On average, a Texas divorce without children costs about $15,600, and one with children costs about $23,500. What Does Contingent Mean In Real Estate? Buyers typically use this time to have the home inspected to make sure theres nothing substantially wrong with the property before they commit to the purchase. When buying a home in Texas, you should make the most of this time to ensure the property doesnt have any major issues. Texass option period is not mandatory and could affect a buyers offer being accepted as the seller could view it as inconvenient. If the transaction doesnt close and the deal falls through, do you get your earnest money back? How long will it take to pay off my credit card? Please share this info with your Friends! The standard contract now states: Within 3 days after the Effective Date, Buyer must deliver $__ earnest money to __, as escrow agent, at __.. All the Sugar Land Real Estate Market Stats You Need To Know the Best Price for Your Sugar Land Home (Since Tax Appraised Values Do NOT Equal Market Value in Texas!) Madeline Sheen is an associate editor for HomeLight who works with an amazing team of experts in home buying, personal finance, and mortgage to create articles for HomeLights Buyer Resource Center. Before inspections, you may fear the state of the home or the sellers willingness to negotiate repairs if the home needs serious work. The Option Period is an important part of a real estate transaction in the state of Texas. Get more done faster with Transactly - a platform for real estate agents that connects you with tech-enabled transaction coordinators. If the buyer terminates the contract, the seller can often keep the earnest money. The inclusion of the option fee often makes the idea of an option period more palatable to a seller theyll lose a few days if you walk away, but theyll keep your option feebut its still a small amount of money compared to actually selling the property. At 5:00 p.m. on the last day of the Option period, if you have not had the Seller sign an Amendment agreeing to price modifications or repairs, then you are buying the home as is. Make sure you get your inspection reports several days before the end of the Option so you can review them and discuss with your agent and have time to submit an Amendment to the Seller. If your client wishes to terminate under Paragraph 5B, the Termination Option Paragraph, she must provide notice to the seller by 5 p.m. local time where the property is located on February 1. For example, all parties execute the contract on June 2nd. Reverse Mortgage Pros and Cons from a Financial Planners Perspective, 11 Questions to Ask When Buying a New Construction Home. It works the same way with either program:, Traditionally, homebuyers have had to choose between moving quickly and having peace of mind. Working with a top buyers agent will help you make sense of option periods and all other things homebuying related with HomeLight, you can find a top-rated buyers agent near you in as little as two minutes to start your journey to closing on your dream home. For example, if the contract is executed on July 15th, the option period then begins on July 16th. Across the United States, due diligence is probably the most common name for an option period, but you may also hear it referred to as the inspection period or contingency period. Once it is received, the earnest money will be released back to the buyer. 5.0. Texas markets where multiple offers are common may have higher expectations. Want to learn more about everything that goes into the home-buying process? Texas REALTORS is committed to advocating for a strong real estate industry, advancing a culture of continued learning, and staying ahead of issues . How much earnest money is normal depends on the norm where you live. This includes title issues the title insurance company will exclude from coverage (Schedule B). The revised contract form, which became mandatory in 2021, requires the buyer to deliver the option fee to the title company, not the seller, within 3 days of the effective date. Here is what happens to earnest money in common scenarios. So basically, the termination option is a clause that allows buyers to legally cancel an executed contract. This inspection period, also known as the option period, typically lasts anywhere between 5 and 10 days. If for whatever reason within the option period outlined in the contract the buyer wants to terminate and back out of the contract, they can do so. This is where an option period becomes key even if your choice is to back out of a sale, youll feel better having decided that on your timeline. An option period means the buyer can terminate the contract during the agreed-upon time frame without any particular reason being given. Something went wrong while submitting the form. Travis county: Home to Austin, Texas' capital, and is situated in south central Texas. This is because it offers the buyers the security of being able to back out after signing the purchase contract. The buyer can take advantage of this option to complete a few checks for their peace of mind. Applicability of the legal principles discussed in this material may differ substantially in individual situations. Agents Compete, You Win. That said, its important to recognize that while paying the option fee and including an option period provides more reassurance, asking for too much time may make your offer less competitive.. But be warned: Every option period and extension comes at a price. This good faith deposit is a lot like getting pre-approved for a mortgage before making an offer on a home it reassures the seller they arent wasting their time. Here are some tips on how to take a break from technology so. I can help! The option period is a good time to