Option Period - What is this?
In Texas Buyers have the blessed option of opting out of a contract for any reason they choose during the 10 Option period allotted on the contract.
During this time a buyer will give a seller and option check. The check is given to the seller in return of them taking their home off the market. If the buyer backs out of the contract during the option period, the buyer loses the money to the seller.
During the option period is when buyers will arrange for an inspection. Remember the buyer can opt out of the contract for any reason during the option period and only be out the typical $100 to the seller. This is a great advantage to buyers here in Texas.
A downfall is the seller has to be aware of the fact that just because there is a contract on the home, it doesn't necessarily mean that the sale will ultimately happen. This is where the option check comes into play. If a seller wants to up the amount of money for an option period they are allowed to do so and all is negotiable.
SO when you here the words "Option Period" think of it as the buyers option to "Opt" out of a contract without having to explain why they choose to opt out. At this point Earnest money will be given back to the buyer and the home will then go back on the market.
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