What Happens During the Option Period
The option period when selling a home is a short, negotiated timeframe (typically 5–10 days, but it can vary) during which the buyer has the unrestricted right to terminate the contract for any reason. This period is a key part of the real estate contract in states like Texas, where it provides buyers with a chance to conduct inspections and due diligence before fully committing to the purchase.
Key Aspects of the Option Period:
* Option Fee – The buyer pays a non-refundable fee to the seller for the right to terminate within the option period. This fee is negotiated and usually ranges from a few hundred to a few thousand dollars.
* Home Inspections & Negotiations – The buyer often uses this time to conduct inspections. If issues arise, they may renegotiate repairs, request a price reduction, or even walk away.
* Seller’s Perspective – While sellers must allow the option period if it’s agreed upon, they benefit from keeping the option fee, even if the buyer backs out.
* End of the Option Period – Once it expires, the buyer typically loses the right to back out without penalty (except for other contingencies in the contract).
