In a Texas home purchase, the option period is a negotiated number of days at the start of the contract when the buyer can terminate for any reason and get their earnest money back. The buyer pays the seller a small option fee for that unrestricted right. Inspections and repair negotiations happen inside this window.
How the option period works
The length and the fee are both negotiated in the contract. A typical option period in Texas runs five to ten days, with option fees commonly in the low hundreds of dollars, though both move with the market. Under the current Texas contract, the buyer delivers the option fee together with the earnest money to the escrow agent within three days after the effective date. If the sale closes, the option fee is credited back to the buyer at closing.
What happens during the window
This is inspection time. The buyer gets the home inspected, gathers bids for anything the inspector flags, and decides whether to move forward as-is, request repairs or a price adjustment through an amendment, or terminate. Sellers should expect repair conversations to happen here, not later.
The clock rules people miss
- Option period days are calendar days, so weekends and holidays count.
- Day one is the day after the contract’s effective date.
- The option period ends at 5:00 p.m. local time where the property sits, on the last day.
- A termination must be delivered in writing before the deadline. Deciding to terminate is not the same as delivering notice.
If the buyer terminates
The buyer gets the earnest money back and the seller keeps the option fee. That is the deal: the fee bought the right to walk away, whatever the reason.
After the option period ends
The buyer may still have specific exits under the contract, like the financing or appraisal provisions if they apply, but the walk-away-for-any-reason right is gone. From this point, missing a deadline can put the earnest money at risk, which is why our glossary entry on earnest money is worth two minutes of your time.
A note for sellers
A shorter option period with a meaningful fee is a stronger offer, because a long, cheap option period effectively takes your home off the market while the buyer decides. When comparing offers, look at the option terms, not just the price.
Under contract and unsure about a deadline? Call us at (972) 528-6071. We will look at your file and give you a straight answer.