FAR/BAR Contract Explained for Palm Beach Buyers

Buying in Palm Beach County is exciting, but the paperwork can feel intense. The FAR/BAR contract is the backbone of most Florida home purchases, and a few words in it can change your rights, costs, and deadlines. If you understand how it works in West Palm Beach and the broader county, you can move with confidence and avoid missteps. This guide breaks down what matters most for local buyers and how to protect your interests. Let’s dive in.

What the FAR/BAR contract is

The FAR/BAR contract is a standardized residential purchase-and-sale agreement created by Florida Realtors and The Florida Bar. It lays out key terms like deposits, contingencies, inspections, title, and closing. Most Florida transactions use these forms, often with addenda for financing, inspections, condominiums or HOAs, and lead paint.

For you, the contract is your roadmap. It sets the deadlines you must meet, the risks you accept, and what happens if issues come up. Because small wording changes can shift outcomes, it pays to slow down, ask questions, and confirm every contingency and date.

Standard vs. “As Is” forms

You will commonly see the Standard Residential Contract for Sale and Purchase or an “AS IS” version with a right to inspect. The Standard form often includes repair obligations for the seller within negotiated limits. The “AS IS” approach usually limits the seller’s duty to repair but still allows you to inspect and, in many cases, to cancel within the inspection window if major defects are found. The exact rights depend on the specific addendum, so read that language closely.

Key sections buyers should understand

Purchase price, deposits, and escrow

Your contract will outline the price, your earnest money deposit, any additional deposits, and how the balance is paid at closing. You will also see who holds escrow, which can be a broker, title company, or another escrow agent. Escrow is disbursed by written agreement, court order, or under the contract’s escrow dispute procedures. Deposit amounts and timing are negotiable, so confirm who receives the funds, when they are due, and how tracking works.

Financing and appraisal contingencies

If you are financing, the loan contingency defines the loan type and the timeframe for approval. If your lender denies the loan within the stated period and you follow the contract’s notice rules, you may be able to cancel without losing your deposit. Appraisal often ties to financing. If the appraisal comes in below the contract price, you may bring extra cash, renegotiate, or cancel if you have an appraisal contingency. Without that contingency, you could be required to close or risk default. Nail down exact deadlines for loan approval and appraisal objections before you sign.

Inspections, “As Is,” and repairs

The inspection period is a defined window to inspect the property and make repair requests, request credits, or cancel if allowed. In an “AS IS” deal, the seller typically has no obligation to repair, but you often retain the right to inspect and walk away within the deadline if significant defects are discovered. Book inspections immediately after execution, and document any requests or cancellations in writing before the deadline.

Title, survey, and evidence of ownership

The contract states what title evidence the seller must provide and who pays for title insurance. You may order a survey for boundary and encroachment checks. Easements and recorded restrictions are common, especially for older or condominium properties. Review the title commitment as soon as it is issued and raise timely objections if permitted by your contract.

Closing, possession, and prorations

You will set a closing date, define when you get possession, and agree how taxes, HOA fees, and assessments will be prorated. Confirm whether the property will be vacant at closing and how keys and occupancy are handled. “Time is of the essence” may apply to some or all deadlines, which raises the stakes if you are late. Discuss funding logistics with your lender and title company so wires and approvals arrive on time.

Risk of loss and insurance

The contract allocates responsibility if the property is damaged between execution and closing. Typically, the seller must repair or you can cancel if damage is substantial. You will be responsible for securing hazard, wind, and flood insurance if required by your lender. In Palm Beach County, it is smart to get quotes early since premiums and underwriting can affect loan approval.

Remedies, default, and dispute resolution

If one party defaults, the contract spells out remedies that may include deposit retention, damages, or specific performance. Dispute resolution procedures also address escrow disputes. Know the conditions that might cause you to forfeit your deposit, and follow all notice steps if you need to invoke a contingency.

Notice, delivery, and deadlines

FAR/BAR forms specify how notices are delivered, such as email or hand delivery, and set the clock for each requirement. Missing a deadline can change your rights, especially where “time is of the essence” applies. Confirm the correct notice addresses and delivery methods in writing, and track every date with calendar alerts.

Palm Beach County factors to weigh

Flood risk and FEMA zones

Many Palm Beach County properties are in FEMA-designated flood zones. If the home sits in a flood zone, lenders may require flood insurance. Elevation certificates and recent surveys can impact your premium and eligibility. Ask for flood zone and elevation information early and get quotes before you waive contingencies.

Hurricane exposure and insurance market

Wind and hurricane risk is part of coastal ownership. Wind mitigation features and roof condition can influence your premium. Some owners rely on Citizens Property Insurance when private options are limited. Obtain hazard, wind, and flood quotes during due diligence and factor the cost into your financing plan.

Condominiums and HOAs

Condo and association purchases add layers of review. You should examine governing documents, budgets, reserve studies, insurance policies, meeting minutes, and any pending special assessments. Your contract’s condominium or association addendum will define how many days you have to review and cancel if documents are unsatisfactory. Given recent attention on building safety across South Florida, pay close attention to reserves and engineering reports.