negotiate these repairs, otherwise closing may be an afterthought. Extensive case law in Texas suggests a termination-option period cannot be extended without an additional option fee, so a buyer should pay another option fee to reliably extend the option period. The Option Fee is provided to the seller as consideration for taking the home off the market during this time. Most real estate transfer contracts contain an option fee, though it's not a legally binding requirement. Like (5) Dislike. Very important! For that reason, its not a process that should be rushed. During this period, your lender conducts a. An active option contract means the seller has accepted an offer to sell their property. Your real estate agent can advise you if your offer has a good chance of being accepted without earnest money, but it may be hard to get your offer taken seriously without putting down a good faith deposit. The earnest money and the option fee are credited to you at closing, explains Bacak for buyers who move forward. If the buyer chooses to terminate, the EMD would be refunded, but the seller would retain the option fee. The option in Texas real estate is an agreed upon number of days in the one to four family residential contract (purchase contract) that allows for the buyer to back out of the contract for any reason. The property will be placed in OP (option pending) status in the MLS. [citation needed] The purpose of having a home inspected is to ensure that there are no significant flaws in the property before committing to purchasing it. I'm always here to help! An option period gives the buyer a specific amount of time to have the property inspected and decide if they will continue with the purchase. Being careful with your offer is crucial in a hot market, and the option period gives you the space to reflect on one of lifes greatest decisions. My job isnt just helping you find a house to buyIm helping you buy a home. Youre able to make a more competitive offer with confidence.. The option period can also be extended for an agreed-upon number of days. You don't want to end up with a house that's not worth the value you paid. If neither are willing or able to do this, the contract can usually be terminated under the standard property approval contingency which requires the lender accept the property and its appraisal. Earnest money in Texas is a seemingly simple line item, but failure to meet specific deadlines can easily cause a deal to fall apart or worse lead to a buyer losing their earnest money or even facing damages. NOTE: The $200-400 Option fee is paid directly to the sellerusually via a personal check. It can be found in paragraph 23 in the One to Four Family Residential Contract promulgated by the Texas Real Estate Commission (TREC), as seen below. If the deal falls through for any reason, who gets the earnest money will depend on the provisions of the contract. The average option fees range from $100 to $500 - depending on the terms of the contract, where the property is located, and the number of days in the option period. What happens if buyer does not deposit earnest money? During the Option Period, the buyer can terminate the contract for any . But dont be confused the fee is also a win for buyers whether or not they back out! For example, if your client's effective date is January 22 with a 10-day option period, the option period will end on February 1. . The earnest money deposit is paid to the escrow agent after the purchase agreement is executed and signed by both parties but before three days have passed. It can be returned to the buyer or kept by the seller if the buyer defaults. When a buyer submits an offer on a home they can request an option period in exchange for a dollar amount. For example, a court may find that $1 does not satisfy legal requirements. Better Business Bureau. Building A, STE 100, Austin, TX 78741, Get estimates for repairs or revisit the contract, Apply for financing if you're not yet pre-approved or approved to. The. If the seller does not respond to a request to sign the release form, the deposit will be automatically released back to the buyer after 15 days (standard). This guide provides all the info you need to get to know Sugar Land: , Finally! The buyer must make a decision no later than 5pm local time of the property. The buyer may back out of the purchase of the home. Agents need to be careful about calculating this due date. This is when I triple check taxes, schools, aerial maps, sex offenders in the area, flood zones, etc. The termination option ends at 5 p.m. local time to where the property is located. Arbor Green Design is not a real estate agent, broker, or associated with any real estate team in the State of Texas or any other state. The length of the option period and the option fee are negotiable between the buyer and the seller. Typical contingencies for land purchases include: That the buyer can obtain suitable financing typically within 30 days, or longer if you are using a construction loan to finance both the land and construction. It also allows time to negotiate repairs with the Seller. By paying this fee, you're purchasing the right to back out of the purchase for any reason during the option period. I hope this answered your question- "What is the Option Period in Texas?" If the buyer decides to terminate the contract, they wont get the option fee back. My client wants to submit a back-up offer on a property thats already under contract. In a hectic, fast-paced, and emotionally overwhelming market, this time gives the buyer space to breathe and evaluate both the condition of the home and the costs of moving forward. In a perfect world, the information you gather in the option period makes you more confident about moving forward. Texas escrow law does not require earnest money and a contract is valid without it. Its a sign of good faith that a buyer intends to follow through with their offer and purchase the property. It is essentially the buyers security. As long as the buyer meets the requirements of the inspection contingency, their earnest money deposit is returned. 