🛠️ The Most Misunderstood Florida Contract Clause
Inspections and Repairs under a Florida Real Estate Purchase Contract
Most agents don’t really understand the standard Florida CRSP-17 contract.
They know there’s an inspection period. They might know there’s a repair limit. But they often confuse that limit with a cancellation right.
🚫 It’s not.
What the contract actually does is give both buyers and sellers a fair, structured path forward—even when inspections turn up surprises.
For sellers who understand how it works, this contract becomes a tool to:
✅ Stay in control
✅ Solve problems early
✅ Get to closing—without getting taken for a ride
For Buyers who understand how to get a Better Deal by Flipping the process and accepting the repair responsibility with a proper addendum, understanding this set up allows you to understand why another approach is better for the seller (probably). See more about that in this Post on Addendum C - How To Help a Seller on Repair Items: Making the Process Super Simple
Let’s break it down 👇
📊 The Setup: Three Repair Buckets, Three Limits
The CRSP-17 organizes repairs into three categories:
🔧 Warranted Items (General Repairs)
🐜 WDO (Wood Destroying Organisms)
📁 Permit-Related Repairs
Each category has a default repair cap of 1.5% of the purchase price—and yes, they do NOT combine.
For example, on a $2,000,000 home:
Warranted Repairs: $30,000 cap
WDO Repairs: $30,000 cap
Permit Repairs: $30,000 cap
🧮 Total potential seller exposure = $90,000
(But only if all three categories max out—which is rare.)
These limits can be adjusted. Many savvy sellers negotiate them lower or set a fixed dollar cap.
🕰️ The Timeline: Structured, Not Optional
Here’s how the default process flows:
🔍 1. Inspection Period
Buyer gets a defined number of days (default: 15) to complete all inspections.
📬 2. Repair Request Period
Buyer must submit written requests within the deadline—clearly stating what they want fixed, and under which category.
🧾 3. Seller’s Obligation
Seller must review the request and, if costs might exceed the cap, get estimates and notify the buyer.
This isn't a "maybe"—it's a contractual duty.
No ghosting. No vague “we’ll look into it.”
📌 Real estimates. Real communication.
💥 The Myth: “If Repairs Go Over the Cap, the Buyer Can Cancel”
🚫 Wrong.
Here's what the contract actually says:
If repair estimates exceed the cap in any category, the parties must negotiate in good faith. If they can’t reach agreement, either side may cancel.
This isn’t a buyer escape hatch. It’s a structured negotiation window.
And here’s the kicker most agents miss:
💵 The seller cannot just “credit” the buyer.
That’s not allowed under the contract by default.
A credit must be written into a separate addendum, signed by both sides.
🧠 The Power Move for Sellers: Just Fix It
Let’s say the repair requests are reasonable and under the cap.
The seller can simply say:
“We’ll handle all of these. Let us know when you want to re-inspect.”
No drama. No delays. No price cuts.
And even if the cost is a bit over the cap, many sellers choose to do it anyway—because control is worth more than leverage games.
🔒 Why This Setup Actually Protects Sellers
When used well, CRSP-17 helps sellers:
🛠️ Avoid last-minute re-trades and “gotcha” price drops
🧾 Use estimates to take control of negotiation
📅 Keep the deal timeline moving
🤝 Create clarity for both sides
Most deals fall apart over uncertainty, not cost.
This contract removes that uncertainty—if you actually follow it.
🧭 Final Thought: Control the Process, Control the Outcome
The CRSP-17 contract doesn’t guarantee cancellation.
It requires structure, communication, and good-faith effort.
And for sellers, that’s exactly what you want:
A chance to evaluate requests
The right to get estimates
The ability to fix and move on
The option to negotiate, not surrender
So the next time someone says:
“This repair is over the cap—we’re canceling…”
📘 Pull out the contract. Read it together.
Because you’re not out of options—you’re just getting started.