Texas Option Period FAQ: Fees, Deadlines and How to Terminate

The option period is one of the most important protections a Texas home buyer has, and one of the easiest to lose by missing a deadline. Here are quick answers to the questions we hear most. For the full walkthrough, read Texas Option Period Explained: Why Time Is of the Essence.

What is the option period in Texas?

In the standard TREC residential contract, the buyer can pay the seller an option fee for the unrestricted right to terminate the contract for any reason during a set number of days. Buyers typically use this time for inspections, repair estimates and a final look at the numbers.

How many days is the option period?

There is no fixed number. The buyer and seller negotiate it and write it into the contract. Many Central Texas contracts use somewhere around 5 to 10 days, but it depends on the market and the property. The days are counted from the contract's effective date.

When does the option period end?

Under the current TREC contract it ends at 5:00 p.m. local time on the last day. Time is of the essence, so there is no grace period. If you want out, your agent needs to deliver the termination notice before that deadline.

When is the option fee due, and do I get it back?

The option fee must be delivered to the escrow agent within 3 days after the effective date, or the buyer doesn't get the termination right. The fee itself is generally not refundable if you terminate, but if you close, it is typically credited to the buyer at closing. If you terminate on time during the option period, your earnest money is normally refunded.

How do I terminate during the option period?

Your agent sends the seller the TREC Notice of Buyer's Termination of Contract before the deadline. You don't need to give a reason.

Can I negotiate repairs during the option period?

Yes. Most repair requests and price adjustments happen here, usually with a TREC amendment. Keep the deadline in mind: if the seller hasn't agreed in writing by the end of the option period, you no longer have the unrestricted right to walk away.

This is general information, not legal advice. Your contract controls, so read it carefully and ask your agent or an attorney about your situation.

Next steps: Work through our 10-step first-time buyer guide, see homes for sale, or book a call with Trina at (512) 629-9050.