Things to know about the As-Is Real Estate Contract

What Buyers SHOULD know when signing an as-is real estate contract in Pompano Beach

Disclaimer: Oliver Hoffmann, Broker for Pompano Beach Realty Corporation specializing in Pompano Beach Real Estate  is not an attorney nor is he providing legal advice in this article. The content of this article is of informational purpose only and his interpretation of the as-is contract. Please consult with your attorney when purchasing real estate.

In Pompano Beach the As-Is contract is the most commonly used contract used for the purchase of real estate.

In this article, I want to go over some of the most important dates in the as-is contract that a buyer should observe when purchasing property.

Dates on the As-Is Contract

The dates in the As-Is contract are counted in calendar days and NOT in business days, so it is important for the buyer not to miss any deadlines as this might result buyer being in default of the contract putting their earnest money deposit at risk and exposing themselves to a potential lawsuit from the seller.

It is the BUYERS responsibility to make sure all those deadlines are met!

The dates in the As-Is contract are based on the effective date.
The “Effective Date” is the date when the last party to the transaction has signed and or initiated the contract or counter-offer AND this offer was delivered to the other party. At this point the clock starts ticking.

What does As-Is mean?
AS-IS means that the property being bought is being sold exactly how it was seen at the time the buyer made the offer to purchase. This means that the seller(s) is/are obligated to maintain the property, until closing, in the exact same condition it was at the time of the offer.

Inspection Period

If a buyer is purchasing a property with a mortgage loan, most lenders will require buyer to obtain a homeowners insurance.
In order to obtain this homeowners insurance, most insurance carriers will ask for satisfactory 4 Point Inspection before binding the homeowners policy.

A 4 point inspection looks at these 4 items:
HVAC, Plumbing, Electrical and Roofing.

Should this 4 point inspection reveal any items that buyers insurance carrier needs to have fixed in order to bind an insurance policy, Buyer should ask the seller in writing to remedy those items while still within the inspection period. Buyer should understand that the seller is not obligated to do so.
Should the seller not be willing to fix those items, the buyer might want to strongly consider canceling the contract within their inspection period to get their earnest money back as buyer will most likely not be able to get insurance on the property, a requirement by most lenders.

Inspection Period

Mortgage Approval

Probably the most important date in the contract if you are obtaining a mortgage loan is the “Loan Approval” date, usually 30 days from effective date or whatever time frame was negotiated between buyer and seller.

Please note it is the BUYERS responsibility to inform the Seller and Broker of the loan approval process as stated in line 99 of the as-is contract.

Should the buyer not obtain mortgage approval before the expiration of the loan approval period, the buyer may provide to the seller in writing either that

  1. Buyer waives the loan approval and continues with the contract as if the mortgage approval was obtained
  2. Buyer terminates the contract

The seller could also agree to extend the mortgage approval deadline.

If buyer opts to waive the loan approval and the transaction for whatever reason does not close, the buyer risks losing their earnest money deposit(s).

If mortgage approval was not provided to the seller by the mortgage approval deadline, seller can elect to cancel the contract by delivering written notice to the buyer within 3 days and buyer is at risk of losing their earnest money deposit(s).

Mortgage Approval Date in As-Is. Contract

Closing Date

The closing date is another important date that needs to be honored.
This date is at the bottom of page one of the as-is contract and was agreed to by buyer and seller when signing the contract. If the buyer does not close on the closing date, buyer might be at risk of losing their earnest money deposit.

Two exception to delay the closing date are

  1. funds from buyers lender are not available on the closing date due to the Consumer Financial Protection Bureau Closing Disclosure (CFPB) delivery requirements then the closing date can be extended for such period necessary to satisfy those CFPB requirements as long as it doesn’t exceed 10 days
  2. And event constituting Force Majeure causing services essential to closing not being available the closing date may be extended.
Closing Date

Please contact a Pompano Beach Realtor at 954-505-6000 or by filling out the form below when looking to buy or sell Real Estate in Pompano Beach.

    Pompano Beach Oceanfront Condo listings below.