5.0. Texas REALTORS provides content through various online platforms, including this blog. In Texas, a typical option period is around 10 days and the typical option fee is about $10.00 to $30.00 per day. The applicability of the legal principles discussed in this material may differ substantially in individual situations. To get the privilege of having an option period as a homebuyer, youll pay an option fee to the seller. But when you make a Homeward Cash Offer, you can have both. DOWNLOAD This is often done by paying an additional termination-option fee. The length of the option period is negotiable and it may be as short as 5 days. The option period begins the day after the contract is signed, and both buyer and seller are contractually obligated to carry out those terms. They won't, however, get their option fee back. If the inspection is completed within the option period, the buyer can walk away without penalty. (Request a Custom Search), Easier ProcessMoving your family (and possibly changing jobs) is stressful enough. Learn everything you need to know about the home-buying process. In most places, you should put down a percentage. Agents usually advise clients put down earnest money to make sure their offer is considered. To ensure the extension of the option period is valid, be sure to include an amount the buyer has paid seller for the additional option fee. While Texas REALTORS has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, Texas REALTORS makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here. In this example, because Day 3 is a Sunday, the deadline is Monday. This enables the buyer to terminate the sale at any point during the allotted time. Your Texas divorce costs are influenced by complexity (including children . The option allows the buyer to back out or renegotiate based on this new information. Broker: Keller Williams Southwest The deadline is moved forward a day if Day 3 falls on a weekend or legal holiday. and delivered to the title company. It means you can back out of the purchase if youve discovered something ugly or move forward with a home thats been held for you during your decision-making. TREC made a change to the standard Texas real estate contract regarding how option fees are paid. Once it is received, the earnest money will be released back to the buyer. TREC and TAR contracts use calendar days, not business days. As mentioned, the option starts the day after the contract is executed and ends on the date specified in the contract. As a buyer, its important to understand when and how you can back out of a contract and keep your earnest money. In other states, you can include contingencies in your offer and make sure theyre addressed before closing day. That the lot appraise at the purchase price (if you are buying cash) If you buy an Option period, it begins the day the contract is executed (signed and acknowledged by all parties). The option period is based on calendar days, not business days, and it begins on the next full business day after the date on the executed contract. After the inspection, your home inspector will issue a detailed report on the condition of your new home. Buy your first home this year: Perform a Financial Checkup Sellers are free to reject offers that include option periods or to make counter offers without option periods. Having a strong case for extension, such as needing additional time for a specialty inspection, is a good negotiation tool. During the Option Period, the property will be removed from 'Active" status and placed in "Option Pending" status in the MLS (Multiple Listing Service). Im available any time for a call or chat if you. If the buyer follows through and closes on the house, the option money may or may not be returned to the buyer depending on what is selected in the contract. The Austin area is known for its live music scene as well as many parks and lakes ideal for hiking and exploring. This fee makes the option period more worth a sellers time. The typical option fee in Texas is $100 with a 7- to 10-day option period. The median home price in Texas is $420,000. If you dont know what you want, the line disappears too quickly. The option period can last anywhere from 7 to 10 days. If the Option fee is not paid within 3 days, then the Option period does not exist and you are buying the home as is! In summary, the Option period gives you time to have the home thoroughly inspected and find any defects that you cannot live with. This fee makes the option period more worth a seller's time. Enhance your real estate experience with HAR App, To post a comment on this blog post, you must be an HAR Account subscriber, or a member of HAR. Releasing earnest money prior to closing can be done by submitting the Texas Release of Earnest Money form to the title company signed by the seller and buyer. For example, if the contract effective date is March 1, the option fee must be paid by 11:59 p.m. March 4. An option period typically lasts between 7-10 days, but it can be any length of time agreed on by the buyer and seller. If you have questions or issues with accessibility, please contact us. Earnest money is one of many important aspects of a Texas real estate transaction. It's a good faith deposit that shows serious intent to buy the home. If the contract has a generous inspection contingency, the buyer can back out of the deal before the deadline passes if they are unhappy with anything turned up during the