period (often 30 days) to resolve them at the seller’s expense, whether that means paying off a forgotten second mortgage, clearing a contractor’s lien, or settling a code enforcement fine. If the seller cannot cure in time, the buyer can accept the title as-is or terminate and recover the deposit. Title problems appear more often than most buyers expect, particularly with properties that have moved through probate, divorce, or multiple refinances.
Closing and Possession
The contract sets a specific closing date, which rolls to the next business day if it falls on a weekend or federal holiday. Closing takes place in the county where the property is located, run by a settlement agent who handles funds, signing, and recording the warranty deed.
The seller must deliver the property in the condition it was in on the effective date, with personal belongings removed and the premises clean. Tenants stay put unless dealt with separately, and the seller must provide copies of all leases and an estoppel certificate confirming the rental terms. If a seller needs to stay in the home after closing, a separate post-closing occupancy agreement is required, setting daily rent and a security deposit. Without one, the buyer has no structured way to force the seller out if they overstay.
Under Paragraph 1(d), major appliances, ceiling fans, light fixtures, window treatments, smoke detectors, thermostats, garage door openers, and storm shutters that are owned by the seller and on the property as of the initial offer date convey with the home unless specifically excluded in Paragraph 1(e). Buyers who want the chandelier or the custom blinds to stay, and sellers who want to take them, need to put it in writing before the contract is signed.
Mandatory Disclosures
Florida requires several disclosures either attached to or incorporated into the contract. Skipping them can give the buyer a right to cancel or expose the seller to post-closing liability.
The radon gas notification must appear on at least one document executed at or before the time of the purchase contract, warning that radon is a naturally occurring radioactive gas that can accumulate above federal and state guidelines. It applies to every residential sale in the state.
For any home built before 1978, federal law requires a lead warning statement attached to the contract. The seller must disclose known lead-based paint hazards and provide available records, and the buyer gets a 10-day opportunity (unless the parties agree otherwise) to conduct a lead inspection before becoming obligated.
Florida Statute 689.261 requires a property tax disclosure summary telling buyers not to rely on the seller’s tax bill because a change of ownership triggers reassessment. This catches many first-time buyers off guard, particularly when the seller had a homestead exemption and the new assessed value comes in dramatically higher.
For properties located partially or entirely seaward of the coastal construction control line, the seller must provide a written disclosure at or before contract execution warning of coastal erosion risk and applicable regulations. Unless the buyer waives it in writing, the seller must also provide an affidavit or survey showing the location of the control line before closing.
Beginning March 1, 2026, the U.S. Treasury’s Financial Crimes Enforcement Network requires a Real Estate Report for certain non-financed residential transfers to entities or trusts. Section 18 of both contract forms has been updated accordingly. The requirement primarily affects cash purchases by LLCs, corporations, and trusts, and the closing agent typically handles reporting.
HOA, Condo, and CDD Addenda
Properties inside a homeowners’ association, condominium, or community development district require additional addenda that carry real cancellation rights and ongoing costs.
Under Florida Statute 720.401, if the required HOA disclosure summary was not provided before the buyer signed, the buyer can cancel by delivering written notice within 3 days after receiving the summary or before closing, whichever comes first. That right cannot be waived.
Condominium resales carry a longer window. Florida Statute 718.503 allows the buyer to void the contract by delivering written notice within 7 days (excluding weekends and legal holidays) after signing and receiving the declaration, articles, bylaws, rules, the most recent annual financial statement and budget, and the frequently asked questions document. Since 2024, buyers must also receive the milestone inspection report summary and the association’s most recent structural integrity reserve study, if applicable. Those reserve study requirements were enacted after the Surfside condominium collapse and add a layer of financial disclosure that did not exist in earlier versions of the statute.
CDD addenda disclose annual assessments funding infrastructure like roads, utilities, and amenities. CDD assessments appear on the property tax bill and can run several thousand dollars a year. Buyers who overlook the addendum sometimes discover the added cost only when the first tax bill arrives.
Hurricanes, Casualty, and Force Majeure
Section 18(M) governs damage from fire, storm, or other casualty before closing. If the estimated restoration cost is 1.5% of the purchase price or less, the seller must pay for repairs. When repairs are not finished before closing, the seller must escrow 125% of the estimated cost to complete the work. If damage exceeds 1.5% of the purchase price, the buyer can either take the property with a credit of 1.5% of the purchase price or cancel and recover the full deposit.
Section 18(G) provides an automatic extension when a hurricane, act of God, or similar event prevents performance or closing. All deadlines, including the closing date, extend for a reasonable time up to seven days after the force majeure event no longer prevents performance. If the event continues to block performance for more than 30 days beyond the original closing date, either party can terminate by written notice.
FIRPTA Withholding for Foreign Sellers
When the seller is a foreign person or entity, the Foreign Investment in Real Property Tax Act requires the buyer to withhold 15% of the amount realized and remit it to the IRS. The buyer is personally liable for the tax if they fail to withhold when required. The closing agent handles the mechanics in practice, but the legal obligation sits with the buyer.
The most common way to avoid withholding is a seller certification under penalties of perjury that the seller is not a foreign person, including name, taxpayer identification number, and address. The certification can be delivered to the closing agent as a qualified substitute. If the buyer or closing agent has actual knowledge that the certification is false, it provides no protection. The FAR/BAR contract addresses FIRPTA compliance in its closing provisions and assigns the cost of withholding and reporting to the seller.
Default, Mediation, and Attorney Fees
If the buyer fails to close or breaches, the seller can retain the escrow deposit as liquidated damages. Florida courts have held that a clause letting the seller keep the deposit and sue for additional damages is an unlawful penalty, so the contract limits the seller to two choices: keep the deposit as full settlement of all claims, or pursue specific performance in equity. The seller cannot do both.
If the seller refuses to close, the buyer can seek return of the deposit or sue for specific performance. Because Florida law treats every parcel as unique, money damages are often considered inadequate, and courts will order a reluctant seller to go through with the sale. Filing a specific performance lawsuit effectively freezes the property because no title company will insure a property with pending litigation, so the seller cannot easily flip to another buyer in the meantime.
Before either party can sue over a deposit dispute, the contract requires mediation. If the buyer and seller cannot resolve the dispute within 10 days, they must submit to a certified mediator with real estate experience. Each side splits the mediation fee equally and pays their own attorney during mediation. If mediation fails and the case goes to court, the prevailing party recovers all costs and reasonable attorney fees from the losing side. That fee-shifting provision changes the calculus of any dispute, because the losing party in litigation ends up paying for both sides’ lawyers.