The Wrong Contract Could Cost You the Deal

Most Contract Don’t Fall Apart over Price

Florida has three main purchase contracts: the CRSP, FAR/BAR Standard, and FAR/BAR As-Is.

Most buyers and sellers don’t think twice about which one they’re signing.

But here’s the truth:

The contract you use can change everything from who makes repairs, who can walk away, and who’s stuck with a bad deal.

Deals usually blow up over one of three things:

1. Inspection

2. Appraisal

3. Loan Approval

These are your legal exit ramps.

But not every contract treats them the same way and not every party has the same control.

If you don’t know the difference?

You’re not just signing paperwork, you’re giving up leverage.

The 3 Exit Clauses and Who Controls Them

1. Inspection Period

This is the most common reason buyers walk and it's also the most misunderstood.

• CRSP:

  • Inspection leads to repair negotiations, not a free walk away.

  • Buyer can only cancel if repairs exceed cap and seller won’t fix.

  • Control: Shared, but favors seller. Buyer has less walk away power.

• FAR/BAR Standard:

  • Same idea. Buyer can’t just bail. Repairs are negotiated.

  • Buyer can cancel only if issues exceed cap and seller won’t budge.

  • Control: Balanced. Buyer has a reason based exit, not a blank check.

• FAR/BAR As-Is:

  • Buyer can walk for any reason during the inspection window.

  • No obligation to explain or negotiate.

  • Control: 100% buyer during inspection period.

Takeaway: As-Is gives buyers the cleanest escape. Sellers, if you sign this, you’re handing over early control.

2. Appraisal Contingency

This one trips up more buyers than anything else especially since the rules changed.

• CRSP:

  • Appraisal protection is built in if the buyer is financing.

  • If it comes in low, buyer can cancel unless seller adjusts the price.

  • Control: Buyer, clearly stated.

• FAR/BAR Standard & As-Is:

  • Appraisal is now part of the Loan Approval contingency — but only during the approval window (default: 30 days).

  • If the home appraises low before the deadline, buyer can walk and keep their deposit.

  • If appraisal comes in after the deadline, and financing was already “approved”? Buyer is stuck even if they don’t want to be.

  • Control: Buyer but only if they stay inside the timeline.

Takeaway: Don’t assume “I’m protected if it appraises low.” Unless the lender denies your loan during the Loan Approval period, you’re not automatically off the hook.

3. Loan Approval Period (Financing Contingency)

The buyer’s ability to back out if their loan doesn’t come through.

• CRSP:

  • Financing contingency is included by default.

  • Buyer must notify by deadline. If they don’t? They stay in by default.

  • Control: Buyer-friendly, but deadline-driven.

• FAR/BAR Standard / As-Is:

  • Also has a built in loan approval period (default: 30 days).

  • But here’s the twist:

    • If buyer doesn’t cancel before the deadline? Contingency is waived.

    • Buyer is now fully locked in, financing or not.

  • Control: Buyer but only if they stay on top of the deadline.

Takeaway: Deadlines matter. Miss the financing window and the buyer owns the risk. Sellers mark that date. Buyers don’t sleep on it.

What I’d Tell a Friend

It’s not just about whether a contract has outs.

It’s about who controls them, and when.

• As-Is gives buyers an easy exit early on.

• CRSP keeps buyers in unless something’s really wrong.

• FAR/BAR can go either way depending on the deadline.

If you’re a seller, and you don’t know when the buyer’s rights expire you’re not negotiating from a position of strength.

And if you’re a buyer, and you don’t know which outs you actually have you might lose your deposit for no good reason.

This is why strategy starts before the offer is accepted. It starts with the contract you choose.

Buying Soon?

Want to see how we find both on and off-market homes in Pembroke Pines?

Download the Pembroke Pines Home Buying Process guide for your step-by-step game plan to get ahead in this market.

Get the Guide Now »