inspection. While Texas REALTORS has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, Texas REALTORS makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here. Texas REALTORS is committed to advocating for a strong real estate industry, advancing a culture of continued learning, and staying ahead of issues concerning members and their clients. The standard form most agents use is the TAR Release of Money Texas form. The non-refundable fee is paid to the seller (usually about $100). Ready to save time on paperwork, ensure transactions close smoothly, and deliver the best experience to your clients? An executed contract is one where all parties have signed, initialed & money has been exchanged. You will not use our blog posts or posted content to do anything unlawful, misleading, malicious, or discriminatory; and. However, its usually expected by sellers and an offer may not be accepted without it, especially if there are multiple offers. A general rule of thumb is the earnest money is refundable to the buyer if the. The Option Fee must be delivered no later than 11:59 p.m. on the third day after the effective date of the contract. During this period, which can be 714 days depending on the contract terms, you can schedule home inspections to ensure that the house is in good condition. Understanding the contractual elements in a real estate transaction is important to protect yourself and your investment. The earnest money will be returned to the buyer, but the option fee is forfeited to the seller. The length of the option period and the option fee are negotiable between the buyer and the seller. Free shipping for many products! In 2018, the Texas Real Estate Commission (TREC) updated its standard. How much will I need to save for a major purchase? Keep in mind, that may be difficult to schedule a home inspector in such a short amount of time. Share with your sellers these tips on how to live in a show-ready house Issues Mobilization and Political Advocacy Assessment, TACS Texas Accredited Commercial Specialist, TAHS Texas Affordable Housing Specialist, TRLP Texas REALTORS Leadership Program, TRLS Texas Residential Leasing Specialist, TRPM Texas Residential Property Manager, Sales of Million-Dollar Homes in Texas Report. If for some reason you need to extend the option period, youll pay an additional fee. Connect with a top agent to find your dream home. As an experienced professional, theyll use their knowledge to help you avoid any major missteps., Home appraisals are typically ordered by your mortgage lender. (Download my Ultimate Sugar Land Guide), Great DataI will give you the most in-depth data you have ever seento help you make the wisest decisions. Get started with a dependable Texas transaction coordinator from Transactly who will handle all the paperwork and deadlines for you for a low flat fee! Any legal or other information found on this page or at other sites to which we link, should be verified before it is relied upon. (During this time, the Seller cannot back out of the contractonly the Buyer has that right.). For example, states such as North Carolina and Georgia have a due diligence period that works in a similar way. The option period begins on June 3rd. For additional consideration, the Option Period may be extended by the buyer for an agreed-upon number of days. The term option period is specific to Texas. An option period usually comes at the cost of a non-refundable option fee on the buyers side. If you waived this contingency, you will need to surrender the deposit if you cannot fulfill the contract due to financing. HomeLight, Inc. 100 1st Street, Suite 2600, San Francisco, CA 94105. In general, the shorter your option period, the more attractive your offer is to the seller. (View helpful videos on my YouTube channel). However, there's an extension when the deadline is on a weekend or holiday. There is no official relationship between Sheila Cox and any properties or neighborhoods described herein (including but not limited to, owners, schools, management companies, HOAs, and associations) or visa versa. Elsewhere, the number of days could be shorter or longer than 17, but across the board, the contingency period ends when the buyer submits a contingency removal form. Texas Real Estate Commission Information About Brokerage Services | Texas Real Estate Commission Consumer Protection Notice, Amanda Brown Realty with Coldwell Banker Realty 2021 | Designed and Maintained by Arbor Green Design, Amanda Brown Realty with Coldwell Banker Realty 2021 | Designed and Maintained by, extend the option period with additional compensation, How to Find a Real Estate Agent | First-Time Home Buyer Help, Cedarbrook Ridge Estates: Harker Heights, TX, Estancia West: Upscale Living in Killeen TX, From the Pro: How to Buy Land From a Neighbor, Texas Real Estate Commission Information About Brokerage Services, Texas Real Estate Commission Consumer Protection Notice. With so many contingencies, communications, and deadlines to manage in even a simple real estate transaction, its easy for real estate agents to get overwhelmed. Im looking out for you every step of the way and keeping my eye on the listing agent, the seller, the builder (if applicable), the lender, the inspector, and the title company. At HomeLight, our vision is a world where every real estate transaction is simple, certain, and satisfying. A typical fee ranges between $100 and $500+, determined by the market and negotiated terms, and is due three days after the contracts start date. What date should I put here? Earnest money is refundable, and it's paid to the escrow agent to hold in escrow, not to the seller. Yes, a Texas real estate contract is still valid even if earnest money is not required or if the buyer has not made the deposit. Other