Sellers and Buyers in Texas~Do you understand the option period?
Real Estate practices vary in each state. It can be confusing to the consumer. Some states include repair allowances in their contracts for items in need of repair. Many states include a statement the home is purchased “AS IS”.In Texas the contract reads the home is being purchased “AS IS” and there is no repair allowance stated. There is a negotiated "Option Period" (which includes a fee to the buyer) stating a number of days the buyer has to exercise their option to terminate for any reason. For any reason the buyer may terminate the contract and forfeit the option fee and receive his earnest money back as long as the document is sent to all parties that the buyer is terminating before the option period ends.
The seller prefers a short option period with a high option fee and the buyer a longer option period and lower option fee. It’s all negotiable!
During this time frame any inspections the buyer wants to conduct or research on insurance rates etc. needs to be completed. An Amendment may be drawn with requested buyer repairs and presented to the seller and their agent during the option period (best not to wait until the very last day to present request). It is re-negotiation time. Remember the seller can accept, counter or reject any and all requests. If the buyer is unhappy with the negotiations they do have the right to terminate the contract.
There are guidelines that govern exercising the option period:
· The buyer must pay the option fee within 3 days of the effective date of the contract.
· Weekends and holidays count when determining the day the option period ends, not just business days.
· The option period ends at 11:59 pm on the last day of the option period.
· The buyer must pay an additional fee to extend an option period.
· A buyer does not need to provide a reason to terminate the contract during an option period.
Selling or buying a home in Austin TX, is a complex process and you want to work with a REALTOR® that understands the process. I have systems in place, references and am a good listener and communicator. If you are looking to sell or buy a home in NW Austin it would be my pleasure to schedule time to see if we are a good match. Reach out to me at 512.346.1799 or email at email@example.com.