FAQ - What is the Option Period?

Here in Texas, the real estate sales contract allows the buyer to pay a small fee (usually $100) for the right to terminate the sales contract for any reason, for an agreed-upon amount of time. This period of time is known as the Option Period. Many buyers are not familiar with the Option Period, and have a lot of questions about how it works.

 

The Option Period begins on the day the contract is executed, and usually lasts for 7-10 days on a residential sale. During this time, there are several things the buyer needs to take care of, including the following:

 

• Have a licensed inspector inspect the home for any deficiencies. This needs to be scheduled as soon as possible once the Option Period begins.
• Have a termite inspection done on the home. Sometimes the home inspector will do the termite inspection, but usually a separate licensed pest-control company will do the termite inspection. This usually takes place at the same time as the home inspection.
• Have a pool inspection done if the home has a private pool.
• If you have plans to put in a pool after closing, you would want to have a pool company come out to look at the layout of the land and discuss design and price. You would also want to contact the city to make sure there are no city ordinances that would restrict your pool plans.
• If the home shows signs of foundation movement, the buyer might need to get the advice of a foundation repair company during the Option Period.
• If you have plans to do any remodeling on the home you are trying to buy, you might want to have your contractor come out during the Option Period to look at the scope of work and give you an estimate.    
• You can have any other inspections done during this period, including environmental testing if you feel it is necessary.

 

During the Option Period, you will negotiate repairs with the seller, and provide documentation from your inspections to back-up your repair requests.

 

The best thing about the Option Period is that you can withdraw from the contract during this time FOR ANY REASON. As long as you withdraw from the contract before the Option Period is up, you will receive your earnest money back, but the seller keeps the fee you paid for the right to terminate. If you do not terminate the contract, and continue with the purchase, the Option Fee applies to the purchase price.

 

Time is of the essence when it comes to the Option Period. Your Realtor will keep you advised and not let the Option Period expire before terminating the contract, if that is what you want to do.

 

If you are looking for a home, be sure to use a Realtor who can guide you through the Option Period without a hitch.

 

For assistance buying a home

in Friendswood, Pearland, League City,

Alvin, Manvel, or the Clear Lake Area,

call local Realtor Rose King for excellent service!

 

Rose King

Serving you in Galveston County, Brazoria County, Pearland, Friendswood, Alvin, Manvel, Rosharon, League City, Webster, Clear Lake, South Belt, and the Houston Bay Area

Visit My Website!

Email me at rose@rosekingrealtor.com

Thanks for stopping by! Your comments are welcome!

Please Subscribe to My Blog!