What is Option Period?

Option period is buyers' insurance that allows them to back out of the contract for any reason without disclosing it. If they choose to back out within this period, option money will not be returned to the buyers while earnest money will.

Option period is usually a period of 7 to 10 days starting the day after contract execution. For the option period to have a legal meaning - the option money must be delivered to the seller or the listing agent. Time is of the essence in this situation and  the option money - usually $75-150 (depends of what was negotiated in the contract) are due within 3 calendar days upon the contract execution. The seller or listing agent must receipt the check dating it within those 3 days.

Option period is very common in Texas. For majority of the buyers - this is the time to perform home inspection and discover anything that can be brought to seller as a negotiable item to repair. 

Option period ends at midnight on the last day of the period. By that time, the buyers and the sellers must agree on list of repairs and sign the Amendment to contract. Repairs need not to be made during this time, just an agreement must be reached.

Option period can be extended if both parties agree, for example when one party needs more time to get estimates for repairs.

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Leeza Morris, REALTOR®, Broker, MCNE

(940) 391-5080

Master Certified Negotiation Expert
MBA, GREEN, e-PRO®, SFR, CDPE
Broker/Owner at Cloud Realty (Mi Real Estate Cloud, Inc.)

www.TxCloudRealty.com

Your Time Is Of The Essence