Representing a buyer in Texas in a residential real estate transaction? Do your clients a BIG favor. Make sure YOU get the option fee check to the listing agent or the seller within 2 days of the contract being executed. And make sure it is receipted on the last page of the contract. It's simple: no option check, no option period. Period!
Sending the option check along with the earnest money to the title company won't do you any good. The title company will not receipt the option fee. Please READ the contract - it clearly shows that the SELLER or LISTING BROKER can sign for the option fee. No one else can receipt it.
Paragraph 23 (Termination Option) on the TAR 1-4 Family Resale and Condo Resale contracts states that the Seller agrees to pay the option fee within 2 DAYS after the effective date of the contract ... and "Time is of the essence for this paragraph and strict compliance with the time for performance is required."
The paragraph goes on to state "If Buyer fails to pay the Option Fee to Seller within the time prescribed, this paragraph will not be a part of this contract and Buyer shall not have the unrestricted right to terminate this contract."
When YOUR buyer loses the unrestricted right to terminate the contract because YOU didn't get the option check to the right person at the right time, guess who they're going to blame?