    New Listing - 2 days online
    $449,900
    Condo For Sale
    Active
    2
    BEDS
    2
    TOTAL BATHS
    1,270
    SQFT
    1237 Hillsboro Mile #402
    Hillsboro Beach, FL 33062
    Port De Mer Condo Subdivision
    New Listing - 4 days online
    $800,000
    Condo For Sale
    Active
    2
    BEDS
    2
    TOTAL BATHS
    1,154
    SQFT
    1021 Hillsboro Mile #Ph6
    Hillsboro Beach, FL 33062
    Landmark Subdivision
    New Listing - 2 weeks online
    $469,000
    Condo For Sale
    Active
    2
    BEDS
    2
    TOTAL BATHS
    1,140
    SQFT
    Admiralty #1203
    750 N Ocean Boulevard
    Pompano Beach, FL 33062
    New Listing - 2 weeks online
    $2,250,000
    Condo For Sale
    Active
    3
    BEDS
    4
    TOTAL BATHS
    3,890
    SQFT
    1073 Hillsboro Mile #6n
    Hillsboro Beach, FL 33062
    Kingsley Arms Condo Subdivision
    New Listing - 2 weeks online
    $719,000
    Condo For Sale
    Active
    3
    BEDS
    2
    TOTAL BATHS
    1,900
    SQFT
    Sea Monarch #814
    111 N Pompano Beach Boulevard
    Pompano Beach, FL 33062
    New Listing - 3 weeks online
    $324,000
    Condo For Sale
    Active
    2
    BEDS
    2
    TOTAL BATHS
    970
    SQFT
    Pompano Beach Club #2703
    111 Briny Avenue
    Pompano Beach, FL 33062
    $245,000
    Condo For Sale
    Active
    1
    BED
    1
    TOTAL BATH
    762
    SQFT
    1401 N Riverside Drive #604
    Pompano Beach, FL 33062
    Waterbury Condo Subdivision
    Price Change - a week ago
    $1,750,000
    Condo For Sale
    Active
    4
    BEDS
    4
    TOTAL BATHS
    2,700
    SQFT
    1021 Hillsboro Mile #501
    Hillsboro Beach, FL 33062
    Landmark At Hillsboro Condo Subdivision
    Price Change - 2 weeks ago
    $645,000
    Condo For Sale
    Active
    2
    BEDS
    2
    TOTAL BATHS
    1,300
    SQFT
    1057 Hillsboro Mile #523
    Hillsboro Beach, FL 33062
    Diamondhead Subdivision
    $420,000
    Condo For Sale
    Active
    2
    BEDS
    2
    TOTAL BATHS
    1,400
    SQFT
    1000 S Ocean Boulevard #6b
    Pompano Beach, FL 33062
    Pompano Atlantis Subdivision
    $649,999
    Condo For Sale
    Active
    3
    BEDS
    3
    TOTAL BATHS
    2,150
    SQFT
    1155 Hillsboro Mile #210
    Hillsboro Beach, FL 33062
    Hillsboro Ocean Club Condo Subdivision
    $1,275,000
    Condo For Sale
    Active
    2
    BEDS
    3
    TOTAL BATHS
    2,380
    SQFT
    1063 Hillsboro Mile #404
    Hillsboro Beach, FL 33062
    Ocean Grande Beach & Marina Condo Subdivision
    $949,000
    Condo For Sale
    Active
    3
    BEDS
    3
    TOTAL BATHS
    2,300
    SQFT
    1155 Hillsboro Mile #606
    Hillsboro Beach, FL 33062
    Hillsboro Ocean Club Cond Subdivision
    $1,072,000
    Condo For Sale
    Active
    3
    BEDS
    3
    TOTAL BATHS
    2,105
    SQFT
    1200 Hillsboro Mile #1301
    Hillsboro Beach, FL 33062
    1200 Hillsboro Mile Condo Bldg East Subdivision
    $569,900
    Condo For Sale
    Active
    2
    BEDS
    2
    TOTAL BATHS
    1,644
    SQFT
    1340 S Ocean Boulevard #504
    Pompano Beach, FL 33062
    Claridge Condo Subdivision
    Price Change - 3 weeks ago
    $798,000
    Condo For Sale