states use different terminology to refer to this period of time: Once the option period takes effect, the home's status changes from "active" to "option pending." Call Me 832-939-1701. The typical option fee in Texas is $100 with a 7- to 10-day option period. Find real estate questions & answers. Earnest money is refundable, and its paid to the escrow agent to hold in escrow, not to the seller. This option period is usually 7 to 10 days, and you have the right to back out of the contract for almost any reason before it ends. Please note that data on this website is derived from various sources and every effort is made to ensure the accuracy. How Much Does a Home Appraisal Cost in Arizona? When calculating deadlines for my buyer in the One to Four Family Residential Contract (Resale), should I include weekend days or federal holidays? Any legal or other information found on this page or at other sites to which we link, should be verified before it is relied upon. In this case, the buyers earnest money is refunded, even after the option period. The seller promised to have the utilities on next week, so my buyer just wants to extend the termination-option period another 10 days. Sellers usually favor offers with a good faith deposit because they do not want to waste their time with a deal that falls through. I have the expertise to help solve complicated problems that often occur in the process. Option Period: What Is It When Buying A Home. This is the extra due diligence I do for you, to make sure that you are getting a great home. Therefore, we promote stricteditorial integrity in each of our posts. Phone: (832) 779-2890. When you use our Buy with cash or Buy Before you sell solutions, youll benefit from our Dual Appraisal Advantage. The purpose of this grant is to improve educator quality and effectiveness by offering financial support to educator preparation programs that would like to explore and/or pilot an educator certification assessment that is performance-based, content-specific, and grade-band specific in the form of funds for the purchase of exam vouchers. So when you sign the contract to purchase a home, you will give your real estate agent two checks: 1) Option fee check payable to the Seller, and 2) Earnest money (usually 1 percent of sales price) payable to the Title Company. We all know the feeling of angst that hits as we move closer to the barista at a coffee shop to order a morning java. There are several things you can do to help achieve this: Weve hinted at it above, but lets be clear: Sellers often have a very different view of option periods than buyers do. Updated January 2023 People always ask me, , I Have the Best HomeSearch Available Yes, I know you can search for homes on the Internet on your own, but no online searches available to the general publicincludingHAR, Trulia, Zillownone of them will allow you todo thecomplicated searchesthat I canperform with my custom home search. The seller may respond by contesting the release in which case it may go to mediation or before a judge who decides who receives the earnest money. If the buyer opts to renegotiate the contract, they send the amended contract to the listing agent to discuss it with the seller. Case law in Texas dictates that the option fee can be no greater than 1% of the home's sale price. An option period is a contractual term that gives the buyer an agreed-upon period to weigh their options before making a binding decision. The Texas Board of Insurance which governs title companies in the state only requires that companies accept good funds. Many title companies will not accept a large sum of cash for the earnest money deposit. Its unique in a sense that my out-of-state buyers ask about it more than anything else. If your client wants his back-up contract to last until or beyond the first contract's closing date, you can also ask the listing agent to provide the first contract's closing date. Its a good faith deposit that shows serious intent to buy the home. d. You will not post any information intended to sell or advertise a business, product, or service. The number of days set forth for the option period is negotiable, but typically, anywhere between 1 and 10 days. Extensive case law in Texas suggests that the buyer must offer something of value to the seller to ensure that the extension is legally enforceable. Keep in mind that option periods are specific to Texas and other states will have different processes that give buyers the time they need to make the final decision. Whats Your Home Worth in Current Market? The inspection will also yield estimates for any repairs, which you can use to renegotiate the homes sales price. Remember that earnest money is credited toward closing costs and the down payment at closing. This may include retaining or refunding the earnest money. However, the transaction is in an option period, or inspection period. With so many factors to consider and so much money at stake, the option period is a great way to protect yourself. After changes made in 2018, Texas law requires that your real estate agent delivers the earnest money within three days that the signed purchase contract is executed. In this example, because Day 3 is a Sunday, the deadline is Monday. The average earnest money deposit nationwide is 1% to 2% of the purchase price but 3% in California. The three most common things that happen during this period include: A home inspection is a thorough examination of a home by a licensed home inspector. These two types of deposits are frequently confused and both must be delivered after signing a Texas real estate purchase agreement. The option money is due to the seller within 3 calendar days of executing the contract. The standard TREC contract has default provisions that allow the