Texas option period Inspections, thorough.
Understand the negotiated option period, inspection planning, payment requirements and the deadline for your decision.
The contract sets the clock
Option fee, earnest money and the deadline
The option fee and earnest money do different jobs. The fee supports an agreed termination option; earnest money is a contract deposit. Use the amounts, dates and notice instructions in your signed contract.
How much is the option fee?
It is negotiated, not a fixed Texas fee. TREC 20-19 leaves the amount and option length blank for agreement. Under paragraph 5, payment goes to the escrow agent; the fee is credited toward the price at closing but is not refunded after a timely option termination.
How are option-period days counted?
Count calendar days after the effective date; the next day is day one. Under paragraph 5B, termination notice is due by 5 p.m. where the property is located on the final option day. The weekend/holiday extension for delivery of money does not extend this option deadline.
How much earnest money is normal in Texas?
There is no single amount set by this form. The parties negotiate it. Consider the offer, available cash and contract risks instead of relying on a generic percentage. The escrow agent holds the deposit; refunds depend on the contract and the reason for termination.
Source: TREC resale contract 20-19, paragraph 5, effective July 1, 2026 and checked October 1, 2026. Other contract forms may differ. Ask your attorney about your situation.
What should happen during the option period?
Agree on a schedule that fits the actual option length. Inspection appointments, reports and negotiations do not pause the contract clock.
- Confirm the dates and deliveryUse the effective date recorded for the fully executed contract. Calendar the delivery deadlines and final option-notice deadline separately. Confirm receipt with the escrow agent.
- Book inspections earlyStart with a qualified home inspector, then arrange specialists as the property and findings require. Confirm their scope, availability and fees directly.
- Understand the findingsAsk the inspector what is a safety issue, what needs further evaluation, and what is ordinary maintenance. Get written repair estimates when cost could change your decision.
- Negotiate specific termsRepairs, price changes and credits require agreement. Check lender limits on credits. Put any repair scope or extension in a signed amendment; a conversation or pending request is not an extension.
- Decide before the deadlineConfirm whether to proceed or use an available termination right. Notice must meet the contract’s timing and delivery requirements. Get legal advice if the right or procedure is uncertain.
If payment is late: under TREC 20-19, missing the option-fee requirement removes the unrestricted option right. Missing the earnest-money deadline has different seller remedies. Do not assume a grace period or that the two defaults have the same result.
Which inspections does this Houston home need?
The home’s age, systems, visible condition and history should guide the scope. A general inspection can identify reasons to seek a specialist; it does not replace every specialist evaluation.
- Structure and foundation: ask whether observed movement or prior repairs call for a qualified structural evaluation and document review.
- Plumbing and drains: discuss accessible plumbing, sewer-line evaluation and any proposed testing. TREC’s resale contract requires separate written seller authorization for hydrostatic testing.
- Roof, HVAC and electrical: ask about condition, remaining concerns and whether a licensed trade should evaluate or estimate repairs.
- Wood-destroying insects, pools and other systems: confirm whether these are in the general scope or need a separate appointment.
- Flood and insurance: review the mapped flood zone, available property flood history and actual insurance quotes separately. One does not establish the others.
Keep the inspection report, seller disclosures and repair documentation together. Some sellers are exempt from the statutory seller-disclosure requirement; the contract and applicable law determine what must be provided.
What if we need repairs or more time?
Can the seller decline repairs?
Yes. A request is a negotiation, not an automatic obligation. Compare the response with your budget, the property’s condition and any remaining contract rights. Have agreed work or credits recorded in writing.
Can the option period be extended?
The parties can agree to an amendment. A request alone changes nothing. Confirm the executed extension before relying on a later deadline.
What happens after the option period?
The unrestricted option right ends. Other contract rights may remain, but their conditions, notices and deadlines matter. A financing or appraisal problem does not automatically let every buyer cancel. Review the signed contract and addenda with your agent and attorney.
General guidance based on TREC resale contract 20-19, paragraphs 5 and 7, checked October 1, 2026. Ask your attorney about your situation.
Houston Buyer Option Period · Inspection Consult
Inside the Houston option period?
Inspection planning, repair discussions and the contract calendar. We can use a 30-minute call to work through the next step for your Houston purchase.