    Active
    2
    BEDS
    3
    TOTAL BATHS
    1,715
    SQFT
    1167 Hillsboro Mile #103
    Hillsboro Beach, FL 33062
    Overlook Condo Subdivision
    Price Change - 4 weeks ago
    $489,000
    Condo For Sale
    Active
    2
    BEDS
    2
    TOTAL BATHS
    1,060
    SQFT
    Diamond Head #711
    1057 Hillsboro Mile
    Hillsboro Beach, FL 33062
    $5,900,000
    Condo For Sale
    Active
    4
    BEDS
    5
    TOTAL BATHS
    8,600
    SQFT
    1021 Hillsboro Mile #Roof Garden Penthouse
    Hillsboro Beach, FL 33062
    Landmark At Hillsboro Condo Subdivision
    $475,000
    Condo For Sale
    Active
    2
    BEDS
    2
    TOTAL BATHS
    1,570
    SQFT
    Renaissance #805
    1370 S Ocean Boulevard
    Pompano Beach, FL 33062
    $339,000
    Condo For Sale
    Active
    1
    BED
    2
    TOTAL BATHS
    1,116
    SQFT
    Ocean Colony #15-L
    1620 S Ocean Boulevard
    Lauderdale By The Sea, FL 33062
    $264,000
    Condo For Sale
    Active
    2
    BEDS
    2
    TOTAL BATHS
    1,200
    SQFT
    1149 Hillsboro Mile #204
    Hillsboro Beach, FL 33062
    Opal Towers Condo Subdivision
    $600,000
    Condo For Sale
    Active
    2
    BEDS
    3
    TOTAL BATHS
    1,947
    SQFT
    1155 Hillsboro Mile #305
    Hillsboro Beach, FL 33062
    Hillsboro Ocean Club Condo Subdivision
    $1,300,000
    Condo For Sale
    Active
    3
    BEDS
    3
    TOTAL BATHS
    2,500
    SQFT
    1155 Hillsboro Mile #608
    Hillsboro Beach, FL 33062
    Hillsboro Ocean Club Subdivision
    $399,500
    Condo For Sale
    Active
    2
    BEDS
    2
    TOTAL BATHS
    850
    SQFT
    1221 Hillsboro Mile #17c
    Hillsboro Beach, FL 33062
    Sea Club Inc Co-Op Subdivision
    $949,000
    Condo For Sale
    Active
    2
    BEDS
    3
    TOTAL BATHS
    2,497
    SQFT
    801 Briny Avenue #704
    Pompano Beach, FL 33062
    Sonata Beach Club Subdivision
    $464,000
    Condo For Sale
    Active
    1
    BED
    2
    TOTAL BATHS
    1,150
    SQFT
    1239 Hillsboro Mile #606
    Hillsboro Beach, FL 33062
    Port De Mer Condo Subdivision
    Open House Sat, Mar 6, 2 PM UTC
    Please verify times due to COVID-19
    $524,500
    Condo For Sale
    Active
    2
    BEDS
    2
    TOTAL BATHS
    1,000
    SQFT
    Building Is Located On Land 9 Feet Over Sea Level #605e
    1051 Hillsboro Mile
    Hillsboro Beach, FL 33062
    Open House Sat, Mar 6, 2 PM UTC
    Please verify times due to COVID-19
    $499,000
    Condo For Sale
    Active
    2
    BEDS
    2
    TOTAL BATHS
    1,000
    SQFT
    1051 Hillsboro Mile #608e
    Hillsboro Beach, FL 33062
    Hillsboro Le Baron Condo Subdivision
    $338,000
    Condo For Sale
    Active
    2
    BEDS
    2
    TOTAL BATHS
    1,200
    SQFT
    Opal Towers #Ph1004n
    1149 Hillsboro Mile
    Hillsboro Beach, FL 33062
    $350,000
    Condo For Sale
    Active
    2
    BEDS
    2
    TOTAL BATHS
    850
    SQFT
    1221 Hillsboro Mile #19c
    Hillsboro Beach, FL 33062
    Sea Club Inc Co-Op Subdivision
    $1,599,000
    Condo For Sale
    Active
    3
    BEDS
    4
    TOTAL BATHS
    2,705
    SQFT
    Ocean Grande #407
    1063 Hillsboro Mile
    Hillsboro Beach, FL 33062