Taxes, assessments, and prorations

Palm Beach County prorates property taxes at closing. Check whether the seller has homestead and how that may affect your estimated tax bill after you close. Special assessments for stormwater or municipal projects can be levied and may be paid by the seller or pass to you depending on the contract. Review the title commitment for assessments and confirm how they will be handled at closing.

Title, recording, and closing customs

Closings are often handled by title companies or closing agents in Florida. Title insurance and the title commitment are key protections. Documentary stamp taxes, intangible tax on mortgages, and recording fees are standard closing costs. Local custom varies on who pays for which items, so confirm responsibility in your contract and request a closing cost estimate early.

Permitting and code compliance

Older homes and renovated properties can have unpermitted work. Your inspection, title review, and survey can reveal red flags. Request permit records or certificates of occupancy where relevant, and consider a municipal code compliance check if you plan renovations.

A practical Palm Beach buyer checklist

Use this checklist before signing or immediately after execution:

• Confirm the deposit amount, due date, and who holds escrow. Send funds per the escrow instructions and get a receipt.
• Verify whether the deal is “AS IS.” Note your inspection window and schedule inspections right away.
• Request hazard, wind, and flood insurance quotes. Confirm insurability and expected premiums with your lender.
• If financing, lock in your loan approval deadline and appraisal timing. Send lender documents promptly.
• If buying a condo or HOA property, request association documents and review budgets, reserves, insurance, and meeting minutes during your review period.
• Order a title search and review the title commitment for exceptions. Ask the title agent to explain easements and any special assessments.
• Consider a survey and confirm boundaries. For coastal or low-lying properties, obtain an elevation certificate if needed for flood insurance.
• Track all deadlines for inspections, financing, appraisal, document review, and closing. Confirm notice methods in writing.

Negotiation priorities for Palm Beach buyers

• Inspection rights and timing. Set a realistic inspection period and clarify your options for repairs, credits, or termination.
• Financing and appraisal clarity. Avoid vague deadlines and confirm what happens if an appraisal is low.
• Closing costs. Decide who pays for owner’s and lender’s title policies, documentary stamps, recording fees, and association fees.
• Seller disclosures. Seek representations about property condition, pending assessments, and recent insurance claims.
• Insurance contingency. Consider a contingency tied to the availability and cost of acceptable insurance.

How to use the contract to your advantage

Think of the FAR/BAR contract as a set of levers you can adjust. If you want speed and certainty, you might tighten timelines and streamline contingencies. If you want flexibility, you might negotiate a longer inspection window or add a clear appraisal clause. The best approach depends on the property type, condition, competition, and your financing.

An “AS IS” format can be strategic when you want control over repairs or the home is complex. A Standard form may fit when you expect seller participation in repairs. In both cases, be precise about timing, notice, and what happens if you find a problem or the appraisal misses. The clearer the language, the fewer surprises later.

Protecting your deposit

Your earnest money is usually your biggest risk before closing. To protect it, meet every deadline, send notices exactly as required, and keep a written record of delivery. If you need to cancel within a contingency, do it in writing, before the deadline, and in the manner the contract allows. If a dispute arises about escrow, the contract outlines how the escrow agent must respond and what steps the parties can take.

Working with local experts

Palm Beach County has unique considerations from flood maps to association governance and wind insurance. A strong team that includes your agent, lender, title company, and, when needed, a Florida real estate attorney will help you navigate the details. Ask for early title commitments, insurance quotes, and association documents so you have time to react.

When you want a guided, private experience and access to curated inventory, work with a team that pairs local market authority with development insight. If you are weighing how to structure contingencies or whether an “AS IS” format is right, we can help you size the risk and align terms to your goals. Contact The Costello-Deitz Group for a private consultation.

FAQs

What is a FAR/BAR contract in Florida real estate?

• It is a standardized residential purchase-and-sale agreement used across Florida that defines price, deposits, contingencies, inspections, title, closing, and remedies.

What is the difference between Standard and “AS IS” FAR/BAR forms?

• The Standard form often includes seller repair obligations within limits, while the “AS IS” version limits repairs but still allows inspections and, often, the right to cancel within the inspection period.

How do financing and appraisal contingencies protect me?

• They set deadlines and conditions that can allow you to cancel without losing your deposit if the loan is denied or the appraisal is low, provided you follow notice rules and timelines.

How are deposits and escrow handled in FAR/BAR deals?

• Your earnest money is placed with an escrow agent and released by written agreement, court order, or under contract dispute procedures if there is a disagreement.

What should West Palm Beach buyers watch for with insurance?

• Get early quotes for hazard, wind, and flood policies since premiums, roof age, and mitigation features can impact both affordability and lender approval.

What should I review when buying a condo in Palm Beach County?

• Review governing documents, budgets, reserves, insurance, meeting minutes, and any special assessments within the contract’s document review period.

Who typically pays title insurance and closing costs?

• It is negotiable and often follows local custom, so confirm in the contract and request a detailed estimate from the title company.

What does “time is of the essence” mean in this contract?

• It makes deadlines strict, so late performance can lead to default or loss of rights; track dates and deliver notices exactly as required.