Texas Option Period
What is an option period?
The option period is the time for which the buyer pays the seller to take the property off the market so that the buyer may complete inspections on the property. A typical option period in a 30 day escrow would be 7-10 days. During this time period, the buyer will complete their inspections and submit any request for repairs. After the option time has expired, the buyer no longer can back out of the deal based upon these inspections. Option periods in Texas are very similar to due diligence time periods in CA, AZ, NV, etc.. however, in TX, the option period must be bought by the buyer. Typically, this is a very nominal amount, such as $100-$200. The buyer actually makes the check out the seller directly. In the event the deal does not close for any reason, the seller will retain the option money for taking the property off the market. In the event the deal closes escrow, this money is applied to the purchase price at closing. Option money should not be confused with earnest money.