Learn the Florida Contract for Sale and Purchase
CRSP-17 - What You Say in Two Ties out To Three!
It’s not about rates. It’s about risk, leverage, and who’s in control.
There’s one line in Section 3 of the CRSP-17 that casually gets checked without a second thought:
“This Contract is not contingent on financing or appraised value unless otherwise stated herein.”
Read that again. If you're an agent—or a buyer—just checking the cash or financing box and moving on without filling in the rest, you may have just waived your buyer’s right to cancel over financing or appraisal.
And if you're a seller... this little checkbox might give you a false sense of security. It sounds like the buyer’s locked in. But they’re not. Not really. Let’s break it down.
💥 Section 3(a): Buyer pays cash or gets financing, but the deal isn’t contingent
If you check 3(a) and leave it at that, you’re saying:
“Buyer may pay cash or try to get a loan. Either way, they’re closing. There’s no contingency.”
No Commitment letter required. No appraisal protection. No exit hatch.
For buyers, this is risky unless they’re actually paying all cash.
For sellers, it looks strong on paper—but there’s a catch (we’ll get to that).
🛡 Section 3(b): The Financing Contingency (but only if you fill it in right)
If you want real protection—for either side—you need to use 3(b) and spell out:
What type of loan the buyer is getting (Conventional, FHA, VA, etc.)
How many days to apply (default is 5)
How many days to get a Commitment (default is the earlier of 30 days after Effective Date or 10 days before Closing Date)
Then the clock starts ticking.
Here’s what happens next, in plain English:
🔄 Buyer’s Side: What You Have to Do
Apply for the loan in good faith
Keep the agent and seller informed
Get a Commitment letter by the deadline
Can’t get it? Send the seller written notice before the Commitment Period ends
Do that, and either party can cancel. Buyer gets the deposit back.
But if you miss that deadline, the financing contingency is waived—and now the buyer must close or lose the deposit. Simple as that.
⚠️ Important Note: Your Down Payment in Section 2 Matters Here
Whatever you wrote in Section 2(c) for how much you’re financing and how much you’re putting down—that’s not just a preference. That’s part of the deal.
If you say you’re putting 25% down and financing 75%, then apply for a loan with only 10% down, the seller has every right to challenge that loan—and possibly deny your contingency.
Your financing application must match what’s stated in the contract.
Not “close enough.” Not “intended to.” Not “we’ll adjust later.”
It has to align—or your protection under 3(b) could evaporate.
⚖️ Seller’s Side: It’s Not a Lock Until the Commitment Arrives
Even when 3(b) is checked, you’re not truly “protected” until:
The Commitment letter is delivered
The appraisal condition is cleared (or doesn’t apply)
The loan is actually funded
Even after the buyer provides a Commitment, they can still cancel if:
The property appraises low, and no new agreement is reached
Property-related loan conditions aren’t met (title, repairs, insurance, etc.)
The lender collapses or fails to fund the loan through no fault of the buyer
This contingency is not just one deadline. It’s a moving target full of risk checkpoints.
🎯 Pro Strategy: For Buyers
✅ Use 3(b) when you need time to secure financing
🎯 Match your loan terms to what you stated in Section 2
🧾 Send your Commitment—or your non-approval notice—on time and in writing
📞 Keep the lines open with your lender and your agent
🎯 Pro Strategy: For Sellers
👀 Don’t just glance at “cash or financing”
🔍 Check whether it’s 3(a) or 3(b)—and if it’s 3(b), ask:
Has the buyer formally applied?
When does the Commitment Period expire?
Are they applying for the loan they described in Section 2(c)?
📆 Track the deadline. If it expires without notice, the contingency is waived—and your leverage increases dramatically.
👇 Bottom Line
This is the clause where deals live or die. It’s also where lazy agents screw it up.
🔑 If you're a buyer, this is your safety net—but only if you’re consistent.
🔑 If you're a seller, this is your radar—but only if you’re watching.
It’s not about financing. It’s about control.
✅ Next up: Appraisal Clause? Title Evidence? Closing Costs?
Drop a comment or reply if you want to tackle a specific clause next.
🔗 The Series So Far – Learn the Florida Contract for Sale and Purchase (CRSP-17 Sections 1–20)
✅ Section 1 – Parties and Property Description
✅ Section 2 – Purchase Price
✅ Section 3 – Financing
✅ Section 4 – Closing Date; Occupancy