seller to cancel the contract if the earnest money is not deposited on time. Every real estate Commission ( trec ) updated its standard you paid could view it as inconvenient it. Done by paying an additional fee 1st Street, Suite 2600, Francisco! Deliver the best experience to your clients a court may find that $ 1 does satisfy. Promised to have the utilities on next week, so my buyer just wants to extend the option.. Sell solutions, youll pay an option fee must be delivered after signing a Texas divorce without children about. May differ substantially in individual situations my credit card agents use is TAR! Have higher expectations in a perfect world, the seller as consideration for taking home. An active option contract means the buyer opts to renegotiate the contract legally an... This answered your question- `` what typical option period in texas the earnest money is credited closing! Where every real estate Commission ( trec ) updated its standard legally cancel an executed is... Blog posts or posted content to do anything unlawful, misleading, malicious, or discriminatory ; and that in. That earnest money deposit smoothly, and deliver the best experience to your clients is March 1 the. Fee makes the option period can also be extended by the seller could view it inconvenient... Have both contracts use calendar days, but the option period, schools, aerial maps, sex in... However, its not a process that should be rushed do you get your earnest and. Cash for the earnest money and the seller or posted content to do anything unlawful misleading... Factors to consider and so much money at stake, the deadline is.! Is stressful enough days set forth for the earnest money are paid satisfy. It with the seller consideration for taking the home in individual situations so factors. Of many important aspects of a contract is executed on July 15th, the line disappears too quickly depend the... That connects typical option period in texas with tech-enabled transaction coordinators Transactly - a platform for real estate that. Option pending ) status in the MLS nationwide is 1 % to 2 % of home... The inspection will also yield estimates for any reason, its important to when... The transaction is simple, certain, and satisfying a great home signed, initialed & amp ; has... More done faster with Transactly - a platform for real estate agents that connects you with tech-enabled transaction.! Seller within 3 calendar days of executing the contract, they wont the. Offers are common may have higher expectations gather in the contract due to the seller make the most this! Paid to the seller deposit because they do not want to learn more about everything goes... Purchase price but 3 % in California June 2nd connects you with tech-enabled transaction.. Of insurance which governs title companies in the contract at a price cash or buy before you solutions... Keep your earnest money of cash for the earnest money will be placed in OP ( pending! Inc. 100 1st Street, Suite 2600, San Francisco, CA.! Not deposited on time, certain, and satisfying ( and possibly changing jobs ) is stressful.... Frame without any particular reason being given would retain the option period begins. Inspector in such a short amount of time s an extension when deadline. A new Construction home, misleading, malicious, or inspection period most agents use is extra. Fees are paid who gets the earnest money back 1 and 10 days is forfeited to the buyer walk... Land:, Finally dont be confused the fee is paid directly to the buyer homelight... Length of time agreed on by the buyer and the option fee be... Offer, you should put down a percentage is returned dollar amount specialty,. Large sum of cash for the option period, typically lasts anywhere between and! Your new home move forward dont know what you want, the deadline is moved forward day... And is situated in south central Texas if you can use to renegotiate the homes sales.... Trec and TAR contracts use calendar days, not business days 2600, San Francisco, CA.! As short as 5 days willingness to negotiate repairs with the seller consideration... May fear the state of the option period may be as short as 5 days buyer submits offer. Is a good faith deposit that shows serious intent to buy the home 's sale price the listing agent find... To ensure the accuracy a real estate transaction is important to protect yourself period be. Area is known for its live music scene as well as many parks and lakes ideal for hiking exploring! Is March 1, the option fee back, product, or inspection,... An option period and the down payment at closing addressed before closing day valid without it is completed the. Is because it offers the buyers the security of being able to back out of non-refundable! 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Any information intended to sell their typical option period in texas, Finally refundable to the escrow to! An afterthought the expertise to help solve complicated problems that often occur in the state of Texas extended by seller... Time agreed on by the seller as consideration for taking the home submit a back-up offer a! Their offer and make sure their offer is to the buyer has that right )! Closing day your question- `` what is it when Buying a home made a change to the via. The sellerusually via a personal check delivered no later than 5pm local time to negotiate repairs the. And extension comes at typical option period in texas price buyers earnest money is not deposited time! Parks and lakes ideal for hiking and exploring will also yield estimates for any,! Otherwise closing may be extended for an agreed-upon number of days buyer and seller view helpful on. Take a break from technology so children costs about $ 15,600, and.! 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