Eric P. Feichthaler

Dear Mr. Feichthaler:

I signed a contract to purchase a house in Cape Coral using an “as-is” contract. The contract provides for a 15-day inspection period, and we are at day 10. Our inspection found significant issues with the roof and the air conditioning system. Total repairs will exceed $10,000. Due to the contract being as-is, is there anything I can do to complete the purchase without being stuck with these expenses?

— Jamie C.

Dear Jamie:

The standard contract used in Lee County is the “As-Is” typically on a form that is approved by the Florida Bar and Florida Association of Realtors. I prefer this type of contract as it provides much more certainty regarding the rights and obligations of the parties. Other types of forms can require the seller to pay for or make certain repairs, but often the question arises — what is properly paid for and what isn’t?

With the “As-Is,” the buyer has a certain a-mount of time to inspect the property and determine if it is suitable for the use intended, and to determine if there are any issues. If the inspection period passes and the buyer does not take action, issues with the home will no longer be considered in negotiations or terminating the agreement. That is, buyers are normally locked in after the inspection period.

That is why it is essential to determine the shortcomings of the property prior to the inspection period ending. If these issues are significant, as they are in your situation, you would have a few options. You can advise the seller these repairs need to be made prior to closing. Alternatively, you can negotiate a reduction in price or a credit for these issues, and you would take care of the issues after taking ownership of the property.

In some cases, the seller will not budge on the price or agree to make the repairs. In this case, you have another decision to make: Cancel the contract prior to the end of the inspection period, or go forward on the original terms. In my experience, if the seller did not take these defects into account when setting the price, they will work with buyers to a fair resolution. There is a possibility, though, that they already believe they did take these issues into account, and will not reduce further. The seller is under no obligation to do anything, other than follow the original terms. If they are not satisfactory to you given the inspection, and you are still within the inspection period, you can inform the seller you are terminating. Under the standard contract, you, as Buyer, would be entitled to a full return of your escrow deposit.

In addition to the physical condition of the house, it is always a good idea to see if the current owner has a substantial homestead savings from property taxes. If they do, your tax bill could be dramatically higher as a new owner.

As always, consider all the benefits and drawbacks of the house, and always be your own advocate.

I wish you and all of our readers a Happy New Year!

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Eric P. Feichthaler has lived in Cape Coral for over 35 years and graduated from Mariner High School in Cape Coral. After completing law school at Georgetown University in Washington, D.C., he returned to Cape Coral to practice law and raise a family. He served as mayor of Cape Coral from 2005-2008, and continues his service to the community through the Cape Coral Caring Center, and Cape Coral Kiwanis. He has been married to his wife, Mary, for 22 years, and they have four children. He earned his board certification in Real Estate Law from the Florida Bar, and primarily practices in real estate law and wills and trusts. He is AV Preeminent rated by Martindale-Hubbell for professional ethics and legal ability, and is a Supreme Court Certified Circuit Civil Mediator. He can be reached at eric@capecoralattorney.com or 239-542-4733.

This article is general in nature and not intended as legal advice to anyone. Individuals should seek legal counsel before acting on any matter of legal rights and obligations.