Receipting the Option Fee Check (For Texas Real Estate Transactions)

By
Real Estate Agent with United Real Estate TX #0552717

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!check

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?

Posted by

Lorrie Semler, e-PRO, GRI, SRES, CPRES, CRS
Addison Resident/Addison Specialist                                                      Subscribe Button
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United Real Estate
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Rainmaker
516,527
Ricki Eichler McCallum
CastNet Realty - Corpus Christi, TX
Broker,GRI,ABR, e-Pro, TAHS

Hi Lorrie,  This is an excellent blog.  So many agents are negligent in this area.  More care should be taken for the buyer's sake.  Some sellers will hold them to it and it's their mistake.  Merry Christmas!  :)

Dec 25, 2011 02:24 AM #1
Rainmaker
223,991
Tricia Jumonville
Bradfield Properties - Georgetown, TX
Texas REALTOR , Agent With Horse Sense

It's amazing how many agents I run into that STILL want me to leave the option fee check with the title company, even though I tell them that the title companies won't accept the checks any more, even without receipting them.  Or, when this is pointed out, want me to just drop it through a mail slot and they'll email me the receipt.  No, I don't think so.  It's my job to make sure that my client is protected and to make sure that you (the seller's agent) don't prevent that from happening either through intent or negligence.

Dec 29, 2011 05:09 AM #2
Rainmaker
1,075,962
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Many agents seem to forget the importance of delivering the option check in a timely fashion to the seller's agent.

Jan 01, 2012 04:50 AM #3
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Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417

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